Structured investment vehicle, or SIV

From Wikipedia :

A structured investment vehicle (SIV) is an "evergreen fixed income maturity transformation fund", similar to a CDO or Conduit. They are usually from around $1bn to $30bn in size and invest in a range of asset-backed securities, as well as some financial corporate bonds. An SIV is formed to make profits from the difference between the short term borrowing rate and long term returns. The risk that arises from the transaction is twofold. First of all, the solvency of the SIV may be at risk if the value of investments falls below the equity part. Secondly, there is a liquidity risk, as the SIV borrows short term and invests long term, that is the debt comes due before the asset falls due. Unless the borrower can refinance short-term at favorable rates, he may be forced to sell the asset into a depressed market.

My thought :

I recently found the definition was slightly altered (presumably owing to some critics). Formerly, it went like "A structured investment vehicle (SIV) is an evergreen credit arbitrage fund." However, such explanation looked a bit misleading.

"Evergreen ... arbitrage " fund meant classic borrow short to invest long. At first, the evergreen may not be proper adjective. The word still remains in the current description, though. Some disagreed saying they are evergreen until the fire comes and burns them down. That is what I am all for.

Meanwhile, "why do people keep thinking this is an arbitrage play when it is not? It is speculation. I suppose evergreen credit speculation fund doesn’t have the same ring to it" another said.