As the European CDO market comes in to its own, the market is seeing new assets in the mix. Such was the case in December with the GBP300 million Cairngorm transaction, which was the first synthetic CDO in the European market with a reference portfolio consisting entirely of leveraged loans
Cairngorm joins a rapidly ripening asset class, expected to generate a significant measure of interest among European market players in 2002. When it comes to leveraged loans, the number of experienced players is limited. Enter Centre, which has already participated in most of the CLOs with leveraged loan exposures. Centre plans to increase its penetration into the European ABS market through this vehicle.