Maiden Lane III - What's Left

The FRBNY releases a list of assets, including their face value, on a quarterly basis. The Marcy 31 listing is the current release. The list includes a very brief description, the CUSIP, and the face value of the security.

Assets currently include High Grade CDO's, Mezzanine CDO's, and a residual collection of debt securities where were primarily acquired as a result of the breakup of CDO's and subsequent distribution of assets.

At March 31:

CDO's                     $45,590
Misc                        $     817
Total                       $46,407

Subsequently, FRBNY has either sold or is offering for sale a significant number of CDO's.

Excluding those CDO's, at March 31 valuations, the face values were:

CDO's                     $33,584

Misc                        $     817

Total                       $34,401

The estimated fair value of these securities is $11,617. 

 

Without putting too fine a point on it, the larger CDO holdings contain a smattering of 2004 vintage as well as 2005 and 2006. 

It also seems reasonable that the FRBNY can continue selling CDO's and generate $5 to $6 billion in cash sales relatively quickly. this would allow AIG to recover its original stake of $5 billion plus accrued interest.  

With respect to providing AIG with cash to participate in Treasury sales of its stock, the timing of asset sales and distribution of proceeds may be more important that variances the ultimate cash sales of the portfolio.