Barclays Capital has priced Base CLO, the second European deal structured to manage an arranger's leveraged loan warehouse risk following Goldman Sachs' Static Loan Funding 2007-1 from December. Analysts suggest that such transactions are an attractive way of entering an oversold market, while limiting mark-to-market volatility.
"Static warehouse liquidation CLOs offer more price stability, given that they typically return principal very quickly at the triple-A level, and high asset diversification.
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