Ok great post and asks some real questions about why CNP and CER...

Ok great post and asks some real questions about why CNP and CER set up the hedging in this manner.

I will bring up several points:

1: It makes my head hurt too and I am going to think about this more and come back to you all when i have.

2: Things have changed a lot since the hedges were set up, to this extent I would guess that yes management were hoping for massive incomes and maybe bringing big distributions back in Aust. This makes sense with the aggressive growth and management we saw before 2008. However if this was aimed at converting when the AUD was high, then with respect to company spending wouldn't they have held off purchasing assets overseas till this high AUD came to fruition?

3: Why is CNP the counter party? I have never fully understood this, there are many possibilities ranging from maybe it did just suit and it would save costs ect going out of the CER /CNP (lets say conglomerate). To maybe the board never expected them to be closed out which would result in CER money going to CNP (Im unsure is this is possible)- Yes there the second is much more cynical, highly unlikely and virtually impossible to prove even if it was true.

At the end of the day, with the current company situation and financial environment I cant see any negatives to the hedges being closed out, so regardless of reasons why they were set up, I am just happy to see them closed out for now.

Anyhow i hope that makes some sense and i haven't totally missed something with my thought process and understanding.