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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Ejf Investments Ltd | EJFI | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 112.50 | 07:35:12 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 112.50 | 112.50 | 112.50 | 112.50 | 112.50 |
| Industry Sector |
|---|
| UNKNOWN |
| Top Posts |
|---|
Posted at 25/8/2024 07:39 by boystown From the article above referenced by davebowler, Citywire:"DON’T MISS! EJF – High yields, lower risk: Why US small bank lending makes sense" (Tues 3 Sept) I have a few of these but don't have a real feel for how safe it is - and my P/F is way overloaded with financials already. ----- Here's the gist: "EJF Investments (EJFI), a high-yielding lender to small US banks and insurers, is coming to Citywire at 11am on Tuesday 3 September to explain why its specialist strategy deserves a closer look from income investors. In a presentation entitled, ‘High yields, lower risk: Why lending to US small banks makes sense’, Neal Wilson, chief executive and chief investment officer of fund manager EJF Capital will set out why he believes the fund’s low share price rating exaggerates the risks after last year’s crisis in US regional banks. Shares in the £58m investment company currently stand at a significant 42% discount to the £100m net asset value (NAV) of its loan portfolio and offer an attractive 11% yield. While the collapse of Silicon Valley and Signature banks rattled the market, Wilson (pictured below) will explain that EJF was largely immune with its highly diversified exposure to small, but not regional, US institutions. UK investors can take comfort from the presence of fund managers Premier Miton and Newton and an insurance company among its top shareholders." |
Posted at 27/3/2024 10:22 by davebowler Liberum EventsDate: Thursday 28th March 2024 Time: 13:00 GMT Host: Neal Wilson (CEO) , Peter Stage (CIO) & Jay Ghatalia (FD) Summary: EJF Investments primarily invests in the securitisations of debt issued by smaller US banks, aiming to take advantage of regulatory and structural changes within financial services. The securitisations contain subordinated debt where the weighted average credit rating of the collateral pools is typically BBB-/BB+. Across a range of metrics, smaller community banks have improved their financial performance since the GFC. Cover for EJFI’s 10.7p dividend tends to oscillate between 1.2x and 1.3x and the dividend remained covered and unchanged through 2020. The shares currently trade at a 36% discount to NAV. Highlights: Majority floating-rate exposure in a rising interest rate environment. The fund has delivered a 9% annualised NAV TR since launch in 2017 (8-10% annual NAV TR target), which compares favourably with structured credit peers over this period. The potential for lower interest rates and a stabilised economy improves the likelihood of banking consolidation picking up pace, which is a key driver of returns via pull-to-par prepayments and improved credit ratings within the securitised structures. Significantly aligned with Principals owning c.26% of the ordinary shares and 5% of the ZDP shares. RSVP to our Corporate & Investor Relations team for registration details: CIR@liberum.com |
Posted at 22/9/2023 08:22 by davebowler Liberum-EJF Investments’ NAV per share of 163p, as at 31 August 2023, represented a 1.6% NAV total return in the month. The portfolio returned 118bps, driven by regular interest accruals attributable to the securitisations portfolio. The earlier unrealised mark-to-market loss in June 2023 is expected to be temporary. It largely reflected the lagged pass-through of the earlier upheaval in the banking sector in March. The valuation of the portfolio’s CDO equity investments tends to lag both on the way down and the way up, relative to movements in the underlying collateral or markets. Other positive contributors to returns in August were from the mortgage servicing rights investment, (+26 bps) and FX (+71bps). We estimate the IRR on the mortgage servicing rights investment to be over 40% since the first investment was made in late 2020. This senior stream of income benefits from lower prepayments on US mortgages. Liberum view The core securitisation portfolio should continue to reverse some of the earlier mark-to-market losses, with the banking sector having stabilised. Important differences exist between the c.160 community banks that underpin the securitisation collateral EJFI has exposure to and the banks that failed earlier this year. The three banks were outliers based on the proportion of uninsured deposits held, ranging from 94% (Silicon Valley Bank) to 68% (First Republic). Distributions to equity investors in the CDOs, like EJFI, are based on the residual cash flows remaining from the collateral pool after distributions to AA and Mezzanine tranche holders. The majority of the collateral pool pays floating rates and in a higher interest rate environment there is an additional benefit from the overcollateralisatio In our view, risks on the CDO portfolio are lower than perceived by the market. In addition to the structural differences between the underlying collateral, US community banks and the banking sector in general is in far better shape than it was 15 years ago or so. Deposit stability has been evident over recent months. The main concern for community banks at the moment is the potential for higher rates to last for longer, as this affects net interest margins. Strong track record On a NAV total return basis, EJFI has been the best-performing fund within its peer group since it launched in 2017. Some of the best return years were driven by significant consolidation in US banking, which remains an idiosyncratic market with far more banks than most developed markets (1.24 commercial banks for every 100k people vs 0.52 for the UK and 0.31 for Germany). Consolidation significantly helps returns as there is a pull-to-par effect on the underlying collateral when larger banks acquire smaller ones and prepay at par. This effect can also improve the credit rating of the CDO debt tranches, as the collateral credit quality increases, raising the value of the equity tranches. M&A remains relatively muted in the banking sector but should regain momentum over time – a 3-5% consolidation rate is typical. |
Posted at 20/9/2017 11:32 by rambutan2 EJF Investments Ltd (the “Company&rdquoThe Company will seek to generate risk adjusted shareholder returns by investing in a diversified portfolio of long-term, cash-flow generating assets in three identified target investment areas, being risk retention, capital solutions and asset backed securities and specialty finance. |
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