The migration away from the Libor floating-rate benchmark may present challenges to the collateralized loan obligation (CLO) market but is unlikely to impede what market participants foresee as another record year of activity.
Even if production is somewhat less than 2021, managers expect continuing strength in the economy and bulging private-equity coffers to finance abundant mergers and acquisitions this year. BofA Global Research projects $155 billion in new CLO issuance fueled by private equity debt, and it anticipates another $120 billion in refinancings and resets, for a total of $275 billion in production.
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.