Business Irish

Wednesday 24 September 2014

Avoca lines up CLO as securitisation returns

Published 09/07/2014 | 02:30

  • Share
Avoca has hired Credit Suisse to arrange its latest collateralised loan obligation FABRICE COFFRINI/AFP/Getty Images
Avoca has hired Credit Suisse to arrange its latest collateralised loan obligation FABRICE COFFRINI/AFP/Getty Images

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.

  • Share
  • Go To

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.

Bundling

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.

(Bloomberg)

Read More

Editors Choice

Also in Business