Dutch Select Five Broker Dealers for ING’s U.S. Mortgage Debt
The Dutch government selected five bidders in a first auction of U.S. mortgage bonds with a face value of more than $5 billion.
The broker dealers include Bank of America Corp., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc. and Morgan Stanley, the Hague-based Dutch State Treasury Agency said in a statement Friday. BlackRock Inc. is running the auction. Bids are due Dec. 11.
The Netherlands plans to sell $12 billion in U.S. mortgage bonds it acquired during the 2009 bailout of ING Groep NV. Many of them were tied to riskier borrowers who failed to document their incomes.
The market value of the bonds was at one point more than 6 billion euros ($8.22 billion), about 71%of the face amount, according to ING.
Residential mortgage-backed securities ING’s U.S. units held plunged in value after foreclosures soared and property prices fell in 2008.
The government started the auction “based on the continued improvement in the U.S. housing market and a high level of interest by investors for non-agency RMBS securities,” the treasury agency said on Dec. 4. It expects to complete the sale within 12 months, though the process may halt if market conditions change.