City Merchants High Yield Share Discussion Threads

[pvb] 24/5/2021 17:15

...But not yet on ADVFN Monitor!

Replacement BIPS thread at:

PS. ADVFN has updated and BIPS is now available on Monitor.

[panshanger1] 24/5/2021 08:48

BIPS Ticker seems operational this am

[panshanger1] 21/5/2021 08:08

Merger with IPE gone through

[panshanger1] 22/4/2021 09:10

Ex dividend today

[panshanger1] 13/4/2021 10:05

Getting close to NAV

[panshanger1] 08/4/2021 08:43

Reasonable position here now prior to merger 5.9% guaranteed for 3 years and a bit of diversification GLA

[panshanger1] 15/3/2021 09:35

Nibbled a few prior to merger and increase in dividend here

[pvb] 02/3/2021 14:56

City Merchants HYT Proposed Merger with Invesco Enhanced Income Limited
01/03/2021

[panshanger1] 17/3/2020 19:34

NCYF even worse TFIF went yesterday

[my retirement fund] 17/3/2020 19:24

It took a while to topple

[pvb] 17/3/2020 18:54

...Not half!

[pvb] 04/3/2020 21:03

Bit of a 'flash crash' there!

[kiwi2007] 28/12/2018 10:22

Investors flee risky US corporate debt
High-yield bonds and loans on course for worst month since 2011 as outflows swell

Joe Rennison and Nicole Bullock in New York 5 HOURS AGO Print this page0

US investors have pulled back sharply from the riskiest corners of the debt markets, putting junk bonds and loans on course for their worst month since August 2011, when the market was reeling from a downgrade of the US government’s credit rating.

The broad sell-off comes alongside a downturn in US equities that reflects gathering concerns about the global economy, but unlike in equities there has been little sign of a rebound in investor confidence since Christmas.

The credit premium on high-yield bonds — that is, the extra yield being demanded compared to risk-free Treasuries — has jumped by 1.1 per cent since the start of December, according to an index from ICE Data Services. That is the biggest rise in more than seven years, sending the yield on the index above 8 per cent.

Meanwhile, the average price of leveraged loans — that is, loans to risky borrowers such as companies taken private in leveraged buyouts — has fallen 3.1 per cent this month to just below 94 cents on the dollar, according to an index run by S&P Global and the LSTA. That is also the biggest one-month move since August 2011, when the US government lost its triple-A credit rating.

The volatile market conditions have kept US companies from issuing any high-yield bonds in December. Falling oil prices have also punished the market, since energy companies make up a large proportion of borrowers.

“The market just continues to weaken,” said John Dixon, a high-yield bond trader at Clearview Trading Advisors. “There is a lot of year-end selling. Oil is down. It’s a broad-based sell-off.”

Investors pulled $4bn from funds invested in US junk bonds for the week to December 26, the seventh straight week of withdrawals and the largest weekly outflow since the beginning of October.


Loan funds also saw large outflows. Investors took out $3.4bn, making it the sixth straight week of withdrawals, according to the data from EPFR Global.

“With so much negative sentiment toward anything that is perceived as a risk-on asset, cyclical or credit-oriented areas have been sold off,” said Matthew Bartolini, head of Americas research for State Street SPDR exchange traded funds. “Investors are rotating out of risky sectors and moving into perceived safe havens.”

Junk bond risk premia continued to rise, and loan prices continued to fall on Thursday, even as the US equity market enjoyed a second day of gains.

The equity market has trimmed its losses for December to 9.8 per cent, but investors remain wary about tightening financial conditions and the potential ramifications of the trade dispute between the US and China for global growth.

EPFR data showed US equity fund outflows of $6.4bn in the week ended Wednesday, slightly more than the previous week but much less than the $28bn recorded earlier in December.

[kiwi2007] 19/12/2018 08:34

Pity they've hedged all of the US portfolio (30% of the fund) back to the GBPound.

[kiwi2007] 09/10/2018 11:16

The risk seems mainly to the downside on corporate debt. This is a good company but if the floodgates open they'll be caught like everyone esle.
Bailed out this a.m.

[andyj] 22/3/2018 04:08

I am reconsidering my investment here though. It was 180 eight years ago, so hasn't provided capital increase, the TER is 1.01% and the dividend at 5.3% is the only reason to hold. However what concerns me is the potential to fall further, a small drop and the profit margin from the yield is erased. There are numerous funds offering slightly less yield but with greater growth potential.

[andyj] 22/3/2018 04:02

The fall to 180 happened in the correction in February, before Aviva's announcement. Rising interest rates, etc.

[pvb] 20/3/2018 23:16

Is recent fall due to damage inflicted by Aviva Preference Shares business? It is affecting other prefs, not just Aviva's.

[pvb] 05/7/2017 17:35

Current NAV per share around 193p:



So currently at a premium.

[kiwi2007] 23/1/2017 22:23

Market and economic review
The European high yield bond market ended 2016 with a month of strong performance
as the government bond led sell-off of recent months moderated. Returns were positive
across a broad range of sectors with some of the best returns coming from insurance
and Natural Gas companies. European high yield bond issuance was low with Barclays
reporting €0.9bn of new supply, which compares to €4.3bn issued during December
2015. For the full year Barclays report a 19% fall in European Currency high yield bond
issuance compared to 2015. Largely reflecting the very low levels of issuance at the
start of the year. Index data from Merrill Lynch shows that European currency high yield
bonds returned 1.9%. (Sterling hedged, total return).

Portfolio review
We remain defensively positioned, with a relatively high allocation to liquidity (cash and
government bonds.) High yield bond exposure is focused on higher quality companies
that we consider unlikely to default. Around 24% of the portfolio is allocated to bonds
issued by banks. Our highest exposure in this sector is to the junior tiers of bank capital.
A smaller allocation is held in subordinated insurance bonds that we think are attractively
priced. Outside of the financial sector, our largest allocation is to the food sector where
we have exposure of 7%. We also hold around 11% of the portfolio in non-financial hybrid
bonds (a type of relatively junior debt in a company’s capital structure). Our focus with
these bonds is toward issuers that we think have strong balance sheets and good cash
flow.