Dealers were focused last week on a $240 million auction that contained a high-quality portfolio of names with an average spread of LIBOR plus 220 basis points. Bids were due Friday at noon. The name of the seller could not be determined by press time. Portfolio auctions have provided a major boost to secondary trading this year. Typically, these originate from collateralized loan obligations that have reached the end of their reinvestment periods. The manager has the option of letting the deal wind down, liquidating the portfolio to pay down the notes or refinancing the liabilities to continue to manage the assets. For example Sankaty Advisors recently refinanced Sankaty High Yield Partners II, a 1999 Market Value CDO. This extends the transaction for another two years.