Will Diminishing Equity Returns Impact Euro CLOs?
April 30, 2007, Asset Securitization Report
By Savita Iyer

In an article on European CLOs, Savita Iyer asks whether the lower returns on CLO equity will impact the leveraged loan markets in Europe, which saw a burst of activity in 2006.

"It's true that these transactions have been targeting lower returns than before and spreads have tightened a great deal, but investors still want to be in CLOs to participate in European credit markets," said New York-based Richard Reilly, co-head of White & Case's Global Securitization Practice. "We've seen this market growing significantly, and we believe it will continue to grow."