City Merchants High Yield Share Discussion Threads

[pvb] 14/12/2016 20:06

US rates up 0.25%

[kiwi2007] 15/11/2016 14:51

Top 10 issuers % portfolio
Lloyds Banking Group - Lloyds Bank & LBG Capital 7.875% Perpetual, 7% Var Perpetual 4.4
Aviva 6.125% Perpetual, 8.875% Preference 3.6
US Treasury 2.5% 15 Feb 2046 2.9
Société; Genérale 8.875% FRN Perpetual 2.8
General Motors Wts 10 Jul 2019 2.7
Telefonica Europe 6.75% Perpetual, 5.875% Perpetual, 4.9% Cnv 25 Sep 2017 2.7
Intesa Sanpaolo 8.375% FRN Perpetual, 7% Perpetual 2.5
Credit Agricole 7.589% FRN Perpetual, 8.125% FRN Perpetual, 7.5% Var Perpetual 2.4
Standard Chartered 5.7% 26 Mar 2044, 5.125% 06 Jun 2034 2.2
Twinkle Pizza 8.625% 01 Aug 2022, 6.625% 01 Aug 2021 1.8

[kiwi2007] 15/11/2016 14:47

Market and economic review

The European high yield bond market gave back some of its recent strong performance.
Sentiment fell at the start of the month amid a lack of new policy announcements by the European Central Bank and concerns that the US Federal Reserve (Fed) might hike
interest rates. The subsequent decision by the Fed not to hike rates saw markets recoup some of these earlier losses. However, concerns about Deutsche Bank, following a potential $14bn fine for mis-selling mortgage products were a further weight on sentiment. Data from Barclays shows that there was €12.4bn of high yield bond supply in Europe, which compares to €1.9bn in September 2015 and €5.5bn in September 2014. Year to date supply however remains below 2015 levels at €44.8bn. Index data
from Merrill Lynch shows that European currency high yield bonds returned -0.4%.
Sterling investment grade corporate bonds returned -1.4% and euro investment grade
corporate bonds returned -0.0%.(sterling hedged, total return).

Portfolio review
We remain defensively positioned. 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 8%. 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.

[pvb] 10/11/2016 20:12

NAV per Ordinary share (unaudited) with Debt at Par & Fair Value

EXCLUDING undistributed current year revenue 183.63p

INCLUDING current year revenue 184.95p

[pvb] 12/9/2016 18:37

NAV per Ordinary share (unaudited) with Debt at Par & Fair Value

EXCLUDING undistributed current year revenue 185.96p

INCLUDING current year revenue 188.05p

[jonwig] 24/6/2016 08:00

Citywire reported it, they didn't originate it, but here you are:

If a leave vote prompts the Bank of England to restart quantitative easing by buying up bonds again, an investment trust like City Merchants High Yield, which invests in high yield European debt, could benefit.

‘The fund has a strong long-term performance record and the highly-respected team has historically been able to take advantage of value opportunities following volatility of market set-backs,’ said Winterflood.

‘While we share the Invesco team’s view that the asset class is no longer as compelling on value grounds, we believe that the current yield of 5.5% remains attractive at a time of low interest rates.’

[kiwi2007] 24/6/2016 07:38

CityWire wrong again ;m

[jonwig] 24/6/2016 06:05

Citywire has some ITs for a "leave" vote - PNL, CMHY, PIN included.

[my retirement fund] 12/2/2016 12:16

6% just doesn't do it for me these days

[my retirement fund] 12/2/2016 03:27

Well if it can carry on in this direction the yield will become tempting

[kiwi2007] 29/1/2016 14:37

Interesting but bearish article on high yield:

High yield bond bears: flee to the hills

Kadhim Shubber Author alerts

| Jan 26 13:08
One stereotype of equity investors is that they stay seated and calm long after bond investors have hit the fire alarm and exited the building. It is perhaps a little unfair today, given that everyone is panicking. But two bearish high yield credit strategy notes this week suggest that evacuating one building may not be enough and that it’s perhaps time to flee the entire city and head for the hills.......lots more @

[p@] 28/1/2016 12:43

At 1.74p I would too!!!!!!

From RNS


The Board of City Merchants High Yield Trust Limited (the 'Company') announces
that it has agreed today to issue and allot 100,000 ordinary shares of no par
value in the Company at a price of 1.74p per share under its block listing
facility. This allotment is to satisfy secondary market demand and is made
under the annual author

edit-I wonder how much the writer or the checker is being paid?....LOL

[pvb] 28/1/2016 10:58

Winifred Robbins, director, has purchased a very large number of these over the last few days. Though not yet at a discount to NAV. Or is that expecting too much in these times with the current yield on the shares?

[dragonsteeth] 06/4/2015 12:07

kiwi, yes agree with that , I hold New City but not City merchants so was thinking of switching. This from the Annual Report as of 1st April has made me stop and think though ;
"We think that, although the demand for income will remain an important factor
in total returns across bond markets, duration is once again likely to be the
dominant factor. In this context the economic backdrop remains relatively
supportive: inflation is low while economic growth is generally weak and this
should allow central banks to remain accommodative for some time to come.
However, with a large part of the investment universe already reflecting this
benign outlook the opportunity for disappointment is, in our view, not
insignificant."

[kiwi2007] 02/3/2015 21:15

Double post deleted.,

[kiwi2007] 02/3/2015 21:13

Remarkable share price performance compared to the similar new city high yield

[blackcross] 23/7/2014 10:20

2.5p ex div today - accounts for the fall.

[rcturner2] 07/1/2014 08:39

It was on a discount when I posted in October!

[pvb] 06/1/2014 19:46

What discount! Even Bankers was on a small premium last time I looked. Where will it all end? And when?

[rcturner2] 10/10/2013 15:21

Impressive rise today.

Seems to be narrowing the discount.

[pvb] 22/9/2013 13:10

But not yet!

[pvb] 22/8/2013 12:43

QE easing off?

[rcturner2] 11/7/2013 12:29

Not sure quite why this dropped back to 160p, but provided an entry.

[penandnen] 20/6/2013 20:38

Yea, A reliable one this - over the years.
I tend to add a bunch when share price drops and sell a bunch when it hits an upward spike. Now looking to add. IMO, bonds are going to fall as QE unwinds so discount may still widen on uncertainty?