Cqs New City High Yield Share Discussion Threads

[my retirement fund] 13/4/2016 23:35

Should next go xd at the end of this month. Still yielding 7.2% PA.A must for regular income seekers such as ISA savers, pensioners and the likes. IMO.

[langland] 03/4/2016 13:22

Click on the 'financials' tab at the top of the page then scroll down to the dividend section to see when historic divs have been made. That will give you an idea. Looks like near month end.

[plasybryn] 03/4/2016 11:55

When does it go ex dividend please? Has that been announced?

[my retirement fund] 10/3/2016 10:21

RCT the NAV is marked to market.

Yes that would be an interesting figure to see, although I'm not sure what purpose it would serve as they trade in and out of bonds as they see value in addition to having redemptions.

You could probably do a fairly rough estimate if you had plenty of spare time and could be bothered, for example they hold plenty of REA 8.75% 2020 which is currently trading at a 20% discount to par:

[rcturner2] 09/3/2016 19:07

The information I would like to see is how the NAV compares to the par value of the bonds. I assume that the NAV is given at current market price of the bonds, it would be interesting to know the NAV based on the par value.

[my retirement fund] 09/3/2016 15:55

Some interesting info from half yearly report including

Gearing

The Company renewed its existing GBP30m loan facility with Scotiabank in
December 2015 at a current all-in rate of 1.25%. The new facility is on
more favourable terms than the one that it replaced. GBP25m was drawn
down at 31 December 2015 and the Company had an effective gearing ratio
of 10%.

For the Company's portfolio we continued to take profits on Phoenix 7
1/4%, General Accident 8 7/8% preferred and British Airways 6 3/4%
preferred with the proceeds being recycled into Perform Group 8.5% 2020
and Old Mutual 7 .875% 2025. We had five bonds called during the period
including Europcar 9.375% 2018, AA 9.5% 2019 and House of Fraser 8 7/8%
2018; the proceeds were mostly invested into IDH finance 8 1/2% 2019
(Europe's largest Dental chain), Co-op Bank 8 1/2% 2025, Iceland 6 3/4%
2024 and Barclays 7.875% perpetual.

Ian Francis

New City Investment Managers

[my retirement fund] 02/3/2016 22:47

One would have to issue them sell them and buy them back to capitalise them. I should think it was a fairly cheap process to execute fee wise.

[dragonsteeth] 02/3/2016 22:19

Well the logic looks sound, but why involve Cantor Fitzgerald in such a way that presumably involves two transaction costs. ? Additional share issues are not uncommon, share buy backs are not uncommon, any reason to do it the way outlined?

[my retirement fund] 02/3/2016 16:16

So basically they have a wallet full of shares they can sell at a future date and book a profit as the NAV and share price improve over time. Seems like a thrifty plan imo.

[joan of arc] 26/2/2016 12:34

Just found the answer to my question on their website. XD 28/1, Paid 29/2 0.97p. It's just ADVFN Financials have not been updated to show this.

[joan of arc] 26/2/2016 12:27

So does anyone know why there was no divi this quarter nor any RNS to say that it had been cancelled?

[eeza] 20/1/2016 09:33

Now trading at a discount to NAV.

[kiwi2007] 20/1/2016 09:29

petewy - I guess folk don't want to hold junk bonds in a deteriorating economic market.

So, what percentage of this trust are junk? It's hard for me to tell as they don't seem to publish a credit breakdown, unlike the similar fund City Merchants High Yield. (

My gut feeling is that, since they tapped the market, and to get a continuously higher divi payout the quality of their holdings has reduced over time.

[neilyb675] 19/1/2016 16:35

CQS New City High Yield Fund Limited (ticker symbol NCYF) today
announces its second interim dividend of 0.97 pence per share payable on
29 February 2016 to shareholders on the register on 29 January 2016,
having an ex-dividend date of 28 January 2016.

[petewy] 14/1/2016 13:31

I sold this stock last November (I sold everything a la Robin Griffiths rec)
Since then I have read all posts.
But why the recent huge selling?

[deadly] 14/1/2016 12:51

In for some more at 53.75p.
XD at end of Jan for .94p approx.

[my retirement fund] 18/12/2015 20:38

I disagree a few years ago we were fresh out the eurozone crises and Greece was still to play out. We have a stable banking system the EU has shown it'll backstop anything and US banks are strong.This fund is not stuffed with energy or commodities.Inflation is zero and interest rates are near zero and will most likely get a token rise if anything at all.Where an earth is the risk of default?

[ptolemy] 18/12/2015 16:09

so it can ride it out

I don't think there's the basis to make that statement. The argument for HY looks less compelling today than it was a few years ago, and so the question is, is NCYF miss priced or does that juicy yield come at a significantly higher risk?

[my retirement fund] 18/12/2015 15:26

Pto some bond funds become forced sellers and get decimated ad their clients want redemption this isn't one so it can ride it out.

[ptolemy] 18/12/2015 14:13

RCT,

Thank you for clarifying, and additional points.

[rcturner2] 18/12/2015 13:53

Ptolemy, I think I made up my own definition of short dated, so please ignore the 18 month bit. Apologies for that. Looking back at the IC write up there is no mention of term in there.

One interesting point in the IC article is that the dividend is currently covered 105% and there is a revenue reserve of 4.24p.

[ptolemy] 18/12/2015 13:34

MRF,

The fund lost one third in a few months in 2008. That wasn't anything to due with inflation or interest rate moves. It was liquidity.

[my retirement fund] 18/12/2015 13:23

Theres not really liquidity risk. If you want out sell your shares. The fund is under no obligations to sell any of its holdings into an illiquid bond market because its shareholders may panic on a bad day and want out.

[ptolemy] 18/12/2015 13:13

MRF,

No. I like it (I sold earlier in the year in the 60s)and the yield is v.v. tempting but 2 things concern me:

1. Duration risk. What is the duration risk in the fund? The annual report doesn't even mention the words 'duration' or 'maturity' 18-months doesn't appear correct.

2. Liquidity Risk. Widening spreads in an environment of increasing HY defaults and holding 140+ holdings.

Minor point is less income (than previous years) from USA at a time of rising $.

I'm watching, though (obviously!)