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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Fair Oaks Income Limited | FAIR | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 0.58 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 0.58 | 0.58 | 0.58 | 0.58 |
| Top Posts |
|---|
Posted at 23/8/2023 11:17 by euameus Stifel comment below. Interesting given recent price action.Fair Oaks income - Is it really that different to TwentyFour Income? One of the vagaries of investment trusts are that some trade close to NAV largely based on historical reasons while others seem to be overly punished. TwentyFour Income is a well managed fund and while fundamentally the securities it invests in (UK residential mortgages and CLO debt) may be secure, there is clearly headline and pricing risk in residential mortgages - especially the residential equity book (c.17% of NAV). The share price is currently trading in line with the NAV with a dividend yield of 8%. Fair Oaks Income which invests in CLO equity and debt trades at a 12% discount to NAV with a 15% dividend yield. Both are well managed vehicles, but we would be far more comfortable investing in CLO equity with its diversified pool of leveraged loans that can be actively traded versus a UK residential portfolio that has a static pool. In addition, Fair Oaks Income has a limited life structure, which means (assuming a 1-year extension) that the fund enters run off in 2024/5 unless investors opt for a roll over. The question we are pondering is one of valuations. On a relative basis Fair Oaks Income appears cheap and likely better insulated from further macro pressure (on a NAV basis). There is also likely more potential for consolidation in the CLO sector with either of its peers (Volta Finance or Marble Point). |
Posted at 21/5/2023 16:01 by cerrito cbscbSorry I do not have that anymore. I hope you enjoy reading him as much as I do. I do not have the courage to buy more here and a 60c share price this year or next would be a very pleasant surprise. Both VTA and Fair note defaults are lower than expected, which is correct. That said defaults are a lagging indicator and we need to see what happens in the famous recession as well as any repercussions of tightening landing standards. . I do not understand what the impact will be of tighter lending. I note Fair have said so far no impact. I do not see myself selling either. Ps For those looking to get into Fair and needing a CLO 101 there is a good introductory 15 minute video on the Oaktree site. Pps Too bad FAIR do not do investor webinars. |
Posted at 17/5/2023 10:12 by cwa1 Courtesy of davebowler on the VTA board...Liberum on FAIR- Default rates remain below expectations Analyst: Shonil Chande Mkt Cap £156m | Share price $0.48 | Prem/(disc) -17.9% | Div yield 16.7% Event Fair Oaks Income's NAV per share at 30 April 2023 was $0.5847, representing a total return of 1.1% in the month (+5.7% YTD). Default rates continue to be significantly lower than the forecasts for 2023 issued at the end of 2022. The default rate in the US remained stable at 1.3% while in Europe it rose from 0.4% to 0.6% in April. The distressed ratio in the US remained at 8.7% and in Europe it dropped from 6.4% to 6.1%. CLO valuations continue to lag other assets, potentially as a result of investors modelling unduly negative market scenarios. Liberum view The resilience in default rates is notable and challenges the assumptions made in company models to calculate the NAV. The company points out that in early 2020, the median price of the Master Fund's US CLO equity investments fell from 67 cents to 30 cents based on predictions of increasing loan defaults due to the pandemic. However, the median price recovered to 63 cents by spring 2021 when it became clear that default rates would not increase as expected. Today, the median price of the same investments is 32 cents, indicating once again a substantial recovery potential in the NAV if default rates continue to remain below projections. We continue to be Buyers of the fund with a target price of $0.60 (+25% upside from current share price) |
Posted at 20/2/2023 22:30 by cerrito Been kicking the tyres here.You are right Ramellous that we are owed a dividend announcement. I was comparing the figures at Jan 31 23 with those of June 30 22. Then the NAV was 0.588c and now it is 0.6c. Judged by ratings the portfolios were virtually identical. The percentage of subordinated notes was identical. The only difference in the portfolio was that the %age of US$ assets had decreased from 65% to 61% and an equal rise in Euro assets. The difference was that the mid share price was 0.555c and at end of January was 0.495c. As Fair says in this month’s commentary, investor positioning in the CLO market is at one of its most conservative points since 2009.. |
Posted at 17/2/2023 07:51 by cerrito Yes even better than VTA.In the short term for a £ investor like me the short term looks good with a much better than expected US economy keeping defaults lower and the dollar stronger than expected..but of course the long term is a different country. |
Posted at 19/1/2023 19:51 by bluemango Bought in today. New investor here.You wouldn't believe the compliance and cautionary hurdles demanded by the broker, and that's for an ostensibly execution-only service! Yes, I get that it's slightly off-grid, not mainstream and higher risk. But that's the trade-off for the high yield. Only here for income. |
Posted at 06/1/2023 17:46 by euameus I would rather see new investors rather than buy-backs, will wait for Monday's RNS to see |
Posted at 21/9/2022 10:27 by cerrito September 21 22Good to see that yesterday’s share price is continuing. Like others, I am going on the basis that it is returning to July levels more to the new distribution policy rather than the fact that it had a 4.2% NAV increase in August. As a UK investor with sterling as my base currency at current exchange rates I really like the sterling dividends ie instant gratification. I take the point that I can get my return through a higher share price if this buy back does increase the share price but as my internet broker Barclays does not allow me to trade FAIR I have to go through my full service broker with commensurate transaction costs. I note comments about helping people exit their position without causing market upheaval. I checked the latest AR to see who the largest holders were and it was 4 nominees ie basically as clear as mud. These 4 nominees have 35% approx. in total with the largest at 11%. Since the AR we have read about Fidelity with their 10% and Waverton with their 5%. I know nothing about Waverton and their propensity to sell. I checked the LSE website to see how liquid the market is. Yesterday 150k shares were traded. Trading volumes are erratic. Since August 8th there have been 4 days with 1m shares traded and quite a few days with virtually no activity. Not clear what that told me. I note that the buyback could potentially be 11.6% odd of all the realization shares. In theory this should reduce the v wide bid/offer spread. At current prices and with the current outlook I do not see myself as buying or selling. |
Posted at 20/9/2022 12:37 by scrwal Being an income investor and not liking share buy backs what is proposed irks me somewhat.If the cash balance is material then the div should be kept at 2.5c and surplus funds over that should be used for buy backs - but hey what do us small investors know. If there is a large seller then why not approach them direct and buy them out using the cash held. |
Posted at 11/9/2022 22:44 by rambutan2 Interims out fri. Worth a read:"We continue to believe that the 18.0% dividend yield offered by the Company, supported by a high-quality portfolio of primarily first-lien, senior secured loans with very attractive term, non-mark-to-market financing represents one of the most attractive risk- adjusted opportunities available to investors in the current market environment." |
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