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.