trading bip in the usa, page-4

What are the risks associated with holding PIH, taking delivery of BIP and selling on NYSE in December?

Plainly their hasn't been much of a problem while the AUD has been track up against the USD. But if the AUD "carry" trades unwind quickly and we see an equity sell off, what happens to the value in the strategy.

The table below uses BIP price declines against a falling AUD to calculate implied PIH prices. I think that the worst scenario is a loss of investor confidence in Brookfield, neutral of a change in AUD sentiment, and I don't see that as a strong possibility.

Any thoughts?


21.00 20.50 20.00 19.50 19.00 18.50
1.0000 5.04 4.92 4.80 4.68 4.56 4.44
0.9900 5.09 4.97 4.85 4.73 4.61 4.48
0.9800 5.14 5.02 4.90 4.78 4.65 4.53
0.9700 5.20 5.07 4.95 4.82 4.70 4.58
0.9600 5.25 5.13 5.00 4.88 4.75 4.63
0.9500 5.31 5.18 5.05 4.93 4.80 4.67
0.9400 5.36 5.23 5.11 4.98 4.85 4.72
0.9300 5.42 5.29 5.16 5.03 4.90 4.77
0.9200 5.48 5.35 5.22 5.09 4.96 4.83
0.9100 5.54 5.41 5.27 5.14 5.01 4.88
0.9000 5.60 5.47 5.33 5.20 5.07 4.93

DYOR and check my calcs for yourself!