Feb 18th 2013 - Edison Investment Research today published a report on Carador Income Fund (CIFU.L, LSE:CIFU, LON:CIFU) entitled "High-yield, Low-volatility NAV". In summary, the report says:
Carador Income Fund (CIFU), managed by GSO Capital Partners (of the Blackstone Group), has underlying investment exposure to a highly diversified portfolio of US corporate senior secured loans through direct investments in the securities of collateralised loan obligations (CLOs). Currently, most of the portfolio is invested in the income notes of CLOs (56%) and in mezzanine tranches of CLO debt (38%), although the portfolio has historically been actively managed. Income notes are producing high cash income returns, benefiting from benign US corporate credit quality, attractive fixed funding rates on pre-crisis CLO debt funding and subsequently wider loan asset spreads. Aggregate 2012 quarterly dividends represent a yield of 13.2% and have increased each quarter since Q110.
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