Alternative Credit investments span the liquidity spectrum and are secured by assets that generate cash flows upon which the investment relies for repayment. From an income and yield perspective, these assets offer varying premiums relative to traditional fixed income. These investments also offer downside protection, given ample levels of credit enhancement and robust covenant packages.
Insight – CLOs Avoid Most Underlying Corporate Defaults
CLOs invest in diversified and actively managed pools of corporate loans. Year-to-date, 59 non-investment grade companies have defaulted on their loans, representing approximately $50 billion of paper.
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.