As a reminder, on April 6 the Fed completed the auction of $1.3 billion in face value Maiden Lane II (AIG) assets. When we reported on this we commented: "Since there is another $38 billion in ML2 assets left, look for many
more such Bid Lists over the next several months until the market
crashes and yield chasing finally ends." Sure enough...
Another $1.2 billion is being auctioned off for the next 2-3 days.
Look for AIG to end up being the majority winner of most of these auctions when bidder details are announced in 3 months- after all the Company was recently accused of delaying paying insurance claims in Japan. How else can the company run its business model if not for free yield chasing courtesy of the alleged last days of QE2.