P2P Global cuts US exposure – The Board of P2P Global Investments says that the company has entered into an agreement to sell a significant proportion of its exposure to US consumer loans. The transaction represents a reduction of GBP36.9 million net exposure (4.56% of the NAV as at 30 September 2017) and GBP167.1 million gross exposure. They say that the transaction and related provisions are expected to reduce the overall NAV by less than 1% [though that’s a fairly big haircut – a close to 20% reduction in the overall value of loans sold, perhaps] and will also have the effect of reducing the leverage and FX hedging requirement.
The Board says that is pleased to report that the manager remains confident that it can increase the overall exposure to secured assets.
The company said in September that they would announce a more detailed strategy update to the market in November 2017; apparently this transaction represents an important component of that strategy. The manager now expects to present its more detailed strategy update to the market towards the end of November to coincide with the release of the October NAV announcement. The October NAV announcement will reflect this transaction and is expected to be released before 30th November.
The manager has also told the Board that it is increasingly confident that the realigned portfolio will achieve its target returns of 6 – 8 per cent within the 18-month timeframe set in the Board’s announcement of 24 May 2017.
P2P : P2P Global cuts US exposure