Thursday, 5 December 2013 - 12:32
Dutch auctioning off ING’s U.S. mortgage debt
The Netherlands has decided to start an auction to sell a portfolio of U.S. mortgage-backed securities which it acquired from ING Groep NV during the financial crisis, The Wall Street Journal reports. ING Group / Bloomberg The decision to launch the auction was based on "the continued improvement in the U.S. housing market and a high level of interest by investors," the Dutch State Treasury Agency said in a statement. The agency said it expects to sell the assets within 12 months. The Dutch government acquired the assets in 2009 after it struck a deal with ING to take over 80% of the risks on a portfolio of U.S. mortgage-backed securities, the Journal said. The first auction will take place in the “short term,” depending on the bids received, Bloomberg News said quoting the Dutch State Treasury Agency. Bidders must be willing to bid on at least $5 billion of the securities’ notional value to participate. BlackRock Inc. will run the auction.