Issuance of new collateralized loan obligations set a 10-year record in August

Sales of securities backed by bundles of risky corporate loans set a new monthly record in August, powered by improving corporate earnings and investor demand for relatively higher yields.

Issuance of new collateralized loan obligations, which buy up corporate loans with junk credit ratings and package them into securities, were more than $18.7 billion this month, as of Thursday, according to S&P Global Market Intelligence’s LCD. That is the highest monthly total in data going back to January 2011.

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.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Volta Finance

More articles like this

Volta Finance

CLO credit lines growing fast

Banks are giving more credit lines to firms putting together collateralized loan obligations, signaling that the intense pace of sales for the securities is only getting hotter. There may be as many as 200 active lines of credit

Volta Finance

Commercial real-estate CLO’s climb to sales record

Sales of securities backed by riskier commercial real-estate loans have surged to a record, highlighting investors’ demand for higher-yielding debt and expectations for a recovery in business properties.  Commercial real-estate collateralized loan obligations are created by private real-estate

Volta Finance

What is a CLO?

A collateralized loan obligation, or CLO, is a special purpose vehicle that invests in a pool of broadly syndicated or middle market senior secured loans covering a diverse range of issuers and industries. The portfolio of loans is

Volta Finance

The US leveraged finance market is at a record $3 trillion

For the first time in history, the U.S. leveraged finance market, a combination of leveraged loans and high yield (below investment grade) bonds, is over $3 trillion.  Leveraged loans have grown almost 130% since the financial crisis, more

Volta Finance

Volta Finance 10% covered and growing (Analyst Interview)

Volta Finance Ltd (LON:VTA) is the topic of conversation when Mark Thomas Analyst at Hardman & Co joins DirectorsTalk Interviews. Mark talks us through his recent report entitled Yield (10%, covered and growing) + capital growth. Tells us

Volta Finance

Capital Four ramps up CLO efforts

A recovering economy, the prospect of inflation and rising rates are making floating-rate debt such as corporate loans and collateralized loan obligations (CLOs) – pools of corporate loans packaged into securities – increasingly attractive to many investors. With