A closed-ended investment company focused on asset-backed lending. This trust may use gearing and tactical use of options.
Trading 20% below NAV.
A lender to lenders.
A diverse group of lenders in a diverse range of sectors.
No loss of income from portfolio lenders during covid crisis.
The company is Trading at £380 million.
The investment managers (Victoria Park run a total portfolio of £7 billion). A small part is vpcs speciality lending.
PS a 2.3% spread. NOT one to trade.
Legal and general have a spread of 0.08%.
Down a significant amount now on a 30% discount and 10.5% dividend. No news to support the fall. I have been investing pennies may start investing £.
On the AIC site it’s dropped down the table so appears to be just VPC.
It lends to subprime lenders who obviously take first loss. Received full income through COVID and upto now.
Look at VCP speciality lending as an alternative. It’s a lender to to sub prime lenders. IE the borrower take first loss. Had no problems during COVID all interest paid by the borrower’s. The sector debt-direct lending (investment trusts) are all on big discounts.
VCP share price fell and discount increased recently. Can find no news item for the reason.
It’s estimated NAV is now a fair bit below its actual NAV. Discount is based estimated NAV.
VCP is on a 31% discount. 10.6% dividend.
Just noticed it’s up 5.33% Friday.
So the discount isn’t accurate as it relates to the previous day. Dividend still over 10%.
Dividend not increased for 4 years as in 8p a year, 2p a quarter.
The company running this investment trust has 7 billion under management. Or put another they are experts in this type of investment.
No guarantees attached to the last statement.
The companies strategy doesn’t appear to be unloved
“June 13, 2022 – Victory Park Capital (“VPC”), a leading global alternative investment firm specializing in private credit, announced today the final close of its latest fundraise for its Asset Backed Opportunistic Credit strategy (the “Fund”). The Fund is oversubscribed at $2.4 billion”
The above is not directly related to the investment trust but gives you an idea of the markets view of the company’s credit strategy.
The information comes from
VPS 2.6% spread not in my opinion one to trade.
NSF 4% spread and no dividend. Not in my opinion one to buy!!!
Hey @SD235 great post with some really good detail. You’ve got a really good knowledge base.
I’m very lazy after walking the dog for 3 plus hours I can’t be bothered to do anything other than research.
Collect a few pheasant/partidges as well. Springer spaniel