JPMorgan won two loan portfolios in auction last week, landing a $107 million portfolio and another pegged at $34 million. Both consist of mostly par loans. The sellers could not be determined, though a hedge fund is believed to be behind the larger portfolio. An official at JPMorgan declined to comment.
A trader said the $107 million loan portfolio was pitched to only three dealers. Deutsche Bank and Citigroup were the two other banks. Citigroup placed the cover bid, which could not be determined by press time. There were a number of second liens in the portfolio and the average coupon was over 300 basis points. The largest asset was UAL Corp. and the second biggest was HealthSouth Corp. Other assets include American Airlines, Delta Air Lines, Northwest Airlines, the Calpine Corp. debtor-in-possession loan, the Collins & Aikman DIP and the Dana DIP.