San Bernardino Pension Fund Investing With U.K.’s Cairn Capital
California’s San Bernardino County Employees’ Retirement Association said it’s investing in a deal with Cairn Capital Ltd., the U.K. firm that’s selling the first European collateralized loan obligation since 2011.
Nicole Dailey, a spokeswoman for the pension fund known as SBCERA, declined to say whether the 300.5 million-euro ($407 million) CLO, a high-risk debt instrument popular before the financial crisis, is the Cairn deal her firm is invested in.
Two CLOs have been sold in Europe since 2008 as investors shunned hard-to-value assets in the worst credit crisis since the 1930s. The market has been quicker to recover in the U.S., where issuance more than quadrupled to $55.4 billion in 2012 and is forecast by Wells Fargo & Co. to reach $80 billion this year.
Adam Bradbery, a London-based spokesman for Credit Suisse Group AG (CSGN), which is arranging Cairn’s CLO, and a Cairn official declined to comment.
Deutsche Bank AG arranged a CLO for European Capital Management in 2011, and Intermediate Capital Group Plc completed a deal a year earlier.
The most junior notes in the Cairn CLO will total 60 million euros, a person familiar with the terms said last month, asking not to be identified because the transaction is private. CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.