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To provide shareholders with stable and growing income returns, and to grow the capital value of the investment portfolio by exposure to all debt tranches of CLOs (CLO Income Notes and other CLO Securities) and in Loan Warehouses.
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Scandiexpat; also, do you have a view here? On the wind down.
The lack of 'action' supports my view that it will take quite a while (3 years), and frankly I'm quite happy with that, both in that it's likely to provide the same level.of income for some time, and that they aren't firesaling their positions but maxamising into natural rundown, an elongation that will see much of the NAV discount narrow and materialise, yes, in to lower yield, but returns of capital. As a patient investor, I've actually wondered whether adding here, as I do think most of that NAV discount is real.
Hi Scandiexpat; you really are a globetrotter.....from UK, in Scandinavia, with a Swiss broker! Are the deeds of your house held through a nominee shell company in the Cayman Islands?
Jokes aside, hope you/your investments are well.
Forget, got it one day late....
Anybody else who didn't get paid out yesterday? It could be my Swiss Asset Manager not being fully integrated in EUR system...
Kentio; thanks your kind words. I am far from a specialist on these types of stocks, I just took a LOT of time before I first invested here/ in tiss type of stock.
BGLF was actually the first stock I bought when I started running my own pension pot, along with a few other CLO/debt stocks. Whilst taking a long term view, and adventurous, I was at start, and remain today, disproportionally overweight as a 'sector', and within individual stocks. I have never sold these types, having used the yields to diversify, to the point, over time, through their continual success, that most have 'naturally' reduced to around the recommended maximum of 5% per stock. BGLF, this arena has been good to me, and my only regret, is that I tempered my adventurousness, and erred towards the 'balanced' portfolio so extolled by experts. Frankly If I'd just gone 100% CLO type stocks, I'd be laughing my socks off now. That said, I do inherently believe in a spread, of risk and reward, and BGLF, supposedly so risky has been only rewarding for me. I'm going to hold to end, as I do think much of the current NAV discount will be realised for the patient.
As for your question on VTA - I revisited their lasted news/announcements on seeing your question. It's just my view, but the lower comparative yield isn't an issue, isn't a flag that they are inferior/struggling. Far from it. To me VTA are more conservatively run, and look to pay a constantish yield rather than one that pays (up or down) the success in any given period. On the one hand smoothing the yield against fluctuating income, whilst retaining cash for oppurtunity that may appear.
Other than BGLF (through Blackstone), I know of no other CLO type that has greater access to resources that VTA has (through AXA), and in that, I find it a slower surer bedrock of a stock.
Hi Damofari, It·s a shame that they are. winding down. with the. dividends at this level. I am increasingly interested in Volta, I have a few and I am intrigued that whilst BGLF, FAIR, TORO pay about. 14% - and MPLF 17%, VTA pay only. about. 10.5%. However, all of their. reports indicate that all is. going. well, and presumably they are also producing. about. 14% but are reinvesting. the. difference between. 14% and. 10.5% .
The. fact that. they pay 10.5% makes me feel it is a dividend they can maintain even in the. event of hard. times, e.g. a financial. crisis.
Anyway, it is always good to read. your. comments as you are one of the specialists. re CLO. funds!
Another 3c on the way making 9 for the year. And I think, any possible capital returns in winddowm aside, there's probably another year left of that dividend.
Staying in throughout, what I think will be an elongated wind down, as I think there is value coming back to us here.
Kentio; interested in what view you've taken here, knowing you own a chunk.
I've made a decision to hold to the death; I had a look at the loan durations, and whilst, without proactive closing, there is about a 7 year year tail here, a major chunk of loans close in the next 6-18 months. As they close, the associated contingencies will close and the true unencumbered value will be realised. Looking at the pace of their (in) action, since announcement, suggests to me both that there will be no firesale, and it could be protracted. But I do feel through that elongation is likely to yield 10% for 18 months more, and that closed loans will realise back as capital returns, towards the upper end of the NAV discount.
A nice uptick in NAV showing dividends are looking good for a while through wind down. Noted from the quarterly report that European/US loans have been better performing than any time since 2009 which, along with a lower than historical average default rate, bodes well here.
Conkersdeep,; just seen your comment about SLFR which I've long held - SLFR just got it wrong with it's investments, jumping on anaerobic bandwagons without thinking the sums through - they just aren't in the Marble/Blackstone/Fair class. I actually bought in at wind down, so for me they have wip d their face. BGLF is a different ball game altogether. I believe they will realise most of that NAV discount - with patience.
Thankyou Damofari. I did ( ( attempt to) read them but confess that half way through I was. "skimming" through it looking for important. words like "dividend"!
Today I have bought a few MPLF - expected to pay next month
Kentio; a lot of detail in these results, but positive is undoubtedly 'uninterrupted' cash flows, and that cash inflows will continue to be paid from inflows.
The difference between BGLFs NAV and IFRS navs....well if you take the IFRS value, basically on selling up today, firesale style, that's around 15% above current SP.
A lengthy but informative positive read
I Hold SLFR as well which is doing the same, share price has crashed, nut have had pretty good payments from them
No surprise the wind down was voted through. Yes another in this sphere ending, yes a shame, not least I felt this was the best quality of them all.
The question is whether to hold through what will be an elongated wind down, or move on. Undecided but do feel most of that NAV discount is real and will be realised. Gut feeling is to stay the course. Be interested in others views
Yet another decent payer being wound up....too many going down the same route. :-((
Had a gander at the Q1 report. Basically business as usual.
A few take outs......US loans (50%) saw slightly higher default rates whilst Euro loans (30%) default rate was constant, with US loans better contributing to the NAV increase than the euro loans.
Dividend is covered 1.5 times.
The loan default rate for BGLF since inception is 0.08% which both makes a mockery of this stock's high risk/professional investor classification, and highlights BGLF's quality, not least considering the societal/economic events it has to experienced in it's lifetime.
A solid backstop to any balanced portfolio this.
Morning stars recent leveraged loan update very positive.....
https://indexes.morningstar.com/insights/index-ip/blt450367154896e3f7/index-ip-us-leveraged-loans-liftoff
Looking at the annual report the dividend cover has risen from 1.32 to 1.63 which bodes well.
Hi scandiexpat; what was the jist of the call? And are you suggesting the presenter(s) was a bit dry/robotic. Anything of note that wasn't in the preceding excellent investor update?
I'm waiting for the conclusion of consultation - whilst some kind of realisation share would give a spread/fee free out where NAV discount/value could be collected over a couple of years I'm sort of, of the mind, to carry on as is, delivering a 10% yield with a NAV discount to comfort future volatility.
My first CLO type stock, and all things considered, my best.
Does anybody have any comments on the call this week? I found it informative (the slides were really good) and somewhat reassuring so will continue to build the position. But my goodness, in my days on "Wall Street" in New York and London you actually had people with a heartbeat that presented to investors...
Note from the annual report, that loans constituting about a third of the market cap expires within 12 months, and wonder what this means.
Surely it means a lot of cash at bank, and yes I know the company invests, invests, invests but maybe some of that realised cash maybe heading investors way?
Very noticeable the SP rise recently. People seeing the quality/value/income here.
Interesting RNS about consulting over the continual discount to NAV. One could see it as an admission of failure that buybacks haven't worked/reduced the discount to NAV. Personally I feel it highlights their confidence that the discount is a true discount and not transient/volatility led, and supports that they are continually creating value/margin/profit. Private investors like me won't have a say, but the options are, an increased dividend (yes), or a separate share issue to realise run down assets (yes) or more direct ownership investment in instruments (with their record not a bad thing but perpetuates the status quo, so no).
The recent pick up in SP suggests confidence by BGLF and the market that they are doing well, and the discount is true, and whatever the consultation outcome, reinforces my confidence in my investment here, which has turned SP positive for the first time in the 5/6 years I have held.
Interested in others views on this RNS.
Thanks for info!
Interesting to see the 5% threshold notification from Border to Coast Pensions Partnership Limited on this.
Border to Coast Pensions Partnership Limited is basically the local govt pension schemes umbrella fund managing some serious beans. The board chair Chris Hitchen, was previously the CEO of RPS (Railway Pension Scheme) so likely to follow their modus operandi Buffet style of buy and hold. A good signal adding to the substantial holdings held here by large intuitional investors like Black Rock/Quilter/Abrdn etc).
I am a relative new investor in BGLF. Does anyone care to spread some light on the rationale behind the company's purchases of its own shares this month (albeit small)?Thanks!