Collateralized loan obligation managers use the capital raised from investors to purchase loans. However, how are such loans sourced?
It is important to note that CLOs are crucial to the loan markets. According to Reuters, CLO managers are the largest buyers of leveraged loans.
Managers purchase loans through a syndication process. For example, a company may be looking for money to expand their operations and approaches a bank for a $100-million loan.
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.