What are the pros of structured finance?

Structured finance is a set of complex transactions offered for financing purposes. In some cases, a financial institution may use these instruments to help increase equity financing use by businesses. A few common types of structured finance options include collateralized bond or debt obligations along with other syndicated loan items.

The pros to these finance options may be the ability to package both good and bad loans together and garner higher rewards for riskier investments.

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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