Bayerische Landesbank, a Germany-based bank has opted Federated Investors, a US-based investment manager, as the investment advisor for its multi-billion-dollar portfolio of US dollar denominated securities.
Federated Investors has stated that the portfolio consists of residential and commercial mortgage-backed securities as well as other types of asset-backed securities. Federated will assist in the unwinding of the portfolio over a multi-year period with a focus on realizing appropriate values through a combination of constant surveillance and sales of portfolio securities when appropriate.
Ralph Schmidt, Chief Risk Officer of Bayerische Landesbank, said: “Bayern LB has significantly reduced its portfolio of asset-backed securities over the last two years. In order to continue and possibly accelerate this portfolio amortization in a capital-efficient way we will draw on Federated’s experience and advice.”
Gordon Ceresino, Vice Chairman of Federated and Executive Director of International Distribution, said: “With the tremendous changes in the bond market over the last two years, clients are increasingly looking to Federated to help them realize appropriate value from their portfolios of asset-backed securities and structured products.”
