20th Mar 2020 17:01
(Alliance News) - CQS New City High Yield Fund Ltd on Friday reported a first half net asset value rise and held its dividend.
Net asset value per share at December 31 was 2.7% higher year-on-year at 55.22 pence from 53.77p.
Shares in the company closed 27% at 38.20 pence each in London on Friday.
The company paid 2.00 pence in dividends per share during the period, flat year-on-year. The company is targetting a full-year payout of 4.45p.
CQS New City said: "The World Health Organisation has declared the Covid-19 virus a pandemic, many countries have imposed restrictions on the movement of people and global stock markets have fallen very significantly.
"The negative impact on global growth from the virus is likely to keep downward pressure on interest rates and we have seen rate cuts from several central banks including the Bank of England, as well as other measures from governments to mitigate the economic impact. Whilst this is welcome, high yielding fixed income securities have nevertheless been hit by the likelihood of credit impairment in a slower growth or even recessionary environment, depressing the net asset value of the company since the calendar year end."
By Eric Cunha; [email protected]
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