Also you are not at all factoring in the agreement the fund has for its assets to be sold at 95% and 90% of its face value up to June 2014 and this will definitely decrease the NTA of the fund quite markedly.
Also some of the face value has a Nil value or an almost Nil value and are on creditwatch and will unlikely realise a lot ultimately in the end.
Also the deferred interest margin is value at NPV in the current valuation, but the reality is that will owe the entire full amount as time passes by, so this liability number gets bigger.
Also there is additional penalty interest involved if they pay down any of the pass through notes early. That has to be factored in. Plus there is more deferred interest yet to be levied.
Also the hedging will not last forever either, so over time exchange risk gets higher.
Also we have no idea whatsoever where the markets will head over time and that is a significant risk and if enough assets are either not sold or paid back by the June 2014 deadline, then the banks can gut the rest of the fund at whatever price they like to get the balance of their money back, and those sales could be at well below face value. It depends on the state of the markets at that time.
Lot and lots of variables in this investment htran.
MXQ Price at posting:
17.5¢ Sentiment: None Disclosure: Held
