Dresdner closes CLO issuing Schuldschein notes

Dresdner closed Koeniginstrasse I on May 2. The debt and equity were bought by a German unleveraged investor. The advantage of buying notes in a Schuldschein format means that the investor does not have to mark them to market. This may appeal to many in the structured credit world who have been stung by sharp falls in the fair value of their assets, especially CLOs, despite having retained good credit quality. Read EuroWeek this week to find out if this will catch on.