Watford I just posted the following on the BNB thread:"Watford -...

Watford I just posted the following on the BNB thread:

"Watford - thanks for that info about hybrids.
I hold AFGHA, AHUG and AGIG and I am interested in buying others.

I have looked at the prospectus for ANZPB and GNSPA and find them very hard to understand. It seems that redemption, or exchange for underlying shares, may not happen on the reset dates (1Oct08 and Sep08)it is at the discretion of the company not the holder. The conditions seem similar for both and is possibly a generaly used model.

Have you had previous experience with other issues as to what actually happens on reset dates?"

Sorry - I should have read this thread first as you have answered a lot of my questions.

I summary my understanding of the the position of a holder of GNSPA after Sep08 is either:

(a) They receive GNS shares at a 2.5% discount to VWAP to the value of $100. If most holders unload the GNS sp may seriously dip, so your profit could be eroded.

(b) Continue to hold at Swap interest rate plus total margin of 5%.

Do I have this right?