Gcp Asset Backed Income Share Discussion Threads

[cc2014] 06/11/2020 14:01

I'm guessing it's a general market move to risk on and a rotation out of debt into equities.

I'm watching. The share price looks decent enough to me. I think I might be too greedy by hoping for a lower entry

[chucko1] 03/11/2020 18:04

Very much so, but I cannot see anything concretely wrong. Last NAV is 101.29 so trading 20% lower than this now. Price typically 5-8% above NAV, so the 27% movement represents a credit spread move of some 500bps. Typical high yield spreads are only out about 130bps since February across European debt. Add to the 500bps the 35bps reduction in Gilt yields and you get a total of 535bps.

Perhaps as in REITs, needy sellers. Seen that in GABI on occasions. But this is a larger lurch than most, but not yet significant.

[badtime] 03/11/2020 16:51

Unfortunately continued weakness

[badtime] 02/11/2020 19:40

Continuing with the buybacks

[badtime] 29/10/2020 16:52

Ex div today

[hpcg] 19/10/2020 14:26

I bought some today. IMO There are dislocations in several debt based instruments listed in London that don't respect historic recoveries or the spread over equivalent duration government paper. One would think we were in a rate raising environment. N.B. I don't think here there are any recoveries to be made and interest will keep being paid. If anything there is a bigger risk to returns from early repayment as debtors can refinance more cheaply.

[rik shaw] 19/10/2020 08:31

'The Board of GCP Asset Backedis pleased to announce a quarterly dividend in respect of the period from 1 July 2020 to 30 September 2020 of 1.55 pence per ordinary share (the "Q3 Dividend").

The ordinary shares will go ex-dividend on 29 October 2020 and will be paid on 27 November 2020 to holders of ordinary shares recorded on the register as at close of business on 30 October 2020'

[chucko1] 15/10/2020 18:00

Good update, but ignored by the market. In fact, a touch softer. Bought some more.

[apollocreed1] 15/10/2020 16:43

Good update!

[speedsgh] 15/10/2020 09:56

Net Asset Value and Investment Update -

GCP Asset Backed, which invests in asset backed loans, announces that as at 30 September 2020, the unaudited net asset value ("NAV") per ordinary share of the Company (including current period revenue) is 101.29 pence.

NAV

The NAV performance for the period is a positive movement of 0.46 pence per share after the payment of dividends, a rise of 0.46 per cent.

The Company's investments continued to perform in the period to 30 September 2020, with all principal and interest payments received as expected1.

The Board, after due consideration to advice from the independent Valuation Agent and recommendations from the Investment Manager, has determined to continue with its prudent approach and keep in place a number of the discount rate movements that have been made due to the continued uncertainties associated with the COVID-19 pandemic...

[apollocreed1] 08/10/2020 11:38

I think this is good value and the GCP team seem to have the magic touch in all of their funds, but I worry that a loan fund is very similar to the disasters of SQN which became KKV, Hadrian's Wall and some of the P2P companies that have done badly. Aren't GABI exposed to exactly the same factors of struggling borrowers as KKVL?

[panshanger1] 08/10/2020 08:09

Your right !!Too much golf l am afraid

[chucko1] 08/10/2020 08:03

You mean the half year report of a month ago? Come on, get with the program!

But yes, this is great value here and I have added quite a few.

[panshanger1] 08/10/2020 06:12

Quite happy with that half year report In the past this has traded at a reasonable premium now at a significant discount Happy to add at this level GLA

[chucko1] 02/10/2020 14:30

Yes. Random - no news to speak of.

[badtime] 02/10/2020 13:45

Bit of weakness lately

[chucko1] 15/9/2020 14:40

Seems a pretty handy risk-reward, this one. 7% yield (pretty dependable) in a 0.4% 10 year yield environment - and no collection impairments in probably the most challenging environment imaginable.

[speedsgh] 15/9/2020 14:29

Half-Yearly Report & Financial Statements -

Download full report -

Dividend policy
The Company has not set a dividend target for the year as the Board and the Investment Manager are monitoring performance of the investments in the current uncertain climate. The dividend is on track to remain at 6.2 pence per ordinary share, which was the dividend target for 2019, with the Company having declared dividends totalling 3.1 pence per ordinary share in respect of the period ended 30 June 2020.

Notwithstanding this, the Board continues to pursue an increase in the dividend in
accordance with the Company’s investment objectives and, based on the performance
of the Company for the first six months of the year, the Directors and the investment Manager currently believe this is likely to be achievable in the future.

[badtime] 11/8/2020 20:14

Hands up who bought 250k

[rambutan2] 07/8/2020 20:23

Latest quarterly:

[rambutan2] 23/7/2020 21:27

Noted:

The Investment Manager will be holding a webinar on 24 July at 10am to provide more detail on the portfolio. For any investor interested in joining, please e-mail [e-mail]

[speedsgh] 23/7/2020 08:33

Dividend Declaration & Scrip Dividend Suspension -

The Board of GCP Asset Backed, which invests in asset backed loans, is pleased to announce a quarterly dividend in respect of the period from 1 April 2020 to 30 June 2020 of 1.55 pence per ordinary share (the "Q2 Dividend").

The ordinary shares will go ex-dividend on 30 July 2020 and will be paid on 28 August 2020 to holders of ordinary shares recorded on the register as at close of business on 31 July 2020.

Scrip Dividend Suspension

The Board, in its discretion, has determined that the offer of a scrip dividend will remain suspended for the Q2 Dividend. The suspension is as a result of the significant discount between the likely scrip dividend reference price of the shares and the current net asset value per share of the Company. The Board will keep the payment of future scrip dividends under review.

Future Dividends

The Board recognises the importance of dividends to shareholders. As noted in the net asset value announcement on 15 July 2020, the Company has had a strong first six months of the year despite the significant impact of the pandemic and the dividend remains fully covered.

[apollocreed1] 19/7/2020 19:38

This update is very impressive, especially considering the dire performance of GABI's competitors such as the 3 SQN funds and Hadrian's Wall. I think GCP standoutn in all their areas due to their large pool of expertise.

[rambutan2] 17/7/2020 04:09

A good update I thought:

Outlook

The Company has had a very strong first six months of the year despite the significant impact of the pandemic. The loan book continues to perform and the dividend remains fully covered. We are happy that the loan book remains highly defensive and diverse and performed strongly both prior to the onset of COVID-19 and during the first wave of the pandemic. The Investment Manager remains encouraged by the financial position of our borrowers, the steps each borrower is taking in managing an unprecedented situation and the support they are receiving from their equity investors.

The defensive nature of the portfolio means significant income will continue to be generated and distributed as dividends. The Company is in a robust position with cash on its balance sheet and it has access to an undrawn GBP50m credit facility, which was extended to August 2021 post period end. The extension was granted on the same terms as the previous facility.

We continue to seek out and look for attractive investment opportunities, both supporting our existing borrowers who are seeing opportunities as a result of coming through the pandemic in a position of strength and assessing new transactions which were historically too tightly priced for the Group's cost of capital.