One of readers, michaelandfred, pointed me to the ING quarterly report for the second quarter where ING made the following statement:
"As previously reported, since an interim dividend
on ordinary common shares was paid in August
2008, the ﬁrst short coupon on the core Tier 1
securities issued to the Dutch State was paid in
May 2009. "
This document can be found at Quarterly Results - ING
You would click the PDF for the Quarterly Report rather than the PDF for the Press Release.
This payment was made on a security in pari passu with the common shares : "The securities are pari passu with ordinary common equity meaning the Dutch State will rank exactly the same as common shareholders."ING to strengthen core capital by EUR 10 billion - ING Any payment on a Junior Security to the ING hybrids triggers a Mandatory Payment Event. Is there anyone claiming that the shares issued to the Dutch state are not Junior Securities to the hybrids? If there is somebody, please state your reasons in the comment section.
The only issue becomes then whether such payment triggered four mandatory payments or two. Nail on the Head for Aegon Mandatory Payment Event? That resolution will depend on whether the Junior Securities are classified as paying distributions on an annual basis or a semi-annual basis.
My involvement in writing about this subject is due to reader interest, and I do not particularly care for the EC burden sharing policy. I view it as idiotic, counter-productive, and made in bad faith. I would like to do whatever I can to muck up their plans. And I think that I am making progress toward that goal.
My positions are: 200 IND, 350 AEB, 50 ISF, 100 IGK, 100 before today of INZ, and I forgot how much of AEH.
Since I have decided to pare back my small holding in European hybrids, due to my extremely negative view of current events layered on top of my negative opinion held for years about these securities (e.g. no maturity date), I sold late today 1/2 of my INZ at $14.60 (see Disclaimer) which were bought in the taxable account at $6.52 in February. Hartford Bond Sold/ Modoff: No Evidence of Trading/bought 50 INZ at 6.52/ It was ex today so that was a good profit on the shares of more than 100% plus some dividends.
My current thinking is hold the Aegon hybrids, and pare the ING hybrids only in the taxable account, keeping the ING hybrids held in the retirement account due to the avoidance of tax issues in a retirement account resulting from a deferral of a cumulative dividend. This of course may change with some new negative development.