Bank of America focuses on loan growth

Bank of America Corp shares tumbled on Wednesday after the second-largest U.S. lender detailed its sensitivity to low interest rates and the Federal Reserve indicated it has no plans to raise its benchmark rate any time soon.

The bank added exposure to collateralized loan obligations (CLOs) it underwrites that have high credit ratings, rather than distributing all the pieces to investors, Donofrio said. Those securities tend to have higher returns than Treasury bonds and other low-risk assets.

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.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
Volta Finance

More articles like this

Volta Finance

CLO: Best debt investment opportunities for this year

Collateralized loan obligations are among the best debt investment opportunities for this year, according to John Wright, global head of credit at Bain Capital. Spreads on the structured investment vehicles, which repackage leveraged loans into bonds

Volta Finance

US banks reentering $1.3 trillion CLO market

The biggest US banks are stepping back into the $1.3 trillion market for collateralized loan obligations after nearly two years of shying away from investing in the securities. Citigroup Inc. has resumed buying CLOs, according to

Volta Finance

Intricacies of collateralised loan obligations

In 2021, specialist asset managers created over $500 billion in CLOs, benefiting from substantial post-pandemic monetary support. However, momentum has slowed in the first half of this year, with only about $69 billion launched or refinanced,

Volta Finance

Understanding Collateralized Loan Obligations

Definition and Purpose A Collateralized Loan Obligation (CLO) is a type of financial security that is backed by a pool of loans, typically corporate loans or commercial real estate loans. The purpose of a CLO is to

Volta Finance

CLO market set for $20 billion reset spree

A type of refinancing transaction is becoming more popular in the $1.3 trillion market for collateralized loan obligations, a sign the industry is healing as concerns over surging inflation and a potential recession abate. Known as

Volta Finance

Volta Finance Limited Declare Quarterly Interim Dividend

Volta Finance Limited (LON:VTA) has announced that it has declared a quarterly interim dividend of €0.135 per share payable on 25 January 2024 amounting to approximately €4.94 million, approximately equating to an annualised 8.25% of net asset

Volta Finance

How CLOs can enhance returns for retail clients

Collateralized loan obligations, or CLOs, may be a way for advisors to enhance retail clients’ portfolios. They provide investors with access to a diverse pool of senior secured loans. While they have been primarily used by

Volta Finance

What is a Collateralized Loan Obligation (CLO)?

A Collateralized Loan Obligation (CLO) is a financial instrument where loans are pooled together and sold to investors. These securities are backed by a collection of loans, similar to how Collateralized Mortgage Obligations (CMOs) are backed by mortgages.

Volta Finance

Structured products: a growing area

After being introduced in the UK in the 1990s, structured products have gained more traction worldwide over the last decade. They are a broad and complex set of investment instruments, delivering a return dependent on the