Terra Firma Capital Partners is attempting to buy back about €6bn ($7.8bn) worth of outstanding mortgage-backed debt the UK buyout firm used to refinance its German residential property portfolio in 2006. The move follows a collapse in securitised bond prices that has provided issuers with opportunities to snap up debt at a discount.

Monterey Finance, a unit of Guy Hands' Terra Firma, has asked bondholders to tender or sell-back the notes issued by German Residential Asset Note Distributor Plc, the securitisation vehicle the buyout firm used to finance its residential property portfolio.