Bank of America's European collateralized debt obligation pipeline has swelled to about E4-5 billion. Officials at BofA in London say the firm will bring a variety of deals to market over the coming months including CDOs of asset-backed securities, an investment-grade deal and a leveraged loan deal.
The pipeline this year is slightly larger than last's and the officials anticipate adding a few more deals by year-end. In addition, BofA will continue to do private single-tranche transactions. The number of those deals likely to be completed by year-end is hard to gauge, they add.
One market participant noted the CDO sector is a mixed bag these days, with some deals doing much better than others with investors. He says there has been a lot of investor demand for CDOs of leveraged loans. Most recently, BofA brought an E1 billion CDO, called Anchor CDO I, which was unique because it was the first CDO to feature a junior super senior tranche (BW, 2/3).