The Federal Reserve Bank of New York has sold the entirety of the TRIAXX CDO holdings from its Maiden Lane III portfolio to Merrill Lynch, Pierce, Fenner Smith after a competitive bid process.
Aside from Merrill, the other eight dealers asked by the New York Fed to bid were Barclays Capital, Citigroup Global Markets, Credit Suisse, Deutsche Bank Securities, Goldman Sachs, Morgan Stanley, Nomura Securities and RBS Securities.
This round of Maiden Lane III sales follows April’s auction of $7.5 billion of Maiden III MAX CDO holdings. Barclays Capital and Deutsche Bank Securities won the competitive bidding process for the entire MAX CDO holdings, which is collateralized by commercial mortgages acquired in the government’s rescue of American International Group.
In a press release New York Fed president William Dudley said the winning bids for the TRIAXX CDO holdings “were materially higher than the original prices ML III paid.”