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New York Fed Solicits Bids for MAX CDO Holdings in Maiden Lane III LLC

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According to the press release, “The New York Fed today announced that it has initiated a competitive bid process in response to several reverse inquiries for the MAX CDO holdings in the Maiden Lane III LLC portfolio (ML III). The New York Fed has directed BlackRock Solutions, the investment manager for ML III, to conduct a competitive bid process for the entirety of the MAX CDO holdings, consistent with past practices. All-or-none bids will be due on April 26, 2012, at which point the New York Fed will decide whether to sell depending on the strength of the best bid.

The following eight broker-dealers have been invited to submit bids for the MAX CDO holdings based on the strength of their expressions of interest in these holdings:

  • Barclays Capital Inc.
  • Citigroup Global Markets Inc.
  • Credit Suisse Securities (USA) LLC
  • Deutsche Bank Securities Inc.
  • Goldman, Sachs & Co.
  • Merrill Lynch Pierce, Fenner & Smith Incorporated
  • Morgan Stanley & Co. LLC
  • Nomura Securities International, Inc.

Consistent with the current investment objective of ML III, the New York Fed, through BlackRock Solutions, is exploring the sale of assets held by ML III, including the MAX CDO holdings. There is no fixed timeframe for the sales; at each stage, the Federal Reserve will sell an asset only if the best available bid represents good value for the public, while taking appropriate care to avoid market disruption.

Currently, the New York Fed publishes on its website each month a list of all the securities held by ML III. In order to allow the public to track progress of asset dispositions, the New York Fed will also provide a list of any holdings sold by ML III within the previous month. In addition, it will provide quarterly updates on total proceeds from sales, including a breakdown by counterparty. Finally, after ML III sells its last position, the New York Fed will provide further details regarding these transactions, including a security-by security listing that shows which entity purchased the security and the price it paid ML III, ensuring timely accountability without jeopardizing the ability to generate maximum sale proceeds for the public.”

Read more: Press Release

Funds and Ownership, KKR Partners with Shinhan Financial

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South Korean financial giant Shinhan Financial Group Co., Ltd. reached a preliminary agreement with KKR & Co. to form a series of global buyout funds that could raise up to 5 trillion KRW. KKR and Shinhan signed a Memorandum of Understanding (MoU) in Seoul in early October. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Norwegian Government Recommends SWF Remains at Central Bank

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There was speculation that Norway Government Pension Fund Global (GPFG) could be managed outside of Norges Bank. The Norwegian government shot down this idea and recommended Norway’s GPFG remain in Norges Bank. This recommendation came in the form of a white paper submitted to the Norwegian Parliament, Stortinget.

Norway’s Minister of Finance Siv Jensen, commented in a press release, “The Government proposes a new and modernised governance structure for Norges Bank. Moving forward, this new structure lays the foundations for the sound management of the central bank and of the GPFG.”

Some Central Bank Recommendations

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Invesco Buys OppenheimerFunds for $5.7 Billion

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Invesco Ltd. signed a deal to acquire OppenheimerFunds, Inc. from Massachusetts Mutual Life Insurance Company (MassMutual). In turn, MassMutual and the OppenheimerFunds employee shareholders will receive a combination of common and preferred equity consideration, and MassMutual will become a significant shareholder in Invesco, with an approximate 15.5% stake. This strategic transaction will bring Invesco’s total assets under management (AUM) to more than US$ 1.2 trillion. The transaction is expected to close in the second quarter of 2019, pending necessary regulatory and other third-party approvals. The transaction gives Invesco access to more third-party distribution platforms.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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