Macquarie Bank is looking to launch investment structures linked to domestic leveraged loans in the coming months, which could potentially incorporate credit derivatives. "With credit spreads remaining tight we're looking at other types of assets," said Gary Vassallo, head of derivatives in Sydney. "The leveraged loan arena is becoming more attractive."
The firm is considering structuring collateralized loan obligations comprised of domestic leveraged loans or potentially combining loans with ABS, high-yield bonds or corporate credit-default swaps. Another alternative being considered is using a managed loan portfolio fund as an underlying. "The mix of assets has to be logical," added Vassallo, noting the firm is still in the initial planning stage. Macquarie is looking at applications for such structures distributed to both institutional and retail investors. The bank has pushed out a series of retail collateralized debt obligations in Australia in the last few years (DW, 9/3/04).
