Bernie. Its the underwriting situation that will be the proof of the existence of a WK. When WBC has an issue it will be sub-underwritten by most of a group of institutions like AMP,AXA, ANZ etc and the big super funds,bodies with existing holdings in WBC (who wont object to a few more,particularly with a sub-underwriting fee thrown in-"money for old rope". The sub- underwriting success allows the underwriter to underwrite the issue,but its obvious who REALLY underwrites the issue. When AMP has an issue, WBC helps out. Nice and cosy- institutions with substance supporting ditto with substance. Now look at poor old Mae- no institutional holders whatsoever, nobody to subunderwrite the issue and allow the ostensible underwriter to take on his apparent commitment. Friendless."The issue will be fully underwritten" can mean only one thing- somebody outside the "club" is going to give the guarantees needed to ensure a successful issue. Cheers
MAE Price at posting:
7.2¢ Sentiment: None Disclosure: Held
