Marble Point Loan Financing Ltd - investment company focused on dollar-denominated, broadly syndicated floating rate senior secured corporate loans - Net asset value per ordinary share at end of 2023 falls 1.8% to $0.54 from $0.55 at end of 2022. Reports NAV return for ordinary share class of just under 18%, improving markedly from negative 17% in 2022. The company also reports an NAV per share of $0.46 for a liquidating share class. Back in November 2022, Marble Point Loan Financing’s shareholders approved a proposal to create biannual liquidating share classes, the first being created in early January 2023. Marble Point Loan Financing explained 25% of its ordinary shares were converted into liquidating shares. For 2023, liquidating share classes dividends totalled $0.1695. For its ordinary shares, the annual dividend is maintained at $0.09.

Looking ahead, it adds: ‘Looking forward to 2024, there is reason to be cautiously optimistic on the potential for a soft landing as the Federal Reserve ends its interest hiking campaign. Markets appear to have accepted and adjusted to the ’higher for longer’ mantra with respect to interest rates, and earnings for many borrowers have been resilient and stronger than expected, particularly for larger issuers who have been more able to absorb the added interest expense. While defaults currently sit below historical averages, we expect the rise in default rates will be driven by idiosyncratic business pressures and cash flow impacts rather than broad based impairment.’

Current stock price: 57.00 pence

12-month change: up 30%

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