Barclays' Massive Loan Pool Eludes Notice

A more than $30 billion pool of corporate loans managed by Barclays (BCS Quote) has slipped by virtually unnoticed, but merits close scrutiny as it sheds light on central bank lending standards loosened by regulators' fight against the global economic downturn.

The transaction, dubbed Newfoundland and rated triple-A by Moody's Investors Service looks to be the largest collateralized loan obligation ever issued, by a large margin. Most CLOs are in the $300 million range and anything over $1 billion is considered large, according to Bill May, an analyst at Moody's.

"It's certainly the biggest CLO I've ever heard of," May says. ...