On Wednesday, the Federal Reserve Bank of New York announced that it had sold assets with a face value of $6.2 billion to Goldman, which trumped four other investment banks for the securities, NY Times' Dealbook reports.
The auction — the second such sale this year — signals the renewed interest in mortgage-related investments and other risky securities at the center of the financial crisis. In recent months, banks, hedge funds and other big investors have been snapping up the bonds, betting on a rebound in their prices.
“There’s a saying: there are no bad bonds, there are just bad prices,” said Evan Lorenz, an analyst at Grant’s Interest Rate Observer. “If you can get them at the right price, you can make a good amount.” The A.I.G. assets, held in an investment vehicle known as Maiden Lane II, were acquired in 2008 as part of the insurer’s taxpayer-financed bailout. The Federal Reserve Bank of New York created the vehicle — and financed it with a $19.5 billion loan — to absorb troubled securities sitting on the insurer’s books….
Read all abaout it at http://dealbook.nytimes.com/2012/02/08/goldman-wins-auction-for-6-2-billion-of-a-i-g-assets/?hpw
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