Twentyfour Inc Share Price (TFIF)

Just realised that TFIF has started issuing new equity again now that the share price is trading at a premium to NAV.

If my recollection serves me correctly, TFIF hasn't been able to do that for the last 3-4 years! Times are a-changing (perhaps).

Trotsky- apologies, I have only just seen your question.

Prior to 2020 they only gave a PY on their factsheets, PY was around 7.5% at this time.

By the end of the year, they were giving both a MtM and PY value - at this time the PY was about 0.5% higher than MtM (still around 7.5%)

So, the situation of having higher PY than MtM, does not seem to be just a function of previous higher interest rates, although I would imagine that it must come into play to some extent.

I have read that it can be because of the unwind some of the financial protections that are built into ABS, but the topic would be a good one to query at the next investor Q&A.

Nice to see that as well as the share price moving to a premium, the Nav has put on 2.27 over the past month .

I am not sure what the impact will be (hopefully positive!), but yesterday, Bloomberg reported -

'The European Commission is considering reducing the capital that insurers must hold against investments in asset-backed securities, part of a broader effort to revive a €1.2 trillion ($1.4 trillion) market that can finance areas like housing, energy, and defence'

Monk, My understanding, in layman's terms, is that purchase yield equates to the expected annual income over cost whilst MTM yield equates to the expected total annualised return (including capital) over cost.

For most of last year and the 3-4 years prior that I recollect, TFIF's MTM yield has generally exceeded its purchase yield but that now seems to have reversed, which seems to imply (to me) that TFIF is now buying bonds for greather than their par value. I find this slightly odd given that purchase yields appear to be rising, which would normally imply that bond prices would be falling. What've I missed? E.g. does it suggest that we are now buying bonds that were issued during the period when base rates peaked in the past 12-18 months, with coupon rates higher than TFIF's current purchase yield, which are now falling below par value as base rates are falling?

By less than the Div too 👍

Gone ex-div this morning for those who may not have been aware. Don't panic, keep calm ;-)