American Express Asset Management is believed to be selling off assets quietly in mini auctions with the help of J.P. Morgan and other agents. The auctions have been going on for the last couple of weeks, noted market participants. It was unclear which Amex portfolio was the source of the assets, but one investor said the firm had a deal that was rolling off. He speculated that the deal was either maturing or was at the end of its reinvestment period. The exact amount of assets for sale could not be determined, but one buysider estimated that it included at least several hundred million dollars.
The auctions included everything from stressed loans to high-grade paper, and about 10 names are said to come out at a time. At least four bids are required for each name, and the bids are due every day by 2 p.m., said sources familiar with the process.
Steve Staver, a managing director and portfolio manager at Amex, did not return calls by press time and an assistant said he would not be commenting. An official from J.P. Morgan declined comment, and a spokesman did not comment by press time. Amex's CDO group has assets of approximately $7.5 billion at par value and includes 16 transactions, both traditional cash flow and synthetic structures in high-yield loans and bonds as of Sept. 30, according to Standard & Poor's.