With higher relative yields, a history of strong risk-adjusted returns, and protection against rising rates, we believe this is a great time to make a strategic allocation to CLOs.
Collateralized loan obligations (CLOs) have historically offered many benefits that make them attractive relative to other fixed income investments like leveraged loans, high yield bonds and investment grade bonds:
Attractive performance. Over the long term, CLO tranches have performed well relative to other corporate debt categories, including leveraged loans, high yield bonds, and investment grade bonds, and have significantly outperformed at lower rating tiers.
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.
