Core Viewpoint - Volta Finance Limited successfully passed all resolutions at its Annual General Meeting, including a special resolution, indicating strong governance and shareholder support [2][3]. Company Overview - Volta Finance Limited is incorporated in Guernsey and listed on Euronext Amsterdam and the London Stock Exchange, subject to regulation by the AFM in the Netherlands [4][5]. - The company aims to preserve capital across the credit cycle and provide stable income through quarterly dividends, primarily investing in CLOs and similar asset classes [5]. Investment Management - AXA Investment Managers Paris is appointed as the investment manager for Volta Finance, specializing in structured credit [5][6]. - AXA IM is a significant player in the asset management industry, managing over €879 billion in assets as of June 2025 [6].

Core Insights - Active management is essential in CLO investing, providing structural protections and mitigating credit risk while enhancing yields compared to traditional corporate bonds [1][2][4]. Investment Opportunities - VanEck has launched two CLO ETFs: VanEck CLO ETF (CLOI) with a 30-day SEC yield of 5.43% and VanEck AABB CLO ETF (CLOB) with a yield of 6.59% as of 10/31/2025, offering access to investment-grade floating-rate CLOs and mezzanine tranches [4]. Market Dynamics - CLOs may strengthen core bond portfolios and provide broader access to the asset class, offering a yield advantage over similarly rated investment-grade corporates while reducing duration risk [6]. - Manager expertise, strong security selection, and tranche analysis are critical for performance dispersion in CLOs, emphasizing the importance of active management [6]. - Investors are increasingly attentive to credit concerns specific to companies like First Brands and Tricolor, indicating that careful security selection, especially in mezzanine tranches, can help mitigate risks [6].

Summary of U.S. Fixed Income Markets 2026 Outlook Industry Overview - **Industry**: U.S. Fixed Income Markets - **Company**: J.P. Morgan Securities LLC Key Economic Forecasts - **Real GDP Growth**: Projected at 1.8% for 2026, consistent with 2025 pace [5][19] - **Core PCE Inflation**: Expected to moderate slightly to 2.7% [19][28] - **Unemployment Rate**: Anticipated to remain stable at 4.3% [19][25] Interest Rate Expectations - **Federal Reserve Actions**: Anticipated 50 basis points (bp) cuts in January and April 2026 [5][19] - **Treasury Yields**: - 10-year yields expected to rise to 4.25% in Q2 2026 and 4.35% by Q4 2026 [6][19] - 2-year yields projected to remain around 3.51% through mid-year, rising to 3.85% by year-end [18][19] Fixed Income Market Dynamics - **Supply/Demand Imbalance**: Improvement expected in the Treasury market, but spread market technicals may worsen [19][41] - **High-Grade Corporate Spreads**: Forecasted to widen by 15bp to 110bp by year-end 2026 due to heavy supply and weakening credit fundamentals [19][44] - **High-Yield Bond Spreads**: Expected to widen by 30bp to 375bp, with default rates projected at 1.75% [15][19] Sector-Specific Insights - **Agency MBS**: Anticipated to provide modest excess returns despite a projected 5bp widening in OAS [19][28] - **ABS Market**: Expected to remain resilient with stable credit and slightly tighter spreads [11][12] - **CLOs**: Targeting new issue spreads to widen to 130bp, driven by waning exuberance and late-cycle defensiveness [15][46] Risks and Considerations - **Labor Market Risks**: Elevated risks of recession due to cyclical weakening in the labor market [29][30] - **Inflation Risks**: Core inflation expected to remain sticky, complicating the Fed's easing strategy [28][30] - **Regulatory Risks**: Potential impacts from financial deregulation and changes in capital frameworks [38][39] Technical Analysis - **Yield Curve**: Expected to remain range-bound with risks of flattening as the Fed goes on hold [6][19] - **Volatility**: Anticipated decline in shorter-expiry volatility, with longer-expiry volatility expected to increase [37][42] Conclusion - The outlook for the U.S. Fixed Income Markets in 2026 suggests a complex interplay of growth, inflation, and interest rate dynamics, with a focus on maintaining a defensive portfolio amidst macroeconomic uncertainties. The anticipated changes in yields and spreads across various sectors highlight the need for strategic positioning in the evolving market landscape.

Core Insights - Patria Investments Limited has agreed to acquire 51% of Solis Investimentos, a Brazilian investment manager specializing in CLOs, adding approximately US$ 3.5 billion in Assets Under Management (AUM) [1][2] - The acquisition will increase Patria's total Credit Fee-Earning AUM by over 40% to more than US$ 11.7 billion, solidifying its position as a leading Credit platform in Latin America [2] - The partnership aims to enhance Solis's growth by leveraging its credit origination and analysis capabilities with Patria's platform, expanding access to local and global capital [3][6] Company Overview - Solis Investimentos, founded in 2015, is a market leader in the CLO segment in Brazil, known for its strong market relationships and access to capital [3] - Solis serves a diversified investor base, including asset managers, bank treasuries, family offices, and wealth management clients, managing over 120 funds and serving more than 30,000 investors [4][7] - The funds managed by Solis have experienced a compound annual growth rate (CAGR) of approximately 45% since 2021, surpassing the market's average of 35% [7] Strategic Implications - The acquisition is expected to be accretive in the first year, enhancing Patria's origination capabilities in a rapidly growing market for non-bank, asset-backed instruments like CLOs [6][8] - The integration of Solis's expertise with Patria's sector intelligence and capital access is anticipated to strengthen both platforms and improve service to clients [6][7] - The leadership team at Solis will remain intact post-acquisition, ensuring continuity and the preservation of the company's operational DNA [5][7]

Core Insights - Volta Finance Limited reported a net return of -0.6% for October 2025, bringing the year-to-date performance to +2.9% [4] - The performance of Volta was notably lower compared to US High Yield bonds, which returned +7.3%, and Euro High Yield bonds, which achieved +4.7% during the same period [4] Performance and Market Activity - The market activity in October was influenced by political events, central bank decisions, and corporate earnings reports, leading to volatility after initial optimism [5] - The US Federal Reserve cut interest rates by 25 basis points, while approximately 85% of S&P 500 companies reported earnings that exceeded expectations, contributing to a late rally in US equities [5] - In the credit markets, the Morningstar LSTA Leveraged Loan Indices recorded returns of +0.22% in the US and -0.27% in Europe, with high yields providing some cushion against price declines [6] Portfolio Activity - Volta invested approximately EUR 5 million into six unique trades focusing on BB-rated and single-B rated tranches of European CLOs, with BBs sourced in the +560bps context and single-Bs in the +850bps context [7] - The company's cash position decreased to below 16%, while cash-flow generation reached approximately EUR 26 million, equivalent to 20% of October's NAV on an annualized basis [7] Performance Breakdown - Volta's CLO Equity tranches returned -1.9%, while CLO Debt tranches returned +0.1% [8] - The EUR/USD exchange rate movement positively impacted Volta's performance by +0.3% due to long dollar exposure [8] - As of the end of October 2025, Volta's NAV was €265.3 million, equating to €7.25 per share [8]

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Group 1 - The author has shifted focus from BBB tranches to AAA tranches due to reduced risk premiums and narrowing credit spreads in the asset management sector [1] - Financial Serenity is a column dedicated to financial analysis and quantitative research, particularly in asset management, managed by an experienced financial researcher [2] Group 2 - The initiative aims to provide in-depth analysis of the dynamics driving the asset management market, combining data analysis with actionable insights on ETFs and trending instruments [2]

Group 1 - The discussion focused on CLOs (Collateralized Loan Obligations) and their market dynamics [1] - The Reckoner Leveraged AAA CLO ETF (RAAA) was highlighted as a key investment vehicle in the CLO space [1] - Insights were provided on the performance and trends within the CLO market [1]

Onex Corporation (ONEX.F) 2025 Conference Summary Company Overview - **Company**: Onex Corporation (ONEX.F) - **Date of Conference**: September 04, 2025 - **Speaker**: Bobby LeBlanc, CEO Key Changes and Developments - Focus on intellectual honesty regarding competitive areas and restructuring human capital accordingly [6] - Successful fundraising across various business units, including OP, OnCap, and Credit [7] - Introduction of three new board members with relevant skill sets [7] Competitive Advantages - Strong organizational culture emphasizing intellectual honesty and investor orientation [8] - Focus on mid-cap private equity, financial services, industrials (especially aerospace), and business services as core competitive areas [8] - Significant growth in structured credit business, particularly CLOs, moving from mid-20s to seventh or eighth globally in issuance [10] Financial Performance and NAV - NAV growth has been decent over the past two years, with a compounded growth rate of 15% over the last five years [20] - Current NAV includes approximately $5.4 billion in private equity assets, which are undervalued in the market [16] - Share buybacks totaling $2.5 billion since 2020 have contributed to per-share NAV growth [18] Challenges and Areas for Improvement - Need for better organization of businesses to ensure revenue supports cost structures [13] - Aim to reduce capital intensity in asset management, potentially lowering the percentage of fund commitments [14] - Addressing the discount to NAV and improving market perception of the company's value [15][17] Market Environment and Fundraising - Current M&A environment for private equity is improving, but challenges remain due to pricing uncertainties and a sluggish IPO market [27][28] - OnCap raised 70% more third-party capital than the previous fund, aiding revenue growth [29] - Credit platform showing strong AUM growth, with expectations for continued scaling [35] Future Outlook and Strategy - Focus on successful fundraising and maintaining an investment-first culture [48] - Plans to close the gap between market value and intrinsic value through strategic capital deployment and share buybacks [46] - Emphasis on creating enterprise value and attracting third-party capital in targeted sectors [34][48] Conclusion - Onex Corporation is positioned to leverage its strong culture, competitive advantages, and recent fundraising successes to enhance shareholder value and close the valuation gap in the coming years [48]

Financial Data and Key Metrics Changes - For calendar Q1, the company reported a net loss of $0.23 per share and adjusted distributable earnings of $0.26 per share [10] - The overall net interest margin increased by 20 basis points to 5.27, supported by a growing capital allocation to CLOs [10][11] - The economic return for the quarter was negative 3.2%, with book value per share at $6.08 [11] Business Line Data and Key Metrics Changes - The CLO portfolio increased by 46% to $250 million, while capital allocated to CLOs expanded to 81% from 72% [12] - The agency mortgage portfolio decreased slightly to $504 million from $512 million at the end of the previous quarter [12] - The portfolio P&L by strategy showed a negative $0.24 per share from CLOs and a positive $0.08 from agency [10] Market Data and Key Metrics Changes - The market experienced turbulence in March, with credit spreads widening and prices declining across high yield, investment grade, and CLO debt tranches [8] - Significant tariff de-escalations in May led to credit spreads and prices reversing course, retracing a significant portion of the March and April moves [9] Company Strategy and Development Direction - The company successfully completed its conversion to a registered closed-end fund and changed its fiscal calendar to begin on April 1 [5][6] - The strategy focuses on increasing the CLO portfolio while maintaining liquidity and flexibility in response to market conditions [23][30] - The company plans to add corporate debt to its liability structure later this year, which should be accretive to net investment income [30] Management's Comments on Operating Environment and Future Outlook - Management noted that while there were mark-to-market losses in calendar Q1, most price declines were driven by credit spread widening rather than realized credit losses [23] - The company is optimistic about deploying capital in a compelling market and believes it is well-positioned to drive strong earnings moving forward [30] Other Important Information - The company plans to issue monthly updates on portfolio metrics and net asset value on its website [27] - The company maintained high levels of liquidity, with approximately 18.8% of the total portfolio in cash and cash equivalents as of April 30 [28] Q&A Session Summary Question: How does the yield on newly acquired CLOs compare to the previous $250 million? - Management indicated that the weighted average yield varied from slightly wider to potentially hundreds of basis points back, depending on the type of assets purchased [34][35] Question: Do you have dry powder to deploy? - Management confirmed that they still have good dry powder available for deployment [37] Question: What are the latest thoughts on the ADE trajectory? - Management stated that they might be a little short this quarter but are on track for coverage in the third quarter [56]