Another month, another three CLO-style deals backed by exposure to the German Mittelstand of small and medium-size companies. These have traditionally relied on lending from their house banks and have shied away from the equity markets to avoid ownership dilution and financial disclosure. But SME CLOs are seen as a solution for these borrowers, which might now face problems sourcing traditional loans from relationship lenders post-Basle II, when such lending will be 100% risk weighted.
The CLOs are primarily backed by hybrid capital or mezzanine private equity-like funding (Genussscheine).
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
