A novel CDO structure recently put together by GSC Group, targeted toward insurance companies, pension funds and other investors that might well be interested in the European leveraged marketplace - yet hesitant, perhaps, to go whole hog all at once - may be coming at just the right time, given the sudden volatility that has wracked that market.

But regardless of the present wave of volatility, Christine Vanden Beukel, senior managing director of European structured products for GSC Group, said that the defensive, more sober nature of the 300 million ($408.8 million) cash flow CLO is still of great interest to a number of investors who haven't yet been involved with leveraged loans, or for investors who are already participants in traditional CLOs, who are attracted by its lower volatility and rated structure.

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