When investors think of bonds, their minds immediately go toward U.S. Treasuries or other IOUs issued by corporations. Maybe municipal securities enter their minds. But these are just the tip of the iceberg with regard to fixed income. There are a lot of other bonds and fixed income assets on the market. Some can provide plenty of extra yield and capital gains potential.
One of the fastest growing and highest yielding could be in opportunistic credit.
Leveraged loans, collateralized loan obligations (CLOs), asset-backed securities (ABS), and private credit securities have quickly become top spots for investors to find additional yield in their portfolios. And while riskier than bread & butter bonds, they can offer plenty of extra benefits for portfolios. For investors building their fixed income toolboxes, opportunistic credit could be a wonderful addition.
Volta Finance Ltd (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.