Oaktree, Colony Win FDIC Auctions

Jul 16 2010 | 5:59am ET

A pair of alternative investment firms has won a pair of auctions for more than $3.5 billion in debt being sold by federal regulators.

Hedge fund Oaktree Capital Management will buy 280 distressed residential loans originated by Ohio’s Am Trust bank, the Financial Times reports. All told, the loans have a face value of $1.7 billion.

It is one of the first times Oaktree has participated in a Federal Deposit Insurance Co. auction. The hedge fund made its winning bid in conjunction with homebuilder Toll Brothers, taking advantage of zero interest rate financing from the FDIC. The regulator also took an equity stake in the loan portfolio.

Meanwhile, private equity firm Colony Capital bested five other bidders for a 40% stake in $1.85 billion in commercial real-estate loans. Colony, which partnered with Cogsville Group, paid only $227 million for the second-largest bulk sale of commercial-property debt by the FDIC. Cogsville contributed $218 million.
 
As with the Oaktree deal, the FDIC offered zero-interest financing for the 1,660 loans from 22 defunct banks. The FDIC held on to the other 60% of the portfolio.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this race. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.