objective rebuttal of hope for ppx , page-19

Hi Graham,
The pxupa's are indeed a special form of debt.
I bought into these sorts of things very early on, and thought of them as debt.
But the "special" part of them, really relates to the partial equity aspects of their structure.
And that aspect is , in essence, that if the company is doing badly enough, the interest/dividends are suspendable.
The mistake that I made, was accepting too low an interest margin, to compensate for that risk, but to an extent , that reflected the abnormally low risk margins pre GFC.

As far as continuing pxupa's distributions are concerned, I feel that the company's demise would go from likely, to certain, and I'm not confident that there would be anything left for the hybrids, if the liquidation sharks got involved.

Have about 60% in hybrids and various other debt instruments.
Has worked well for me since 2008, but cant win them all, grrrr.

cheers
pxu only