is mac bank approaching debt covenant cancer, page-6

While there is a government gurantee there will be no issue with funding /debt as MQG can just raise more funds at low cost. A large portion of MQG debt from what i understand( have not done a lot of research as i do not hold) would typically be through bonds and the like as they would raise there own funds, for this side there would be no share price triggers.

Shorting might be allowed back as of friday but i would bot be shocked to see the ban extended.

Your comments via debt loads is interesting, i am aware the funds MIG etc have high loads, and most banks have very high gearing ratios inc ANZ WBC etc but mqg is very diversified, the funds business is only what 5% of cashflows, the Margin lending book and morgage book were sold early in the piece so limited exposure there. All aasets have dropped and will continue to but a lot of MQGs assets would be infastructure assets which 'typically' are highly regulated so cashflows are relativly stablish. cost of capital would be higher but gov gurantee would help short term. The same issue could be said re majors whos major exposures would be to business (going into recession) and morgages property will fall too. But i do not seem to hear many comments re majors going bust?