In August, Volta received the equivalent of €1.5m in terms of interest and coupons. The kind of deterioration we expect should not cause any meaningful diversion of cash flows: we expect Volta to receive full coupons from all its positions for the second half of 2022 and for 2023. With this kind of default expectation the projected yield for Volta's CLO book is slightly above 24% (based on the NAV from the current share price we have a projected yield above 30%). Our view is still that we may see more defaults materializing next year and we expect a default rates for 2023 to reach something in the area of 2% for the US, 3% for Europe. At the end of August, the same measure was at 0.7% for European loans. Knowing that the average annual historical default rate is in the area of 2.8%, we are still, for the time being, in a low default rate environment. Very near the end of August we saw a few defaults materializing in the US loan market so that last-12-month default rate went from 0.3% at the end of July to 0.6% at the end of August. Some deterioration may come regarding CLO risk metrics in the coming months (higher CCC bucket for example) but we still expect such deterioration to be smooth. When considering risk measures, August was relatively stable but when considering broader credit markets we started seeing more upgrades than downgrades. In August, CLO trustee reports are showing again that CLO managers are, on average, able to build some par, reinvesting the few prepayments in loans at discounts. In the footsteps of most markets the loan markets rallied again in August and therefore CLOs followed. Through asset classes, the monthly performances** were: +1.5% for Bank Balance Sheet transactions, +4.6% for CLO equity tranches +3.3% for CLO debt -0.9% for Cash Corporate Credit and ABS (together representing 2.3% of NAV). The fund gained +3.0%, mainly driven by CLO equity holdings. NOT FOR RELEASE, DISTRIBUTION, OR PUBLICATION, IN WHOLE OR PART, IN OR INTO THE UNITED STATESĪXA IM has published the Volta Finance Limited).įor the second consecutive month, August saw a recovery from the losses faced in Q2 2022 with the Ukrainian crisis. We apply stringent quality checks to all dictionaries produced or acquired by our expert team so our users can feel confident in our ability to accurately and meaningfully represent their language.Volta Finance Limited (VTA / VTAS ) - August 20 2 2 monthly report Our dictionaries aim to describe the way languages are and have been used by people around the world, rather than attempting to prescribe the way a language should be used. This evidence-based approach to creating a dictionary is known as descriptive lexicography. The team uses this process to identify new words and senses as they come into use. Our lexicographers analyse genuine uses of words collected from these sources to determine a word’s definition, spelling, and grammatical behaviour, and to offer guidance on a word’s use based on this research. The corpora, which collect these examples from a variety of language sources, are curated by the Oxford Languages team and enable us to analyse the ways words are used in context by people all around the world. The evidence we use to create our English dictionaries comes from real-life examples of spoken and written language, gathered through a series of corpora that continuously monitor language development. At Oxford Languages, we are committed to an evidence-based approach to creating dictionaries in order to provide the most accurate picture of a language.
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