Carador Income Share Discussion Threads

[eeza] 11/9/2015 10:40

Angle of decline steepening, seems to have fallen off a cliff the last month.

[cerrito] 05/9/2015 18:16

Agree that for a US$ based investor this is an attractive entry point; as a £ based investor asking myself if I want to buy US$ at 1.517 so may wait for £ to strengthen before buying.
I note that 2/3rds of the portfolio are in income notes which I infer from reading the interims are the most junior tranche.Is that how you folks see it??

[badtime] 04/9/2015 20:30

Pound dropping has helped my current capital loss (on paper).

Sky..have u any VTA?

[eeza] 04/9/2015 16:38

Took a small 3000 (shares) myself.

[skyship] 04/9/2015 16:01

Just got that small top-up @ 82.5c. Thnx for the heads-up Eeza...

[skyship] 04/9/2015 13:46

Thnx for that Eeza - unfortunately missed it, though a few others seem to have scooped them up. Cheapest offer again @ 84c after 31k bought in 3 lots. Will need to keep a closer eye out.

Will perhaps add to my NBDG...

[eeza] 04/9/2015 13:16

Can buy @ $0.8250 today.

[skyship] 27/8/2015 15:00

After reading through today's Interims, made a small top-up @ 83.75c...

[dendria] 21/8/2015 13:12

CIFU has always been a generous payer but the dividends have already been rebased to allow for CLO2 returns so should be sustainable. I think the fear is the default rate is going the rise but CIFU has very limited exposure to vulnerable oil & commodities.

[danieldruff2] 21/8/2015 12:57

It's more reflective on the general market. If you are watching a bunch of shares that drop 20%, you sell the share that's held its value and swap over, if tempted. Bit of that going on I suspect. Only negative comment I've seen on Carador is a suggestion they are paying out too much compared to BGLF / FAIR

[dendria] 21/8/2015 12:55

Floating rate, double digit dividend yield at a discount. The Q3 dividend is almost covered already.

Analyst comment on Jul 15 NAV:

N+1 Singer, 21 August 2015, “July NAV +0.8%, strong income generation resumes”
NAV performance was +0.8% MoM in July (-2.01% post Q2 dividend) bringing the YTD return to 5.4% which compares favourably with other credit and equity benchmarks. Performance was driven by a weighted average increase in the income note valuations (including cash flows) of 110bps, slightly offset by mezz positions which declined 27bps. $16.8m of cash flows were received over the month ($0.031 per share) generating distributable earnings of $0.0224 per share - almost fully covering the targeted Q3 dividend. CIFU continues to look attractive at a 3% discount to July end NAV, yielding over 11.8% whilst providing floating rate exposure in the face of an imminent Fed rate ‘lift-off̵7;.

Dexion Capital, 21 August 2015, “Carador Income – July 2015 NAV”
The NAV as at 31 July 2015 was $0.8712 per share, up 0.80% in July and up 5.42% year-to-date. The average price of the S&P/LSTA Leveraged Loan Index fell 43bps during the month, at least in part due to the sharp decline in oil prices. On a total return basis, US loans lost only 0.01%. In Europe, the S&P European Leveraged Loan Index returned 0.75% over the month, the price index gaining 30bps.

[eeza] 21/8/2015 11:46

Sells going thro at 82 now.

[badtime] 28/7/2015 14:12

Bit disappointing this hasn't moved on div declaration..will the share price absorb the div on Thursday ..hmmm

[dendria] 22/7/2015 07:41

Analyst comment on Jun 15 NAV:

Liberum Capital, 21 July 2015, “June NAV falls -0.4%”
The NAV decline in the month is attributable to market volatility in the month on the back of the Greek crisis. Higher-rated CLO debt tranches within the JPM CLOIE Index outperformed tranches rated BBB and below. BBB-B tranches returned between -0.94% to -1.78% in June compared to +0.01% to +0.05% for AAA-A tranches. CIFU currently trades on a 2.1% discount to NAV.


Dexion Capital, 21 July 2015, “Carador Income – June 2015 NAV and dividend”
The NAV as at 30 June 2015 was $0.8891 per share, down 0.38% in June and up 4.58% year-to-date. The S&P/LSTA Leveraged Loan Index declined by 0.83% during the month in the face of the developments in Greece.

[dendria] 21/7/2015 07:40

Jun 15 NAV = $0.8891 (-0.38% change; -0.38% monthly performance).

Aug div = $2.5c. Paid Thu 6 Aug 15; ex-div Thu 30 Jul 15.

[dendria] 11/7/2015 17:33

daveb

At a quick look...

JPSL: DY = ~5.5%; Discount = ~-5%; TER = 1.1; Currency hedged. Direct loans.

CIFU: DY = ~11%; Discount = ~-3.5%; TER = 1.9; USD. CLOs.

Both floating rate.

I’m happy with CIFU even with a higher TER – this has been one of my best investments over many years & hopefully many more to come but you have to accept the effect of $/£ rate.

[badtime] 11/7/2015 14:45

You mean the one you have just invested into

[davebowler] 11/7/2015 13:42

Had anyone compared this to JPSL?

[badtime] 23/6/2015 08:05

Pity the dollar has been weakening against the pound

[dendria] 23/6/2015 07:45

Analyst comment on May 15 NAV:

Liberum Capital, 19 June 2015, “YTD NAV TR of 5%”
CIFU's YTD improvement continues on the back of relatively strong credit markets and leveraged loan markets in particular. The outlook for the sector remains strong given the benign default environment and default rates are expected to remain below historical averages over the next couple of years. CIFU trades on a 3.6% discount to NAV (average 1.9% discount for the peer group).

Dexion Capital, 19 June 2015, “Carador Income – May 2015 NAV”
The NAV as at 29 May 2015 was $0.8925 per share, up 1.16% in May 2015 and up 4.98% year-to-date. The S&P/LSTA Leveraged Loan Index posted a return of 0.19% during the month as loan prices declined on increased repricing activity. The year-to-date return for the index was 3.26%, outperforming longer duration assets. In Europe, the S&P ELLI was up 1.42% in the month and up 5.43% year-to-date

[valuegrowth] 19/6/2015 11:18

Carador continues to outperform the key US leveraged loan index benchmark with +1.16% NAV performance in May. CLO issuance has been muted by lower primary issuance, tightening spreads and constraints on collateral. Fund cashflow remain strong and delivering income in line with our expectations. The portfolio currently consists of 65% income notes, of which 89% are post-crisis issues. The fund remains on track to deliver a 10¢ dividend with 2.5¢ already paid in Q1; representing an 11.5% yield. Carador’s portfolio is well placed to deliver positive income returns and capitalise on long-term positive trends in CLO issuance.

[dendria] 19/6/2015 07:27

May 15 NAV = $0.8925 (+1.16% change; +1.16% monthly performance).

[davebowler] 29/5/2015 14:22

Volta now on the LSE