Real Est.Cred P Discussion Threads

[kenny] 06/3/2014 16:59

Thanks Skyship, I will certainly research those.

[skyship] 06/3/2014 15:19

Hi again Kenny

Given that quite a bit of thought.

As you may have seen on previous occasions, I am pretty well wed to Private Equity; and it has proved to be a very happy hunting ground since I started the PE thread - and also before as I explain in the Header.

Anyway, if you look at Post no.404 on the PE thread you will see I recount the case for Candover - CDI. I believe there to be plenty of upside still to come through 2014. Also they have come back quite a bit after the recent spike to 575p, so can now be bought at 540p for a 24.4% NAV discount.



As another pure punt idea, take a look at what's been going on with VMP. The placing of 100m shares @ 0.75p would suggest that a buy at 0.62p into a new shell vehicle could reap good rewards on a small allocation play - punt money only!

[kenny] 05/3/2014 11:16

Many thanks Skyship. I already have an allocation in almost all the shares you mention!! This includes a large allocation of GLIF which I agree is looking very interesting, not least as the only means to invest, in the UK, in a spread of peer2peer companies.

Most grateful that you took the time to respond in detail and would ask one further favour; whether you have any other growth ideas that are worth looking at?

[skyship] 05/3/2014 11:03

Kenny - Being in Income Drawdown mode at 7% from my SIPP; I deliberately allocate a 25% corner of the portfolio to secure maturing high-yielders.

For me the key word there is maturing. So that corner consists of prefs with redemption dates - so underwriting against dramatically rising interest rates - however an unlikely proposition that might seem!:

# RECP @ 107p for 6.10% GRY (XD today)
# BBYB @ 121p for 5.03% GRY (current yield = 8.0%Net)
# PCTZ @ 117p for 4.81% GRY

I also hold IERP, but for me that is a low allocation punt!

Also GLIF is an increasingly interesting proposition, in spite of the Simon Thompson piece in the IC lifting them 10% over recent days.

And finally, if you don't already hold, do take a long hard look at ACD. Plenty of info on the active ACD thread. The payout to shareholders in 12months time will provide these possible returns:

(NB - at ACD there are two dividends totalling c3.8p likely to be payable in May & September. The current NAV is 110.58p. The portfolio grew 9.9% in 2012 & 10.4% in 2013.)

# Payout @ 108p delivers a GRY of 8.61% inc the dividend yield
# Payout @ 110p delivers a GRY of 10.57% inc the dividend yield
# Payout @ 112p delivers a GRY of 12.54% inc the dividend yield
# Payout @ 114p delivers a GRY of 14.51% inc the dividend yield

My bet is on 112p...

[kenny] 05/3/2014 10:10

Skyship, any other decent yielders you could recommend to consider where one is not paying lots over par? A little fearful of paying loads over par; just in case interest rates do rise in my lifetime!

[skyship] 05/3/2014 08:14

XD again today...2p payable 31st March.

[kev0856153] 13/2/2014 12:42

thanks skyship

[skyship] 13/2/2014 10:56

Kev - I've held then in the past and likely to do so again. At 122.25p the yield = an attractive 7%.

I rate them alongside the 4 Aviva prefs as they are all irredeemable.

Personally I'm overweight BBYB & RECP as you have the ultimate protection of a maturity date. Though perhaps I'm being ultra-cautious as it certainly seems as though "normal" interest rates are still a long way off!

[kev0856153] 13/2/2014 08:50

Instead of buying even more of these Ive been looking at alternatives. Does anyone know anything about ELLA. These are Ecclesiastical Insurance 8.625% Non cumulative preference shares. 122p to buy. TIA

[envirovision] 12/2/2014 11:07

Reci looks good with an increasingly safe forward yield of 7%.

[kenny] 12/2/2014 11:02

Skyship, what is a put-through?

[skyship] 12/2/2014 10:12

Been looking for a cheap offer for a final 10k top-up. So when I saw those chunky trades at 106.5p I decided to pay the 106.55p. Could be those purchases were two genuine buys, or perhaps a put-through...

At 106.55p the current Yield = 7.51%. The GRY = 6.25%

[skyship] 15/1/2014 14:40

We recently saw an opportunistic buy-in of 1,000,000 RECP @ 105p. Both this and the ordinary share placing which further increased the prefs asset cover, together may be providing the extra impetus to take these beyond the 2013 104-108 trading plateau.

We are now 106p-107p.

At 107p the current Yield = 7.48%. The GRY = 6.17%
At 110p the current Yield = 7.27%. The GRY = 5.44%

With the highest yielding Zero being PCTZ on a GRY of 4.58%, RECP clearly still offers very good value to new buyers wanting a corner of safety.

[stupidboypike] 06/1/2014 15:59

yep, got mine from selftrade on 31st.

Best regards SBP

[skinny] 06/1/2014 15:58

I got mine last Thursday (2nd).

[marben100] 06/1/2014 15:58

It was credited to my account with YouInvest (fka SIPPDeal) on 31st December

[pyemckay] 06/1/2014 15:53

anyone get the divi, im still waiting with iweb.

[pyemckay] 05/1/2014 16:26

Hopefully get divi tomorrow! should have got it on thurs..

[boadicea] 13/12/2013 20:17

A search produced the following HMRC guidance -


The following is an extract with irrelevant detail (denoted by gaps thus ....) removed

"7.8 Qualifying securities are securities (paragraph 7.13) ....
that satisfy the condition in paragraph 7.12.
......
"7.12 The condition that must be satisfied is that, at the date on which the security is purchased by the ISA manager, the terms on which it was issued do not require .... the security to be re-purchased or redeemed within the period of five years from that date.... [end quote]

You will need to check the full details of the terms of the RECP shares and also perhaps the background to the HMRC note to ascertain the exact position of RECP in an ISA.

My cursory impression is that RECP does not qualify as a current purchase for an ISA but may remain within one if purchased before the 5-year cut-off date. This view also supports the statement in the header of this thread. However, that is purely my impression, not advice.

[langbarb] 13/12/2013 16:59

Thanks WirralOwl I went through the posts and could not find a conclusive answer, hence my question. I sent a msg to TDW, not holding my breath but should I get a useful response I will post it here... Best, GB

[wirralowl] 13/12/2013 16:53

langbarb, there was a lengthy discussion about this earlier in this thread somewhere (probably around the time of the 5yr cut off?), and it would seem that some brokers do still allow purchases, but think the general consensus was that the prefs are no longer eligible for ISA's (though the ords are). AFAIA, therfore, if you buy them in an ISA, you run the risk of a forced sell at a later date.

[langbarb] 13/12/2013 16:17

Re, 479 above, Boadicea and al, I inputted a mock trade in TD Waterhouse for my ISA account and I have been shown a quote (normally if a security is non isable I get a message and no quote is shown) and I could have bought it. Does the 5y min maturity rule apply to preference share? Can you guys confirm RECP is not ISAble and that TW might be wrong in allowing me to purchase?

[jonwig] 10/12/2013 20:00

About 2% fewer so prefs are now that bit safer against the gross assets in case of market meltdown.

Makes sense for company to save interest costs of about four years.

But suggests company is finding it harder to get significant returns from buying new loans and bonds.

[badtime] 10/12/2013 18:17

I c it bought 1million Of its own prefs