RM Infrastructure Income PLC on Monday posted a lower interim net asset value due to weaker backdrop for credit.
The London-based lender’s NAV fell 1.6% to 93.68 pence per share as at June 30 from 95.25p a year ago.
‘Credit spreads as measured by the Markit iTraxx Europe Crossover index have widened materially, doubling from 240 to 580 at the period end. These levels were last seen during the peak fear month of March 2020 from Covid-19 and before that 10-years ago during the European sovereign debt crisis,’ the firm explained.
The half-year dividend of 3.250p per share is the same as a year ago.
RM reported an optimistic outlook: ‘For the first time since pre-quantitative easing, we are now seeing dispersion within the broader corporate bond market where risk is currently being more accurately reflected by individual credit spreads.’
It added: ‘Our key theme is that now is a good time to be a credit investor and probably the best environment to be deploying and investing capital. Risk is being appropriately priced and, in our view, offers compelling investor returns with the ability to structure enhanced security and improved covenants on transactions at this point of the economic cycle as credit conditions tighten.’
RM Infrastructure shares were 0.3% lower at 88.75 pence each in London on Monday morning.
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