PCI 0.44% $1.13 perpetual credit income trust

volf.. you are absolutely wrong regarding their duration... the...

  1. 38 Posts.
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    volf.. you are absolutely wrong regarding their duration... the interest rate duration is 20 days as per below.

    https://hotcopper.com.au/data/attachments/4711/4711832-e017d9a6b1c2fc522368a869606cc960.jpg

    i see that note 16 on page 35 shows $89mm in fixed securities, but these are swaped back to floating to give the net duration of 20 days.
    see below from page 8:

    https://hotcopper.com.au/data/attachments/4711/4711874-232e9de3d9e44b7aeb59cf4887209f88.jpg

    regarding the portfolio, the bonds are marked to market already, i understand if you don't like their credit exposure. that is a credit decision.
    if credit margins widen their NTA will decline.

    I too have access to short term private secured credit with LVRs below 60% and yields above 8%, and I own some, but i don't view them as risk free.. I will admit that the absolute yield is higher than PCI, but not the total return if the discount narrows..
    but if every marginal investor feels as you do, than the discount will stay wide .. time will tell. good luck with your investing. thanks for the debate.





 
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