Regulators have appointed BlackRock’s advisory arm to help sell a $114bn portfolio of securities inherited in the takeovers of Silicon Valley Bank and Signature Bank when the pair collapsed within days of each other in March.
The fate of the holdings, which consist of mortgage-backed securities, collateralised mortgage obligations and commercial mortgage-backed securities, have rattled bond markets, which feared the Federal Deposit Insurance Corporation could choose to dump the portfolio, denting prices.
The regulator said on Wednesday, however, that sales would be “gradual and orderly, and would aim to minimise the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions”.
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