Lloyds Banking Group is planning to auction roughly $8.7 billion of residential mortgage-backed securities that were issued before the credit crisis.

Sources told HousingWire that a massive CDO deal was being offered in a large bid list comprised of five all-or-none packages.  The bonds are coming from five CDOs backed by RMBS.

The idea is if this esoteric deal prices and performs well, it’s a good sign of a return to risk for investors.