In this note, we explore how favourable market conditions mean that CLO vehicles can re-finance debt cheaply, thus enhancing the value of Volta’s equity positions, which have been increased substantially in recent years. We show the impact on Volta’s CLO debt portfolio and the wider loan market, and what this means for new investment returns. The key message is that the favourable conditions are expected to lift returns by 1%-1.5% p.a. for several years. Volta is benefiting from the unexpectedly ....
05 May 2021
Re-Set, Re-Fi, Re-Light my Fire
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Re-Set, Re-Fi, Re-Light my Fire
Volta Finance Limited (VTA:LON) | 504 0 0.0% | Mkt Cap: 184.2m
- Published:
05 May 2021 -
Author:
Mark Thomas -
Pages:
14
In this note, we explore how favourable market conditions mean that CLO vehicles can re-finance debt cheaply, thus enhancing the value of Volta’s equity positions, which have been increased substantially in recent years. We show the impact on Volta’s CLO debt portfolio and the wider loan market, and what this means for new investment returns. The key message is that the favourable conditions are expected to lift returns by 1%-1.5% p.a. for several years. Volta is benefiting from the unexpectedly ....