Investor-comfort dominates return SME deal

Author: Danielle Myles | Published: 21 Oct 2010

A short-dated loan pool and originator risk retention enabled UniCredit to place the first German small-and-medium sized enterprise (SME) backed securitisation since the financial crisis. But lauding the return of the country’s SME-backed market might be premature.

Geldilux-TS-10 achieved an investment risk profile which allowed €500 million of notes to be placed with investors earlier this month.

A principal factor in gaining investor confidence was the revolving asset portfolio having a maximum weighted average life of 90 days and a maximum...