The first joint publication between Yield Book and Refinitiv LPC is now available. This paper covers what a Collateralized Loan Obligation (CLO) is, why it’s a compelling structured product, and how it fits into the broader leveraged market.
CLOs have proven to be a resilient and mature product, and have weathered recent severe economic downturns relatively unscathed thanks to its self-curing structure and active management.
While CLOs are not part of major fixed income indexes, the market has grown to be a key and unique securitised product asset class with strong historical performance and market liquidity. In particular, CLO floating rate notes appear to be very well positioned for a rising rate environment.
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.