The first three European CLOs to price since the financial crisis were structured to ease investor worries, and their successively tighter spreads suggest that’s happening, boding well for future deals as they adapt to the current market’s demands.

Cairn Capital, a latecomer to the CLO market (it completed its first two deals shortly before the market collapsed) and the first to return post-crisis, priced the AAA-rated tranche of its €300.5 million Cairn CLO III at 140 basis points over EURIBOR in mid-February and closed the deal a month later.

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