BlueMountain Buys Crédit Agricole Derivatives Portfolio

Mar 16 2012 | 8:02am ET

BlueMountain Capital Management has acquired what remains of Crédit Agricole's structured-credit market-making business, as CA and other European banks continue to offload assets and improve their capital ratios.

New York-based BlueMountain will continue to wind down the contracts at the business, which CA shuttered the unit three years ago. The bank will pay BlueMountain to manage the portfolio, which will become part of a vehicle called Alpine. CA will also retain the counterparty risk and provide the hedge fund a liquidity facility, the Financial Times reports.

BlueMountain, for its trouble, will keep the profits. Terms of the deal were not disclosed.

The bank said selling it reduces its risk-weighted assets by €14 billion.


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