There are four stages of the CLO lifecycle, which generally occur over eight to 10 years:
- Warehousing
- Issuance
- Expansion
- Repayment
Warehousing
First, the owners of the collateralized loan obligation (CLO) create a structured investment vehicle. It’s basically like establishing a company in the business of buying loans. But, to purchase those loans, they first need to raise some capital.
Volta Finance Limited (LON:VTA) is a closed-ended limited liability company registered in Guernsey. Volta’s investment objectives are to seek to preserve capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis.
