(26-11-2015, 07:04 PM)Nick Wrote: The current yield exceeds 11% though its ability to generate sufficient FCF to maintain this level of distributions in the future needs to be ascertained by any prospective investor.
These are yield numbers we will only find in a crisis. Without the presence of one, the only alternative scenario is that Mr not-so-efficient-but-also-not-stupid Market has priced in a high certainty of a reduction in future distributions.
This is not the first time that the Macquire bankers had tried to borrow their way to fund unsustainable payouts from TBC. IIRC, it had earlier tried the same trick when TBC was embedded in MIIF a couple of years back.