Uptomistic,With respect to your question about why RBS would...

Uptomistic,

With respect to your question about why RBS would sell the CNP loans at 40 cents in the dollar...

This issue may not be about credit quality. RBS (like many banks at the moment) is running very thin on regulatory capital. Selling loans where they have already been marked down the asset will improve their capital ratios, and help manage the heat from the BoE.

Which assets they decide to sell might be a credit decision, but their first concern at the moment is likely to be capital ratios.

I agree that the key positive factor in holding AEZ is the ongoing support of RBS. The RAROC must look alright to them.


Note: These are the opinions of the writer and should not be construed as investment advice. DYOR