Cqs New City High Yield Share Discussion Threads

[winsome] 26/2/2021 10:08

I'd have liked more detail on any payment defaults/deferrals on their books. I know REA, Pizza Express and Punch Taverns are/were struggling. A general honest assessment likely near future problems with payments.

[lab305] 26/2/2021 08:48

Fairly decent results this morning and the stock marked down. I bought more in two lots , both show as sells. This is a stand out company with a diversified portfolio paying very good dividends. Even if the stock drops a couple of pence on the eccentricities of the market , you get your money back in six months. A no brainer at this price.

[shalder] 02/10/2020 14:50

Doesn't mean a lot in reality, just bought @ 45.8

ps: ADVFN have it as a sell..

[mondex] 02/10/2020 14:37

Anyone like to comment on why the MM's have a (nearly) 5% difference between the buy & sell prices?

[panshanger1] 21/9/2020 10:10

Still benefiting from pretty solid update last week

[ramellous] 19/8/2020 12:47

Had a mention on interactive investor.



A more intriguing option is CQS New City High Yield (LSE:NCYF), a £233 million trust run by equally seasoned bond investor Ian Francis. This high-income specialist yields an eye-watering 9.3%, which indicates that it is not for the nervous. Nevertheless, the shares trade on a premium of around 3%, which is far lower than many other specialist income-producing trusts. But what adds to the attractions of this trust are its revenue reserves: at £17.3 million and rising this equates to almost a year’s worth of the previous year’s total dividend, which is a handy cushion.

[nice_bloke] 17/7/2020 16:48

A bit long but worth a read
hxxps://quoteddata.com/research/cqs-city-high-yield-sitting-pretty/

[hutch421] 16/7/2020 17:35

Today's (improved) dividend announcement should calm a few nerves imho.

[cc2014] 10/7/2020 15:41

Sad to say I think all these types of funds should be trading at a discout. By definition if the fund manager is taking say 1% and the coupons of the investments are say 6% then the return can only ever be 5%. You might as well go and by the underling istruments yourself.

Of course many we can't buy as they are out of reach at minimum 200k but I think my point still stands.


Sadly I think alot of the recent inflows are from income hunters who do not fully appreciate the risks involved it the underlying investments. I suspect they will sell and move back to their regular dividend payers once dividends start coming back. I also suspect they are going to find they don't have a very strong market to sell into.

So, I think I'll be waiting a year to buy back into this one..

I don't think the dividend is sustainable at its current rate. It never has been looking at the capital depreciation since 2012

[my retirement fund] 10/7/2020 13:42

Frankly stunned to see it trading at alleged NAV. I would expect a 15 to 20% discount to NAV. Still the market knows best as always! Lol.

[cc2014] 10/7/2020 13:06

Large sellers seem to be striking through bid and selling below market, which appear to be being moved on to retail PI's at prices just above bid.

I.e. buyers are paying less than mid and trades getting reported as sells.



I read the research piece at length and it was good to see so much detail. The market didn't seem too excited and we've seen a bit of selling pressure but nothing significant. I expect there will be some pain somewhere down the line. It's a high yield debt fund and some of it will go wrong.

I'm hoping for a spike down for an entry but market doesn't seem in the mood. Plenty of retail buyers still coming.

[zac0_4] 05/7/2020 22:20

see link below for research piece from Quoted Data. Some points of interest - no defaults to date on debt payments - not clear as to whether share price / nav has been permanently damaged - final dividend payment is likely to be in line with final payment last year - not clear whether continued year on year dividend increases is sustainable - have cash on hand around 87% of value of yearly dividend payments to use as support if needed. Here's link:

[cc2014] 29/6/2020 11:27

The challenge of course is that over the 9 year period, high yield debt firms should have had a good run. Corporate balance sheets have been rebuilt, we've seen significant central bank intervention and defaults have been very low.

I would imagine we now enter a phase where defaults are going to increase. Indeed the share price has already gapped down to reflect this. The question is whether is has gapped down enough and looking at bond prices generally right now I'd say not. Borrowing rates are still far too low for the underlying risks.

[vacendak] 29/6/2020 11:21

Good point, this takes care of the drawdown automatically.
People can save on fees to sell every six months! :)

[rahosi] 29/6/2020 11:14

In such retiree investments, where the dividends are high but the capital declines, they still outperform annuities!

[andyj] 24/6/2020 15:28

Totally agree. Whilst they pay a good income, the price has fallen 35% in the last nine years. Effectively reducing the income by 4% a year. Very rarely do income funds manage to beat quality investment trusts, where the dividend might be lower, but the total returns higher. That said, if I was retired I might happily invest here.

[zac0_4] 20/6/2020 11:06

A market downturn is the acid test of which investments are most resilient. All my income paying investments have performed terribly over the past 6 months - HHI -18%, MRCH -25%, NCYF -15%. All figures include capital and dividends. Alternatively I have a number of investment funds which have clearly outperformed - L&G Global Tech +20%, Rathbone Global Opps +15%, Blue Whale Growth +14%. My mind is now made up! I'll move away from income paying investments and investments that are linked with the UK stock market and move entirely, over a period of time, to Investment Funds. Less worry and better returns!!

[hutch421] 08/6/2020 22:16

Looks like a Covid graph to me.

[irkin] 08/6/2020 05:28

How about this:

[hutch421] 07/6/2020 22:35

This dog poo is presently offering a 10 percent annual dividend so tell me where else you can find a similar return?

[tim 3] 06/6/2020 11:07

With you andy if there is one thing I have learnt from the crash its to stay away from dog poo stuff like this!

[neilyb675] 06/6/2020 08:53

The Net Asset Value (NAV) at 04/06/2020 was:

Per Ordinary share (bid price) - including 46.10p
unaudited current period revenue

Per Ordinary share (bid price) - excluding 45.39p
current period revenue

[panshanger1] 04/6/2020 13:15

Cheer up !!Fed might come to the rescue

[andyj] 03/6/2020 14:19

With much of the market recovering, NCYF plods along waiting for the next fall. Still waiting to exit my last ever income fund.

[neilyb675] 16/4/2020 12:22

The Company announces its third interim dividend of 1.00 pence per share (2019 - 1.00 pence) payable on 29 May 2020 to shareholders on the register on 24 April 2020, having an ex-dividend date of 23 April 2020.