Professional investors have channelled just over €308 million into a structured debt product in a move that is said to reflect how investment firms are demanding solutions that help them cope with regulatory capital requirements.
Natixis, the French bank, raised the €308.4 million for the collateralised loan obligation (CLO) called Purple Finance CLO 1, which is to be managed by Natixis Asset Management.
The bank said professional investors were “revisiting” these vehicles – a type of structured debt instrument strongly identified with the financial crisis – to manage credit risk as well as pursue yield at a time when Europe’s Capital Requirements Directive IV – in force since 2013 – is “creating a real challenge for investment managers” who are subject to its “hefty” capital requirements.
Purple Finance CLO 1, which was oversubscribed in most of its tranches, complies with certain rules in the directive to do with risk.
Ibrahima Kobar, deputy chief executive officer of Natixis AM, said the firm intended to launch one CLO a year and was considering expanding into the US market.
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