​ Federated Investors' Debbie Cunningham on SIVs and New Super Conduit. In a recent commentary, money fund veteran Deborah Cunningham describes the M-​LEC and SIVs. She says, The "master liquidity enhancement conduit (​M-​LEC) will serve as a back-​up liquidity facility for structured investment vehicles.... SIVs are special-​purpose corporations that issue highly-​rated commercial paper and medium-​term notes. They then invest the proceeds in highly-​rated securities. SIVs, some of which have existed for nearly twenty years, are important because they underpin an estimated $​320 billion in consumer and corporate borrowing.... The underlying assets and management of most SIVs -- the four in which Federated participates, for example -- are very strong. The majority of the SIVs have minimal or no U.​S. subprime mortgage exposure. Even so, in the current environment, SIVs have encountered some difficulty in rolling over their debt."

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