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Senior Secured Debt

Any other investment discussions eg. peer to peer lending
formoverfunction
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Senior Secured Debt

#156889

Postby formoverfunction » August 3rd, 2018, 9:23 am

I have to declare an interest in WiseAlpha, I backed one of their crowd campaigns. I'm starting to think about the next stage of my portfolio.

I have a paln;

slowly build up a porftolio of either preference shares or look at senior secured debt. Pref's I have a reasonable understanding of how to deal with, but not so much the senior secured debt. SSD at this moment would be more interesting.

I'm just about to start investigating IT's that might offer a portfolio of SSD's, but is there anyway, besided wiseAlpha, to get exposure to this sector in a smallish regular way, by that I mean investing a proportion of my investment income? I have a fairly large existing mixed portfolio, but little over all debt exposure, probably (excluding my managed pension) less than 1%

Within in my equity portfilio I do have a small amount of SLXX.L

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Re: Senior Secured Debt

#156907

Postby Alaric » August 3rd, 2018, 10:32 am

formoverfunction wrote: but is there anyway, besided wiseAlpha, to get exposure to this sector in a smallish regular way, by that I mean investing a proportion of my investment income?


Corporate Bond OEICs are likely to hold some, how much varying by manager. Depending on your platform, OEICs may be commission free if not platform fee free.

There are Corporate Bond ETFs as well, but how much Senior Secured Debt would be determined by the composition of the index being followed.

formoverfunction
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Re: Senior Secured Debt

#156913

Postby formoverfunction » August 3rd, 2018, 11:12 am

Thanks Alaric, I appreciate corporate bond funds and ETF's will contain some.

I was looking for a less mixed approach to sector exposure.

I could in the interim drip cash into a corporate bond fund/IT or just more into SLXX (iShares plc Core GBP Corporate Bond). I suppose.

But it was SSD's that I wanted to use in a more pure sense.

I have for instance been considering LON:RMDL and have been a longterm investor in LON:VSL Both I believe has exposure to SSD's.

I wanted to get a way from "listed" vehicles and more exposure to private markets. If possible.

As I mention, I have fairly large portfolio of listed equity - kicking out c£20-30k a year in dividends and over a decade has delivered on average c£50k per anum in capital uplift. Also a portfolio of unlisted start-ups. So, as much anything this is a desire to de-risk slightly, but have higher yielding exposure.

So far, my investing has not been geared towards income, but more total return. Any income the portfolio generates I've started investing in a more "high yielding" ways. I also have a reasonable size position in the risky p2p sectors. Both in their platform loans and own equity.

I could consider listed corporate bonds, but besides them not being easily tradeable, there feels little option to "drip" cash in.

I prefer that approach as I get to understand a market/product/sector better.

Perhaps it's not going to be possible?

Alaric
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Re: Senior Secured Debt

#156929

Postby Alaric » August 3rd, 2018, 12:17 pm

formoverfunction wrote:I could consider listed corporate bonds, but besides them not being easily tradeable, there feels little option to "drip" cash in.


You could consider what's available under the heading "Order Book for Retail Bonds". Many of the usual investment platforms offer these. The "retail" bit usually implies they are more readily traded and in smaller quantities.

https://www.londonstockexchange.com/pri ... recent.htm

formoverfunction
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Re: Senior Secured Debt

#156971

Postby formoverfunction » August 3rd, 2018, 2:44 pm

Alaric, that's very helpful thanks.

I'm fairly keyed up on equities, but bonds not so much.

Thanks for your help.


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