just a theory, page-6

Arminius,

I haven't pored over all the various annual reports but I think in one or more of the syndicates where they have suspended redemptions and also coupon payments they are paying interest and principle. So certainly on some of the Group debt but I dare say not all of it. Again from memory a syndicate or two had an LVR that was out of control and they effectively had to go P & I on the repayments.

Bottom line regarding interest rates is the lower the better. It's good news full stop. Is it enough? Who knows. Lower rates are good for property valuations as well based on capitalisation rates as a basis for valuation. Though I think it would be ambitious to write back the valuation losses within 12 months or writing them off. Also if they do htat CNP is in profit territory and will need to pay a dividend which it can't afford.

For what it's worth I think our cash rate is headed to 4%. This is not unfeasable.