large volume trade - what happened?, page-12

I forgot to add: The consequences of slower growth, continuing my football analogy, will be to push the business further towards maturity i.e. the second and third quarters.

The profits will only grow slowly, the dividends can only follow suit, and the share price will level out or take a dive.

There will paradoxically be an increased percentage of retained cashflow, as this will now not be needed to fund growth to the same extent. My guess is that the banks would require SIV to reduce its reliance on debt funding, using some of the retained cash to pay some of this off.

SIV still has a large unused line of bank credit, so the above outcomes are conditional.