Investors Practically Stab Each Other to Get AIG's Crap From the NY Fed
pic credit: toothpaste for dinner
I've said it before and I will say it again: why did no one want this stuff when AIG was tanking and taking the entire financial system with it? Suddenly everyone's dying to get a piece of this and AIG can't even get them back from the NY Fed. That's not at all suspect.
The Federal Reserve Bank of New York on Wednesday sold most of the residential mortgage bonds offered in an auction of assets from its Maiden Lane II portfolio, suggesting strong demand for the risky assets.
The Fed sold 42 bonds with a face value of $1.3 billion, nearly all of the $1.5 billion it offered in 52 securities to the market, according to the New York Fed's website.
Investors briefed by Wall Street dealers said the bids easily topped the minimums set by the Fed. What's more, about half of the securities were purchased for retail investors and other accounts, a more credible sign of demand than if only dealers had participated, said one of the investors.
"All indications are that (minimum prices) were met and cleared, and then some," said Paul Norris, head of structured products at Dwight Asset Management Co. in Burlington, Vermont. "Prices were strong. The next one could be stronger."
It is likely that many of those interested in this crap were the same ones who packaged in, leading us to wonder at what point the NY Fed puts principle over profit. Well wait, that's a silly statement, we all know they don't have principles to begin with.