Tranchelets return as credit investors leverage up

摘要

After years consigned to the wilderness, so-called tranchelets have made a return to credit markets in recent weeks, and investors are ignoring liquidity concerns to pile in, bankers say. "Over the past three or four weeks we have seen strong demand for levered plays on credit," said Ioannis Angelakis, a credit derivatives strategies at Bank of America Merrill Lynch. "The interest has been focused on tranched equity exposure in the iTraxx Crossover index."