According to structured finance analytics firm Interactive Data, the announced liquidation of $5.1 billion from the ING Illiquid Assets Back-up Facility spiked activity levels higher yesterday in the mortgage bond market.
A handful of Wall Street finance companies purchased portions of the 316 residential mortgage backed securities portfolio, according to the Dutch State Treasury Agency.
The ING Group (ING) is a Dutch investment firm and insurer. It received a bailout from the Netherlands and is liquidating all non-core, non-insurance assets as part of the conservatorship.
The ING Illiquid Assets Back-up Facility remaining size of the portfolio has a face value of $6.5 billion, which will be auctioned within the next twelve months.
ING had a notoriously difficult time bringing this portfolio to market and received much greater success in selling off its core U.S. real estate assets.
Here's how the sale went down:
Bank of America (BAC) received a $1.8 billion allocation.
Goldman Sachs (GS) purchased $1.3 billion.
Credit Suisse (CS), Deutsche Bank (DB) and Morgan Stanley (MS) split the remaining amount in relatively equal measure ($550 to $800 million each).
