When In Doubt, “Vertical Slice” It?

December 15, 2008
Asset Securitization Report

When In Doubt, "Vertical Slice" It?

“Vertical slicing” is the practice of allocating shares of distressed structured investment vehicle (SIV) assets among one or more classes of noteholders (and, in some cases, certain other SIV creditors) in proportion to their share of the SIV’s liabilities. This article explores this critical component of recent SIV reorganizations and restructurings.