Banks reportedly push AAA mortgage bonds

03/28/2013 | Bloomberg

Bank of America and Barclays, the underwriters for a bond issuance from EverBank, reportedly told investors that they would be more likely to receive riskier, higher yielding tranches of the mortgage-backed securities if they were also willing to purchase the AAA-rated portions of the deal. This suggests that there was weaker demand for the AAA portion, which does not have government backing, according to people with knowledge of the deal.

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