Invesco Bond Income Plus Share Discussion Threads

[pvb] 30/1/2023 18:25

NAV ~165p so no discount at present.

[cc2014] 17/1/2023 09:03

Share price getting close to 170p now.

Invesco have stopped the issue of new shares, at least for the moment

[tiltonboy] 22/12/2022 17:16

Chunky issue of stock today

[cwa1] 13/12/2022 16:37

HEADLINE: 4th Interim Dividend

The Directors of Invesco Bond Income Plus Limited (the “Company”;) are pleased to announce the 4th interim dividend, in respect of the year ended 31 December 2022, of 2.875 pence per share. This dividend will be paid on 20 February 2023, to shareholders on the register at close of business on 20 January 2023. The shares will be marked ex-dividend on 19 January 2023.

[rik shaw] 02/12/2022 17:25

For anyone interested this Youtube video just published may be useful

[panshanger1] 23/11/2022 17:33

Nice recovery here

[tiltonboy] 16/11/2022 11:30

They just keep rolling it over

[marktime1231] 16/11/2022 11:22

So the borrowing is on short term repurchase basis. We do have to repay it?

[tiltonboy] 16/11/2022 10:34

CC2014,

Borrowing are by way of a Repo.

[cc2014] 16/11/2022 09:09

#182 The borrowings do not have to be repaid unless the fund is wound up (highly unlikley as it's been going for decades albeit with a name change) or the value of the fund falls like 75% and the debt is called in.

The fund will have an agreement over the borrowing and approximately about a year before it is due to expire it will renegotiate the rate and length resulting in a new lending contract.

It will do this over and over approximately every 5 years and thus the debt never has to be repaid.

[marktime1231] 15/11/2022 14:22

We hopefully have seen the bottom of the cycle, and it will be encouraging if BIPS manages to recover its price. The 7% yield has kept me here, but I would be happier if there was no gearing and if the dividend was covered without having to wonder how to repay the £50M or so which has been borrowed. It does have to be repaid at some stage?

[tiltonboy] 15/11/2022 14:02

marktime,

Obviously, gearing has been a serious headwind for the fund, and could still be. All comes down to defaults. If they can avoid them, then the portfolio looks set fair...but the risks are there!

[marktime1231] 15/11/2022 13:42

18% gearing though.

[tiltonboy] 15/11/2022 13:29

panshanger,

Covered, and RR growing!

[cc2014] 14/11/2022 16:11

Thanks. That's really useful information and confirms my plan to just sit in this for quite some time.

They must have got a postive response as 500k shares have been issued today at 162p

[panshanger1] 14/11/2022 16:03

@Tiltonboy Any mention of the dividend cover ?

[tiltonboy] 14/11/2022 15:55

Informative webinar this morning.

Average price of loans is 85 putting the fund on a 9.9% GRY, and 12% if you take into account the gearing. Average maturity is 5 years.

[flyer61] 01/11/2022 11:43

No! I sold at 160 this am🤣

[cc2014] 01/11/2022 10:41

It's very nice to be finally sitting in an uptrend. It seems a long time since that last happenned, although it wasn't as it occurred post Covid for some time

My finger tends to reach for the sell button when things go above NAV but in this environment I'm going to try and stay invested. The NAV is creeping up every day and I think the buyers are just front running that and the NAV will catch up with the share price by the end of the week. Maybe the share price will have gone higher by the end of the week, wouldn't that be great.

[panshanger1] 01/11/2022 10:19

Back above NAV here

[cc2014] 30/9/2022 08:12

I'm committed now. I bought back in yesterday and the day before at below 144p and I'm calling the bottom.

It better be the bottom! I'm tired of buying this, making a few pennies and having to flip out for a small profit before it falls. I'd much rather keep and collect what is now an 8% dividend.

Even if it doesn't go up I'd rather just collect the dividend and have more of a life away from my computer.

[marktime1231] 22/9/2022 12:27

Ok I was sufficiently curious so I did have a quick look at the report. Gearing has jumped again, now up to 19%. So they are borrowing heavily to buy extra bond assets - ok fair enough there were bargains to be had but assets have fallen further in value and so NAV is getting slaughtered - in order to boost income, because the existing portfolio didn't cover it. At some stage this borrowing has to be repaid and in the meantime the interest bill is going to be a burden.

And yes, I was right, you were not relaying the right information, the net income is about £1M lower at £10M. So dividend coverage is indeed quite narrow, well it is now they have pumped up the payment by 4.5%.

Let's hope this bold and brave strategy works out.

[cocopah] 22/9/2022 08:19

I’ve been following BIPS for a while now … what’s troubling is the increase in risk … the investment managers have doubled the gearing and in addition nearly 80% is invested in high yield bonds … if non-payments increase then they are in trouble. On the plus side a lot of these bonds are issued by blue chip organisations.ԍ35;‍♂5039;🤔

[marktime1231] 21/9/2022 21:04

It is my recollection (and other posters at that time) the annual report back in around early April confirmed that net income did NOT quite cover the 11p dividend, that the dividend would be held flat for 3 years, and revealed BIPS had increased gearing by about 5% eg borrowing to cover payments. I think there was an agreed tier-down in management fees in order to narrow the dividend-income gap.

Confess to not having paid attention with such a dull outlook and dropping NAV, filed BIPS away as a background holding. Do I need to read the detail of the H1 report from last month? I do not believe they can have achieved such a turnaround in just five months without doing something which requires explanation.

Does net income from investments on an annualised basis truly now cover an increased dividend, or is there a shortfall being made up by gearing and a liitle asset horse-trading to eke out some gains, buying and selling own shares, a disjoint between the timing of income receipts and dividend payments which flatters H1 but straightens out over the full year, has gearing increased again ... my instinct is that your figures do not tell the full story. Did you note net income after all management fees, finance costs, taxation etc?

Bet you the dividend cover is very much narrower than you present, and I cannot believe it will have turned around from negative to positive so quickly without borrowing heavily to boost receipts and plug the gap.