Research: Split Share Credit Quality

This was published some time ago, but for some reason I forgot to put it on the Web!

Anyway, the credit quality of SplitShare corporation preferreds is subject to numerous factors – the NAV of the underlying portfolio is only the most obvious. These influences can be quantified; an introduction to this quantification is presented in this article.

Click on the research link!

5 Responses to “Research: Split Share Credit Quality”

  1. […] there is a cash drag, the big problem is sensitivity to return distribution assumptions; see Split Share Credit Quality; as might be expected, sensitivity to everything increases as the NAV declines; see It’s All […]

  2. […] who have read some of my writings about Split Share Credit Quality will understand the combined effects of cash shortfalls and portfolio volatility. It’s not […]

  3. […] this essay, which was later distilled into a shorter version for popular appeal, I look at the determinants of credit quality for SplitShare […]

  4. […] be a dealbreaker, it should be the lack of an NAV test on Capital Unit distributions – see here and here. The Capital Units have a Current Yield slightly in excess of 14% p.a. … at that […]

  5. […] with the corporation … particularly with an 8.5% dividend rate on the preferreds – see here and here for a discussion of what cash drag can do to split share credit […]

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