Carador Eur Share Discussion Threads

[dendria] 18/4/2012 09:10

I received my Q1 div this morning (Wed 18/04/12).

[jonwig] 10/4/2012 07:22

With the macroeconomic backdrop brightening, the CLO market regained its footing in the first quarter. Managers printed 15 new deals totaling $5.83 billion, which is the strongest quarter for the new-issue CLO market since the first quarter of 2008, when issuance totaled $6.02 billion.

While still paltry when compared to the $24-billion-a-quarter average of 2006, the figure is large by recent standards. In terms of number of deals, the first quarter's 15 deals top the 10 deals priced in the fourth quarter of 2010 and the three printed during the same period last year.

The revival of the CLO market did not come in a vacuum. A few factors helped the market get back on its feet after a rocky second half of 2011.

To start, the brightening U.S economic outlook lifted spirits on the Street, while at the same time, there were no major shocks from the eurozone or elsewhere to derail the recovery experienced during the quarter. As was the case in the first half of 2011, another positive was the fact that the default forecast for loans remains benign.

More:

[dendria] 19/3/2012 07:13

Carador Inc Fnd Plc
Results of Placing C Shares
RNS Number : 5526Z
Carador Income Fund PLC
19 March 2012

C Shares Conversion - Summary:

The U.S. Dollar C Shares will be delisted on 26 March 2012 and an application has been made for 92,299,895 new U.S. Dollar Shares to be admitted to the Official List and to trading on the London Stock Exchange from the same date.

Following conversion of the U.S. Dollar C Shares, the General Pool Shares in issue is expected to consist of the following:

404,926,977 U.S. Dollar Shares trading under ticker CIFU

13,914,839 Euro Shares trading under the ticker CIF

[jonwig] 17/3/2012 14:20

Yes, the Edison research is the key here, I think. Paid for by the company, but a clear explanation of how the investment works.

Good to see more interest in Carador. Performance will be geared to the US economic recovery and the potential hit on a downturn would be significant. Even so, the latest bit from Edison shows that they've cushioned themselves.

Wind-up from 2017 should protect the downside.

[dendria] 17/3/2012 10:58

aletts

If you haven't done so already, be sure to check out the Edison research notes on Carador (free registration required).

[aletts] 17/3/2012 10:44

Thanks again guys . Appreciate your help . I will try for CIFU on mon , should catch the divi . I`ve tried several sites ,FT , Digital look , Morningstar etc . Not easy to find any info .

[dendria] 17/3/2012 10:20

From IMS on 8 Nov 11 – here are 'the year to date' figures:

USD Share Class (CIFU)
Share Price 81.75c
NAV per Share 79.25c
Premium = 3.15%
Total Return = 19.73%

EUR Share Class (CIF)
Share Price 64.50c
NAV per Share 60.24c
Premium = 7.07%
Total Return = 25.66%

I hold CIFU simply as they are much more widely traded (as jonwig states above).

[jonwig] 17/3/2012 10:10

There are 313m CIFU against 14m CIF in issue. CIF are hardly ever traded and might have a big spread for size. CIFU have generally a decent narrow spread.

[aletts] 17/3/2012 09:38

Thanks guys . Do you see any real difference between the two apart from currency angle ?

[dendria] 17/3/2012 09:20

aletts

Ireland-registered with full LSE listing so the shares are ISAable with no stamp duty.

CIF = Euro type
CIFU = USD type
CIFC = USD 'C' type

Some brokers do not trade it so you have to shop around – brokers that do trade it usually offer the USD type (CIFU). My CIFU are with IWeb.

I added Friday morning.

[jonwig] 17/3/2012 08:16

aletts - USA and Euro versions of same fund. It's based in Rep of Ireland.

[aletts] 16/3/2012 21:21

Confused ! Can someone help - are CIFU and CIF , USA & UK versions of same fund or ...... what ??

[jonwig] 16/3/2012 11:56

Broker comment from Dexion. Copied from i i:

CIFU* - Carador Income Fund - February NAV and dividend
Invests in a diversified portfolio of bank loans through CLO structures
The NAV as at 29 February 2012 was USD 0.8761 per USD share (up 6.59% during the month), EUR 0.6682 per EUR share (up 6.44%), and USD 1.0227 per C share (up 2.38%). The NAV increases were net of an accrued performance fee.
Distributions received from the income notes for the general portfolio (excluding C shares) were USD 15.99m, up 15.45% versus the fourth quarter to the end of November 2011, while the income from the mezzanine and senior investments was USD 1.26m, down 1.74% over the same period. Net income was USD 11.93m, up 18.06% with respect to the fourth quarter. For the C share portfolio, USD 0.85m of net income was generated.
The C share portfolio was 61% invested at the end of January 2012 and 88% invested at the end of February 2012. During March, the C share portfolio has acquired 5 further investments; excluding the Q1 2012 dividend, the pro-forma cash for the C share portfolio was USD 6.7m as at 14 March 2012.
The company declared a dividend of USD 0.033 per USD share, EUR 0.025 per EUR share and USD 0.01 per USD C share for the period 1 January 2012 to 31 March 2012, with an ex-dividend date of 21 March 2012, payable on 26 April 2012.

Dexion comment
This was a stunning NAV from the company, representing the best monthly performance since January 2011 and building on the impressive 5.4% return in January 2012. The USD ordinary share NAV return is now 12.4% for the year. The CLO market has rebounded this year, with investors returning to a space where the potential returns look substantially more attractive in an improving economic environment. In addition to the general positive market pricing trend, the ordinary share portfolio benefitted from evidence of an increased number of transactions, resulting in a narrower range of quotes for positions (the company's assets are valued at an average bid price), and marks not fully reflecting the distribution of income. The C share portfolio, while having a strong month, did not benefit to the same extent given the positions were recently acquired (and therefore pricing is more accurate) and received less in terms of income distribution during the month. Furthermore, the C share portfolio was not fully invested during the month.
The C shares will convert into ordinary shares based on the respective February NAVs, less the declared dividends. This implies an eventual conversion ratio of 1.201 ordinary shares per C share, although both are currently trading cum-dividend, so the ratio is 1.167 until the ex-dividend date of 21 March 2012. The ordinary shares are currently trading on a c. 3.7% premium to the February NAV (share price of USD 0.9087), while the C shares trade on a 4.6% premium (share price of USD 1.07). We see scope for further capital appreciation, although income is likely to be a stronger driver of returns. The dividend of USD 0.033 per ordinary share represents a very attractive yield of 14.5% (based on a share price of USD 0.9087).

[jonwig] 15/3/2012 18:43

That's right, xd date.

US recovery will protect against defaults so helping the notes. NAV is bolstered by retiring a proportion of income to capital.

[dendria] 15/3/2012 18:04

Another strong NAV performance - must be a monthly record at +6.59% on the USD share. Ex-div must be next Wed (21 March 12)?

[jonwig] 15/3/2012 10:21

Rise in dividend again:

The Board has declared a dividend of $0.0330 per U.S. Dollar Share, €0.0250 per Euro Share and $0.0100 per U.S. Dollar C Share in respect of the period from 1 January 2012 to 31 March 2012 (4Q11: USD0.0320 and EUR0.0250; U.S. Dollar C Share - N/A). This dividend is payable on 26 April 2012 to shareholders on the register as at the close of business on 23 March 2012.

[jonwig] 09/3/2012 11:40

A new, 12-page report today from Edison.

[stemis] 01/3/2012 09:11

Sorry, I hold mine in a SIPP. In the past there have been problems with overseas stocks that don't settle through Crest.

[jonwig] 01/3/2012 07:00

dendria - they have a full listing so they ought to be ISA-able. My holding is outside and I didn't try to have them inside.

Some providers might make their own rules.

[dendria] 29/2/2012 19:10

Has anyone got these in an ISA? I've just been told by X-O that they're not ISA eligible.

[jonwig] 02/2/2012 08:29

ram2 - yes, I'd read somewhere about the charges and hurdle. It doesn't really put me off, as this isn't an investment I could replicate from home - no way!

BTW, don't see your handle much these days!

[jonwig] 01/2/2012 11:51

Article here corroborates CIF's view that loan default risk is being mispriced in the market - hence the high returns on its CLO notes:

[dendria] 31/1/2012 20:05

I'm sure you're right jonwig. I've got a cheap dealing account with SVS and they only offer the € shares. I can't see my deal on today's trades but the shares are in my account so I'm happy.