Banif’s Portuguese SME trade flies but ECB effect still hidden

By Tom Porter
18 Sep 2014

ABS bankers believe the success of Banco Internacional do Funchal’s (Banif) dual tranche SME CLO this week is not indicative of a fresh bid for periphery names in anticipation of the European Central Bank’s ABS purchase programme, but rather confirmation that there is already a great degree of comfort with higher risk ABS among investors.

Atlantes AME 4 offered investors €465m of A-/A rated 1.35 year bonds, in addition to €55m of BBB/BBB rated 2.93 year mezzanine notes. The tranches carry high credit enhancement of 48.2% and 41.9%, respectively, mostly provided by two unrated subordinate notes totalling €366.4m.

The senior notes were set ...

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