The latest European ABS fund to hit the market is to target mezzanine paper, as investors increasingly look for hedge fund-style returns. However, the limited availability of assets is expected to slow the proliferation of such funds in the short term at least.
"There has been a shift towards looking at mezz ABS tranches over the last month or so, with hedge funds hunting for discounted assets or bonds that have recently been upgraded," confirms one structured credit investor.
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