Member Info for Monkshood

The UK signed an £8 billion ($10.7 billion) deal to sell 20 Typhoon fighter jets to Turkey.

Velocity renewed their contract with BAE to supply materials for the Typhoon for a further 3 years in May this year, so this new order should further help support that contract going foreword.

They are floating rate, so unlike fixed rate bonds, a fall in gilt yields (ie an expectation that interest rates will be cut) would be expected to reduce their value rather than increase it.

There is a proviso to this if it is thought that lower interest rates would lower default rates, but as they are relatively low anyway it is not an issue.

In practice sentiment around Tricolour and First Brands probably is weighing more than anything else. The Clo index has now just nudged up a a bit from the lows of the 13thOct. Wider spreads will be of benefit to us when they invest the funds raised.

Good to see that overall they raised money with the realisation/offers. Surprisingly, roughly comparable to last time, although economically things were quite different then (Oct 2022).

I think I may finally understand how they priced it . Hopefully next time they will make it a bit clearer! Although now looking back on the placing announcement from 3 years ago I should have realised.....

As expected, a great harvest, up around 50% from the poor one last year. Quality is excellent.

I topped up my holding, with a few more yesterday, so hopefully this will give the share price a boost!

On Bloomberg-

I guess the II's have wind of this so may (along with the lower inflation) be responsible for the outsized jump today.

'The UK is planning a package of emergency measures to boost housebuilding in London that could be announced as soon as Thursday.

The proportion of affordable homes developers must provide when trying to fast-track planning will be reduced to about 20% for non-public land from 35% under the changes,'

It is not just housebuilding. 'Construction across office, retail and industrial sectors fell 21% to 63 million square feet at the end of the third quarter from the same period a year earlier, according to the latest data from CoStar Group.'

That’s the least since 2014 and comes on the back of a slowdown in housebuilding.

I have upped my holding in REIT's and held off adding to builders atm. I figure that with less being built that rent prices will continue to rise (unless we have a recession).

It does have an upside. If they raise more in the open offer/subscription than is tendered in the realisation, then the widening spreads will provide a good opportunity for them to invest at better margins.

The drop can be seen in the European Leveraged loan index. I thought that it would have been more evident in last weeks nav but perhaps it takes time to work through. It is a consequence of the issues around Tricolour holdings and First Brans in the US.

Bloomberg- ''ETFs of collateralized loan obligations experienced an outflow of about $516 million last week, marking the first investor exodus in about six months, analysts at JPMorgan Chase & Co. led by Rishad Ahluwalia wrote in a Monday report. That compares to a weekly average of about $421 million of inflows over the past year, according to the analysts.''

Humm... look up Brett's

I was talking with someone from one of the largest aggregate suppliers in the SE, they are seeing the least demand since the 1970's.

Groundworks and concrete are the first to pick up and they have no signs of it happening yet.

That is my understanding.

News item today that Aberdeen have sold out.

'Petershill also said on Tuesday that Aberdeen Equity Income Trust PLC no longer holds shares covered by voting intent, following the disposal of 1.3 million ordinary shares on October 13.'

Strange that the nav increases have almost stopped and the premium to nav has been allowed to increase.

It's almost like they are trying to make the offer to buy more tempting, and the price of tendering less appealing....

Probably no surprise given the weather this year, but the word is that it is a bumper harvest with high sugar content.

This should hopefully give them headspace, to not only increase stored reserves, but also have more capacity for earlier sales into lower value still wines and a 'touch of sparkle' which will help cash flow.

After their presentation on Investor meets, I am certainly confused now! .They talk about a +2% and then about a blended price between +2 and -2% depending upon what the demand actually is !

Is it the same for subscription and the open offer or is this just the subscription offer?

I have a relatively large holding so not really looking to increase, but they did not did themselves any favours with their lack of a clear explanation about the price. They were also not as clear about it being ex-div as perhaps they could have been either.

Other than this quite a good presentation, particularly with regards the proposed increased jurisdiction.

They had alluded to some contracts running off at one of the presentations (plus someone flagged it on this board), so I was concerned that we could get a downgrade at the year end next month.

At least, as you say, it will support the share price for now.

I agree it is absolute Ce b.ll.x of a name , although probably appropriate for the way they have run things.

I think non shareholders can purchase them through the subscription offer, detail are in the rns on October 1st about this.

Not sure that it is much in it. If it is like last time, they are really looking for customers selling/buying in multi millions, where liquidity the market is then more of an issue. At the last realisation circa 9 m were redeemed, but 45m sold in the placing.

Good point, re ex-div. It will drop it down by 2p

I have no idea. I went by what is in the open offer document.

Which says-

''The Issue will be priced at up to a 2 per cent. premium to the Company’s NAV at the Pricing NAV Determination Date (21 October 2025).''

So, like you, I thought it would be around 114.6p

They are issuing shares at Nav+2%, they buy them at Nav-2% so they make 4% profit (less costs).

If I remember correctly, last time they did this they also sold more than they bought .