eldpa, page-4

Sorry - some context, when I bought the hybrids there was a pretty good chance that the company would go bust, there were significant doubts about their ability to re-finance what was an unmanageable amount of debt. If their creditors had been secured I think it would have been a different story. Watford made those decisions on shorts in that climate and it was a fair call under the circumstances, it was insurance against a complete catastrophe.

With the capital raising I think the future is assured - i.e. the company will survive next 2 - 5 years. Whether or not it will prosper is what I meant by questionable.

To be honest I would take any kind of profit after the past couple of years - what I really want to see are some forecasts being hit and no more surpises or write downs.

As I have said on this forum before, 4.7% over BBSW is only expensive if you choose to pay the dividend. Cynical use of that discretion, such as this cuurent two year suspension, is the biggest risk to the price of the hybrids.

Good luck

Hold ELDPA only