Collateralized loan obligations, or CLOs, may be a way for advisors to enhance retail clients’ portfolios.
They provide investors with access to a diverse pool of senior secured loans. While they have been primarily used by institutional clients to date, CLOs could enhance risk-adjusted returns for individual clients.
CLOs are securities backed by a pool of debt, usually loans to well-known corporations such as Hilton, United, and Restoration Hardware, said Danielle Gilbert, managing director for business development at Panagram Structured Asset Management, during VettaFi’s Alternatives Symposium on November 28.
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.