BlackRock Financial Market Advisory has been retained by the Federal Deposit Insurance Corporation to sell the $114bn securities portfolios it inherited from the failures of Silicon Valley Bank and Signature Bank.
The two portfolios total approximately $27bn for Signature Bank and $87bn for SVB, and are primarily comprised of agency mortgage-backed securities, collateralised mortgage obligations and commercial mortgage-backed securities.
'This time is different': SVB collapse symptom of easy money rather than systemic banking issues
Portfolio sales will be conducted in a "gradual and orderly" fashion, according to the FDIC, aiming to minimise the potential for "any adverse impact on market functioning by taking into account daily liquidity and trading conditions".
On 27 March, the FDIC also oversaw the sale of SVB to First Citizens Bank, with the firm's 17 former branches, $119bn deposits and $72bn of the total assets being acquired by the regional bank.
Andrew Bailey, governor of the Bank of England, has described the collapse of SVB as the "fastest passage from health to death since Barings".
