CLO equity fund Tetragon hits all time high

Late last week CLO equity fund Tetragon Financial reported an 8.5% monthly increase in NAV during March. At $10.85 per share, the NAV of the closed-end fund is now at an all-time high, having risen above the previous high it reached in September 2008. Though it may be only a little higher than the $10 a share at which it listed in 2007, the fund has, during that time, also paid cumulative dividends of $1.48 a share.

The improving performance of the CLO market continues to drive the performance of the vehicle, which is listed on the Amsterdam Stock Exchange. Tetragon’s CLOs are all now passing their par value tests, according to its quarterly performance report. The assets are valued based on models, including a discount factor for future cashflows. The average discount on Tetragon’s CLO holdings has been reduced to 21% at the end of March, compared to 25% at the end of December, reflecting the improvement of the individual deals.