tag:blogger.com,1999:blog-2986124651030959736.post745151972578180641..comments2024-03-29T08:03:35.151-05:00Comments on Stocks, Bonds & Politics: U.S. Dollar and the Carry Trade/Sold 100 PMK at 9.2/Gold & InflationTENNINDEPENDENThttp://www.blogger.com/profile/17444227958539559639noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2986124651030959736.post-11387265819590890842009-11-27T11:34:07.005-06:002009-11-27T11:34:07.005-06:00Given the discount for ING's rights issue, I w...Given the discount for ING's rights issue, I would expect the rights issue to succeed. If I owned the common, which I do not not, I would feel compelled to buy 6 more shares for every 7 held at the price being offered, particularly if I wanted to hold the shares longer term. Otherwise, I would be penalized for the dilution without receiving any benefit. It would be a disaster if it failed given the discount. I view a successful common share rights offering to be a positive only for the owners of debt and of the most importance to the most junior debt holders, those who own the hybrids which were the target of the EC's burden sharing policy. <br /><br />I thought that Aegon's offering of senior debt at 4.625% with a 2015 maturity was a positive development, in that it shows market confidence in AEG. I still have not seen any action by the EC on AEG's restructuring plan. AEG was planning to buy back 1 billion Euros of the Junior Securities issued in connection with its bailout by the end of this month. If that happens as planned, it will be a Mandatory Payment event for the hybrid owners. AEG hybrids are ex dividend today.TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-82605971396397973152009-11-27T11:16:47.144-06:002009-11-27T11:16:47.144-06:00I am the other reader of this blog that is interes...I am the other reader of this blog that is interested in the European hybrid preferreds. I see that Aegon is offering new debt as well:<br /><br />http://www.itnews.it/news/2009/1124080201792/aegon-announces-offering-of-usd-500-million-of-4-625-senior-notes.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-42673110998286620522009-11-27T10:50:43.872-06:002009-11-27T10:50:43.872-06:00There is a group of underwriters performing the ri...There is a group of underwriters performing the rights issue so it shouldn't fail. At least not for non-common stock holders.<br /><br />Note: ING is also underwriter in the process so that could turn nasty.Unknownhttps://www.blogger.com/profile/12601016454795781188noreply@blogger.com