Dresdner Bank AG is bailing out an $18.8 billion K2 structured investment.

Dresdner, a unit of Allianz SE will provide credit to allow the fund to pay off its senior debt, the company said, according to the Bloomberg news agency. The fund will also be downsized, Dresdner said in a statement.

Dresdner said the size of the fund has fallen from $31.2 billion in value last July to its current size.

A large majority, about 90 percent, of the assets in the fund were securities with triple-A or double-AA ratings. It added that the K2 fund did not have direct exposure to risky securities backed by subprime or midprime mortgages.

It also said that it did not have exposure to complex securities known as collateralized debt obligations which were backed by asset-backed notes.

Other large banks, including HSBC and Citigroup have taken similar steps to protect funds. Dresdner is the last of the banks to make plans to bail out its SIVs.

Investment Citigroup