institutional raising, page-4

Was a great fan of CIY in the early days and got one at the time of the IPO. However since 2005 the risk has increased due taking on debt, bad publicity of mortgage trusts and some 'one-off' style transactions used to meet profit forecasts.

Basically the mortgage trust appears to be suffering a liquidity squeeze due to the bad publicity causing investors to withdraw their funds. The mortgage fund has been using a debt facility to manage the liquidity of the trust but going by the notes in the accounts it seems a large number of fund redemptions has caused the debt facility to be drawn for longer than the banks term allowed. The notes to accounts say this will be repaid as mortgage loans are repaid but it means that there will be less funds available to lend out in the future.

I hope they get through ok but these are difficult times