What are the benefits of a SIV?
- Returns A SIV can provide an asset manager with very attractive returns. The return is generated from the net “spread” between the SIVs gross cost of funds (including operating expenses) and the yield on its investment portfolio
- Increased funds under management A SIV provides asset managers with the opportunity to increase funds under management and thereby increase fee-based income
- Access to the CP and MTN markets A SIV provides access to the commercial paper and medium term note markets to asset managers who may not typically have access to these funding sources or debt markets, e.g.
