The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Awards

Deals of the Year 2012: Maiden Lane III

Maiden Lane III
Size $7.9 billion unwinding of Max CRE CDO
Date April 2012
Lead dealers Barclays, Deutsche Bank
return to the Global Deals of the Year index

Wall Street traders typically believe that the business of profiting from capital flows works best with minimal interference, but given the impact that the US government, in the form of the Federal Reserve, had on the structured finance market last year their perceptions might well have changed.

The Fed’s first commercial real estate CDO sale in April from its $47 billion Maiden Lane III portfolio of toxic AIG assets, assumed as part of the insurer’s 2008 bailout, not only boosted liquidity and pricing transparency but was a defining moment in the recovery of the structured finance market, which since the credit crisis has been as good as dead.

The $7.9 billion MAX CRE CDO sale – the largest individual sale of illiquid CDO securities from Maiden Lane by the Fed – was remarkable on many levels, not least because it enabled the Fed to rid itself of a large chunk of once toxic, crisis-era liabilities, while at the same time making a tidy profit for US taxpayers.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree