Collateralized Loan Obligations have the potential to provide investors with greater yields and a hedge against inflation through floating rate structures.
As the risk to traditional fixed income markets generally increases with a rise in rates, some alternative sources of income from products like Collateralized Loan Obligations (CLOs) have the potential to provide investors with greater yields and a hedge against inflation through their floating rate structures. Historically, CLOs have provided investors with higher yields and lower default rates than those of corporate loans. In fact, no AAA rated CLO tranche has ever defaulted.
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.