Citigroup to Buy Off-Balance Sheet Assets
NEW YORK -- Citigroup (C) says it will acquire the remaining $17.4 billion in assets held by structured investment vehicles it already supports.
The transaction announced Wednesday will help Citi fully unwind the troubled SIVs, and allows the funds to fully repay maturing debt obligations.
Citi will move the SIV assets to a portfolio of assets held for sale.
The value of SIV holdings has fallen sharply during the ongoing credit crisis, forcing banks that operated them to provide additional financial support.An SIV is a fund that borrows money by issuing short-term securities at a low interest rate and then lends that money by purchasing long-term securities at higher interest. Investors can profit from the difference in rates.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV