Volta Finance Share Discussion Threads

[hpcg] 17/11/2020 12:50

N.B. my thesis here is that the share price should easily get back to 6 and the dividends should increase. This will yield a more than satisfactory income while providing a margin of safety to sell when a macro risk factor appears on the horizon. That will still be difficult, the chart indicates that this really is an early mover.

[hpcg] 17/11/2020 12:43

Skyship - you beat me to it with 445. Level 2 available to all. I've bought the last of my target holding in Amsterdam. Cheaper prices in London for the most part, but very difficult to trade.

[badtime] 17/11/2020 11:32

Well done....i had looked at these at the recent bottom ..but passed ...wished i had trusted my gut feeling and nibbled

[skyship] 17/11/2020 08:57

4.85-4.97 on EuroNext this morning...

At 4.75 the yield is still 9.75%; reducing to 8.8% at 5.00 - but note, that is on a 44c annual dividend which is likely to be increasing...

[skyship] 16/11/2020 15:28

Thnx to Yieldsearch's earlier post, this link shows 30k traded on Euronext and share price up to 485c

[skyship] 16/11/2020 15:25

4.45 bid!? Up 6.5% on apparently no volume, at least not here in the UK.

[cwa1] 16/11/2020 09:42

Nice to see VTA taking a modest upwards move...

[skyship] 16/11/2020 09:06

free stock charts from uk.advfn.com

[skyship] 15/11/2020 13:55

db - have Liberum yet commented on the monthly report? Next week perhaps...

[skyship] 13/11/2020 13:14

After reading that I certainly look forward to Liberum's next update on VTA!

"We believe the current market offers compelling long-term value for CLO investors with the expertise and flexibility to invest across credit opportunities. We also note the recent strength of the loan market which bodes well for near term NAV growth. The price reaction of CLO tranches is closely correlated with the movement in loan market prices with typical betas of between 2 and 3."

[davebowler] 13/11/2020 13:11

Liberum on FAIR_
Fair Oaks Income Fund

Strong cash receipts from October quarterly payments

Mkt Cap £188m | Prem/(disc) -7.7% | Div yield 16.6%

Event

Fair Oaks Income Fund's NAV per share at 31 October 2020 was $0.572, representing a 4.7% uplift in the month. The company's NAV total return since 31 March is now +61.6%. NAV performance in October was driven by strong cash distributions and revaluation uplifts on three positions (supported by BWIC auction prices).

Loan markets were broadly positive in October, with returns of +0.2% +0.3% for the US and European loan indices. Pfizer's vaccine announcement earlier this week has resulted in further gains for loan markets in November, particularly for Covid-affected sectors. 12-month trailing loan market default rates have fallen marginally in the US to 4.1% (September: 4.2%). Distressed ratios (loans trading below 80% of par) have also shown incremental improvement in Europe and the US.


All of Master Fund II's CLO equity investments made their scheduled distributions in October. On a like-for-like basis, CLO equity distributions were 9.1% ahead of the prior year ($12.9m vs $11.8m). The improvement in cash flows over the year is a result of an increase in the average spread on the underlying loan portfolio and the benefit of Libor floors (35-45% of US loan portfolios in Master Fund II have Libor floors of 0.25% or higher). The distributions were significantly higher than July 2020 (+83%). Distributions in July were reduced by the timing of the 3-month Libor resetting of CLO liabilities in April just prior to the significant drop in Libor, as well as a flattening in the Libor curve (many issuers had switched to 1m Libor to take advantage of the steep curve).

Liberum view

Cash flow receipts for the October quarterly payments should provide reassurance on the sustainability of the quarterly dividend (recently increased to 2.2 cents). We also note the improvement in the overcollateralisation test cushion across the US CLO equity investments from 2.8% to 3.0% in the month. Overcollateralisation tests compare the par value of the CLO portfolio (adjusted for defaults and imminent defaults) with the par value of the CLO liabilities. A breach of the test results in diversion of payments away from the CLO equity holders. The Master Funds have received distributions on all of the CLO equity and debt positions on the quarterly payment dates in 2020. The portfolio also has a meaningful level of exposure to CLO debt tranches (31% of portfolio), increasing the predictability of cash flows.

The shares trade on a 7.7% discount to the October NAV. We believe the current market offers compelling long-term value for CLO investors with the expertise and flexibility to invest across credit opportunities. We also note the recent strength of the loan market which bodes well for near term NAV growth. The price reaction of CLO tranches is closely correlated with the movement in loan market prices with typical betas of between 2 and 3.

[cwa1] 11/11/2020 13:48

Many thanks for that wolstencroft, much appreciated. Wish I had known that earlier!

[wolstencroft] 11/11/2020 13:35

by way of example:
Direction Buy
Trade Date 11 Nov 2020 13:34:01
Settlement Date 13 Nov 2020
Order Type Limit
Consideration GBP1504.21 (EUR1684)
Commission GBP0 (EUR0)
Converted At 1 EUR = 0.893238054607935 GBP
Total Cost / Proceeds GBP1504.21
Market Volta Finance Ltd (NL)
Size Buy 400 Shares

[wolstencroft] 11/11/2020 13:21

You can buy VTA on IG share dealing or ii on the Netherlands Exchange - put your own bid in and it will often be filled in the middle of the bid/offer spread. Charges are about 0.5% for EUR GBP conversion on IG and much wider on ii.

The UK quote is wide and illiquid and not tradeable at all IMHO.

[skyship] 11/11/2020 11:36

CWA1 - I didn't get the message with VTA. Perhaps because I'm already a holder.

[cwa1] 11/11/2020 11:04

Hope you don't mind me asking, but how did you get past that message to get dummy quotes? I can't seem to get past it!

[skyship] 11/11/2020 10:12

Yes, really annoying to see that false message. Got the same with JPEL on Monday - still not fixed.

[cwa1] 11/11/2020 09:58

Bitten the bullet and took a few at ii with the buying price of 4.25 as the spread has started to narrow just a little bit(still nausea inducing tho!)

As a matter of interest I tried thro' Youinvest(in my SIPP account) but just got this message: This security is restricted from dealing in spite of ticking the confirm you have read the KID, etc box :-(

[skyship] 11/11/2020 08:58

Dummy quotes with YouInvest:

# GBP: 3.65 - 3.90

# EUR: 4.10 - 4.39

So, finally starting to move better...

[cwa1] 11/11/2020 08:19

BUY at 4.2585 SELL at 3.96 on ii first thing this morning(actual quote). Anyone getting much better offers from their broker? Cheers

[cerrito] 10/11/2020 18:45

Good monthly report and was good to see that the cash collections at E8.1m were higher than those of E7.8m in April. not sure how much of this increase from April to October was due to fact that in the interim percentage of portfolio in CLO equity went up from 45% to 48%.

[cwa1] 10/11/2020 11:28

I'm afraid the best I've been actually offered is 4.25(approx) this morning :-(

[skyship] 10/11/2020 11:23

CWA1 - yes to that visible quote; but when I topped up this morning the actual offer was 4.12 for a 32.2% discount & a 10.7% yield...

[stemis] 10/11/2020 11:22

EQI quoting 385/350. Really not interested in losing 9% straight off...

[cwa1] 10/11/2020 10:59

Not sure what venue. Was ii the broker. IIRC something like 3.95-4.25 at the time of asking.