CLO Structures: An evolution

Deloitte report

Collateralised Loan Obligations (CLOs) have evolved considerably over the last decade, with adjustments leading to an evolution of CLO structures to ensure they continue to appeal to investors, as well as fulfilling a useful function in the capital markets.

CLOs have a number of notable features which distinguish them from other classes of securitisation, which we explore in this paper. In addition we examine the current state of CLO regulation in Europe (under the Capital Requirements Regulation (CRR) and the Alternative Investment Fund Managers Directive (AIFMD)), and in the United States (under Dodd-Frank). We also consider how that regulation has evolved and what may be in store for the future.

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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