In the aftermath of the Global Financial Crisis (GFC), Collateralized Loan Obligations (CLOs) emerged as a contentious topic and were viewed through a cautious lens. However, as financial markets have evolved, the asset class has been gaining wider prominence as one of the most underutilized areas of opportunity and diversification in the alternatives space. Particularly in a market where interest rates remain high, CLOs have been offering investors compelling coupons, lower volatility, and comparable liquidity to Investment Grade (IG) Corporate bonds.
In a bid to protect their portfolios against interest rate erosion, major banks like J.P. Morgan, Bank of America, and Citigroup have been paying attention, buying up top-rated CLOs that carry SOFR-based floating-rate coupons, helping propel credit gains.
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.
