Carador's NAV per share as of 30 September was €0.425 or US$0.55 - up by 4.88% and 5.31% month-on-month respectively. September's calculations include an estimated -€22,646.52 of net cashflow interest received in the month (to be allocated between capital and income), which equates to -€0.000178 or -US$ 0.0002613 per share.

The net cash outflow resulted from the lower level of scheduled distributions in the month, which was further reduced by the effect of the cashflow diversion from subordinated notes to repay senior notes in certain transactions following breaches in their overcollateralisation tests.

During the month, Carador sold half of its investment in the tranche E of Inwood Park CDO at a price of 38%, realising profits of US$0.720m. The permacap acquired a total of US$8m notional at a price of 20% of par (US$1.6m consideration) in October 2008. Following the September month end, it sold the balance at a price of 50%, realising additional profits of US$1.2m.

In addition, Carador has received aggregate income of US$0.35m from this investment, giving total cash-on-cash return of 2.84x the initial investment over the holding period.