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Duke Street Capital Debt Management Ltd, a subsidiary of Duke Street Capital, the European private equity firm, launched a Eu750m arbitrage CDO this week backed by a managed portfolio of senior secured loans, high yield bonds and other debt obligations.
Lead managed by CIBC World Markets, the deal is one of the largest CDOs to be launched out of Europe and one of the few to use a wrap from a monoline insurance company.
It is also Duke Street's first venture into the CDO business after it acquired a team of industry professionals that specialise in this field over the last eight months.
The team includes Ian Hazelton, previously managing director at the Royal Bank of Scotland's leveraged finance division, and who now leads the team at Duke Street, and David Wilmot, the former head of the UK leveraged finance team at SG.
Duke Street plans to become a serial issuer in the CDO business and this deal is just the first step of that programme. "We see this sector in Europe growing strongly and we see good opportunities," said Hazelton. "We have achieved a good...