NB Global Corporate Income Trust (ASX: NBI) is a listed investment trust. The Fund actively manages and invests in a portfolio of high yield fixed income instruments, which are being issued by the companies located globally across both developed and emerging markets. The Fund puts a strong emphasis on capital preservation by focusing on higher quality within the Global High Yield Market, large and more liquid companies.
The company has recently presented a market update in which the manager of the company, Neuberger Berman presented his view. From an outlook perspective, the recent spread-widening and higher absolute levels of yield have a favourable effect on investment opportunities.
Given current valuations and likely low default risk over the next twelve months period, the manager is of a view that high yield corporate fixed income instruments remain a lucrative asset class for those investors, who are in requirement of a global source of income so that they can diversify their risks.
In line with the macroeconomic growth outlook for the asset classes, coupled with the company’s consistent performance and ongoing market demand, the manager is considering a new capital raise for NBI in the upcoming months.
Mr. Matt Thompson, Head of Intermediary Distribution for Neuberger Berman said that the management continues to witness a favourable risk-return profile for high yield corporate fixed income securities. The fact that the company has been trading at a premium to its Net Tangible Assets (NTA) is also indicative of the fact regarding the ongoing market demand from Australian investors seeking investments that provide a reliable and consistent income.
Mr. Thompson emphasized that these factors offer the company a chance to upsurge its market liquidity flow by way of an expanded investor base and has led the management to consider an offer of new units commencing around mid-May.
It is anticipated that the offer regarding the new units will involve both an entitlement offers for current unitholders and a public offering for new investors. The company continues to experience no defaults in its portfolio, and, despite intense market volatility and variances, it has delivered on its goal of providing stable income.
Now, let’s have a look at NB Global Corporate Income Trust’s stock performance and the return it has generated over the past few months. The stock is currently trading at a price of $2.050, down by 0.966% during the day’s trade with a market capitalization of ~$ 428.55 Mn as at March 06, 2019 (AEST 03:37 PM). The counter opened the day at $ 2.070 which was also the day’s high and touched a day’s low of $ 2.030 with a daily volume of more than 1,310,289. The stock has provided a YTD return of 1.47% & also posted returns of 4.02% & 1.97% over the past three & one-month period respectively. It had a 52-week high price of $ 2.080 and touched 52 weeks low of $ 1.930, with an average volume of 280,736 approximately.
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