The Federal Deposit Insurance Corp. (FDIC), as receiver of the former New York-based Signature Bank and California-based Silicon Valley Bank, retained a financial advisor to help with the liquidation of securities held by the two failed banks.
The FDIC plans to undertake a marketing process to sell the securities portfolios retained from the two receiverships. The face values of the two portfolios are approximately $27 billion and $87 billion, respectively. The securities are primarily comprised of agency mortgage-backed securities, collateralized mortgage obligations, and commercial mortgage-backed securities.
The FDIC has retained BlackRock Financial Market Advisory to conduct the portfolio sales, which it intends to be done in a gradual and orderly manner so as to minimize the potential for any adverse market impacts by taking into account daily liquidity and trading conditions.