Standard Chartered SIV Whistlejacket has defaulted on its obligations and might be set for an orderly unwind.

However, for ABCP buyers, the StanChart situation signals a loss in confidence that bank-sponsored deals would be supported by their parent entities. "The bank had renewed its proposal of support after the SIV entered enforcement, but it now appears the receiver will look to defer any maturing debt, avoiding any asset fire sale," said Deutsche Bank analysts.

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