Structured Finance Operating Companies: SIVs, SLVs, and Other Structured Vehicles

The growth of structured finance operating companies, including structured investment vehicles, structured lending vehicles, credit derivative product companies, and other forms of structured vehicles continues to increase with new programs, technologies, and asset classes being introduced. The term structured finance operating company (SFOC) began at Moody's when, in reviewing the number of structured companies entering the market and the breadth of product types seeking ratings, the agency decided to consolidate its ratings approach when dealing with these structures. This chapter focuses on one type of structured finance company: a structured investment vehicle. The purpose of this chapter is to explain the technology of the different types of structured finance operating companies.