Record CLO sales boost Wall Street buyout financing

Wall Street bankers looking to raise fresh financing for multi-billion dollar buyouts are getting a boost from the record start to the year from a critical part of the leveraged loan universe.

Sales of collateralized loan obligations stand at $32.7 billion in the US so far, surpassing the previous high of $24.6 billion in 2021, according to Bank of America research. In Europe, CLO issuance has also reached a historically fast pace, with €5.1 billion ($5.5 billion) printed by Feb. 26, the bank’s data shows.

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.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Volta Finance

More articles like this

Volta Finance

CLO market poised for continued success

Collateralised loan obligations (CLOs) have continued their positive trend as high interest rates and the potential for additional yield attract investors. Supported by a favourable economic environment, CLO performance has been strong across the capital structure.

Volta Finance

Navigating the future of finance

The finance sector has been witnessing transformative trends, driven by technological advancements and evolving consumer expectations. This dynamic landscape is characterised by an increased focus on sustainability, digitalisation, and innovative financial products, propelling the industry towards

Volta Finance

High-yield bond market analysis: Risks and opportunities

Junk bonds, also known as high-yield bonds, are debt securities rated below investment grade by credit rating agencies. These bonds offer higher yields to compensate for their increased risk of default. Investors are drawn to these

Volta Finance

Advantages of investing in Structured Products and CLOs

Structured products and collateralised loan obligations (CLOs) have become increasingly popular among investors seeking to diversify their portfolios and achieve higher returns. These financial instruments, while complex, offer unique advantages that can enhance investment strategies when

Volta Finance

ECB decisions and market reactions

The recent decision by the European Central Bank (ECB) to deliver a 25 basis points cut on the three key interest rates has sparked various discussions. The ambiguity surrounding President Lagarde’s refusal to provide forward guidance

Volta Finance

CLOs and their role in a sustainable future

Collateralized Loan Obligations (CLOs) have emerged as a significant element in the fixed-income market, offering attractive yields to investors. However, with the increasing emphasis on Environmental, Social, and Governance (ESG) factors, it raises the pertinent question

Volta Finance

CLO equity returns surge amid improving loan performance

The returns on the riskiest portion of collateralized loan obligations (CLOs) are surging, reaching about 20% annualized in both Europe and the US. This boost is driven by improved loan performance, tighter debt spreads, and increased

Volta Finance

CLO markets show strong demand and returns

The Federal Reserve on 1st May highlighted that inflation remains high and does not plan to cut interest rates until it is confident that inflation is slowing towards its 2% target. Despite economic uncertainties, the Fed’s

Volta Finance

The emergence of European middle market CLOs

Collateralised loan obligations (CLOs) are a significant element in the European capital markets. In 2023, the public issuance of CLOs in Europe maintained a steady volume of €26 billion across 69 deals, mirroring the previous year’s

Volta Finance

CLOs: One of the most underutilized asset classes

In the aftermath of the Global Financial Crisis (GFC), Collateralized Loan Obligations (CLOs) emerged as a contentious topic and were viewed through a cautious lens. However, as financial markets have evolved, the asset class has been

Volta Finance

Why CLOs are outperforming core bonds in today’s market

CLOs provide the attributes that investors look for in their core bond portfolios: attractive yield, safety, and diversification, and have continued to outperform core fixed income through this most recent volatility. As a result, an allocation

Volta Finance

Understanding CLOs and How They Work

Collateralized Loan Obligations (CLOs) are a new asset class within the finance world. They offer diversification options and potential attractive returns to investors. However, their complex structure and involvement of multiple parties can make them difficult

Volta Finance

Stability and Performance of European CLOs

European collateralized loan obligations (CLOs) have proved remarkably stable since S&P Global Ratings rated its first transaction in 2000. During this time, European CLOs have resisted several upheavals, including the global financial crisis, the dotcom bubble,