BofA, Goldman Said to Auction $108 Million of Risky CLO Assets
- Citi, Morgan Stanley also finding buyer for European portfolio
- Sale includes equity notes and junior-ranking mezzanine notes
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Bank of America Corp. and Goldman Sachs Group Inc. are among four lenders appointed to find a buyer for a portfolio of the riskiest portions of European collateralized loan obligations, according to people with knowledge of the matter.
The banks, together with Citigroup Inc. and Morgan Stanley, are overseeing an auction scheduled for Thursday of equity notes as well as some junior-ranking mezzanine bonds, said the people who asked not to be identified because the information is private. The portfolio has a notional value of under 100 million euros ($108 million) but the notes could trade at large discounts, the people said, without identifying the seller.