Credit quality of U.S. broadly syndicated CLOs improved during the first quarter, aided by a default rate on underlying loan issuers at its lowest level in two years, according to Fitch Ratings.
In a report issued Tuesday, Fitch also noted that exposure to issuers with negative outlooks – or on watch for potential downgrades – was “proportionally less” for collateralized loan obligations, in its initial 2021 surveillance report on outstanding deals.
Fitch said it identified only 13 issuers with loans held in CLOs that were in default at the end of March 2021, down from 28 at the end of December 2020.
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.