The Federal Reserve Bank of New York Wednesday said it has started a competitive bid process for commercial real estate collateralized debt obligation holdings in the Maiden Lane III LLC portfolio.
The Fed said the bidding is in response to several reverse inquiries for the MAX CDO holdings it acquired during its bailout of American International Group in 2008.
Interested broker-dealers invited to submit bids for the entire MAX CDO holdings only include: Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley and Nomura Securities.
ML III’s investment manager BlackRock Solutions is conducting the bid process.
Bids are due April 26 and the Fed said it would sell the assets only if it feels the bid represents good value to the public. It said it would take care to avoid market disruption in any sale.
