New York Fed Initiates Another Maiden Lane III CDO Bid


The New York Federal Reserve has initiated a competitive bid in response to reverse inquiries for the holdings in two mortgage-related Triaxx collateralized debt obligations in the Maiden Lane III portfolio.

All-or-none bids for each of the two CDOs are due on May 10, at which point the New York Fed said it will decide whether or not to sell either or both, depending on the strength of the best bids.

The nine broker-dealers that have shown interest and been invited to bid are Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley, Nomura and RBS.

The New York Fed acquired the CDOs in the 2008 bailout of AIG. It recently completed the bidding and sale of other CDO assets related to that bailout.



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