Ejf Invests Zdp Discussion Threads

[davebowler] 07/11/2022 09:50

Redemption in 3 weeks.

[davebowler] 23/5/2018 10:02

EFJ ords update from Liberum;
Specialist Debt

EJF Investments (Mkt Cap £108m)

c. 3% NAV growth in April and real potential for positive regulatory changes

Event

EJF Investments' (EJFI) April 2018 NAV was £101.2m or 175p per share, representing a monthly gain of 2.7%, mainly due to the sale of a legacy REIT TruPS CDO security for a gain of c. £2.4m. EJFI's NAV total return YTD is c. 12%.

As we reported previously, in May, EJFI closed on a new CDO equity investment, (TFINS 2018‐1), totaling c. £16.8m investment.

Liberum view

EJFI is focused on investment opportunities driven by changing financial regulations in the US, especially assets backed by exposure to smaller US banks and insurance companies. The investments in EJFI's portfolio and this latest investment in TFINS 2018-1 benefit from the continued increase in 3-Month US Dollar LIBOR, the improved quality of the underlying credit of the US community banks and insurance companies due to structural and regulatory changes, as well as the US corporate tax reductions.

High demand for pre-financial crisis TruPS CDOs vintages should allow the company to price the debt securities of future EJF-sponsored securitisations at tighter spreads and have a positive impact on the return profile of the equity tranches of the securitisations in EJFI's portfolio.

The month of April saw 31 US bank M&A deals announced, bringing the number of transactions to 95 YTD. We expect the M&A activity to increase. Yesterday, the House passed a bill to loosen federal regulations on the banking sector. The bill benefits smaller banks. Banks below the new $250bn threshold will no longer be automatically subject to yearly Federal Reserve stress tests or higher capital requirements meant to ensure large firms are able to weather severe financial crises. They will also be exempted from submitting a “living will” for Fed approval (a plan that outlines how a bank’s assets could be liquidated upon the firm’s failure without causing a widespread meltdown).

EJFI is trading at 2.3% premium to NAV. The current yield is 5.6%.

Emerging Markets

[jaws6] 01/12/2017 12:40

dave
good luck. I hold few of this.

[davebowler] 01/12/2017 12:14

!FOLLOWFEED