--Daniel O’Leary
About 70% of European collateralized loan obligation managers are planning a new transaction, according to Moody’s Investors Service. Out of 32 recently surveyed CLO managers, 13% are planning to issue by the end of this year, 30% before the end of 2011 and 28% in 2012 or later.
The agency said European issuance could follow the recent spate of U.S. primary deals and pick up within a couple of months. “Some participants expressed the view that the European leveraged buyout market will pick up well after the U.S. market does,” the agency noted.
The U.S. market has witnessed a number of primary deals, with analysts tipping a possible CLO revival (TS, 09/07/10). In contrast, the European CLO market has been largely unpopular with the buyside since the collapse of Lehman Brothers, with investors fretting over a wave of event-of-defaults that have plagued....