Prices for the highest-rated bonds backed by leveraged loans are creeping higher in trading markets, signaling that at least some investors are snatching up securities they see as cheap, and the debt may rally further.
Collateralized loan obligations rated AAA have seen their average prices rise to 97.6 cents on the dollar, compared with about 97 cents toward the end of last month. That’s close to the lowest on record since the financial crisis, excluding the darkest point in the pandemic. For new CLOs, prices are starting to stabilize even if they’re not improving yet.
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.
