Volta Finance Share Discussion Threads

[badtime] 07/6/2018 13:10

Whats that in old money

[skyship] 07/6/2018 13:08

XD 16c divi today

[skyship] 31/5/2018 15:06

Like the Specialist Debt sector table which surely reveals VTA as the best in class.

The one saving grace for NBLS has to be that buyback Discount Control Mechanism. Surely time long passed for VTA to implement a similar policy...perhaps set at 5% versus the current discount of 16%!

[davebowler] 22/5/2018 10:08

Liberum;
CLO Funds

Positive April NAV updates

Event

Three of the CLO funds have reported positive performance for April 2018, aided by supportive credit markets.

Volta's 0.9% NAV return in the month benefited from a 2.4% mark-to-market in the company's CLO equity investments. Portfolio cash flows have increased due to rising US Libor with 41% of the portfolio in US CLO debt tranches. Volta trades on a -16.5% discount to NAV.

One of Carador's CLO equity investments experienced a significant reduction in its cost of funding following a refinancing. Other recently reset deals generated high cash distributions as excess par was paid out to equity tranche holders. Carador trades on a -11.3% discount to NAV.

Blackstone's 0.4% return was driven by gains from both the CLO equity investments and the direct loan portfolio. Returns from the CLO portfolio were partly reduced by mark-to-model movements with spreads declining by 1-10 bps on 12 CLO positions. The stock trades on a 0.8% premium to NAV.

CLO funds - NAV TR (assumes dividend are not reinvested)



Apr-18

YTD

2017

2016

2015

Fair Oaks Income Fund

n/a

2.8%*

13.0%

24.9%

-1.2%

Carador Income Fund

0.8%

1.8%

8.9%

20.1%

-8.5%

Volta Finance

0.9%

1.0%

6.6%

15.2%

10.0%

Blackstone/GSO Loan Financing

0.4%

-0.5%

1.4%

12.7%

7.8%



Source: Liberum estimates *Fair Oaks data to 31 March 2018

[spittingbarrel] 16/5/2018 14:37

Thanks Tilts

[tiltonboy] 16/5/2018 12:45

None at all.

[spittingbarrel] 16/5/2018 12:03

It seems they are easier and cheaper to buy in Amsterdam, anyone know if there's any difference between the two?

[cwa1] 16/5/2018 09:41

LOL. Very good.

[skyship] 16/5/2018 09:15

BT - we're now in even better company! Welcome CWA1...

[cwa1] 16/5/2018 08:50

Well, it seems I am Spartacus too! Joined you chaps with a few, had my eye on it for quite a while but first time I've taken the plunge. FWIW, I had a bit of trouble getting any size online at all and was only ii/TDD(as was) that I could get more than a token amount with. Good fortune all.

[skyship] 14/5/2018 21:23

BT - I would say you're in quite good company:

Guernsey, 10 May 2018 - Volta Finance Limited ("Volta" or the "Company")
was notified on 10 May 2018 by Stephen Le Page, a Non-Executive Director,
that he purchased 5,000 of the Company's ordinary shares (ISIN number
G00B1GHHH78) in Amsterdam on 10 May 2018 at EUR6.90 per share.

This purchase represents 0.0136% of the Company's ordinary shares in
issue as at today's date. Following this transaction, Mr Le Page holds
25,326 ordinary shares, or 0.06326% of the Company's ordinary shares in
issue as at today's date.

[badtime] 14/5/2018 14:08

Took a nibble

[skyship] 21/4/2018 09:00

Cerrito - thnx for posting; however only visible to FT subscribers! Is there a Summary para you can post?

Is the concern merely the one of Mark-to-Market valuations? Otherwise would appear to be of very little concern to VTA.

[cerrito] 20/4/2018 22:43

Comments on very strong CLO issuance recently including first half of April and up 2/3rds from 2017 issuance figures. Concern about dilution of credit quality in light of abolition oif risk retention rules. Also demand for floating rate debt but strong supply have pushed prices lower. Ie all in yield of AAA top rated slice up from 2.81% in January to 3.34% now. S&Pflag waving on lower credit quality.
Be interesting to see how VTA navigating this as they are subject to the risk retention rules.

[cerrito] 07/4/2018 21:24

I agree with Skyship/ Rambutan2 that VTA' s Interims well worth a read especially for people like me who are considering increasing our holding but also for holders of other such shares given the good market commentary.

Indeed The Investment Manager has a table comparing VTA with CIFU, FAIR, BGLF and TFIF-I need to say the last two not on my radar.
The IM also has a good table showing how on the last six months the interest and coupons received of 5.8pc reduced to a net total return of 2.7pc as well as the estimated performance of the 7 different asset classes they hold.
Said defaults were below projected default rate but too bad did not specify
the exact figures.
They reiterate their plans to buy more CLO equity and remind us they borrow against their USD CLO debt position.
I read the KID at the Chairman's suggestion but did not tell me anything except they say they say we should have an investment horizon of at least 6 years.
I guess they could increase the dividend abit but not sure by enough to have a material impact on the discount.

[skyship] 07/4/2018 07:28

Incidentally RAM, thnx for the Fidante research above. Very useful.

[rambutan2] 06/4/2018 13:27

The full interims, which are a good read:

[skyship] 05/4/2018 09:06

Excellent CHAIRMAN’S STATEMENT in the Interim Report. First 3 paras posted below. Particularly like the bit at the end of the 2nd para re Discount Control:
=========================================================================

Dear Shareholder
When I wrote to you in the autumn of last year some caution seemed merited towards the ebullience in financial markets. Subsequently, this enthusiasm has, indeed, been tempered. Government bond yields have risen sharply in some regions, most particularly the United States, and “risk assets” such as equities have seen an increase in volatility. Against this backdrop, the net asset value (“NAV”) total return of Volta, at 2.7% for the six months to 31 January 2018 (and an estimated gain of 0.7% in February 2018) is respectable, if below the long-term target run-rate of returns.

More disappointing, however, is the share price total return of -0.7% for the six months to 31 January 2018. This reflects a widening of the discount of the share price to NAV to 14.2% as at that date. Despite efforts to bring Volta to the attention of a wider audience and ongoing attempts to address any structural impediments to an improved share price rating, so far this has not been reflected in a narrower share price discount. I would note in this context the recent reduced ratings across a broad peer group of incomeorientated listed investment funds including direct Company peers. So Volta’s de-rating is not unique. That said, the Board, Investment Manager and broker have recently discussed this and we will redouble our efforts in the coming year. In my meetings with some Shareholders there has been a suggestion that our Company should commence either a regular tender at NAV or repurchase shares in the market. These mechanisms can be a double-edged sword, as some have found to their cost. However, they have a time and a place. The Board are active in their consideration and will use such discount control measures if they believe them to be in the best interests of Shareholders as a whole.

Before we become too glum, it is important to remember that Volta’s share price, with dividends reinvested, has generated an annualised return of 11.2% since inception in 2006. It also offers a dividend yield of 8.7% on the share price as at 31 January 2018. More importantly, this dividend is comfortably covered from income and coupons received on the underlying portfolio. In an environment where cash rates in euro are still negative, this is a highly attractive yield, particularly given the risk profile embedded in the underlying portfolio. As I have noted previously, it is the extent and quality of these cash flows that will, ultimately, drive total returns, not the vagaries of investor sentiment. Further, these cash flows come from a variety of different sources. Volta’s diversification can sometimes be a hindrance to understanding the nuances of the Company. However, that diversification is a real strength, particularly when compared to our peers.

etcetcetc

[rambutan2] 31/3/2018 20:43

Of sectoral interest. Recent research note on (the rather unloved) TORO, including a comparison with the "competition".

[skyship] 31/3/2018 09:26

Crunch point approaching:


free stock charts from uk.advfn.com

[skyship] 31/3/2018 09:17

double Ah...😊

[dendria] 31/3/2018 08:48

CIFR is the Repurchase Pool shares of CIFU.

[yieldsearch] 31/3/2018 07:53

Carador income fund