Carador Income Share Discussion Threads

[pejaten] 22/1/2013 08:06

At 1.63 even more than forecast which brings dividend up to 4.33 for quarter v 3.8 previously. I guess some of that at be because of under payment from previous quarters. Just a bit worried by drop off in income in quarter especially after deduction of fees.

[solarno lopez] 22/1/2013 07:08

Dividend declared for reciept on 6 February

[jonwig] 11/1/2013 11:23

A new MBS fund to launch next month, the TwntyFour Income Fund:



Will too many new funds merely increase risk and compression - are the best gains for such as RECI and CIFU already behind us?

TwentyFour will concentrate on floating rate MBS, which will be a plus, but if rates rise too far too quickly the default rate will, also.

[skyship] 11/1/2013 09:56

I know many of us share an interest in RECI/RECP - another player in what Jonwig describes as "the same universe". The former hit 118.5p-120p this week - a target level for a few short-term traders (myself included). May also be a plateau level as Premier today announced that they released a 100k of their recently bought 6m.

RECP still looking very good value versus similar high-yielders with similar maturities, such as the few ZDPs - JPSZ, NBPZ & PCTZ. They are still offered at 105p for a current yield of 7.62% and a GRY of 6.96%.

[dendria] 05/1/2013 11:18

I read it as $1.35c for Nov then $1.5c for Dec and $1.5c for Jan but I'm happy to just wait & see. If we have seen the last C share issue the distributions should be easier to follow going forward.

[ibarty] 05/1/2013 04:36

Dendria, maybe I misread the note from N+1 but I thought they said they were expecting a dividend of 1.5 for the 2 months in addition to the 2.7c already paid?

[dendria] 04/1/2013 15:54

N+1 Singer are forecasting $4.35c for the quarter so we should receive around 2.7p.

[solarno lopez] 04/1/2013 09:03

Thanks YIELDSEARCH

[yieldsearch] 04/1/2013 08:58

Happy new year solarno

In 2012 it was declared on the 24th Jan and paid beg Feb, also last dvd annoucement was for the period up to 31 oct 2012, implying accrual for a few months now so yes expecting some statement in few weeks time

[solarno lopez] 04/1/2013 08:50

Are we still expecting a dividend payment in January.

Have a super year everybody

[ibarty] 23/12/2012 08:20

Very interesting. Thanks Dendria

[dendria] 22/12/2012 17:10

Article from FT on CLOs 20/12/12

'Private equity firms fuel demand for CLOs'

Mentions GSO is planning to launch an ETF that will invest in leveraged loans.

[jonwig] 20/12/2012 14:24

Thanks - I don't visit that page very often.

Retirements to capital dropped by 31%, meaning they have built up enough buffer against default in some CLOs. In due course, this money will be released to dividends, barring another big bust.

[dendria] 20/12/2012 13:08

Latest News (taken from Carador website):

N+1 Singer, 20 December 2012, "Carador Income Fund Plc - Dividend Forecast Raised Again"

"Carador has reported a further 0.88% underlying gain in the NAV for November driven by cashflows with underlying valuations largely stable following the significant rerating over the previous quarter. Gross cashflows on income notes like for like were up marginally with the effect of CLO manager incentive fees offset by growth elsewhere. The addition of the C share positions plus lower amortisation left distributable income down slightly QoQ at US$1.35¢ (US$1.44¢). This was ahead of our expectations and we are increasing our final two month dividend forecast from US$1.3¢ per share to US$1.5¢ per share."
Please contact Ian Wild at N+1 Singer ([phone], [e-mail]) for a copy of this report.


Liberum Capital, 20 December 2012, "Covering Alternatives Carador Income Fund -November NAV update"

Liberum View: "The monthly NAV performance (+0.88% including the dividend paid on 5 December) represents a decline on strong growth in recent months (+4.3% in September & +9.6% in August). We expect the slowdown in general spread tightening in the structured finance market to have been the key factor behind the reduced growth rate. We note the S&P/LSTA Leveraged Loan Total Return Index increased by 0.31% in the month compared to 0.34% in October and 1.08% in September. We are unconcerned by the Hibu default given CIFU's low level of exposure to the company and the low defaults over the year to date. Pre-2008 medium junior par coverage tests have also improved over the past 12 months (compliance with the test allows CLO's to pay distributions to Income Notes), and no CIFU investments are failing the test. The shares trade on a 4.8% premium to NAV (6% premium ex-dividend) and offer a 12.3% prospective dividend yield. Carador remains one of our key picks in the sector given management's track record of creating value and distributing these returns to shareholders."
Please contact Connor Finn ([phone], [e-mail]) for a copy of this report.


Dexion Capital, 18 December 2012, "15 Trading Days of Christmas - Day 12, Carador Income"

"From the end of 2009 to 31 October 2012, the USD NAV total return of Carador has been 165%. The impressive performance has reflected the recovery in valuations of previously orphaned assets. The mature CLO tranches that Carador owns have distributed substantial cash flows as loan default rates have fallen to historically low levels (0.17% during 2011)."
Please contact Tom Skinner ([phone], [e-mail]) for a copy of this report.

[jonwig] 20/12/2012 07:15

Net asset value and monthly income receipts announced (see header).

The fall in income per share at the bottom line looks to be entirely down to C-share conversion (there's also performance fee to dent the gross outcome).

[jonwig] 20/12/2012 07:01

Reason for bringing forward the dividend, which escaped me at the time:

N+1 Singer, 21 November 2012, "Carador Income Fund Plc - C Share Merger Details"
"The fund has announced the dividends which will be paid ahead of the C share merger and the end October NAVs necessary to determine the merger terms. The dividend was just ahead of expectations at US$2.7¢ for the ordinary holder and nil for the C shares. The ex dividend NAVs imply that each C share will convert into 0.9935 ordinary shares. After two extremely strong months the underlying NAV progression slowed to +3.96% driven by mezz valuations and cashflows. The running yield of over 14% still leaves scope for further appreciation in the shares supported by continued NAV growth."

Dexion Capital, 21 November 2012, "Carador Income Fund - NAV, dividend and conversion ratio"
Dexion Comment: "The value of secondary CLO positions has continued to be strong, helped by exceptionally strong cash-flow generation. The 4.0% monthly performance means that the ordinary share NAV has gained 25% since the end of June. Year-to-date, the return is a highly impressive 47.8%. The C shares saw some benefit in the month, gaining 1.1% and can now look forward to the conversion with the ordinary share portfolio. The share price had pre-empted the continued strong performance, with the $1.065 share price remaining ahead of the $1.0317 per share ordinary NAV. In our opinion, the share price remains fully up-to-speed with events. The managers commented in their monthly factsheet that they expect volatility going into the year-end. While cash-flow generation remains strong and credit markets/economic fundamentals have improved since the summer, some investors (at both the underlying level and at the company level) may look to take profits after such an exceptional year."

[wirralowl] 11/12/2012 16:55

Thanks for the tip, oniabsta. Hadn't realised you could do that, but will watch out for it in future and try and do similar.

[oniabsta] 11/12/2012 15:40

W/O
Thanks again.

As you will know the divi is deposited in $'s into the ISA but they sweep through
overnight and convert to £'s.

I have been topping up using the $'s (before the sweep) to save on exchange costs.

edit: "every little helps"

[wirralowl] 11/12/2012 13:56

oniabsta, finally got my ECWO divi from idealing, so hopefully the CIFU payment won't be long in following... Like you, been with idealing years, and always found them very good, so hopefully it was just a one-off technical issue.

[solarno lopez] 11/12/2012 10:59

yes I have noticed REDMAYNES are pretty poor on such things

[flying pig] 11/12/2012 10:21

HSBC works pretty well for me - ISA credit promptly

[jonwig] 11/12/2012 10:00

As mentioned, TD Direct were pretty quick. I hold mine in a USD account and have the dividend credited in USD.

Maybe the delays happen if you hold them in an ISA, say, and the dividend has to be converted to sterling? Which might be a manual process with some brokers.

[vatacarma] 11/12/2012 09:56

A pretty poor showing from REDMAYNE BENTLEY as the cash is still not in the account

[oniabsta] 10/12/2012 14:58

W/O
Thanks for the heads up about the technical problem.
I thought it strange when they paid the last cifu divi on time.
I've been with iDealing for over 10yrs and haven't had this sort of problem
before.

Vatacarma
Cifu used to pay the divi by cheque which did delay the payment into
our accounts but now they pay by bank transfer so really the funds should
be deposited on the payment due date.

[vatacarma] 10/12/2012 13:24

ONIABSTA I have not received my dividend as of today Redmayne Bentley are the broker involved