Bonds News

FDIC's $653 mln structured guaranteed notes launched

NEW YORK, March 24 (Reuters) - The Federal Deposit Insurance Corp’s $653 million structured guaranteed note sale was launched on Wednesday by the sole underwriter, Barclays Capital, market sources said.

The FDIC’s four-year guaranteed notes, tied to the residential mortgage assets of failed U.S. banks, were launched with a 3 percent yield, market sources said.

The latest deal will bring total sales by the FDIC in March to $3.8 billion. Earlier this month, the FDIC sold $1.37 billion of securities backed by construction loans and $1.81 billion of securities tied to option adjustable rate mortgages. Barclays Capital was sole underwriter for the sales, sources said.

The asset sales, tied to the mortgage meltdown, were highly anticipated by investors and dealers as the FDIC continues to accumulate loans from failed banks at an alarming rate. (Reporting by Nancy Leinfuss; Editing by Padraic Cassidy)