- January 2008: Vol. 20 No. 1

To read this full article you need to be subscribed to Institutional Real Estate Americas

Investing in Good Governance: Subprime-Related Losses Stir Up the Conversation

by Rachel McMurdie

When the Florida State Board of Administration invested about $2 billion in structured investment vehicles (SIVs) and other debt instruments on behalf of its local government investment pool, the board, which also oversees the $138 billion Florida Retirement System Pension Plan, thought it was investing in a relatively safe account, one that happened to pay a little more interest than a bank would. But when the mortgage crisis and downgrades of asset-backed debt held in the portfolio began to drain funds from the bottom line, it became apparent that the investments were far from risk-free. The lower credit ratings and the looming prospects of loan defaults produced a run on the Florida fund

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy