European banks as well as third-party investment managers are looking into single-security, repackaged collateralised loan obligations, similar to those recently completed in the US. "We are hearing about a significant pickup in activity for repackaged triple-A and double-A CLO portfolios," one CLO investor said. "There is appetite, available capital and interest in these opportunities, subject to return targets." The market could hit an obstacle, however, because the European Commission's regulatory language pertaining to repackaged CLOs is unclear.
Published in Brief: