AIG Bonds Once considered Junk are on the rise again

Wall Street is back in the hunt for higher yields in a low interest environment as it teams up to go after deals considered ‘sick’ two years back.
SOURCE: Wall Street Journal
DATE: APRIL 26th, 2012
ARTICLE BY: MATT PHILLIPS AND AL YOON
Yields continues and with the right risk management plan and strategy and product availability, the game is on.
Two bundles of bonds that once helped sicken American International Group Inc. AIG -1.25% now have Wall Street salivating.

 Two bundles of bonds that once helped sicken AIG now have Wall Street salivating.

Some of the biggest banks are teaming up to jockey for the securities, which may be sold in coming days by the Federal Reserve Bank of New York. The banks would then sell the bonds off to clients such as money managers, hedge funds and insurance companies.

With the Thursday morning bidding deadline looming, Credit Suisse AG, CSGN.VX -1.67% Goldman Sachs Group Inc. GS +0.66%and Citigroup Inc. C -1.37% have joined forces in recent days, as have Bank of America Corp., BAC -1.88% Morgan Stanley MS +1.95% and Nomura Holdings Inc. 8604.TO -1.79% Two firms that have already have interests tied to securities, Barclays BARC.LN -2.17% PLC and the original underwriter, Deutsche Bank AG, DBK.XE -1.88% are planning on bidding together as well.

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