CLO refinancings surge as managers seek to sweeten deal terms

Refinancings and resets of U.S. collateralized loan obligations may notch a fresh record this year as risk premiums narrow, allowing portfolio managers to lock in better terms.

Wall Street has increased estimates for the transactions with Deutsche Bank AG predicting $193 billion — with $115 billion of that coming in resets — and Bank of America Corp. raising its 2021 forecast by $80 billion from November to $140 billion. The record to beat was set in 2017, when $165.8 billion of the deals were sold, according to data compiled by Bloomberg.

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.

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