>Leverage is a wonderful magnifier. With excessive leverage, >a...

>Leverage is a wonderful magnifier. With excessive leverage, >a small fall in asset values will wipe out equity

Leverage was used to buy assets that, in many cases, have been on the books for years and are returning stable, adequate, regulated returns.

There seems to be no reason, at all, why BNB couldn't service its debt on these regulated assets.

The unregulated assets are more problematic. However, again, assets like aircraft leases and railway stock are leased over a long time period. Again, we cannot expect massive fluctuations in the revenue streams associated with even these assets.

BBP seems to be the problem child. If this could be sold in full or in part - BNB would have the financial "room to maneuver".

Alot of the now "non-core" assets are not Australian. These are very respectable businesses, particularly in the US. The US banking sector is expanding the amount of loans being made. The past three months has seen US banking sector loans rise to new highs.

Credit is there, for the right asset, with the right risk profile.

BNB leverage does not scare me. BNB asset quality does not scare me. I even think bankers can be trusted to behave in a manner aligned with their own self interest ...