BlackRock buying UBS subprime debt for $15 billion: FT : US Business

SINGAPORE (Reuters) - U.S. asset manager BlackRock Inc is to buy a portfolio of subprime mortgage debt from UBS AG for $15 billion, the Financial Times reported on its website on Tuesday, citing people familiar with the transaction.

The FT said the deal was due to be announced on Tuesday along with first-quarter results from UBS.

It said the debt would be bought by BlackRock at a 25 percent discount to its face value of $20 billion and then placed in a new fund that would be marketed to investors.

UBS would hold a minority interest in the fund, which would enable it to participate in any gains.

The FT said UBS declined to comment.

(Writing by Alan Raybould, Editing by Ian Geoghegan)

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