Fed opens bidding on AIG CDOs
The Federal Reserve Bank of New York invited eight firms to bid on collateralized debt obligations once held by American International Group (AIG).
The CDOs are linked to commercial mortgage-backed securities and were acquired by the NY Fed as part of the bailout of AIG. The assets fall under the Maiden Lane III portfolio. As of Dec. 31, MLIII held $17.8 billion in mostly high-grade ABS CDO along with other assets and mortgage bonds once held by the monoline.
The portfolio was reduced from a $27.1 billion total in December 2008.
Bids will be due April 26. The NY Fed said it would decide then whether it would sell the assets based on the bids submitted.