CNP 0.00% 4.0¢ cnpr group

just a theory

  1. 3,760 Posts.
    Just a theory people:

    We know that NAB just placed 3billion of scrip in the market to cash up for "organic growth opportunities". Now on the basis that they can't mislead the public or shareholders this means that they are not looking to buy any businesses with these funds. This would not be "organic growth". (A bit disappointing as there are so many opportunities out there....but anyway).

    There is now also speculation that ANZ, and CBA are going to follow suit to raise capital.

    What I am just theorising about now is this: Any debt to equity swap participation from any/all of the banks means that what ever debt is converted needs to be backed by an asset on the balance sheet. So if the banks participate in this they are going to have to set aside assets to cover this due to capital adequacy requirements and Basel II requirements etc. etc. .......or else guess what? They have to raise capital. Raising capital to participate in a debt/equity swap would sort of fit the description of an organic growth opportunity.......

    Anyway, as I said just a theory....
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