Ann: Market Update, page-26

Ever hear of a debt covernant? Or more so in this case a breach of a debt covernant?

Banks can simply ask for all their money back if they have breach one, potentially

QUOTE="Jimmy_C, post: 32923906, member: 17037"]I imagine they're reducing the expenses by sacking a whole bunch of people who worked on raising retail funds (the high cost, high fee side of their business).

Their proposed use of the corporate cash is both fine and sensible, that's how fund managers work - you use cash to seed/co-invest into new funds and your fee stream grows. They've got $19m undrawn debt at the corporate level and will supposedly have a cash flow positive business so i don't agree with your assertion that they're "highly vulnerable from a BS perspective". The only query i have is whether they've written a ton of guarantees to funds, which could over time stretch the balance sheet.[/QUOTE]