Analysts at Bank of America Merrill Lynch recommend that investors in European structured finance deals add more risk to their portfolios by pushing past the safer terrain of mezzanine tranches in the core countries and senior tranches in the periphery countries.

Their suggestion is for buysiders to skip down the capital stack of core-country deals into the lower mezzanine tranches, while “selectively” going for upper mezzanine notes in the periphery.

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