Blackstone Loan Share Chat (BGLF)

After the windup redemption of share holdings I was left with 55 shares in my account. This has now disappeared and the holding is 0 shared. Can anybody advise me ?

Thanks damofarl.

I was wondering if it might be absorbed into BX. My other thought was it might have gone into BXSL, Blackstone Secured Lending Fund, 9% yield. SP is near a 12 month high so I will wait to see if the price drops. Appears to have a better quality loan book than BGLF did. Can't find the info right now but I thought I saw BXSL had a NAV premium rather than discount which is a bit off-putting.

For now I am going into boring safe gilts pay just below 5%. There's no cgt on gilts so only the coupon is taxable. If follows that low coupon gilts at a discount may suit UK taxpayers. I am not a UK taxpayer.

Patof: it will be absorbed into the main BX co, and whilst I followed your train of thought , the yield isn't in the same ballpark, so elsewhere it is.

Similar experience to me. I was a long term holder and added significantly over the years because of the bumper yield. Initially I invested in Carador which was rolled over into to Blackstone in 2018/2019.

Agree we have been shafted by the BoD who are no doubt being congratulated by their masters Blackstone. I voted No but sadly not enough others had the backbone.

I'm considering other CLO type investments with the proceeds; Eagle Point Income Co Inc (EIC) paying 15% yield springs to mind but it is another relatively small cap so could be volatile. Because of the turbulence in the markets for the time being I may just put most of the proceeds in a short term gilt and bide my time

Does anyone know which Blackstone fund BGLF will be subsumed in to? There is an argument to reinvest in that fund given they got such a good deal at our expense.

well tommorowish is pay day, and for me the end of one of the first 5 investments i made when i starting managing my own investments.

personally i can't complain that it has done well for me throughout, but like many here, complain that they stitched small investors up in the end - the only time i feel i misread this was in not seeing that they wouldn't wind down totally, but sell out to their controlling/vested party, blackstone. in hindsight it was obvious. a shabby end to an excellent investment.

thanks to all, who have contributed to this board. we may have been sp****, but the contribution quality spoke volumes (and anecdotally some of my best investments correlate well to the sparsity of 'chatter').

wish all well - but where to now with the money? what's my next bglf?

Does anyone know what the 2% remaining stub is?

Why not sell now?

Will receive € 0.755 per share. No other dividends or residual payments.

Is that correct?

So to be clear, the company will cease to exist following the 19 January meeting. Shareholders will receive

Received this afternoon. Nice amount too !@

The least they could do after "ripping off" shareholders with this sale would be to pay the redemption payment on the stated 19th Dec for ISA and SIPP holders. Just IMO

Happy Xmas all

Thanks! I guess my Swiss Bank didn t keep up with it again. Cheers,

I received my dividend on the afternoon of 6 December.

The 2nd Redemption is not due until 19 December.

Just got back from trip and was surprised not to see the expected 6/12 dividend of E0.0225 p.s. on my account.

Any problems with this out there or have I mixed up the dividend with the Redemption 2??

Thanks!!

So, I’ve registered my “No” votes.

I remain angry about the way this offer was presented – particularly (now that the October dividend and Redemption uplift are stripped out) the Circular that has been issued in respect of the EGM specifically states that the offer is equal to only 75.5 €cents per remaining share.

So – not the discount to NAV of 9.9% as referred to in the offer RNS but 15.9%. IMO that’s an abysmal and unacceptable level of discount.

The timing involved adds further insult to injury. The EGM is scheduled for the 19th January and proceeds are expected to be distributed “on or around 4th February 2025”.

If you look back 12 months you will see in the RNS of 23rd January that there was a dividend declaration of 3 €cents with an ex-div date of 1st February and a payment date of 8th March.

Even if this year’s final dividend was only the 2.25 €cents that we have been receiving this year then, without this abysmal offer, we should be getting that dividend in early March – i.e. approx. 1 month after the offer proceeds will be paid. I regard the loss of this dividend as being equivalent to a further reduction in the value of the offer and so taking it down to around 73.25 €cents.

IMO the whole thing stinks!

Being robbed blind of upside by the current proposal. Sale is to a vehicle inside Blackstone so we're basically helping the house make a buck. There's plenty left to give in this vehicle given the discount rate used to reach the 90c NAV and they're looking to acquire that at a discount. Also agree with the below poster on the way the offer is being presented - totally disingenuous.

I really do not like this offer… but I really really do not like the way it has been presented!!!

On that latter point I am quite angry at the reference to this offer being:-

a) Headlined as being 80.8 €Cents

b) This is “a premium of 7.8% to the closing price of €0.7500 as at 20th November 2024”

IMO this way of presentation, whilst factually correct, is designed to make the offer appear in the best possible light but it has – intentionally or otherwise – caused some investors to believe that they will receive 80.8 €cents for shares now being purchased (see Friday’s & this morning’s trades!).

THIS…IS…NOT…THE…CASE…!!!

First of all a small point. The offer states that there will be costs estimated of €.0064 per share to be deducted. Therefore the value of the offer – using their numbers – is actually 80.16 €cents per share.

However the main complaint I have is that this figure includes the October dividend of 2.25 €cents per share.

This dividend had an Ex-Div date of 31st October. Anyone who owned shares at that date gets that dividend (even if they have subsequently sold their shares). But anyone who has bought shares after that date (as I did – see my post of 8th Nov) ….WILL…NOT…GET…THAT….DIVIDEND!

Deducting that dividend means that anyone who bought shares since the ExDiv date will get 80.16 €cents less 2.25 €cents :- i.e. 77.91 €cents. People who paid more than this figure on Friday & today will actually lose money under this offer.

I think that the euphemism for this offer is “opportunistic”. Sadly, I expect that the offer will proceed (I will vote against but that will have no impact). Given this view, I have been selling ( at prices between 77 & 78 €cents on Friday … So, for the 78 sales I get more than the offer & I get it now!!). I will still have a substantial holding that will go through the offer. I will collect my dividend and redemption proceeds in any event plus the offer monies and I will make a nice profit – even though I would have preferred this to continue.

But I do feel angry about the way that some recent purchasers will make very little money or in fact no money at all!!!!

Ps If anyone thinks I have got my understanding/figures wrong please let me know.

Profit Participating Notes...

Just about to write a detailed bit on the 3q results, when I saw the latest RNS, so pointless me conjecturing on what I think they meant. I'll just leave it, and say 'kerching' instead!!!

I suggested before there would be no rush to redeem, primarily because BGLF's parent/partner here, Blackstone, was growing/increasing promotion of this arena - so no surprise the proposed sale is to Blackstone - they know there is value there. Question is will we take a small haircut for expediency?

Hi Damofarl

Yeah saw that, it stacks up for your argument that it comes from their cash, but to achieve that cash the loans must be closing out at NAV.

From the rns.....

....'The amount to be applied to the partial redemption of Shares comprises monies from the Company's existing cash balances....'

A holder of 10,000 Shares will have 1,627 Shares redeemed, and receive €1,459.41 in cash. Just over ¢14.5 a share, and the uplift in value so far (SP increase from ¢69 to ¢75) is around 8.5%, around half of the loss of shares. Means a profit of around ¢8.3 per share for holders before the recent redemption announcement.

Definitely worth remembering once the new shares are issued as profits are to be had before the next redemption announcement.

Only had a very quick glance, but note there is 17.1c of retained earnings over and above the dividend......

Write more fully when i get a chance, but digesting some of the detail, even happier with how this is panning out.

Hi kentio, hope you are well.

Each person has to make their own decision on whether to reinvest redemption, considering their own circumstances.

Personally, I actually added prior to both redemptions to maintain my initial holding, being both patient and believing the majority part of the NAV discount would be received through time.

Interesting to see Quilter reduce their holding from 10 to 5% - maybe they are impatient/don't believe that BGLF will deliver in the immediate future (missing out on the redemption).

And conversely that Borders and coast pension (the umbrella manager for numerous local govt pensions) has taken out a new 4% position - maybe they believe there is still money to be made here.

If 'professional' investors have contrary views, no surprise that we as private investors do too.

Hi Damofari, Just considering renvesting the redetion proceeds back into BGLF and will then be. abke to collect more. dividends and enjyb theb capitalm gain. again when they are. eventually redeemed. at NAV.

Is this. somethng you will also. consider?

Hi guys, thanks for your contributions/number crunching today - most helpful.

With regards to the dividend being impacted by non earning cash and/or running costs, I don't see it as being material or impacting for the best part of a year. On the non earning cash - well in the quite long time I've been here, they have predominantly held cash in excess of annual dividend, which I have always seen them as holding pending their next 5/10 year investment - the point I'm trying to make is that they have long held non earning cash, hence not seeing this as materially changing/impacting.

Yes running costs will rise proportionally, but again don't think material for a while yet - they flagged such, the awareness of such, and actions they would take on such, at the very point of announcing the wind down. I've been a fan since day one, and for me they have delivered since day one. They are delivering now, on how they said they would wind down. Pragmatically, slowly, opportunistically.

I have noticed in the last reports no 'extra' closing out of loans/commitments beyond their normal trading churn, so I'm still unconvinced, that this 2nd bumper redemption is from a new found urgency in closing out loans. Yes be interesting to see if there is any commentary in the update (although I doubt there will be), I just feel that they were long earning interest above our dividend yield, but much of that excess was redeployed to continually propagate such - that they are no longer originating such means that excess is materialising, back to us.

On what will the redemption NAV figure be, market gyrations aside, it does also depend on how they 'account' they current dividend - ex date was the same day as October NAV valuation, so will that dividend be deducted from that valuation or deemed because of record/payment date to be after? If it's within, market fluctuations aside, I'd see €.88, if it's after, €.90 - we'll have to wait see....

Whilst we may not be uniform on how/where we perceive the root of the redemption/yield is originated/generated, we are one in agreeing there is free money here, between the current SP and the NAV.

I still believe, AT THIS POINT, these redemptions, and the yield, aren't from an advanced closing of positions, but primarily from the returns on previous excellent investments, unhindered by new investments and the contingencies(reserves ) required for such, bolstered by a constantly reducing risk.

This was one of the first 10 shares I bought in my self managed portfolio. From day 1 through this wind down they have always delivered what they promised. I'll be here at the end.

Glad that this has been one of the most boringly consistently enriching choices I've made.

Sad that I've got to find a replacement, that frankly I can't see meeting the mark of BGLF.

Hi again Gavster/Damofarl

I also assume that we’re going to be looking at approx. 68m shares being redeemed – or, to put it another way, approx. 16% of shares. We have yet to see what the NAV figure to be used will be (& given market/interest rate movements through October I wouldn’t be surprised if it is slightly below 90€cents) but it will indeed be a very handy gain on yesterday’s SP of 70€cents/60p.

I was rather surprised that I was able to buy shares early this morning at the same price as yesterday. I trade via HL, Interactive & Barclays – but cannot trade this with Barclays which is very frustrating. It is also frustrating that with HL I have to trade the BGLP and with Interactive it’s the BGLF. In any event, I was able to buy some (for me) sizeable amounts early on at 60p & €0.7. It seems that those prices are now 62p &€0.73.

I actually think that those latter prices still represent good value given this redemption but I am now frankly overloaded here, in part because I think the return here looks so good as compared with the risk and in part because I expect to be getting 16% redeemed within a few weeks.

Going forward, I agree that the NAV per share and dividend per share should not be negatively impacted by this redemption (as per our discussions around the first redemption). The dividend may be impacted in due course by the amounts of non-earning cash that the fund holds prior to redemptions and/or the level of fund running costs on a reducing size of fund. Hopefully these will not lead to reduced dividends – or NAV – in the short term. I wonder whether we will get any commentary around this when the redemption is finalised?

ATB

This is nice indeed !

Hi damofarl, jjhbev

IMO a continuing dividend level suggests redemption by way of asset disposal, which if their income is quite evenly spread then the dividend per share with our new lower NAV should remain in place.

Quick maths.. If the NAV per share at 31st October was around ¢90 per share then with 418m shares means a NAV of €376m. So estimating this redemption, 68m shares cancelled, ¢14.5 per share for Christmas and a move up in SP to around ¢74 ?

Not sure but very happy about this.

Hi Damofarl/Gavster

Well.....that's a much larger redemption than I was expecting!!! (had thought half that figure at most)

Subject to share price movements, I will look at recycling at least some of the proceeds back into shares.

ATB

My view below on dividend being maintained is based on their announcement that the dividend for the year would be a MINIMUM of 9c - it was quite definitive, suggesting to me they had great confidence in their current positions ongoing income generation.

I also read it to be a reassurance to investors (who often get frustrated during wind downs), that whilst they patiently economically close down positions, the lack of expediency/size of capital returns is tempered by a healthy ongoing return.

Other than their professionalism, I do think their intertwined links with the Blackstone Group (who are growing/increasingly promoting their presence in this arena), means BGLF can't unwind positions prematurely, without taking a haircut, as Blackstone have no intention/desire to do such.

I do think this is/will be a factor in this being an elongated wind down

Jjhbev/Gavster-NBC;

I did notice the rns footnote, and whilst reassuring, from memory, they had already trailed such around the time of the 1st redemption, so I'd already factored in.

Yes previous discussion here as to whether last return was from asset redemptions or excess cash at hand/ongoing income no longer being redeployed, and whilst it is hard to know definitively, my belief is it was the latter, aided by time elongation meaning default contingencies are naturally and continually unwinding/reducing, freeing up cash.

The last NAV suggests wind down aside, they are still performing and income generating, so I'll be studying the 2nd return with interest, to ascertain 'where' exactly such return is coming from. My gut feeling, noting their (deliberate) lack of progress on unwinding positions prematurely is that any 2nd return will be measured rather than bumper - whilst reducing contingencies must be freeing up cash, naturally reducing/ending positions must also reduce ongoing income - and I sense they are planning to maintain current level of dividend for some time, so some of their natural redemptions will be 'diverted' to maintain such level.

All my conjecture of course, but whichever way it pans out, I still believe much of the NAV discount will be realised to the patient, one way or other

Hi jjhbev

The compulsory redemptions being announced was strong reason why I'm now invested, let's hope it's a good amount this time, 5 to 10 cents would be handy.... ? There's a debate further back in the discussion as to if the money that will be paid to shareholders is from a realisation or sale of assets at NAV, or they're paying from our coffers at the equivalent NAV, but could sell, (if at all) at a different (lower) price.

I suggest that the less the number of shares after redemptions at NAV, the resulting SP will go higher to converge to NAV.

Hi Damofarl

I hope that you're well & that you are ready for Rachel !!!!

I'm just wondering if you saw the dividend declaration RNS of 21st October?

The dividend is 2.25€cents as expected. It's the wording at the foot of the RNS about a NAV based compulsory redemption being evaluated to take place prior to the end of Q4 2024. I hadn't expected anything extra this year & so regard this as very positive!

ATB

NAV is up, which for something in wind down is pretty impressive.

Testament to both their professionalism, and that they have no intention of expediating run down wantonly.

Jjhbev; thanks your contribution which I'm sure is appreciated by all here.

The detail is out there, albeit it does take time and focus to interpret/debunk.

The figures in those reports are based on the vast majority (bar €25m) of CLOs reinvestment period ending in 2028, and their modelling a total exit 2 years after each reinvestment date end (mkt conditions permitting). In theory, as well as loan interest, from reinvestment end date, loan capital repayments should increase noticeably, hence their modelling 80% or €400m 'cashflows' by 2028. Disregarding the 20%/€100m projected cashflow beyond that date, gives a return marginally in excess of current Co NAV, and at a 33% premium to SP returned within 3 and a half years.

A crucial consideration I have made is that as each CLO passes their reinvestment date, irrespective of actual end/sold on date, the default assumption contingencies continually unwind, hence whilst still interest earning (and initial loan capital repaying), the amount of cash at hand required to cover positions reduces and/or cash can be used to clear the underlying leveraged loans BGLF have taken out, saving further cash, all of which suggests to me that further 'capital' returns will be made from that excess cash, without the need to close out (unless proactively/opportunistically) prematurely. Hence I don't think they will before 2028 when the vast bulk pass their reinvestment period end - at which point for orderliness/to manage costs, I do think they will fire sale the minimal amount left.

All my conjecture of course .

Good afternoon Damofarl

Thank you for your comments in your posting last week (absolutely no apologies needed but still much appreciated). Sorry I haven’t responded earlier but I have been entertaining relatives visiting from overseas and have only just seen both your post and the NAV update (given the amount I have invested here; this represents a woeful lack of attention !!).

As regards the redemption timeline/profile, I agree with your comments. In addition (whilst I would absolutely not claim to have any particular handle on much of the portfolio detail provided in the monthly and quarterly reports) there are a couple of charts which may give some indication of things.

One is the “BCF Look Through Summary” on Page 2 of the monthly report and specifically the graph of “Maturities”. This indicates little in the way of maturities through next year but then 83% over the next four years and fully out in 2031.

The other is in the Q1 2024 Investor Report. On Page 15 there is a chart headed “BGLF indicative forward-looking CLO portfolio cashflows”. To my eye this seems to indicate all such flows complete in 2030 with a much smoother profile (including something like 20% in year 2025 alone).

As I say, I do not know at all whether these are indications of the actual probable timelines for possible redemptions but I do agree with you that there is no indication whatsoever that the realization process will involve any firesales (although there may well be early opportunistic sales). In any event this does look somewhat of a no brainer from a risk reward perspective... but, as ever, everyone needs to DYO research.

ATB

Jjhbev; NAV increased to €0.9072 - happy days!

If you take the mark to model (IFRS reporting) valuation of €0.8078 included in their report - in theory, being one point in time, that is what a 'firesale' would realise - the SP is still at a 18% discount, suppoeting that the NAV (per share) is true and realisable, which i find very reassuring.

Jjhbev; thank you for your correction, and contribution. Yes you are right, the NAV per share remains the same and I totally agree with your calculations and assertions, hence before your Homer moment, I had mine, in mixing the NAV with the mkt cap - apologies to all for that.

I should also have been more specific in that what I meant was the reduction of NAV was at Company level not per share level, hence my assertion that the SP and NAV per share would narrow towards each other.

Yes BGLF have guided towards a 7 year + timeline, albeit I see that as pretty much a maximum end, as both commitments periods and end dates expire through then. I don't see them firesaleing anything, but believe they will opportunistically sell on much before then. Always felt it was a 5 to 8 year wind down to end, albeit, I do think there will be bi annual redemptions for the next 2 to 3 years of a noticeable chunk. As you say, for the patient, there is gain to be made. Not least because this redemption at full NAV per share demonstrates their confidence in it's truism.

Gavster-NBC; this redemption was paid from cash balances, so don't believe they sold out, beneficially or otherwise, of any positions. Which both supports ongoing diligent mgmt to maximise returns (and elongation of wind down), and the ongoing cash throw off.

As interesting as the next NAV (per share) will be, is whether subsequent redemptions are at full NAV (per share). BGLF have always held notable cash at hand - IF, as seems to be their way, they are going to take their time and let positions unwind, as the positions head towards expiry, IF they equal or better, the debt defaults contingencies baked into the NAV, I believe their will also be elongated dividends too - as well as biannual redemptions.

Still believe this is a no brainer.

So – before a further few comments from me on the NAV & Wind Down – I must acknowledge my “Homer Simpson” moment in my previous post. I stated that the redemption of 5.6% of shares using 5.6% of assets (in cash) reduced the assets and shares to 84.4% of the prior levels. Obviously that should read 94.4%....Doh!

Moving on!

I do hold with my view that the ongoing NAV per share has not altered as a result of the redemption. If I am correct then that will be seen in the monthly update due in about 3 weeks time. At the end of May the NAV was €0.9063 per share (down from the €0.9282 as at end April & used in the redemption as a result of the dividend of €0.0225). The NAV per share for end June should be €0.9063 +/- the movement for the month of June. If not, I am wrong.

Finally, one small (but significant) addition to the wording in the final paragraph of Gavster’s post:-

(This is from page 28 of the BGLF 2023 Annual Accounts under the heading of “Mechanics for Returning Cash to Shareholders”)

“Having consulted with the Portfolio Advisor, the Board anticipates that the redemption of the CLO investments held in BCF and BCM LLC will require a period of approximately 7 years. This is indicative only and it should not be construed as a guarantee of the Company’s actual liquidity profile”

Best wishes

Hi All.

I'm pretty happy with this so far though I appreciate there is several years to go and this is just the start.

Perhaps it depends if they have actually sold off 5.6% of the assets, and then canceled 5.6% of the shares and handed the cash gained which happens to be worth more like 8% of the company value due to these sold assets being realised at a premium to the current market value, OR... They have calculated what the net asset value is for redeeming 5% of the shares and paid it out of their cash flow without actually selling those assets off yet.

Anyway.. I take the former as the explanation and so believe the SP will be closing towards NAV the more assets are sold off. So far so good, the SP is rising. IMO this paragraph implies they will only pay the value to shareholders only once the CLO's are matured/redeemed/sold.

"Approval of the wind down will not result in an immediate liquidation of the Company, rather an orderly realisation of the Company's underlying assets in a manner consistent with regulatory risk retention requirements and other contractual restrictions on the liquidity of the Company's portfolio. Capital will be returned to shareholders as the Company's underlying CLOs are matured or redeemed and in a manner that seeks to maximise shareholder value. The Board intends to maintain the Company's listing during the realisation period. The Board intends to maintain its current target level of dividend until the commencement of the orderly realisation."

This is correct

Good Morning Damofarl

I have been looking through recent postings here and, looking at your dialogue with Gavster in early June, I am a bit confused by the numbers in your post of 6th June. I am referring to the sentence “they are returning 8.2% or €23m whilst cancelling 5.6% of the shares at a cost of approx. €16m”.

I believe that your numbers mix NAV values with Market share prices. However, my reading (and I guess Gavster’s) is that what we have had is a purely NAV based distribution and so that does not result in a change to the NAV per share.

This is my reading:-

Before the compulsory redemption the NAV of BGLF was approx. €411m – i.e. 442.8m shares at a NAV per share of €0.9282.

BGLF have used €23m (5.6% of the assets of the fund based on the NAV) to repurchase 24.8m shares – i.e. 5.6% of the shares in issue.

This is a method by which we shareholders have received the NAV value of €0.9282 on 5.6% of our shares even the market price of those share was approx. €0.65 per share. They have used €23m to pay us €23m – or, as above, they have used 5.6% of fund assets to buy 5.6% of the fund shares.

So, post the redemption, the fund NAV is down to 84.4% of the prior figure and the number of shares is down to 84.4% of the prior number – hence the NAV per share is unchanged. I believe/hope that I’m correct but please let me know if you disagree.

€23m did represent 8.2% of the MCap of the fund and 5.6% of the shares of the fund had a market value of €16m but I don’t follow how these are relevant to NAV per share under the redemption.

Going forward, if BGLF can continue to realise fund assets at NAV they can continue to repurchase shares at NAV – and if the market SP remains below NAV there is a gain to be made. Quite a lot of “Ifs” there!!

Best wishes

Damofari,

Sorry about not coming back. I am pretty bad at being consistent on these things... BUT it happened again, I guess I will get the div Monday. I wonder if there is away to set up notifications on this site....?

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.

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. :-((

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

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...