Fair Oaks Income Ltd - senior secured loans investor - As at December 31, net asset value per 2017 shares is down 8.3% at USD0.6306, from USD0.7580 the same date the year before.
Share price at the end of 2020 stands at USD0.6175, reflecting a 2.1% discount to NAV, narrowed from 11% at the end of 2019.
Net asset value for 2020 on a total return basis is -8.3%, underperforming against a 5.2% return from the JP Morgan US High Yield index and 3.2% return from the JP Morgan US Leveraged Loan index.
This is attributed to collateralised loan obligations not being immune to the market volatility experienced by all credit assets in March 2020, with the economic slowdown caused by the pandemic leading to expectations of increased loan defaults and downgrades, hurting CLO debt and equity valuations.
Current stock price: USD0.70
Year-to-date change: up 13%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Fair Oaks Inc21 (FAIR)