CLO market regains footing

The collateralized loan obligation (CLO) market is returning to a healthy issuance pace, after pausing briefly in the wake of regional-bank and Credit Suisse failures. However, jitters remain that further disruptions could be in store, and the meager supply of new loans over the last year could face further hurdles as Dodd-Frank-Act guidelines increase scrutiny of leveraged lenders.

The Federal Reserve pushed up rates March 22 by the anticipated 25 basis points, after instituting a backstop facility and other regulatory measures to safeguard banks lessened concerns. In fact, several securitizations have approached the market since then, including the $500 million Octagon 67 CLO.

Through March 22, LCD tracked 70 CLOs totaling $30.5 billion, compared to 56 deals totaling $28.0 billion at the same point last year. 

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.

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

Stability and Performance of European CLOs

European collateralized loan obligations (CLOs) have proved remarkably stable since S&P Global Ratings rated its first transaction in 2000. During this time, European CLOs have resisted several upheavals, including the global financial crisis, the dotcom bubble,

Volta Finance

The rise of CLOs in the global financial system

The integrity of the global financial system has been endangered by a number of external shocks to the economy over the past 20 years, underscoring the necessity for proper portfolio diversification to safeguard investors from negative market

Volta Finance

The Importance of CLOs in Risk Management and Diversification

In an ever-changing landscape of modern financial services, collateralized loan obligations (CLOs) and structured asset-backed security have become crucial in shaping investment strategy, risk management and capital allocation. CLOs – structured security backed by assets –

Volta Finance

A guide to high-yield fixed income alternatives

When investors think of bonds, their minds immediately go toward U.S. Treasuries or other IOUs issued by corporations. Maybe municipal securities enter their minds. But these are just the tip of the iceberg with regard to

Volta Finance

Record CLO sales boost Wall Street buyout financing

Wall Street bankers looking to raise fresh financing for multi-billion dollar buyouts are getting a boost from the record start to the year from a critical part of the leveraged loan universe. Sales of collateralized loan

Volta Finance

Diversified investment opportunities

For the intrepid investor, there is no shortage of diversified investment opportunities. Interest in cryptocurrencies, structured products, direct indexing, and other “trendy” assets has grown in recent years, but a new report by Morningstar suggests that advisors may need

Volta Finance

The potential of CLO equity

Collateralized loan obligation (CLO) equity has emerged as a source of potentially robust, and front-loaded, returns for sophisticated investors. Over the past 30 years, collateralized loan obligations (CLOs) have grown from a niche asset class into a