BlackRock reportedly sold all of its $3.7 billion of 179 legacy non-agency RMBS bonds to Credit Suisse, last week.
The bonds were mostly subprime and home-equity RMBS that were purchased from UBS AG six years ago.
Bloomberg reported that Credit Suisse purchased the entire portfolio in an "all-or-nothing" style auction. According to Interactive Data, “based upon Financial Industry Regulatory Authority (FINRA)-reported trade volumes for the prior session, it appears that the majority of bonds were quickly purchased by another investor(s).”
Credit Suisse paid 73 cents on the dollar, for the bonds. Price talk ranged from 20 to 90 cents on the dollar.
The sale is the biggest all-or-nothing RMBS list since 2010, according to Empirasign Strategies, which tracks securitization-market trading.
The bonds were part of the $22 billion of securities that BlackRock’s RMBS Opportunities Master Fund LP purchased from UBS for $15 billion in May 2008.