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 between them.
Though both CLO and CDO are similar types of debt instruments, they are very different from each other.
The primary difference between CLO vs CDO is with the underlying assets backing them. CLO uses corporate loans, while CDO mostly uses mortgages.
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.