Credit Suisse Said to Win $3.7 Billion Auction of Mortgage Bonds

Jul 15, 2014 4:39 pm ET

July 15 (Bloomberg) -- Credit Suisse Group AG bought $3.7 billion of U.S. mortgage securities today in the largest auction of its type since at least 2010, according to a person with knowledge of the offering.

The bank paid more than 73 cents on the dollar for the bonds without government backing, which were issued before the 2008 financial crisis, said the person, who asked not to be named because the transaction was private. Jack Grone, a spokesman in New York for the company, declined to comment.

BlackRock Inc. managed the “all or nothing” sale of debt tied to mostly subprime home loans, according to a report last week by JPMorgan Chase & Co. analysts. Dealers had to bid on the entire block of bonds, either to hold on their own books or to fill client orders.

A European bank may be the seller, Wells Fargo & Co. analysts wrote in a report last week.

The offering was the largest widely marketed auction of non-agency securities sold in a single block since Empirasign Strategies LLC began tracking the data. Including sales where bonds could be bought individually or in smaller groups, it was the 10th-largest since then.

Reuters reported Credit Suisse won the auction earlier today. Brian Beades, a spokesman for New York-based BlackRock, didn’t immediately respond to an e-mail seeking comment.