swap would you tell me please, page-14

Joel,

Work in a bank but I'm not a banker. But I have been a banker before.

By the way old joke but bloody brilliant:

What's the difference between a banker and a w*nker?
The w*nker knows what he is doing.

I posted this a long time ago, but our fund manager had been screaming for two years about two things in the property sector:

1. High Leverage
2. Dividend payouts of more than 100%

Joel, my view is that ALL companies do this. Even medium sized firms have to use Fixed and Floating Bill facilities that are ALWAYS subject to review. You just can't borrow 1 billion dollars at a variable interest rate for 25-30 years.

A lot of people on this forum compare it to say their home loan and wonder what the fuss is about withthe value as long as the debt is paid. Unfortunately it's not that simple.

My view is that also, the credit crisis was left-field and no-one had a contingency plan. Property trsuts should have been a tad more conservative.