In our note, Re-Set, Re-Fi, Re-Light my Fire, published on 5 May 2021, we explored how favourable market conditions mean that CLO vehicles can re-finance debt cheaply. This enhances the value of Volta’s CLO equity positions, which have been increased substantially in recent years, and is expected to lift total returns by 1%- 1.5% p.a. for several years. The higher cashflow further backs an already covered dividend, with a 2022E yield of 10.1%. With returns above the cost of the dividend, the NAV ....
28 Jul 2021
Yield (10%, covered and growing) + capital growth
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Yield (10%, covered and growing) + capital growth
Volta Finance Limited (VTAS:LON) | 0 0 0.0% | Mkt Cap: 161.0m
- Published:
28 Jul 2021 -
Author:
Mark Thomas -
Pages:
12
In our note, Re-Set, Re-Fi, Re-Light my Fire, published on 5 May 2021, we explored how favourable market conditions mean that CLO vehicles can re-finance debt cheaply. This enhances the value of Volta’s CLO equity positions, which have been increased substantially in recent years, and is expected to lift total returns by 1%- 1.5% p.a. for several years. The higher cashflow further backs an already covered dividend, with a 2022E yield of 10.1%. With returns above the cost of the dividend, the NAV ....