In a question I put to investor services about who's Debt (CER or CNP) is being sold by banks to hedge funds, they would not confirm which entity is was citing confidentiality and that media reports were just that, and unsubstantiated.
You would think that while the yield on the debt looks great and is effectively money for nothing these funds, now with inside information, must see something in the value of the debt being re-rated. A re-rated debt book is good for shareholders as well as the hedge funds. Yes we still owe the same but the gearing ratio may change....
This can come from many things but the fastest would be a rise in the property values which looks like coming. The EOI process will smoke out real world values, not book values, for the assets held by CER. Based on the interest reported to this point I suggest the equation may be changing very soon.
Fingers crossed DYOR.
CER Price at posting:
25.5¢ Sentiment: Hold Disclosure: Held
