Carador Income Share Discussion Threads

[yieldsearch] 15/10/2012 21:20

Liberum: The Specialist Finance Edition
"we move our recommendation from HOLD to BUY"

some extract below:

Carador Income Fund was initially raised in April 2006, and is now managed
by the team at GSO Capital Partners, which is ultimately owned by private
equity giant, Blackstone. The fund is now invested exclusively in senior,
mezzanine and equity tranches of US CLOs and has a very impressive
performance record. Carador has been very successful at raising equity over
recent years, most recently through its $125m C share placing (CIFC LN). The
shares' current premium to NAV is reflective of strong historic performance,
the very attractive dividend yield, mark to market portfolio valuation and the
level of portfolio disclosure. Whilst performance remains sensitive to any
deterioration in macro sentiment, we believe it remains attractive and upgrade
our recommendation from HOLD to BUY.

Carador Income Fund has a strong performance record and was ideally placed to
capitalise on the opportunities that were presented during the fall out from the
financial crisis. It is also the largest of the London listed funds offering structured credit exposure. Whilst the shares continue to trade a small premium to NAV, given the manager's track record and the fund's clearly articulated policy of distributing all income to shareholders in the form of quarterly dividends, and barring a significant deterioration in the macroeconomic outlook we believe that this is sustainable.

On relative value grounds we have previously highlighted Volta Finance as our
preferred pick in the structured finance sector and whilst both funds have performed strongly in NAV terms, Volta's share price has outperformed Carador's over recent months and this valuation gap has now narrowed significantly. We remain positive on the structured finance market and consequently given the manager's track record and Carador's continued strong performance we move our recommendation from HOLD to BUY.

[solarno lopez] 21/9/2012 09:23

glad I am in

[pejaten] 21/9/2012 09:22

What an amazing increase in net asset value! Nearly 10% in one month is just stunning. Income per share is also up 12% so should be another increase in dividend. Wow

[yieldsearch] 14/9/2012 20:30

TICC yes indeed just realised this today.
AGNC yes but worried by the ultra leverage. But could improve in value with the QE3 focusing on mortgage purchase ( my understanding is AGNC is basically a leverage company on agency mortgage bonds)

[kenny] 14/9/2012 15:18

TICC is managed by the same company that manages GLIF.

[stemis] 14/9/2012 14:36

Anyone in TICC or AGNC? Yields are about 9.5% and 11.5%.

[yieldsearch] 12/9/2012 22:01

yep own glif, was looking at euro or usd denominated

[pejaten] 12/9/2012 14:45

Reci is worth looking at. Good performance in turbulent times and dividend looks like increasing further. Also glif, especially if they raise more funds because this will prove liquidity

[yieldsearch] 11/9/2012 21:15

I am looking for others high yield in EUR/USD.. any ideas? holding cifu and vta already

[pejaten] 31/8/2012 16:17

Dexion Capital, 22nd August 2012, "Dexion Daily Digest, Carador Income - July NAV"
Dexion comment: "The strong performance in July of the ordinary share NAV (+4.8% NAV total return) again showed the benefit of receiving income. The first two months of a calendar quarter (with a bias to the first month) have historically shown to have the strong cash-flow receipts for the portfolio. As the pricing of the CLO assets does not fully adjust for the cash-flow, the NAV performs strongly. The strong performance takes the NAV total return for this year to 24.4%, an impressive return. With the strong NAV for July, the premium on the ordinary shares was 3.3%, similar to the C shares despite the latter not being fully invested and the ordinary share portfolio likely to have benefitted from further cash-flow during August. The ordinary shares therefore look better value and with defaults remaining low (the trailing 12 month default rate on US senior loans was 1.0% at the end of July and was 2.0% for US high yield bonds), return prospects remain strong in the short-term, although defaults are expected to increase in the medium term.".
Please contact Tom Skinner at Dexion Capital ([phone], [e-mail]) for a copy of this report.


Singer Capital Markets, 22nd August 2012, "Carador Income Fund Plc - Exceptionally Strong NAV Performance"
"The continued recovery and lack of volatility in financial markets plus strong underlying cashflows have combined to deliver one of the strongest monthly performances on record for Carador. Underlying, pre the dividend payment, the NAV rose by 4.81%, even post the US$3.4¢ dividend, the NAV rose by 1.0% to US$90.01¢. Gross cashflows on the income note portfolio rose 20.44% which included the first time contribution from two recent acquisitions - like-for-like payments rose 10.7%. This drove distributable income per share up 18.25% to US$2.24¢ (US$1.89¢) per share. The majority of the income note positions that pay in the rest of the quarter are still amortising and we expect the effect of CLO manager performance fees to further impact gross payments hence distributable income will not continue to rise at this rate - our working assumption is for flat distributable income in the remainder of the quarter. Nonetheless this rise in distributable income firmly underpins our current forecast of at least a maintained US$3.4¢ Q3 dividend."
Please contact Ian Wild at Singer Capital Markets ([e-mail], [phone])


Liberum Capital, 24th July, "Carador Income Fund - $125m C Share raise"
"Carador has a very impressive investment performance record which has consistently allowed it access the market to raise additional capital. However, this raise was particularly sizeable at 32% of the fund's market cap and we believe this ability to raise capital is also reflective of current investor appetite for income and Carador's consequently attractive 13.3% dividend yield."
Please contact Innes Urquhart at Liberum Capital ([e-mail]) [phone] for a copy of this report.

[pejaten] 10/8/2012 15:41

got mine today, not sure why it took so long...

[yieldsearch] 09/8/2012 12:46

strange.. got mine 2 days post the dvd date

[rat attack] 09/8/2012 12:29

no dividend received yet!

[dendria] 07/8/2012 19:22

Check on the CIF thread

[oniabsta] 07/8/2012 15:50

Received my $ in 2 different accounts today.

In both accounts the $ received where lower than what I expected.
According to my broker there is a fixed bank fee per USD cheque clearing.


Is this everyone else's experience?

[pejaten] 07/8/2012 06:05

have to love this share. dividend was expected but did not think about the capital gains as well

[ibarty] 19/7/2012 13:48

Another Nice tick up in dividend

[pejaten] 18/7/2012 05:11

Issuing another 150m worth of share should help improve the liquidity further :)

[pejaten] 05/7/2012 14:49

I love the way this share creeps up without you even noticing...

[jonwig] 25/6/2012 12:36

See header for old thread.
I'd really prefer discussion over there, since there are some useful posts.

[jonwig] 25/6/2012 12:34

Until now, announcements were made under the EPIC 'CIF' which was the euro-denominated stock, and where a thread was set up:



The euro-stock no longer exists, but we decided to keep the thread.
You can refer here for news and larger charts.


Similar companies, listed in Amsterdam (EuroNext),

Tetragon Financial:





Volta F inance: