Intermediate Capital Group (ICG), the UK mezzanine debt specialist, has stolen a march on its rivals by launching its second fund backed exclusively by collateralised high yield debt.

ICG has issued €350m ($401.6m) of securities backed by junk bonds, senior bank loans and mezzanine debt using a vehicle called EuroCredit CDO II. The latest fund will comprise about 50% junk bonds, 33% senior loans and the remainder mezzanine debt. Morgan Stanley Dean Witter managed the sale.