Volta Finance Share Discussion Threads

[cerrito] 15/6/2022 10:31

at least for a sterling based investor like me I am benefiting from the weakness of sterling against both the dollar and the euro

[hpcg] 15/6/2022 09:56

I can´t emphasise enough, if at all possible trade this in Amsterdam not London. I know IG allow this. Some providers, even if they offer Euronext, will not deal dual listings on the foreign exchange.

[yieldsearch] 15/6/2022 08:51

Eur 5.56/5.58 on Euronext. the LSE version is always wider and less liquid, even in normal times.
Agree with Skyship, crossover, clo prices have gapped out. Credit spread repricing across corporate/ sovereign. I am expecting further nav decline, sold in may all toro/bglf/fair (all similar, leverage on loan / CLO equity piece) and kept a small allocation here

[skyship] 15/6/2022 07:54

Well, if I were still in I would be exiting pretty smartish on that major NAV reversal - regardless of the spread.

[bluemango] 15/6/2022 07:32

And as mentioned, the spread here is horrendously wide.

[bluemango] 14/6/2022 23:45

#584 Same here; neither buying but nor selling either. I'm here for income and the crucial aspect is surely whether there's anything likely to materially impact the yield here. So I suspect like other holders, I'll be sticking with it for the foreseeable.

Worth reading and digesting the comment/analysis accompanying today's info.

[hpcg] 14/6/2022 22:23

I suspect the NAV will keep heading down. I want to be buying this up the other side. I would expect it to overshoot fair value.

[cerrito] 14/6/2022 20:56

NAV down to E6.37 the lowest since October 20209 but in contrast to 2020 the cash flow is such that we should be receiving our 15c dividend but no doubt the price will drift down.
I was bracing for a fall in NAV but perhaps not of this magnitude.
Do not see myself as buying or selling.

[cerrito] 09/6/2022 17:53

To those who could not make the call today which was recorded as and when the recording is up I suggest you listen to it.
A very competent exposition.
I am not buying as I foresee we are going to have a turbulent period when there will be bargains. If the trading spreads were narrower than they are, I would sell probably.

[hpcg] 05/6/2022 11:48

John Authers has reported some fraying at the edges of the high yield market in the US, though I have not read his article. VTA is primarily exposed to Europe, but markets are all linked. I still think the risk here is that capital loss exceeds income for a period of time. The share price has held up much better than I thought it would.

[cerrito] 04/6/2022 19:03

Just found out that there will be a zoom investor call with the VTA manager organized by Hardman this Thursday at 3 which should be interesting.
hxxps://www.research-tree.com/events/hardman-co/hardman-talks-volta-finance-manager-s-presentation-and-q-a/964

[davebowler] 14/4/2022 10:18

Liberum on Fair Oaks Income

1.7%% NAV TR YTD

Mkt Cap £194m | Share price $0.63 | Prem/(disc) -4.6% | Div yield 16.0%

Event

Fair Oaks Income has released its annual results to 31 December 2021, with the previously reported NAV per share of $0.67 representing a NAV total return of +22.7% in 2021. FAIR has also published its monthly NAV to 31 March 2022, with the $0.65 per share value representing a +0.3% NAV total return in March (+1.7% YTD).


Liberum view

Despite ongoing potential for NAV volatility in the near-term, we regard the 16% dividend yield as attractive. We note that the credit performance of the portfolio has been strong and there is significant headroom on overcollateralisation tests. Distributions to the portfolio from debt investments remain healthy and CLO equity can potentially benefit from a widening in loan spreads as the CLOs financing cost is fixed and any increase in portfolio spread will benefit CLO equity investors.

[hpcg] 07/4/2022 15:52

I'm still digesting the Chairman and Investment Manager reports'. While inflation is addressed the risk of company failures is not, just in passing. I guess that is some way off though.

[cwa1] 07/4/2022 14:22

Half yearly financial report:-



VOLTA AT A GLANCE
Volta Finance Limited Half-Yearly Financial Report 2022 1
The investment objectives of the Company are to preserve its capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis. Volta currently seeks to achieve its investment objectives by pursuing exposure predominantly to CLO’s and similar asset classes. A more diversified investment strategy across structured finance assets may be pursued opportunistically. Volta measures and reports its performance in Euro.
 NAV per share as at 31 January 2022: € 7.3918
 Dividend per share for the six months to 31 January 2022: €0.29
 Share price as at 31 January 2022: €6.20

[bluemango] 16/3/2022 11:20

Assuming this is the new quarterly dividend, yield on these is now 9.8%.

[cwa1] 16/3/2022 07:22

Guernsey, 16 March 2022

Volta Finance Limited ("the Company") hereby announces a first interim dividend for the financial year commencing 1 August 2021.

The Company announces that it has declared a quarterly interim dividend of EUR0.15 per share payable on 28 April 2022 amounting to approximately EUR5.49 million, equating approximately to an annualised 8% of net asset value. The ex-dividend date is 24 March 2022 with a record date of 25 March 2022.

[skyship] 14/3/2022 16:43

Yes, agreed, sold the balance of mine at 5.88 this morning.

[hpcg] 14/3/2022 16:38

Apparently European leveraged loan defaults are rising, though I can't find the Bloomberg story from today. Time to sell here I would think. Following is a report from the beginning of the month:

[hpcg] 04/3/2022 10:56

I sold out of here a while ago for better opportunities, but I would suggest now is the time to exit. Well, a few days ago was. The underlying is high risk debt and credit markets are bound to tighten. Better to be an early seller than a late one. I hope to buy from the last sellers!

[cwa1] 17/2/2022 14:55

Hardman research:-



Valuation: Volta trades at a double discount: its share price is at a 14% discount to NAV, and we believe its mark-to-market NAV still includes a further sentiment-driven discount (5%-10%) to the present value of expected cashflows. Volta targets an 8% of NAV dividend (9.7% 2022E dividend yield on current share price).


Risks: Credit risk is a key sensitivity. We examined the valuation of assets, highlighting the multiple controls to ensure its validity, in our initiation note, in September 2018. The NAV is exposed to sentiment towards its own and underlying markets. Volta’s long $ position is only partially hedged.


Investment summary: Volta is an investment for sophisticated investors, as there could be sentiment-driven share price volatility. Long-term returns have been good: ca.9% p.a. (dividend reinvested basis) since initiation. With above-average returns on recent reinvestments, the portfolio’s past six-month cashflow (annualised) yield is 15.5%. We expect near 2x 2022 dividend cover.

[davebowler] 17/2/2022 08:55

Liberum on FAIR-

Fair Oaks Income

Strong level of distributions in January

Mkt Cap £197m | Share price $0.66 | Prem/(disc) -4.3% | Div yield 15.2%

Event

Fair Oaks Income's NAV per share as at 31 January 2022 was $0.69, representing a 3.3% NAV return in the month (+17.5% LTM).

US and European loan markets generated small gains in January, both returning 0.3% in the month. US 12-month trailing default rates remain very low at 0.3% and default rates in Europe were also stable at 0.6%. Following a record year for CLO issuance in 2021, new issue volumes slowed in January to $4.9bn in the US (down 47% year-on-year) and no issuance in Europe (€1bn in Jan-21).

Credit performance in the loan portfolios of FAIR's CLO equity investments has been robust with an annualised default rate of 0.3%. The portfolios also have low exposure to CCC loans at just 3.7% of underlying portfolios. The 15.4% dividend yield is supported by a robust level of distributions from new investments. The Master Fund received $20.6m of quarterly distributions in January, compared to $18.9m in October 2021.

Liberum view

The quarter to January was a strong period of distributions, which supports management's recent expectations. The manager made several new CLO equity investments during 2021 and two of these were expected to start making distributions in the quarter to January, which explains the 9% increase compared to the previous quarter. Another of the investments is expected to begin distributions in the quarter to July. The rising interest rate environment has increased demand for floating rate assets, resulting in the highest month of inflows into US loan funds since 2015. This demand is likely to be further supported by lower new CLO issues in 2022.

We view the 4.3% discount to NAV as highly attractive, given the 15% dividend yield and favourable outlook for default rates and distributions. The arbitrage spread of the loan portfolios over the cost of financing remains near all time highs at 1.95% and there is significant headroom on overcollateralisation tests.

[bluemango] 11/2/2022 21:16

Nearly 15% discount.

[skyship] 11/2/2022 21:06

As at the end of January 2021, Volta's NAV was EUR270.4m or EUR7.39 per share.