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.

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