BlackRock has been appointed to help sell a $114bn portfolio of Signature Bank and Silicon Valley Bank’s mortgage-backed securities.
The holdings, which consist of mortgage-backed securities, collateralised mortgage obligations, and commercial mortgage-backed securities, were inherited by the US government after it took over the failed lenders in March.
Bond markets had feared the Federal Deposit Insurance Corporation could choose to dump the portfolio and push down prices.
BlackRock’s financial markets advisory arm will now handle the asset sale, which the FDIC said would be “gradual and orderly”.
