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AG Mortgage seeks to prevent RBC from auctioning off mortgage debt

Published 2020-03-25, 03:55 p/m
Updated 2020-03-25, 04:00 p/m
© Reuters.

March 25 (Reuters) - AG Mortgage Investment Trust Inc (NYSE:MITT) on Wednesday sought a court order to prevent Royal Bank of Canada RY.TO from auctioning off nearly $11 million of commercial mortgage-backed securities that serve as collateral for defacto loans to AG, according to a court filing.

RBC , Canada's biggest lender, and other banks have taken advantage of illiquidity due to a market selloff to mark down these assets and "to trigger widespread margin calls," AG said in a request for a temporary restraining order and injunction filed in the U.S. Southern (NYSE:SO) New York District Court.

A RBC spokeswoman declined to comment.

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