Banks are giving more credit lines to firms putting together collateralized loan obligations, signaling that the intense pace of sales for the securities is only getting hotter.
There may be as many as 200 active lines of credit financing CLOs now, known as warehouse lines, a 30% increase since July, estimates Ryan Kohan, head of leveraged loans at Western Asset Management. These figures are at or above 2018 levels when the CLO market saw record annual issuance, he said.
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.