Record LBOs Drive European Leveraged Loan CDO Market

Record volume in leveraged buy-outs (LBOs) have driven a buoyant market in European Collateralized Debt Obligation (CDOs) of leveraged loans in the third quarter of 2003, according to a report by Standard & Poor’s. Transaction flow remains strong, with four CLOs closing. ‘The increase in CLO transactions, the steady volume of leveraged loan issuance over the past 12 months, and their increased availability in the secondary market have seen a 75% increase in leveraged loan assets managed in CLOs,’ said Mike Nicholson, credit analyst at Standard & Poor’s Structured Finance Ratings group in London. ‘The CLO pipeline remains robust, with at least 11 transactions scheduled to close in the next two quarters.’


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