not moving much either way of late, page-24

Hi Recko

This was the comment made and I thank u for it...

"It has become clear that to secure longer term financing in the current illiquid credit market, Centro will need to reduce its gearing level significantly"



Now...

They had SHORT TERM finance that were happy to lend to CNP at higher LVR ratios than the conservative long term lenders.......as short term lenders do by taking a second or third or caveat over the property at a higher than longer term financing interest rate.

The FACT the short term credit market has now become illiquid is not CNP's fault and has nothing to do with their assets per se.

Is was the result of the US money lenders lending to low income people and very high ratio loans....



So CNP have to find LONG term funding......which is much harder as they (long term lenders) are very conservative with their lending ratios, hence CNP need to reduce to be approved for such loans.

I understand that CNP have taken on short term loans which in itself is not always a good idea......and sometimes its done because their income levels have dropped and they need some liquid to pay down the 1st mortgages....was this the case here....i dont know.

Anyway happy to hold my big stack for the next few weeks