TPG-Axon takes $200m write-off on SIV

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Axon Financial Funding, a structured investment vehicle owned in part by hedge fund TPG-Axon Capital, is now restricted from purchasing new debt or issuing new paper following ratings downgrades.

Axon Financial is a structured investment vehicle, or SIV, that takes leveraged credit risk by issuing interest-yielding securities and using the proceeds to invest in long-term debt, such as asset-backed securities and bank debt.

The Axon SIV received a downgrade on October 24 by Fitch Ratings that reduced its U.S. commercial paper rating to “F3” from “F1” and reduced the rating on its Euro-denominated medium-term notes to “BBB-“ (Fitch’s lowest rating