Deutsche launches emerging market CLO

Deutsche Bank has closed a $500 million collateralised loan obligation (CLO) referenced to a portfolio of emerging market loans. The transaction will enable the bank to hedge illiquid emerging market loans on its balance sheet and free lending limits.

The six-year deal, Craft EM CLO 2006-1, consists of two mezzanine tranches rated BBB and BB, and a first-loss tranche.

Mario Verna, a managing director in Deutsche's loan exposure management group, says a handful of investors purchased the first-