In this note, we review how RECI is positioned to face the current market challenges, noting i) the track record of superior credit assessment, monitoring and collection reducing the probability of default, ii) the high quality and high level of security limiting the loss in the event of default, iii) low exposure to high-risk sectors and proven limited loss in ones where they have had exposures in the past, iv) proven conservative accounting, and v) the benefits to income from rising rates and re-investment opportunities. There are risks, including investor sentiment and the macroeconomic environment, but the Cheyne team proved, through COVID-19, that it has the skills to deliver consistent returns in challenging times.
18 Nov 2022
Real Estate Credit Investments (RECI): Positioned for the current crisis
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
Real Estate Credit Investments (RECI): Positioned for the current crisis
Real Estate Credit Investments Limited (RECI:LON) | 116 0 0.0% | Mkt Cap: 260.7m
- Published:
18 Nov 2022 -
Author:
Mark Thomas -
Pages:
15
In this note, we review how RECI is positioned to face the current market challenges, noting i) the track record of superior credit assessment, monitoring and collection reducing the probability of default, ii) the high quality and high level of security limiting the loss in the event of default, iii) low exposure to high-risk sectors and proven limited loss in ones where they have had exposures in the past, iv) proven conservative accounting, and v) the benefits to income from rising rates and re-investment opportunities. There are risks, including investor sentiment and the macroeconomic environment, but the Cheyne team proved, through COVID-19, that it has the skills to deliver consistent returns in challenging times.