Lehman Brothers (LEH) Considering Merrill-Like Fire Sale of Mortgage Assets - NYP
According to reports from the New York Post, Lehman Brothers (NYSE: LEH) is trying to sell tens of billions of dollars worth of mortgage-backed securities in a move similar to the Merrill Lynch (NYSE: MER) fire-sale of CDOs at 22 cents on the dollar.
Specifically the paper said Lehman is talking with domestic and foreign entities about offloading some $30 billion of commercial mortgage assets and other hard-to-value securities, and, like Merrill, Lehman may finance some of the purchase price.
Earlier in the week, Merrill Lynch announced the sale of $30.6 billion of U.S. super senior ABS CDOs to an affiliate of Lone Star Funds for a purchase price of $6.7 billion, with Merrill providing financing to the purchaser for approximately 75% of the purchase price.
Link to NY Post Article
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