Dear Horatio,
May this find You well. I concur as to not disturbing the catalytic convertor. A Volvo replacement will be several hundred dollars.
The ATF leak likely is coming the overdrive solenoid. If I recall correctly, there are two hex bolts that secure the solenoid to the right side of the trans casing. These bolts may need to be snugged. If you can't access them, go to a trans shop. They'll be able to do this, without compromising the exhaust system.
If need be, they can take loose the exhaust system at the manifold. There are three hex nuts, which hold the engine pipe to the manifold. There is also a bracket, attached to the transmission, that supports the engine pipe.
If you want to loosen these fittings, be sure to lower the engine pipe gently - and to support the engine pipe - to avoid cracking welds in it. That is, as you back-off the hex nuts which secure the engine pipe to the manifold, use wire to hold the engine pipe in place. Once you have removed the hex nut, that secures the engine pipe to the bracket, you can slowly lower the engine pipe just enough, so that you can access the side of the transmission case.
At that point, wire the engine pipe into place: do not let it bear the weight of the entire exhaust system. Once you have snugged the solenoid bolts - if that is indeed the leak source - gently raise the engine pipe up to the manifold, and snug the hex nuts. Do them as you would do wheel lug nuts: a little bit on each one. When these hex nuts are tight, re-secure the engine pipe to the bracket (beside the tranny).
Hope this helps.
Yours faithfully,
Spook
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