atans1

Shipping trusts looking good?

In Uncategorized on 30/09/2011 at 7:58 am

Interested in the high yields (10% or more) they are offering? Especially as they make payouts in US$? 

Well they like other shipping firms are facing refinancing problems.  As European banks reduce exposure to this sector, the shipping industry will need to seek financing from the private equity and bond sector, executives told Reuters. And it ain’t easy. http://www.reuters.com/article/2011/09/27/shipping-finance-idUSL3E7KR0O120110927

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  1. ..and FSL do have about $250mil indebt maturing in April 2012. Fortunately FSL’s fleet is heavily into product tankers, which aren’t doing as badly as the bulker/crude tanker/boxship markets. But shipping in general is facing a gloomy outlook due to massive oversupply due to arrive in 2012/13. The major thing I dont like about the S’pore trust setup is the lack of a cap on gearing (which is the case with REITs).
    But hey, there could be good money to be made.

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