Hardman & Co: Hardman Talks Video | Volta F...
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Hardman Talks Video | Volta Finance Volta Finance webinar 'Private equity: Funding the future' Serge Demay, the Head of CLO Investments, AXA IM, and manager of Volta Finance, joined Hardman & Co for a live presentation and Q&A webinar on Hardman Talks on Thursday 9 June 2022. Watch it here: https://youtu.be/v66RI6J0n3A The current environment with inflation, interest rate hikes and the Ukraine crisis increases both the potential risk and reward. In this webinar, we heard from Volta’s manager how it is “Seizing opportunities in volatile times”. It reduced the cost of embedded leverage significantly in 2021 through refis and rests and the majority of the Company’s assets are floating rate (so benefiting from rising interest rates). Additionally, the flight to safety and the US dollar strength has benefited shareholders with around 30% net exposure. As at the end of April Volta’s YTD performance was positive. With cashflows of 15%-17% of NAV, the dividend (8% of NAV) is very well covered and excess cash flow gives the flexibility to add attractive primary and secondary opportunities with high projected returns. Looking forward defaults are expected to rise (maybe in the area of 1% at the end of 2022 (lower for the US) and 2% to 3% default rate in 2023) but Volta may be expected to benefit from higher WAS (Weighted Average Spread) inside CLOs, generating strong cash flows from Volta’s CLO equity positions. The starting position for corporates is very positive with profits up 31% 4Q’21 on 4Q’19 while corporate debt is up 15% over the same period. The Q&A session was very broad, covering a number of aspects of credit risk, management and control, discount management, the dividend and prospective growth, fees, operational issues and management and AXA IM’s competitive advantages. Watch it here: https://youtu.be/v66RI6J0n3A To be first in the know about Hardman & Co’s latest digital events, subscribe to the mailing list here. The Hardman Talks series is designed to share the latest sector insights and company investment cases from our corporate clients and our expert team of analysts. Click here to subscribe to the Hardman Talks channel on YouTube. Hardman & Co | 1 Frederick's Place | London | EC2R 8AE | www.hardmanandco.com
Hardman & Co Research can still be accessed for free after MiFID II. About Hardman & Co: For the past 25 years Hardman has been producing specialist research designed to improve investors’ understanding of companies, sectors, industries and investment securities. Our analysts are highly experienced in their sectors, and have often been highly rated by professional investors for their knowledge. Our focus is to raise companies’ profiles across the UK and abroad with outstanding research, investor engagement programmes and advisory services. Some of our notes have been commissioned by the company which is the subject of the note; this is clearly stated in the disclaimer where this is the case. Hardman Research Ltd, trading as Hardman & Co, is an appointed representative of Capital Markets Strategy Ltd and is authorised and regulated by the Financial Conduct Authority; our FCA registration number is 600843. Hardman Research Ltd is registered at Companies House with number 8256259. Our research is provided for the use of the professional investment community, market counterparties and sophisticated and high net worth investors as defined in the rules of the regulatory bodies. It is not intended to be made available to unsophisticated retail investors. Anyone who is unsure of their categorisation should consult their professional advisors. This research is neither an offer, nor a solicitation, to buy or sell any security. Please read the note for the full disclaimer.
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1376577 15-Jun-2022
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