Volta Finance Limited (VTA): Yield (10%, covere...
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Hardman & Co Research
Hardman & Co Research: Volta Finance Ltd Yield (10%, covered and growing) + capital growth 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 is growing (supporting further dividend growth). With income and capital growth appealing to a range of investors, the discount to NAV may narrow. Please click on the link below for the full report: If you are interested in meeting the company, you can register your interest by clicking on the above link
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1222142 28-Jul-2021
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