Making MLEC work will be no easy matter
The banks backing MLEC, the planned $75bn superconduit to help out struggling SIVs, have agreed on how they want to structure it. But the hard part will be actually making it work — above all, convincing SIVs that it is safe to use.
When Bank of America, Citigroup and JP Morgan announced on October 15 that they were setting up a $75bn Master Liquidity Enhancement Conduit to buy assets from troubled structured investment vehicles, they were greeted with a chorus of raspberries.
By then, anything to do with structured finance, and especially
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: email@example.com
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: firstname.lastname@example.org or find out more online here.