Hi Buffett,CER's interest rate hedges will be unwound or used up...

Hi Buffett,

CER's interest rate hedges will be unwound or used up over time, at which point the massive fall in interest rates should exceed by far any lowering in their income.

This has to have a dramatic impact on their income ( for the better ) and loan servicing ability. Property revaluations downwards will actually be a positive in that this will enlarge the debt paid off copared to distributions made.

To wit it is highly likely that CER will pay their loans off 100% in the normal course of business.

Blastoff