CLO resurgence continues

Collateralized loan obligation managers are expected to extend a run of frenzied sales this month as they continue to cut deals at sweetened terms.

No less than seven new-issue CLOs are currently marketing following one of the strongest Januarys in years. There are also two refinancings and at least four so-called resets of older deals on offer.

The rise in sales comes as risk premiums for new transactions, which package and sell leveraged loans into tranches of varying risk and potential return, have tightened to pre-pandemic levels. 

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.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Volta Finance

More articles like this

Volta Finance

Mortgage-Backed Securities and Collateralized Mortgage Obligations

Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property. Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into

Volta Finance

CLO prices edge higher

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

Volta Finance

How do collateralized loan obligations work?

Understanding CLO Collateral: Leveraged Loans A portfolio of loans act as the collateral supporting a CLO. The proceeds of these loans are typically used by non-investment grade borrowers to support a range of activities, including mergers and acquisitions,

Volta Finance

Demystifying collateralized loan obligations

What Is a Collateralized Loan Obligation? A collateralized loan obligation (CLO) is a portfolio of predominantly senior secured loans that is securitized and actively managed. Each CLO issues a series of floating rate bonds, along with a first-loss equity tranche.

Volta Finance

Collateralised loan obligations explained

Against a backdrop of geopolitical and economic volatility, collateralised loan obligations (CLOs) continue to navigate uncertainty and hold net asset values. Collateralised loan obligations (CLOs) sit at the pinnacle of various financial processes, in terms of both their

Volta Finance

What is the difference between a CDO and a CLO?

Many who followed the 2008 financial crisis closely would know about CDO (collateralized debt obligations). They were a major reason triggering the financial crises. There is another similar term, CLO (collateralized loan obligations), and many people do get confused

Volta Finance

CLOs: Uncover opportunity beyond AAAs

Collateralized loan obligations (CLOs), which are securitized pools of leveraged loans, may provide several attractive benefits within an income-oriented portfolio, including enhanced yields, structural risk protections and diversification. We believe CLOs are particularly attractive in today’s rising rate environment. They

Volta Finance

Mortgage Investment

Mortgage Investment means a direct or indirect interest in a tax-exempt mortgage revenue Bond secured by a Property, including residual interests in one or more trusts which hold tax-exempt mortgage revenue Bonds, and any other loan (whether or not

Volta Finance

Collateralized Loan Obligations (CLO)

Collateralized loan obligations (CLOs) are loans that are repackaged and bought by investors. These securities are backed by a pool of loans comparable to collateralized mortgage obligations (CMOs). With CLOs, the underlying debt is loans, as opposed to

Volta Finance

The U.S. leveraged loan market

Broadly syndicated loans to non-investment grade U.S. Corporations (“leveraged loans”) are widely misunderstood. A number of commentators imply that leveraged loans are shadowy corporate equivalents to pre-crisis sub-prime mortgages. We do not believe this to be true and

Volta Finance

CLOs: Lower duration risk and pick up yield

With higher relative yields, a history of strong risk-adjusted returns, and protection against rising rates, there is a strong case for a strategic allocation to collateralized loan obligations (CLOs) within an income portfolio. In the upcoming webcast, CLOs: Lower

Volta Finance

A look at leveraged loans and CLOs

Chris Galipeau, Senior Market Strategist of Putnam’s Capital Market Strategies group, recently spoke with Scott M. D’Orsi, CFA, a Portfolio Manager in Putnam’s Fixed Income group on the Active Insights podcast. Scott has been in the investment industry

No more posts to show