Good post susie,It is worth remembering that leverage as far as...

Good post susie,

It is worth remembering that leverage as far as real estate is concerned is not a dirty word. Almost all first home buyers use maximum leverage that their income allows. They have done that for a long time and will continue to do so again.

The trouble only starts when the property value falls below a reasonable quick sale price. At other times they get support of the banks.

CNP has the problem that the lenders dread. Negative equity. CER has the situation that banks encourage. Positive equity. I'm sure that lenders would be happy with equity being well above debt as in the case of CER.

The next thing on a lenders mind is "ability to service the loan". CER does not have a problem with that.

To the extent of being boringly repetitive I say again, the problem that CER has is the negative equity of CNP.

I am sure that the directors of CER are well aware of these facts and are using this to work for the way out that will capitalise on these aspects to our advantage.

I would like to know which and whose assets secure the debts that have been sold off by lenders at a discounted rate so far.

When this is all over there will still be leverage. There will still be lenders. All debt will not have to be repaid.
That is the nature of realestate and its association with financing.