The analysts at broker Stifel made a good point this week about the differential in discount rates that's opened up between alternative assets trusts and plain vanilla equity ones. Whereas until two years ago the ratings on alternatives were generally superior, and often traded at premiums, while equity trusts were less handsomely rated, the reverse is now the case. Has this switchback gone too far?
Discount opportunities continued The story of the past 18 months is neatly captured in the chart that Stifel uses and which I could have readily replicated from other sources. You can see that di...
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I have updated the list of large and liquid trusts that I think look to have good risk/reward potential on the basis of their current discounts and added a comment about this week's interesting announcement from the board of Hipgnosis Songs Fund (SONG), one of the 15 names. If as appears likely we are close to the current peak in the interest rate cycle, you would expect to see that reflected in an end to the persistent derating which has characterised the sector since early last year.
Discount opportunities continued So the kick to Hipgnosis Songs Fund (SONG) from the Round Hill Music deal ...
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