mxupa provides 39 per cent per annum return

Updated calcs: Owned now by Brookfield Asset Management, Mutliplex Sites offer 39% per annum return to April 2010 (MXUPA=68). At this time, Brookfield will have three options (a) exchange for equity (not possible now as MXG is no longer listed (b) pay increased coupon (Step Up of 2%) or (c) pay out noteholders.

Given strong credit rating of Brookfield (S&P A-/BBB+), I am advised the very likely if not certain option is for Brookfield to tap bank lines and pay out noteholders. 39% per annum return where most of this is a capital gain seems compelling, especially in this market where equity returns look dubious.