Member Info for SD235

Agricole
"Re VPC's discount, share price drops on holdings like VPC are partly down to the relative yield now achieved from "risk free" (!) gilts. Since this is purportedly higher risk it needs a correspondingly higher yield to compensate holders. Ergo, high yielding shares are behaving like bonds - and that's why this trades on a discount to NAV, in my opinion."

I can only partly agree with the fall being the rise in bond yeilds.
First the price is falling in line with NAV. But according to vpc that's due to the fall in the value of the unlisted shares they own in the fintechs.
I also struggle to believe that people who invest in vpc care to much about the rise in gilt yields. They will have to rise much further before they do.
As I am with freetrade I am bit by bit selling out of Sequoia Infrastructure and buying vpc.
Annoyingly it's not going well I haven't got an average 10% yield yet!
I constantly look at vpc and just appears not to be as risky as the phrase surprise suugests. The fintechs taking first loss and the short duration loans, all points to lower risk than that phrase subprime suggests.

Damofarl
"I don't care if it's unloved/misunderstood, as long as it is profitable. Cheers"
Yes you do care. You wouldn't be getting such tasty bargain if they weren't so unloved or misunderstood!!
I have only looked at chenavari it took me a while to understand there investments. I think I have the hang of it now.

If I recall correctly (an old report on Quotedata) the price of CLO fell over cliff but the income received did not. Hence the market got it wrong.
I also note Sequoia Infrastructure investment trust didn't have any defaults, at the time but have now. To me that means some businesses which appear to have made it through covid have not recovered.
Chenavari TORO should have had long enough for defaults to have come to light.
I note the same about VPC Specialty although significantly different companies.
Chenavari does surprise me VPC Specialty doesn't. The discount is part of the reason for the high dividend so I am tempted but I will be buying on the assumption that this time around there will be defaults. The Company’s they invest in must have been weakened by covid???
Opinions on the latter view?

Gavster-NBC
" Tory government generally does what's best for themselves rather than the country as a whole so IMO, they will not raise interest rates enough which might please those struggling with mortgages "
I note your moronic statement on interest rates and how the Tories will keep them low.
Bank of England sets interest rates. Suggesting otherwise means you should be investing in a building society.

Does anyone hold CHENAVARI in the GB line TORG they appear to trade on bigger spread.
I assume but don't know if the dividends are paid in sterling?
If you hold it in euro line do you pay any fx fees on your dividends?
They seem very reliable on the dividend front. During covid the value of there investments crashed but the dividends didn't, hence the market was wrong (about the risk).
CHENAVARI appear to be best in sector. There total returns are crap but it appears to be a product of the discount.

5x5
"Blame covid and Putin for about half of it"
Have you evidence to support this. The bank of England says 80% of inflation is coming from abroad. So wrong
"Governments always inflate away borrowing - " is that why inflation was 2% post 2008 financial crisis and the huge increse in borrowing. Is that inflating away borrowing?
Far to many conspiracy theorist around nowadays. A product of the Internet. Some people are easily led by silly conspiracy theories far more than you would expect without the Internet.

Spread getting very large.
Nearly 5% been around this for at least a week.
Buy backs reduced the free float? Institutes not selling, retail investors are the free float.
Bugger.

Mainly gas was some oil. Someone else will tell you the ratios

The spread is getting larger. 3.5% no trading here. Buy and hold and enjoy the dividends.

Buy backs have two effects.
By reducing the amount of shares available the result must be a higher amount of dividends available to shareholders and by definition a higher share price.
I remember a good example of this ( all being theoretical).
A company has million shares valued at £1 each and the dividend is 4p.
Now reduce the shares buy 50%.
It follows that dividend has doubled and the pe has halved.
Or alternatively the share price was doubled but if you bought it at a £1 you have doubled the share price and dividend.
An extreme example because it fails to take into account the loss of income along the way BUT the point is that buybacks increase the available income and share price at the same time,

In reference to growth capital investment trusts some are on a 60% discount.
They are receiving shares for the money invested. Not lending it.
Klarna came to the growth capital investors claiming a 45 billion valuation. Less than year later they came back for 800 million at pre money valuation 5.6 billion.
I have been watching watching chrysalis which is on 60% discount. Every now and again it narrows because the NAV is falling not because the share price is going up.

"Seems a very good outlook but why is this so discounted to NAV ?"
NAV are falling because they get free or near free shares when they lend money to these fintechs. Fintec valuation have fallen.
Click on rns and read there half yearly report which is very positive.
I also own Sequoia Infrastructure. Basically it is Lending to Infrastructure projects. Like VPC speciality it went through covid with no defaults but they now have 3 (1 has been sorted). On the otherhand vpc has had none. One reason for that is they don't take first loss. BUT VPC lend to sub prime and it makes no difference that they don't seem to have any problems with defaults.
The phrase sub prime simply puts the market off. Facts aren't what drives share prices, emotions are....at least some of the time.
As an aside the dividend is paid as interest so covered for some of us by £5,000 starter savings tax allowance or the £1,000 savings tax allowance. Which is very advantageous for me.

Exchange rate for upcoming dividend which is 1.85 lari

"The Group hereby confirms that the National Bank of Georgia’s Lari/Pound Sterling average exchange rate for the period of 3 October to 7 October 2022 was 3.1671 and it shall be used to pay dividends to ordinary shareholders of the Group on 20 October 2022."

Help i have a hangover i make that 58.5p?
If not please show your maths.
In fact show your maths anyway?

As I read it Georgia health was demerged from bank of Georgia before Georgia capital. When Georgia capital was demerged it held 66% of the shares of Georgia health. Georgia health did badly on the UK stock exchange so was bought back. I think we can only sell companies to other companies as there is no demand for Georgian companies on theUK stockmarket. Even bank Georgia trades on a p/e of 5 and Georgia capital is on at least a 60% discount.
I think the only way to increse share price of Georgia capital is to pay a dividend but buy backs on a 60% discount have to come first.

I am wondering how the huge increse in what amounts to refugees will affect the country and hence the bank. Georgians not happy with the rent increases in Tablis.

Conversion rate set over 1 week period starting Monday its average for the week. Actual Conversion take place 10 days before pay date.
Exchange rate is now moving in the wrong direction...bugger!
Middle price so far this week 58 to 59 (1.85 lari)

Very good rise today.

Should have risen further.
I sold all my LGEN at 255p (about) but only in my SIPP. Still holding the ones I bought at 166p. Dividend is just to high to sell.

UK insurer Legal & General said its investment arm had no exposure to recent turmoil in the liability-driven investment (LDI) market caused by Finance Minister Kwasi Kwarteng's recent mini budget.
The so-called LDIs were at the centre of last week's financial market freefall, sparking worries that some UK retirement funds could go under, forcing the Bank of England to intervene.

It is whispers 1msn.
Until I hear otherwise you are the only one that can hear it!