London, UK, 23 November 2020

Edison issues outlook on Marble Point Loan Financing (MPLF)

Marble Point Loan Financing (MPLF) is a closed-end fund that invests in leveraged loans mostly by buying the equity tranches in collateralised loan obligations (CLOs) managed by Marble Point Credit Management (Marble Point). The experienced credit investment team employs a conservative, disciplined approach. Unlike most of its peers, MPLF marks its portfolio to market, which resulted in considerable NAV volatility during the pandemic. NAV halved during Q120 but subsequently rose by nearly 50%. However, although loan defaults have risen in its underlying portfolio, cash flow generation has remained strong. After suspending its dividend in April 2020, reinstated it in August and the shares now offer a yield of 15.1%.

The stock is trading at a 9% discount to the last published NAV (31 October 2020). We think the company may be penalised for its marking to market approach (its peers usually prefer marking to model), paradoxically because it actually provides greater transparency. If the CLOs and asset prices continue to recover, this should be reflected in the shares, with cash flow fundamentals better priced in. 

Click here to view the full report.

Subscribe to Edison's content to receive reports by email.

All reports published by Edison are free-to-access and available on the website .

About Edison:   Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Pedro Fonseca, +44 (0)20 3077 5700

investmenttrusts@edisongroup.com

Learn more at   www.edisongroup.com   and connect with Edison on: 

LinkedIn  https://www.linkedin.com/company/edison-group-  

Twitter   www.twitter.com/Edison_Inv_Res  

YouTube  www.youtube.com/edisonitv