ChrisNix wrote:GoSeigen wrote:ChrisNix wrote:Do you hold any NWBD -- payment due today, I think?
Good to see you back BTW. Yes, have a few NWBD and have added recently sub-120p. You?
GS [Talking to myself here, of course.]
I hold a fair number. Bargain hunting elsewhere at mo, but think they're great value at these levels.
So if you think that NWBD are great value at these levels, do you think that there is very little risk of the situation for RBS becoming much worse?
What if bank loan defaults reach say 10% in the next recession or depression? And even 10% would be a very optimistic default rate for bank loans in a depression. This would be enough to wipe out all of the UK banks equity several times over.
In such circumstances RBS may require a bail-in or it may be fully nationalised. Do you think that the risk of such things is very small? Is there no chance of these things happening? Many economists are forecasting a depression now.
Do you think that NWBD would still have any value if any of these things happened?