A nice summary there geralvin. Going back to today's article,...

A nice summary there geralvin.

Going back to today's article, something that really pees me off about the financial industry - and I work in it and have trained it - is the bullshit phrases they feel the need to use. It's as if the more ambiguous one is with language the more important it makes one seem. The media are just as bad for not fully explaining meaning behind phrases.

For example: what does 'Slater and Gordon is on Westpac's watch list mean'?

I would be very concerned if every single loan on Westpac's book was not on its watch list. Even Bruce and Shiela's mortgage out in Dubbo.

Do we assume it means the bank feels Slater is at risk of defaulting on its loan interest / repayment? Well it is not due to pay back anything until 2018, interest is almost certainly covered.

Do we assume it means the bank thinks Slater is at risk of insolvency?

My point is loose terms like 'watch list' are bandied about leaving all and sundry to guess what it means. Would it not be more informative to add just a few descriptive sentences: for example, Westpac are monitoring the situation at Slater and Gordon due to a stress test indicating it is at risk of insolvency; management at Slater and Gordon are fully cooperative providing ongoing updates of trading activity and expect its working capital to improve as this FY year progresses.

Alternatively, less dramatic, 'watch list' could mean nothing more than Slater's operating forecast is currently under a review and terms of the loan might be adjusted to accommodate the short and medium term trading environment.

Again, it creates far more sensationalism to just put a phrase up there in bold and leave people guessing the meaning behind that phrase.