Volta Finance Limited achieves 19.1% YTD performance (LON:VTA)

Volta Finance Ltd (LON:VTA) monthly report for October 2023, published by AXA IM.

PERFORMANCE and PORTFOLIO ACTIVITY

Volta Finance posted another positive monthly performance in October 2023 (+0.5%) bringing the YTD performance to 19.1%.

As Portfolio Managers, we always try to think outside the box and implement our views in order to optimize returns whilst keeping enough flexibility to face “exogenous shocks” should they arise. The breakout of an unexpected full-blown conflict in the Middle-East had – and still has – grounds to embody such an event as its implications may send shockwaves far beyond the peninsula. In the meantime, we were also conscious of the mixed economic indicators released worldwide as on one side the US and China displayed favorable GDP growth numbers hinting to a recovery in terms of consumer spending while on the other side Europe was facing stagnant growth outlooks amid fiscal concerns. The trajectory of the Leveraged Loan Index (ELLI) was dictated by those elements, it peaked at 96.7% in late September then retraced to 95.0% by mid-October. Following the dovish stance from the Fed post data release, it rebounded and closed at 95.4% on the 1st of November. The price moves on CLO debt tranches were down, unsurprisingly: the average USD CLO BB tranche price moved from 88.9% in September to 87.7% in October (JPM CLO Index).

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

More articles like this

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,

Volta Finance

The rise of CLOs in the global financial system

The integrity of the global financial system has been endangered by a number of external shocks to the economy over the past 20 years, underscoring the necessity for proper portfolio diversification to safeguard investors from negative market

Volta Finance

The Importance of CLOs in Risk Management and Diversification

In an ever-changing landscape of modern financial services, collateralized loan obligations (CLOs) and structured asset-backed security have become crucial in shaping investment strategy, risk management and capital allocation. CLOs – structured security backed by assets –

Volta Finance

A guide to high-yield fixed income alternatives

When investors think of bonds, their minds immediately go toward U.S. Treasuries or other IOUs issued by corporations. Maybe municipal securities enter their minds. But these are just the tip of the iceberg with regard to

Volta Finance

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

Volta Finance

Diversified investment opportunities

For the intrepid investor, there is no shortage of diversified investment opportunities. Interest in cryptocurrencies, structured products, direct indexing, and other “trendy” assets has grown in recent years, but a new report by Morningstar suggests that advisors may need

Volta Finance

The potential of CLO equity

Collateralized loan obligation (CLO) equity has emerged as a source of potentially robust, and front-loaded, returns for sophisticated investors. Over the past 30 years, collateralized loan obligations (CLOs) have grown from a niche asset class into a