nab to take 400ml hit over cdo writedowns, page-20

Have a listen to Analysts teleconfrence

http://oms.nab.com.au/media/08/nabgroup/briefing20080705a.mp3

and

http://oms.nab.com.au/media/08/nabgroup/briefing20080705b.mp3

in these briefings the analysts keep pumping the Directors for understanding and the NAB keep avoiding these questions.

In my opinion the NAB are liars liars liars and their disclosure is VERY WEAK.

I asked this question in this thread

http://hotcopper.com.au/post_single.asp?fid=1&tid=743377&msgno=3330629#3330629

and no one could answer it. It makes me just think that NAB have many dark cupboards and the Directors are CYA – see below:

One disturbing thing because I do not fully understand it are the risks associated comparisons of NAB Balance sheet 1999 vs. 2007.

In 1999 Deravitives (Assets and Liabilities) did not exist - in 2007 these comprise of:
Assets: 23Bn of Trading Deravative and 1.2Bn of Hedging Deravitives
Liabilities: 23Bn of Trading Deravitive and 536Mn of Hedging Deravatives

Bond Notes and Subordinated debt comprised 4.3% of Liabilities in 1999 and has increased to 15.1% in 2007.

Could someone explain what the risks of these two positions is and what they represent?