From Candy Floss to Garages
(of which this new Barclays ruse is, it has to be said, another example), we now have another fine image from the same Barclays/Cayman story that we've just blogged: an analogy to help illustrate what a Structured Investment Vehicle (SIV) is.
Her analogy is a garage or cellar, where you park irritating clutter.
"For just as a garage or cellar is usually attached to a house – but not truly inside a house – entities such as SIVs and conduits have traditionally had a semi-detached status with banks. That served the banks dangerously well in the years of the credit boom, since they used SIVs as a place to store irritating stuff which they did not want cluttering up their balance sheet – such as a household stuffing rubbish into a cellar, so that it does not mess up the smart front room."
It is an image that works well.