Current Unit Price: (20 min. delayed price) ASX:MXT $1.91 0.00%
NAV as at COB: 04.08.20 $2.0023
Current Unit Price: (20 min. delayed price) ASX:MOT $1.74 -0.57%
NAV as at COB: 04.08.20 $2.0129

LATEST NEWS

Corporate loan market holding up

Corporate loan originator Metrics Credit Partners has added to its suite of funds with the launch of an unlisted retail debt fund, reporting that it has no loan arrears and has made no provisions.

Corporate loan originator Metrics Credit Partners has added to its suite of funds with the launch of an unlisted retail debt fund, reporting that it has no loan arrears and has made no provisions.

Metrics manages two ASX-listed credit trusts, the A$1.3 billion MCP Master Income Trust, and the higher yielding $350 million MCP Income Opportunities Trust. It also manages institutional portfolios.

The new fund, Metrics Direct Income Fund, will have a similar profile to the Master Income Trust, with investment grade loans making up about 50 per cent of the portfolio and targeting a yield of 3.25 per cent above the cash rate.

Metrics managing partner Andrew Lockhart said the group was looking for new ways to raise capital and recognised that some retail investors preferred to avoid the volatility of listed vehicles.

The Master Income Trust has 145 loans. Lockhart said there were no arrears, but in about a dozen cases Metrics has agreed not to test covenants for a period of time.

Lockhart said: “That is normal. Most covenants are based on earnings and some businesses have been impacted by the pandemic.

“We lend to ASX-listed corporates, project and infrastructure companies, commercial real estate developers and operators, and private equity groups that need acquisition finance. Some have felt little impact but in other areas there has been some impact.

“Our position is different to the banks. They are having to deal with small businesses that might not have sufficient liquidity to deal with a trading downturn and consumers who are facing unemployment risk.

“When we lend, we assess the liquidity position of the business to see how it will manage a period with no cash flow. We also assess the going concern value of the business.

“We do not have any assets that have warranted specific or general provisioning.”

Metrics was established seven years ago by a group of ex-NAB corporate bankers.

On an investor webcast in April, Lockhart said “The corporate loan market remains open. While new-money primary lending is slowing, loan transactions negotiated pre-COVID-19 are being successfully closed. The Australian corporate bond market is effectively closed at present.

“What we see coming out of this is that lenders will demand more collateral from corporate borrowers. They will want to have controls in place to secure their interests.”


Banking Day – 7 July 2020

Current Unit Price: (20 min. delayed price) ASX:MXT $1.91 0.00%
NAV as at COB: 04.08.20 $2.0023
Current Unit Price: (20 min. delayed price) ASX:MOT $1.74 -0.57%
NAV as at COB: 04.08.20 $2.0129

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Disclaimer and disclosure

All website content in respect of the MCP Master Income Trust ARSN 620 465 090 (the Trust) is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Trust and is prepared by Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (Metrics) as the investment manager of the Trust.

The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Trust, you should consider the current product disclosure statement (PDS) of the Trust and the Trust’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au/, and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.

Neither Perpetual nor Metrics guarantees repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor Metrics gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Metrics as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

Cororate Governance
Personal Trading in Non-Perpetual Securities | RE Services Personal Trading in Non-Perpetual Securities | Unitholders Communications Policy | Continuous Disclosure Policy

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned May/2019) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

Disclaimer and disclosure

All website content in respect of the MCP Income Opportunities Trust ARSN 631 320 628 (the Trust) is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Trust and is prepared by Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (Metrics) as the investment manager of the Trust.

The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Trust, you should consider the current product disclosure statement (PDS) of the Trust, and the Trust’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au, and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.

Neither Perpetual nor Metrics guarantees repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor Metrics gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Metrics as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

Cororate Governance
Personal Trading in Non-Perpetual Securities | RE Services Personal Trading in Non-Perpetual Securities | Unitholders Communications Policy | Continuous Disclosure Policy

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned May/2019) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

Disclaimer and disclosure

All website content in respect of the Metrics Direct Income Fund ARSN 641 620 331 (the Fund) is issued by Evolution Trustees Limited ACN 611 839 519 AFSL 486 217 (Evolution) as responsible entity of the Fund. Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (Metrics) is the investment manager of the Fund.

The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Fund, you should consider the current product disclosure statement (PDS) of the Fund which is available at www.metrics.com.au, and assess whether the Fund is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.

Neither Evolution nor Metrics guarantees repayment of capital or any particular rate of return from the Fund. Neither Evolution nor Metrics gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Metrics as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

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