VPC Specialty Lending (VSL)
Posted: April 5th, 2022, 11:42 am
VSL has some attractive features that may appeal to anyone looking for a high yield combined with a reasonable risk profile.
At current market price it yields around 9%
The latest Interim Report comments:
1. Weighted Average Coupon 10.82%
2.Weighted Average Life 32- months
It pays quarterly and has been paying 2p per quarter since 2018 while dividend cover has remained above 1.0.
My personal view is that inflation will not be easily contained below the sort of level we saw back in the 1970's (15%+) but with such a high coupon rate and short average life VSL may provide attractive real returns to be achieved.
Not for the faint-hearted but do your own research if it sounds interesting and let me know if you have any constructive comments.
Please, no diatribes about 'junk bonds' and high yielders in general. VSL is not a 'junk bond' portfolio.
I own some VSL as part of a well diversified portfolio of shares, bonds, ITs and ETFs.
Y
At current market price it yields around 9%
The latest Interim Report comments:
1. Weighted Average Coupon 10.82%
2.Weighted Average Life 32- months
It pays quarterly and has been paying 2p per quarter since 2018 while dividend cover has remained above 1.0.
My personal view is that inflation will not be easily contained below the sort of level we saw back in the 1970's (15%+) but with such a high coupon rate and short average life VSL may provide attractive real returns to be achieved.
Not for the faint-hearted but do your own research if it sounds interesting and let me know if you have any constructive comments.
Please, no diatribes about 'junk bonds' and high yielders in general. VSL is not a 'junk bond' portfolio.
I own some VSL as part of a well diversified portfolio of shares, bonds, ITs and ETFs.
Y