The Federal Reserve Bank of New York has postponed the sale scheduled for today from its Maiden Lane III portfolio.

The sale today included  CDOs tied to home loans known as Duke Funding High Grade I Ltd., which was created in 2005 with a unit of hedge-fund firm Ellington Management Group as the manager, according to market reports.

The New York Fed said in a statement that it decided to postpone its auction of ML III's holdings in the Duke CDO after it became aware that there was additional information concerning the Duke CDO that had not been made available to the bidders. The New York Fed's auction of ML III's positions in the Putnum CDO is proceeding as announced on May 11.

From the onset of the Maiden Lane III portfolio sales, the Fed said that it had no fixed timeframe for future sales. The Fed also said that it would only sell assets if the best available bid represented good value, while taking appropriate care to avoid market disruption.

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