NEW YORK, July 15 (IFR) - Credit Suisse has won a US$3.7bn
bid list of 179 legacy non-agency RMBS bonds, market sources
said on Tuesday, the biggest sale of its kind since the crash.
The cover bid - the second-best offer for the list - was 73
cents on the dollar, a portfolio manager said.
Price talk had ranged between 20 to 90 cents for most items
on the list, but the sale also included a small portion of prime
securities which were talked above par, as well as a few
out-of-the-money positions being offered at low low-single
"The question is, how much is Credit Suisse left with after
filling client orders?" said Adam Murphy, president of
Empirasign Strategies, a capital markets trade database.
The seller, a structured investment vehicle (SIV) controlled
by the bad-bank arm of UBS, according to the sources, hired
BlackRock Solutions to run the "all-or-nothing" style auction,
which only accepted bids for the entire list of bonds.
On offer were mostly subprime and home-equity RMBS bonds
held by the SIV since the financial crisis.
"It is incredibly strong and likely sets the
market higher," the portfolio manager said.
Calls to Credit Suisse were not immediately returned.
(Reporting by Joy Wiltermuth; Editing by Natalie Harrison)