Invesco Bond Income Plus Share Discussion Threads

[speedsgh] 10/8/2023 11:53

James Carthew: Soft landing vs recession weighs on bond funds -

The fortunes of Henderson Diversified Income, Invesco Bond Income Plus and CQS New City High Yield depend on getting this crucial forecast right...

[continues]

[shieldbug] 24/5/2023 18:17

Presentation on the Invesco website dated 18th April 2023 by Rhys Davies.

hxxps://www.invesco.com/uk/en/insights/aj-bell-webinar-delivering-steady-income-uncertain-world.html

[shieldbug] 24/5/2023 18:16

Thanks Alan - All good so far...

[alan pt] 30/3/2023 22:57

@shieldbug You'll also find quite a bit of helpful discussion on the SMIF thread, as it has plenty of AT1's/CoCo's

Interesting post on David Stevensons blog today as well:
davidstevenson.substack.com/p/investment-ideas-cocos-a-contrarian

I hadn't invested in bonds for a long time until recently, so I also had a bit of catching up to do! Some of the posts from CC2014 helped a lot with that

I do like to know about some of the detail, but I also take comfort that I'm investing with a manager who knows what they are doing and investing along with others who know a lot more than me :)

[shieldbug] 30/3/2023 13:14

Thanks CC2014 - its a bit of a learning experience for me. First time I have invested in bonds.

I thought I was investing in high yield corporate bonds which I understood to be clearly ranked above equity. Until Credit Suisse my attention had never settled on bank funding requirements and their clear differences to corporate debt.

[cc2014] 30/3/2023 11:59

Yes and no.

The investor cannot force redemption of the bond, thus "perpetual".

However, the bank or insurer has a call option which allows the redemption at 5 or 10 years or whatever or even earlier. In addition there will be likey be an interest rate reset at the 5, 10 year date etc. Because of the interest reset I can see why the manager wouldn't mention this.

Banks often call the AT1's or do tender for partial or full redemption. It's part of how they manage their capital.


At the end of the day BIPS is a high yield bond trust and to generate the high yield some of the investments are in risky stuff. You get nothing for free. Some of the investments are AT1.


The good news is that AT1's are now bouncing fast and the market has come to the view they have been panic oversold.

I suspect BIPS have been buying more as the gearing has gone up in the last few days. All good for us holders.

[shieldbug] 30/3/2023 11:56

So it seems AT1 perpetual bonds can be "called" (paid off) but only after 5 years from issuance. Depending on how they are structured there will be call dates when this can happen. This presumably allows to resize their AT1 debt level if needed.

[shieldbug] 30/3/2023 11:33

Perhaps I was hasty to feel reassured. While it seems the exposure to CS AT1 bonds was about 0.65%, according to the document posted on Invescos website BIPS overall exposure to AT1s is 20.93% as of 31/01/2023. That's one thing, then I learn that AT1s have to be perpetual. What I find really annoying about this is the recent inverview with the manager where he is asked about maturity he did not mention that 20% of the portfolio is perpetual. Not quite accurate in how he explained their offering in my view. Am I wrong about this?

[shieldbug] 22/3/2023 10:29

Thanks CC2014 & Alan PT. Nerves calmed.

[stansmith1] 21/3/2023 18:53

the trouble with being diversified....you catch a bit of whatever happens...

[cwa1] 21/3/2023 14:03

HEADLINE: 1st Interim Dividend

The Directors of Invesco Bond Income Plus Limited (the “Company”;) are pleased to announce the 1st interim dividend, in respect of the year ended 31 December 2023, of 2.875 pence per share. This dividend will be paid on 19 May 2023, to shareholders on the register at close of business on 21 April 2023. The shares will be marked ex-dividend on 20 April 2023.

[cc2014] 21/3/2023 11:33

I'm not sure it matters now Shieldbug as the daily NAV will have been updated to value them at zero.

As at Dec 23 0.4% of BIPS portfolio was in Credit Suisse bonds which are now valued at zero.

Not that it matters either but it's my view that there will be legal action over the burning of the AT1's resulting in either a full or partial recovery. Expect that to take 5 years.

[alan pt] 21/3/2023 11:27

Full portfolio listing is on the website. Assuming that it hadn't changed by the point of implosion, Credit Suisse was 0.4% of the portfolio

BIPS is so diversified that you only really have to worry about widespread/systemic problems. Of course those might still appear, but it doesn't feel like 2008 yet :)

[shieldbug] 21/3/2023 08:23

I'd like some clarification as whether BIPS had exposure to CT1 debt. Bloomberg are reporting Invesco apparently held $370m of Credit Suisse CT1 bonds.

[alan pt] 20/3/2023 16:01

Missed this on the bounce last time around, been waiting for an opportunity

Invested 6% today - my rule is that anything less than 5% is just playing, won't really make a difference to your portfolio

[stansmith1] 03/3/2023 19:19

Thanks for replies, I must say with portfolio allocations of around 1% for BIPS I do wonder what occupies the other 99%...

[hindsight] 02/3/2023 10:45

cc2014, tend to agree, think funds or etfs depending on discount situation ie below chart, cover thier fees in that they can buy institutional bonds that are yielding higher than retail

[cc2014] 02/3/2023 09:16

#195

Can sharing holdings or portfolios be helpful as we all have different objectives and attitudes to risk?

Having said that what you get with BIPS is a fund managed by a reputable manager Invesco that has been around for decades and has delivered. It also has a low management fee. That goes some way to explaining why it's currently trading at a premium and why people are prepared to pay it.

It's a good reputable fund. There are others in the same sector which more or less risk

[flyer61] 02/3/2023 08:27

Hold NBMI as well. Currently liquidating but probably annual double digit return until it's completed.

[peckers56] 01/3/2023 19:50

BIPS is in the "Debt-LB" sector. Don't hold this trust but do hold CVC Income Growth (GBP) and NB Global Monthly (currently liquidating)- portfolio total less than 1%. Both of these at a discount, whereas BIPS at a premium. Personally this sector is a HOLD.

[stansmith1] 01/3/2023 18:24

Would anyone care to share what percentage of their portfolio BIPS occupies? I have allocated around 3% to it, but am thinking of increasing this to double figures.All comments welcome. Thanks.Also interested in your other holdings / % if you are inclined to share :)

[cc2014] 07/2/2023 13:22

How wonderful. It's taken just two and a half weeks to recover from the XD of 2.875p and we are a little bit higher too at 170p on the bid.

I do like this fund, the fund managers fee is reasonble for an active fund at 0.65% with an all in fee of 0.86%

Looking forward to 180p next ;-)

[pvb] 30/1/2023 18:25

NAV ~165p so no discount at present.