London-based Henderson Global Investors is warehousing leveraged loans for its first collateralized loan obligation. Dominic Powell, director of fixed interest and credit, said the firm is focusing on leveraged loans because the asset class is stable and one of the firm's core competencies. The deal is called Aquilae and will be about EUR 300 million. Goldman Sachs is underwriting the deal. European managers are increasingly turning to CLOs after the poor performance of bonds have made it virtually impossible to issue a CBO (LMW, 11/18).
Last year, Henderson brought one collateralized debt obligation to market-a EUR 150 million deal backed by credit default swaps. That deal was underwritten by J.P. Morgan Securities. Henderson has no plans to become a CDO factory, says Powell. "We want people to feel that when they're buying a Henderson product, that it's going to be properly looked after," he said.