Collateralized loan obligation sales have rebounded so strongly that the heavy supply is crimping a rally in the sector even while investors seek to rotate into floating-rate notes as Treasury yields march higher.
Several CLO managers have issued at least two new deals in only three months, a highly unusual phenomenon for a first quarter. Sales have risen following a difficult 2020 as issuers seek to tap higher demand to offload the securities cheaply and cut costs on existing deals through refinancing and so-called reset transactions.
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.