Strong CLO market likely to continue

The collateralized loan obligation (CLO) market’s exuberant recovery from its pandemic doldrums of 2020 appears likely to continue, although credit risk is nudging upward and the market recently saw its first defaults of post-financial crisis transactions.

S&P Global noted in its “U.S. CLO and Leveraged Finance Quarterly Key Themes, Q3 2021” that CLO new issuance through Q2 2021 totaled $82.3 billion compared to $91.7 billion for all of 2020, while CLO resets and refinancings (refis) totaled $126.6 billion compared to $33.6 4 billion for all of last year.

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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