Hardman & Co Research
Hardman & Co Research: Predictable revenue streams generating high yield
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RM Secured Direct Lending (RMDL) offers investors an ongoing ca.6.5% dividend yield, whose sustainability is supported by multi-year assets, a rising revenue yield and economies of scale. Credit, we believe, is well controlled, and we provide readers with a detailed review of its assessment, monitoring and recovery. We believe the gearing level is appropriate, the investment manager's interests are aligned to shareholders, and that any discount will be actively managed. Like any lender, there are risks when the cycle turns; also, RMDL has some junior debt positions, and its book has shown a propensity to turn over, which in the future could see more external refinancing. The shares trade at a 3% premium to NAV. Please click here for the full report:
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About Hardman & Co: For the past 21 years Hardman has been producing specialist research designed to improve investors' understanding of companies, sectors, industries and investment securities. Our analysts are highly experienced in their sectors, and have often been highly rated by professional investors for their knowledge. Our focus is to raise companies' profiles across the UK and abroad with outstanding research, investor engagement programmes and advisory services. Some of our notes have been commissioned by the company which is the subject of the note; this is clearly stated in the disclaimer where this is the case.
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