2009-09-10bloomberg.com

Victoria Finance Ltd., the structured investment vehicle that defaulted last year, plans to liquidate its $8.4 billion of holdings in an auction this month, according to people familiar with the matter.

The notes to be sold Sept. 25 include $4.3 billion of collateralized debt obligations, $2.3 billion of residential mortgage-backed securities and almost $500 million of corporate bonds, according to a list obtained by Bloomberg News.

The auction will help investors gauge demand for “non- agency” home-loan bonds and other structured debt after Wall Street banks “spent the summer” supporting higher values by boosting their holdings amid sales by hedge funds, according to David Castillo, a senior managing director at broker Further Lane Securities.


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