ISG, ISP, IND and INZ are debt securities, not preferred stock. ING has a right to defer interest payments on those securities (with interest compounding on the deferred payments), but that would probably mean the end of ING in the capital markets for the foreseeable future.
I don't think the Dutch government will let them fail...if it wasn't for the government I think they would have already collapsed. They will have a very difficult time over the next 2 years but with the backstop of their government I feel fairly confident they will eventually make it back to profitablity. I am betting they will continue to pay on ISF and that ING will eventually return to the 15 to 20 dollars level.
well investor relations is pretty quick to answer email (less than 18 hrs) regarding my question I had emailed in:
"If ING would not pay the coupon, ING would give specific notice. Please consult the prospectus for the security you mentioned for more details on the deferral notice terms and conditions. A link to this information is below.
I have read the prospectus (many many times) and feel that dividends are safe at this point plus I really feel the sell off of IGK, ISF etc were based on the perception that a payment would not be made (sooner) ~ but I'm sure if they stated payment were not coming we'd be seeing a much larger drop.