Ann: Half Yearly Report and Accounts , page-21

It will interesting to see how the next NTA announcement comes out in the next week or so.

If it is higher than before, it says to me that the fund is continuing to get redemptions at par value and eventually each quarter this money gets swept by the banks and further debt will be paid down. This narrows the gap between Mark to market valuation and the par value of the fund and also reduces gearing and therefore makes the mark to market adjustments less volatile as they are not amplified by the higher gearing levels.

Also the lower the gearing goes, the less riskier the investment becomes. At 31 Dec 2012 it was around 66%. Once it gets down to 50% then really it starts to derisk quite quickly after that.

Also it will be interesting to see if any of the longer term investments step up and make an approach to achieve an earlier redemption, presumably because they can get a lower interest rate by refinancing.