August turned out to be a blisteringly dry month for the ABCP and structured investment vehicle (SIV) markets.

In its first week, mortgage REIT American Home Mortgage Investment Corp., declared bankruptcy, stopped taking mortgage applications and slashed its staff by 90%. When the capital market tides turned against the Melville, N.Y.-based lender, which specialized in interest-only ARMs, it also catalyzed the erosion of investor support to the ABCP market that had already gotten underway.

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