Notable that they cut sovereign debt exposure from 3 bil pounds to 772 million between 2Q and 3Q 11. There was speculation in October that they would require "another Gov't bailout". But this disclosure negates that.
It was optimistic but gave direction. Key points: - mgmt has the intent to turn the coupons back on - but it has to be approved by the board and depends and - depends on the world at the time they declare (meaning I took it as they would like to see the unsecured funding market open up and what's happening in peripheral Europe wont show up in their Irish credit portfolio)
That is not so new, what was interesting in the call was 1)They gave a timeline on when they would decide on declaring, which is a couple of weeks prior to pmt date
2) They admitted the cost to turn on the coupons were modest and was part of their path to recovery
3) they were pretty sanguine on their liquidity and funding needs going into 2012; said they could fund all they needed via secured and PP, which I stated earlier
4) Good banter from the FI investment community. - I loved how when Morgan couldnt get an answer on timing of turning the coupons on, they tried to get a back door answer by asking about liability mgmt exercises (due to the 1 year divy stopper on the preferreds) - Seemed to get a little heated towards the end regarding turning the coupons on; Note Perry mgmt was there asking about the coupons and gave a good reason as to what would motivate mgmt to turn the coupons on....confidence.....also note, they gave a thumbs up for the RBS may pay preferreds at the recent "Invest for Kids" conference a couple of days ago.
Comes to a point when you research so much, it comes to a point when you realize its out of your hands and its all macro dictating your portfolio performance......