10th May 2016 08:48
LONDON (Alliance News) - NB Distressed Debt Investment Fund Ltd on Tuesday said challenging conditions persisted in the first quarter, but it remains confident the fundamental value of its positions will be realised over time.
The fund, which invests in distressed, stressed and special situations investments, with a focus on senior debt backed by hard assets, said capital markets experienced significant volatility in the first quarter to the end of March.
The markets for distressed credit and post-reorganisation equities continue to struggle with a lack of liquidity, the fund said, as funds and investments banks retain a cautious stance. This lack of liquidity, combined with potential sellers, put pressure on pricing, NB Distressed Debt said.
The fund said its net asset value per ordinary share declined 0.7% in the first quarter to USD1.1103 from USD1.1184 at the end of December, primarily due to the reduced liquidity taking a toll on its portfolio. The NAV of global shares decreased 4.0% to 70.48 pence from 73.41p.
Shares in the fund were untraded on Tuesday morning, having last traded at 64.03p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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