impact of SIV to banks

--SIV are bank-backed investment funds, which issue CP to invest in high yield securities --it could compound banks' subprime issue by forcing them to cover conduicts' maturing debt. --alternatively, conduits could sell assets to raise funds, which put downward pressue on assets price and downgrade pressure. --HBOS' conduit Grampian, one of the largest, with about $35 bil in paper outstanding --Citi, $80 bil