Carador Income Share Discussion Threads

[ibarty] 11/7/2013 07:37

I guess the early announcement, together with the change of advisor means corporate action is imminent. My betting is for Carador to take a large chunk of the equity in the new GSO European fund, supported by additional fund raising.

[danieldruff2] 03/7/2013 08:17

For the last couple of days, it's been impossible to buy or sell any of these through 2 execution only services I use - I can only trade via direct to dealer. Very odd!

[ibarty] 26/6/2013 17:18

good to see the proposed amendments have been passed.

[dendria] 21/6/2013 14:42

News item updates on CIFU website 20/06/13:

N+1 Singer, 20 June 2013, "Carador Income Fund - Steady Progress"
The fund has reported a 1.5% rise in NAV for May to $100.57¢ driven by cashflows and Mezz valuations as the pull to par progression works through the portfolio. Cashflows were a little below earlier expectations as one position experienced a test failure and retained some of the cashflows. This retained cash adds to the collateral in the CLO and is value neutral. This is just part of the anticipated income volatility as CLOs progress to final redemption. Distributable income for Q2 is now expected to be US$3.25¢ to US$3.30¢ slightly below the forecast dividend of US$3.4¢ as the stable dividend policy is implemented.

[jonwig] 20/6/2013 07:38

The NAV did well over the month, considering they've taken a performance fee.

But the net income ($0.0302) is 15% down for the quarter. Of course, they could meet Edison's estimate for a sustainable dividend of 3.4c by using the capital buffer, but I'd be quite happy with 3.0c.

[dendria] 20/6/2013 07:15

May NAV = USD 1.0057 (+1.5%)

[jonwig] 17/6/2013 08:58

Thanks - I see they reckon 3.4c per quarter is a reasonable norm for the dividend, and they explain the reduced cashflows.

Like most here, I've lost money over the past month thanks simply to GBP rising from USD 1.50 to 1.56.

[dendria] 17/6/2013 08:51

Edison have issued an update note this morning (17/06/13):

hxxp://www.edisoninvestmentresearch.com/

[jonwig] 24/5/2013 13:23

Looks pretty reassuring.

Redemption/continuation - they are keen to continue, but won't disadvantage holders who might have bought with a view to 2017.

Distribution - so we might get something like 3c per quarter as a norm, with excess adding to NAV and being re-invested.

Performance fee - raising the hurdle.

[danieldruff2] 24/5/2013 13:22

Personally I think that's pretty good news. Two concerns I had about a forced ending to the company in 2017-2021 - it might happen when NAV is poor, or it might happen when the exchange rate is unfavourable. As a result I would have sold down prior to the winding up period - now I have the option of holding on...

[yieldsearch] 24/5/2013 13:08

· increase the Company's exposure to primary CLO income note transactions compared with the current concentration on secondary CLO positions;

· replace the 2017 continuation vote with a redemption opportunity, at the Directors' discretion, for investors in 2017 (and every five years thereafter) if the Shares have traded at an average discount to NAV in excess of 5 per cent. over the 12 month period prior to 30 April in the relevant year;

· amend the Articles to replace the winding-up vote to take place in 2021 with a continuation vote to be held in 2022 (and every 10 years thereafter);

· amend the Company's distribution policy such that the Company not be required to pay out all net income each year and to use this flexibility for the purposes of making more consistent quarterly dividend payments;

· permit the issue of 500 million Shares on a non-pre-emptive basis; and

· amend the Investment Manager's performance fee hurdle. With effect from 1 January 2014, the Hurdle Rate, which is currently 12-month U.S. Dollar Libor, (plus 2 per cent) will be changed to the higher of 12-month U.S. Dollar Libor and 4 per cent. (plus 2 per cent).

[yieldsearch] 21/5/2013 23:15

core holding, it would be difficult to ask for capital gain and also v good dividend yield in this zero interest / QE environment..if you find any do let me know!!

[pejaten] 21/5/2013 20:43

I agree that it looks like capital gains are likely to be minimal. Have considered selling my shares but somehow I am reassured that 3.4c quarterly dividend is likely to be sustained for rest of the year.

[jonwig] 21/5/2013 07:30

The fall in NAV recorded for the month seems to reflect the details in the IMS, and the income fall will be caused by yield compression in CLO income notes - again predicted in the IMS.

It's harder to squeeze value from an asset class once it gets popular.

I'd imagine the share price will track NAV - ie. 99c - and premium days are over.
(But I wouldn't bet.)

[solarno lopez] 13/5/2013 14:55

But at least the price is moving up

[solarno lopez] 13/5/2013 12:03

still nothing

[solarno lopez] 12/5/2013 10:30

No sign of mine yet

[rat attack] 11/5/2013 21:05

TD received a few days late as usual!!

[dendria] 10/5/2013 17:26

Div received in IWeb account today (2.17p).

[eeza] 10/5/2013 10:18

Unlike TDW.

[wirralowl] 10/5/2013 10:17

In my experience idealing usually are pretty prompt.

Nice to see the share price perking up a little after the recent falls.

[solarno lopez] 10/5/2013 09:52

thats quick

[wirralowl] 10/5/2013 09:47

dividend landed in my idealing a/c this morning.