Royal Bank of Scotland (RBS) has completed one of the first European synthetic collateralised debt obligations (CDOs) securitisations secured on a portfolio consisting entirely of leveraged loans.

The deal's reference portfolio contains up to £300m (€484m) worth of senior and mezzanine leveraged loans, or types of secured loans to non-investment grade companies without a public credit rating. The deal is unusual in that many CDOs in the European market also include a large bond component - usually high yield - rather than just leveraged loans.