Deerfield Capital Management is preparing to manage a market value CLO backed by European leveraged loans. The deal is Deerfield's first foray into the European CLO market. The 300 million ($376 million) CLO is expected to price this week via Banc of America Securities, according to a source close to the deal.
The deal - on the heels of several MV CLOs (Market Value CLOs) that have recently hit the European market - comes at a time when arrangers are once again kicking the tires of cash market value CLO structures. Market value structures, which are similar to hedge funds, provide more flexibility to trade in and out of credits when opportunities emerge from pricing fluctuations.