Hi, The next lot of questions raised has to be what effect does this transaction have on the value of CAM shares. An argument will be that having this debt enables a bigger fund and therefore less fees per share , not sure that ever happens . I wonder whether the increased interest rate will decrease the profit and the franking credits ? Certainly the camg's have outperformed the ords for years on a total return basis , there may well be a rotation out of one into the other. I have picked up a few more sub 1 buck CAMG's and no longer have any ords , will just let them ride for the 6.5% . Reasonably safe , would need to lose a very high proportion of the funds value to not be paid back. Certainly need to keep a very close eye on the fine print in the terms when they come out though. cheers
CAM Price at posting:
70.5¢ Sentiment: None Disclosure: Not Held
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