NEW YORK - The average secondary spread on institutional cashflow loans is much more volatile in the U.S. than in Europe, with U.S. rates swinging by as much as 150 basis points in a quarter, compared with European spreads that have barely moved in the past eight years, according to panelists speaking at the Bear Stearns Global Credit Conference last week.

The main reason for the volatility in spreads in the U.S. versus the more even spread environment in Europe is that institutional investors constitute about 30% of the investor base in Europe, said Fabio Salvalaggio, of Harbourmaster Capital.

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