bigfoot12
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Post by bigfoot12 on Oct 28, 2015 8:28:05 GMT
I spotted that too, and bought a little bit (more), but saving room to buy at a big discount to NAV should it get there. As you say, it will be interesting to know the NAV - I have been through the recent prospecti (?) and can't see anything Swedish!
Several P2P companies are talking about institutional funds they are in discussion with - I don't think that there is much of a barrier to entry so the premium was never really justified.
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upland
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Post by upland on Oct 28, 2015 10:06:57 GMT
Me too. I have been buying little bits of p2p. I think jitters on the stock market are the cause. Impossible to say where it will end. It will be interesting to see how FCs offering does and whether it goes to premium too.
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Post by longjohn on Oct 28, 2015 12:03:04 GMT
P2P Global's NAV has been pretty flat since the beginning of July after rising from January (yellow line) whereas their share price (blue line) has dropped from a 10% premium to a 6% discount over the same period. It looks to me as if people who bought in last year have been steadily taking profits causing the premium to drop and then people who bought this year at a high premium are selling to cut their losses. The company is still 'new' and hasn't settled down yet so we don't know what the natural premium/discount should be but if you want some then buying at a discount is rarely a bad move. Image from TrustnetJohn |
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Maestro
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Post by Maestro on Oct 28, 2015 19:21:44 GMT
So both P2P Global P2P and VPC's VSL fund are both below par today for first time in a long while. P2P Global has gone from 118 in March to 97 today, a rather hefty 17.7% drop. Now is this a buying opportunity? Is the impact of wider fixed credit spreads taking their toll? Just more sellers than buyers? Or do they own something Swedish that has just gone boom? I saw this yesterday but couldn't find any news. I refrained from dipping my toe so far considering the premium, but may have another look now. I have a fear of these getting to massive discount at the whiff of next down turn - like other private equity oriented close end funds did before last down turn. High yield spread tightened somewhat last couple of week, so these funds looks to have diverged vs high yield in the last 2-3 weeks. It seems P2P Global clarified not owning any Swedish stuff in their last report. Not sure of VSL though.
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upland
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Post by upland on Oct 29, 2015 7:50:28 GMT
There are a few of these ITs that invest in debt / alternative type instruments. I have been looking into as a possible diversification from stock markets although I wonder whether they are a bit small. One of them (GLIF) looks possibly a bit toppy. There is probably a lot to understand with these.
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mikes1531
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Post by mikes1531 on Oct 29, 2015 16:11:02 GMT
There are a few of these ITs that invest in debt / alternative type instruments. I have been looking into as a possible diversification from stock markets although I wonder whether they are a bit small. One of them (GLIF) looks possibly a bit toppy. There is probably a lot to understand with these. : I accept that I need to understand these more before investing, but I don't think I'd call GLIF 'toppy' since it's currently priced very near its low for the year. What am I missing?
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upland
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Post by upland on Oct 30, 2015 9:43:13 GMT
There are a few of these ITs that invest in debt / alternative type instruments. I have been looking into as a possible diversification from stock markets although I wonder whether they are a bit small. One of them (GLIF) looks possibly a bit toppy. There is probably a lot to understand with these. : I accept that I need to understand these more before investing, but I don't think I'd call GLIF 'toppy' since it's currently priced very near its low for the year. What am I missing? Hi Mike , Try the chart in :- investor-relations.glifinance.com/investor-relations.aspxYou may well be right. I accept that the share price is currently low but for me its whether it retraces to a new high. I feel that there is a real chance that it will not and these current prices will be re-tested. Overall I dont feel that general markets will fall a lot but if they fell 20% I would not be surprised. I have not a clue where they will go but I am watching.
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stevio
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Post by stevio on Nov 14, 2015 20:07:04 GMT
Out of interest, are the returns on these funds similar to the returns from investing in P2P direct?
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am
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Post by am on Nov 14, 2015 21:20:31 GMT
Out of interest, are the returns on these funds similar to the returns from investing in P2P direct? IIRC, P2P Global is targeting a return of 8%. It reached that one month during the summer, when it had managed to deploy all its equity. It's subsequently taken on debt, to gear up and increase returns, and the lower returns subsequently are allegedly a result of its borrowings not being fully deployed. It's also skipped the 3rd interim dividend, which was said to be for tax efficiency reasons. (I don't know the details, but I presume that means delaying payments so they occur in a more favourable tax regime.) We'll have a more solid idea of its performance when it declares its final dividend around the turn of the year, and NAV performance for Q1 2016. My guess is that this years cumulative dividend will be about 5%. If it can maintain a return of 8% after the current bedding in period, in the current interest rate climate the pursuit of yield may push it back to a premium; whether this occurs depends partly on what the market thinks will be the returns over the whole economic cycle. The house broker has a target of a 30% or thereabouts premium (reduced from 40%). I can only imagine that they predict demand for the shares will be sufficient to drive them down to a 6% long run yield.
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Post by trentenders on Dec 4, 2015 13:08:28 GMT
GLIF down another 22% today at 32.00 - the lowest since January 2011. Anyone tempted to fill their boots?
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Post by p2plender on Dec 4, 2015 15:02:45 GMT
Why the consistent fall? Have they gotten into trouble? Don't follow just looking after your pointer. Cheers.
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am
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Post by am on Dec 4, 2015 18:26:40 GMT
This is GLI Finance (GLIF), not GLI Alternative Finance (GLAF).
GLI Finance has recently (26th November) announced an unaudited NAV of 52.3p per share as of 30th September.
However what I assume has spooked the market is yesterday's announcement of the proposed issue of £40m in "zero dividend redeemable preference shares" maturing 2020.
The investment trust (GLAF) is trading near par and so are the already existing ZDPs (GLIZ). My guess is that investors are concerned that there won't be enough money left for the ordinary shareholders once the entitlements of the zero holders is taken into account. I'm not sure that I could value the company even if I tried.
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Post by westonkevRS on Dec 5, 2015 10:03:54 GMT
Interesting caveat, "Loans acquired through Platforms are subject to risks of borrower default. The default history for loans is limited and actual defaults may be greater than indicated by historical data."
I suppose this is a standard warning, but the shares are down 40% this year. Somebody knew about the placing, or knows something about one of it's platforms....
Safe lending comrades. Personally I lend direct via platforms, extra layers inevitably increase costs and risk.
Kevin.
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