Base priced

Base priced

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Warehouse liquidations gather pace in Europe

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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