VTAS Volta Finance (GBP)

Hardman & Co Research: Volta Finance Limited (VTA): Volta's seven yield uplifts

Hardman & Co Research
Hardman & Co Research: Volta Finance Limited (VTA): Volta's seven yield uplifts

11-Jan-2021 / 16:05 GMT/BST


Hardman & Co Research: Volta's seven yield uplifts

In this note, we explore the dividend yield uplift that Volta offers investors. It is generated from six asset yield uplifts inherent to its model, including: i) structured debt yields above mainstream debt; ii) CLOs' yield above structured debt; iii) Volta's flexible mandate generating yields above the CLO market as whole; iv) current reinvestments at an above-average yield over the market; v) reinvestment yields offering a material pick-up against maturing business; and vi) expectation of a pick-up in Volta's dividend with retentions, and as asset valuations approach forecast cashflows and sentiment-driven discounts reduce.

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