Volta Finance Limited reports 6.3% returns in Q1 2024 (LON:VLA)

Volta Finance Ltd (LON:VTA) continued to deliver strong returns with a performance for the month of March reaching +2.3% and bringing 2024 Q1 performance at +6.3%. For comparison, US High Yield returned +1.2% in March (+1.5% YtD), European High Yield returned +0.4% (+1.6% YtD) and US CLO BB returned +2.6% (+6.4% YtD).

Bond markets were rather volatile in March and saw a spurt in Yields during the first half of the month which was then partially offset as the Fed suggested that they may cut rates three times this year. In Europe, headline inflation read close to the ECB’s 2% target, still hinting for an ECB June cut. In the Loan markets, Euro Loans were down for a second consecutive month – the Morningstar European Leveraged Loan Index price moved from 96.80px to 96.65px in March total returns remained positive at +2.55% YtD due to the benefits of carry. On the US side, Loans reached 96.75px, their highest level since Q2 2022, YTD total returns stood at 1.6%.

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,