Invesco Bd In Share Price (BIPS)

Bond prices weakling a bit today (including AT1's ). I would expect to see a small pullback in the nav early next week.

They have been issuing at marginally over 1.5% (last was at 172.5, rather than 172.2) so there must be a good demand.

The price seems to be almost entirely governed by the price of their equity issuance.

They have 0.96% exposure to Stonegate which has just put out a warning-

'The owner of Slug & Lettuce has warned it faces a “material uncertainty” over its ability to continue as a solvent business as it struggles to refinance a debt pile of £2.2 billion.'

Whilst it is a function of investing in HY bonds I am surprised that they have not offloaded more of the 'obvious' riskier ones over the past year. Stonegate, Signa and Thames were clearly going to have issues refinancing.

NCYF 's 4% exposure to Stonegate was my reason for dropping this fund a year ago.

Clearly not a typo! It looks like they may have moved 0.69 from income into bonds as the increase in the ex-income value jumped more than would be expected for how bonds/AT1's were performing last week. The interesting bit then will be what happens to these numbers when it goes ex-div in 10 days as there is not enough in this pot atm to cover the next divi.

I have given up asking them, I have only ever once received a reply to email. On one hand they (allegedly) want to encourage to retail investors but then seem very poor at communicating with them compared to some of their peers.

They have also been creeping the gearing up over the past couple of weeks, possibly taking advantage of some slightly weaker bond prices?

Something not quite right with the nav values today. Typo?

Date, without income, with income, income, 1.5% premium, min equity issue price.

4th 166.80 169.77 2.97 2.54655 172.32

3rd 165.96 169.62 3.66 2.5443 172.16

Their Thames Kemble bonds are down another 50% today - now sits at 12.7. However, given the previous falls it is becoming an ever decreasing percentage of the portfolio!