Germany’s central bank Bundesbank has lost a bid to seize assets in a collateralized debt obligation (CDO) deal with Lehman Brothers, Bloomberg reports. Bundesbank sought to acquire a €2.9 billion securitization created by Lehman just before its collapse.
A judge ruled that Excalibur Funding No 1 was not in default for long enough to allow senior note-holder, the Bundesbank, to take control. As per the Excalibur agreement, if the special purpose vehicle was found to be in default, management of its assets would be given to the Bundesbank as holder of €2.1 billion of its senior debt.
Click here for the story from Bloomberg.