Avoca lines up CLO as securitisation returns
Dublin based asset manager Avoca has hired Credit Suisse to arrange its latest collateralised loan obligation(CLO) in a sign the European securitisation market is reopening.
The €400m deal will invest in slices of European company loans.
Dublin-based Avoca, now owned by private equity firm KKR, and local rival Harbourmaster, now part of Blackstone, were mainstays of the European loan market before the credit crisis.
Securitisation, the process of bundling up loans and parts of loans into CLOs and other fixed income investments, was blamed by many political leaders for driving the flood of credit that ultimately wrecked the global economy.
However, with Europe’s battered banks failing to meet the credit needs of business, the European Central Bank is rapidly revising that view.
The new CLO will comply with new risk retention rules aimed at cutting down high risk lending.