Caution at Cairn
Cairn Capital's chief executive, Paul Campbell, talks to Alexander Campbell
Credit manager Cairn Capital made headlines in August when it was forced to restructure its High Grade Funding I structured investment vehicle (SIV) in the face of the evaporation of the asset-backed commercial paper market. The £800 million restructuring, now complete, succeeded - but at the cost of rebuilding the vehicle into a term-funded structure, essentially a collateralised debt obligation (CDO).
The decision marked the effective end of the SIV business. Paul Campbell, chief executive of
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