aegis equities finance viewopoint, page-24

/As the banks are having so many problems in the US with people not making the payments on loans, how much sense does it make to liquidate those who have not missed any payments and do not look like doing it? /

Has nothing to do with liguidating companies who can pay . It's about reducing your risk. I can sell all my belongings and invest in OXR a relatively safe investment. But would I put all my eggs in the one basket? No I woudnt because tomorrow is another day and anything can happen.

The criteria for banks historically is, if the company goes broke, can I recover the money I lent. Because of CNPs high debt ratio and the question marks about the US economy and the future value of their investment there, they are considered a high risk.