April 30 (Bloomberg) -- Whistlejacket Capital Ltd., the defaulted structured investment vehicle, sold more than $2.5 billion of its assets at an average discount of 33 percent, according to three people with knowledge of the matter.

Receivers at Deloitte & Touche LLP sold 54 percent of the SIV’s $5 billion investments at an auction yesterday, said the people, who declined to be identified because the full results weren’t disclosed. The average price was 67.1 percent of face value for securities that included bank bonds and mortgage- backed debt, Deloitte said in a statement today.

Whistlejacket, set up by London-based Standard Chartered Plc, defaulted in February 2008 when investors stopped buying the short-term debt that SIVs relied on to fund higher-yielding assets. The proportion of assets sold at Whistlejacket’s auction was more than double the share investors liquidated in July at a sale for Cheyne Finance Plc, the first SIV to auction assets.

“There has been a big revival of risk-taking,” said Andrea Cicione, a credit analyst at BNP Paribas SA in London. “The risk aversion we saw up until a couple of months ago seems to have all but disappeared.”

Holders of Whistlejacket notes that didn’t sell at auction will transfer their holdings to a new company created by Goldman Sachs Group Inc.

Whistlejacket’s assets included bonds issued by Citigroup Inc. and UBS AG, as well as securities pooling home loans made by U.K. lender Bradford & Bingley Plc and Morgan Stanley, according to lists of securities seen by Bloomberg News.

To contact the reporter on this story: Neil Unmack in London at nunmack@bloomberg.net

Last Updated: April 30, 2009 11:35 EDT