if cnp goes would cba drop another 10 percent, page-8

Even though they class the CBA's $1bn as secured that is not quite the case either.

Some of it classed a secured is secured by fixed and floating charges over the company and not a 1st mortgage postion over ALL assets.

There inlies a big difference.

If the banks have to control the sales of assets.... they all have to line up nicely and wait in line.

Secondly and perhaps more importantly, by banks wiping CNP they would lose the current management fees which at least covers the debt interest while they spend 2-3 years minimum selling assets in an unfortunate market condition.

So CBA's Sp would suffer having $1bn with no roi in the hope of selling off assets just to cover their exposure.

Wouldnt be a smart move.

lastly.....a fire sale of such assets would also expose the banks to other commercial interest as they would also become devalued.