Collateralized loan obligations (CLOs) are attracting increasing attention as investors broaden their horizons in the search for yield. While many investors know that CLOs have historically yielded attractive performance versus other fixed income strategies, they may not know the full extent of the benefits – as well as the distinct risks.
With CLOs, investors may benefit from the following:
Attractive performance. Over the long term, CLO tranches have performed well relative to other corporate debt categories, including bank loans, high yield bonds, and investment grade bonds, and have significantly outperformed at lower rating tiers.
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.