Even amid strong supply, a relatively small deal - a synthetic CLO of U.K. project finance loans offering GBP31.75 million ($57 million) in funded notes - seemed to be the one prompting the most buzz in the European market last week, with analysts reporting it might herald a promising new asset class.

Merrill Lynch is managing the deal, which will be issued by an Irish special purpose vehicle called Essential Public Infrastructure Capital, or EPIC. The credit-linked notes are backed by 25 loans, totaling GBP394 million ($713 million), that Depfa Bank made under the U.K.'s Private Finance Initiative.

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