(Alliance News) - EJF Investments Ltd on Friday reported a lower net asset value, citing downward pressure from the failure of Silicon Valley Bank and Signature Bank, among others.
The investor in structured debt and equity, loans, bonds, preference shares, convertible notes and private equity said NAV per share as at June 30 was 162 pence, down 12% from 184.0p a year prior.
NAV total return for the six months to June 30 was negative 9.6%, compared to positive 11% a year ago.
"The period under review has continued to be dominated by a challenging macroeconomic and geopolitical backdrop and the resultant downward pressure on share prices across multiple sectors," the company explained.
EJF Investments cited the failure of Silicon Valley Bank and Signature Bank in March, the back-stopped sale of First Republic Bank to JP Morgan Chase & Co in May, and the voluntary liquidation of Silvergate Capital Corp, also in March, as affecting its NAV negatively, despite only being directly exposed to Silvergate.
"Due to the impact of these events on broader market sentiment and the recommencement of limited trading activity in the second quarter of the year, the colllateralised debt obligation equity tranches held by the company recorded significant unrealised mark-to-market losses. These mark-to-market losses were then further influenced by the Federal Deposit Insurance Corp auction of small bank debt assets seized from Signature Bank."
Looking ahead, EJF Investments' manager expects a gradual return to "the otherwise strong performance" of the company.
EJF Investments shares were up 1.9% to 109.00 pence each on Friday morning in London.
By Tom Budszus, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Ejf Investments (EJFI)