ING Capital Advisors closed its first euro-denominated collateralized debt obligation in Europe and will be looking to do another in the next six months. "The institutional market is growing quickly, although it's starting from a very small base, and we wanted to be recognized as one of the first true CDO players in Europe," said Mike Campbell, portfolio manager.
Campbell explained the dearth of European assets available to fund the vehicle prompted the fund to invest partially in U.S. loans during the ramp up phase that will be replaced with European assets over time. The vehicle comprises of 75% loans and 25% mezzanine debt and high-yield bonds.
Goldman Sachs underwrote the liabilities supporting the deal as Campbell said ING thought the firm would best execute the transaction. The tranches are all euro denominated.