the king of dogs, page-15

Benny, I agree, cap rates cannot increase from here given the disparity to the cash rate...but LVR's are still under threat given a softer revenue stream which is "softer" than what is generally reported (talking generally and across the board, that is).

BUT...what do the financiers do?

They cannot put everybody into administration and surely they've got to make a call...will the REIT management team do a better job at "trading out" than an administrator?

My experience with the insolvency fraternity is definitely YES...so, leave the troubled assets with the REIT's who are, afterall, property professionals.

And...to liquidate a large number of REITS will simply mean "asset carnage" which the banks don't want to face atm.

I believe Bankers will opt for a relaxation of LVR's and particularly so if they have an adequate interest coverage and - banks being banks - have extracted an additional interest premium.

Administration and liquidation will only be for the basket cases and the small/private investors who donl't have the wherewithall to properly manage in these uncertain times.

And...there's a ton of work upcoming here for the insolvency firms! Where will they get the extra staff from???

Back to the "ginger up" issue...I say it's not a bad ploy to continue to get the feelings of the Hotcopper members as to an EGM.

I'm for it...it's about time that there was more "A" in accountability!