Cqs New City High Yield Share Discussion Threads

[cc2014] 22/3/2019 08:51

It's not really paying 7.7% is it as the underlying investments don't produce that return so we have capital erosion. Having said that I'm happy enough that even with capital erosion there is a decent enough return here.

My view is as follows:
1. If no-deal Brexit then holding any UK asset whether equity or bond isn't going to look too clever
2. If soft Brexit or A50 revoke then we will see capital inflows to both equities and bonds. But some bondholders will switch into equities so I'm not sure what the net flow into something like NCYF will be. Over time interest rates will rise and we may well see NAV fall for a period whilst NCYF replaces expiring bonds with low yields with new ones with higher yields.

I think if you aren't bothered about a secure income flow, it's probably time to switch into equities right now as the equity market in the UK is at a 30 year low compared to it's peer group. If a secure income flow is important to you then NCYF is as good as place as any right now.

[tim 3] 22/3/2019 08:32

Thanks guys, no it doesn't have to be this or cty I don't see interest rates going up any time soon.I have about 10% of my portfolio in here and think it might be a little high particularly looking at its some of the falls recently so may just reduce a bit cheers.

[lord gnome] 22/3/2019 08:14

I'm here for income, so as long as it keeps churning out the regular quarterly dividends I will be happy. Interest rates are likely to stay low for a long time to come and a yield of 7.7% for anyone buying today is a good deal.

[jonwig] 22/3/2019 06:26

tim - must it be this or CTY? I reckon there's room for both.

If you think interest rates will stay low "for ever" and a global recession is likely, a bond fund such as this should at least deliver the dividend, if not the capital growth.

I reckon it's better than an open-ended bond fund as it won't be squeezed by unit redemptions.

[tim 3] 21/3/2019 23:38

Any views on the longer term outlook here has it changed much?

Not done great on these and notice the NAV has dropped (although its bounced a bit recently)

Down slightly and considering switching into one of the bug investment trusts like cty.

Any views? thanks in advance.

[neilyb675] 25/1/2019 09:44

Top 10 Holdings (%)1

Punch Taverns 7.75% 30/12/2025 3.84
CYBG 8% Variable Perpetual 3.32
Shawbrook Group 7.875% Variable Perpetual 3.12
Perform Group Financing 8.5% 15/11/2020 3.05
Galaxy Finco Ltd 7.875% 15/11/2021 3.00
Rea Finance 8.75% 31/08/2020 2.73
Wittur Intl 8.5% 15/02/2023 2.37
Onesavings Bank Plc 9.125% Variable Perpertual 2.34
Barclays Bank 7% Variable Perpetual 2.33
Euronav Luxembourg SA 7.5% 31/05/2022 2.29

Top 10 Holdings Represent 28.39

[neilyb675] 25/1/2019 09:42

most recent fact sheet

[jong] 24/1/2019 14:34

XD accounts for 1p drop.

[andyj] 24/1/2019 14:33

Anyone know the reason for the big drop today?

[kiwi2007] 28/12/2018 10:40

Not hedging their non stirling holdings has paid off as the UKPound fell.

[jonwig] 14/11/2018 18:42

Another research report:

[shalder] 10/9/2018 19:19

Certainly agree with the above to the point where I wouldn't buy a bond fund at a premium to nav, and NCYF is currently priced at a premium of over 6%.

[kiwi2007] 10/9/2018 17:22

Citi, for their part, suggest that “investors wishing to prepare for a sustained sell-off in corporate credit act sooner rather than later”. Options include reducing core bond holdings, or using derivatives to reduce exposure to swings in credit markets. However, Basu does conclude with a warning: “sustained outflows remain a big risk, and no amount of hedging can compensate for that.”

[neilyb675] 19/7/2018 10:59

1.45 pence per share (2017 - 1.45 pence) payable on 31 August 2018 to shareholders on the register on 27 July 2018, having an ex-dividend date of 26 July 2018.

[petewy] 23/5/2018 20:12

lot of selling recently. Worries?

[tim 3] 01/5/2018 15:24

Just bought in here been following for a while.

[neilyb675] 24/4/2018 10:39

Ex-div

0.99p

26/4/18

[wllmherk] 18/4/2018 16:29

thanks speeds

wllm

[speedsgh] 18/4/2018 14:05

Dividend Declaration -

CQS New City High Yield Fund Limited (ticker symbol NCYF) today announces its third interim dividend of 0.99 pence per share (2017 - 0.98 pence) payable on 31 May 2018 to shareholders on the register on 27 April 2018, having an ex-dividend date of 26 April 2018.

[andyj] 15/4/2018 15:36

I have been holding NCYF for several years. A reliable income stream in unsteady times. I continue to add on dips.

[jonwig] 09/4/2018 14:32

@ gre - NCYF was on my watchlist. After reading the note, I bought this morning in preference to CMHY. One of the key factors was the short bond duration of their portfolio.

[gre] 09/4/2018 14:10

Thanks jonwig. That's a link to an extremely good research note.

[stephen2010] 03/4/2018 00:45

ALBA!!! One to watch but don't hang around. Potential 15 bagger. See link below

[speedsgh] 29/3/2018 08:03

Thanks from me too, jonwig. Great spot.

[tim 3] 28/3/2018 23:12

Ditto very interesting.

Looking at having a few of these.