OK, interesting ideas. Many thanks.My next question is this: is...

OK, interesting ideas. Many thanks.

My next question is this: is the market expecting SEV to redeem SEVPC on May 31, 2010, or to step up the margin to 4.75%? If the expectation is to step up the rate, then I expect that confirmation of this would have little effect on the SEVPC share price, or would cause it to go up slightly. However, if the market is expecting redemption, and SEV instead chooses to step up the rate, then I fear that the SP may fall given that the prospect of an easy capital gain is no longer there. (As I've said earlier, there should theoretically be a 'floor' to the SP given that the yield would be getting extremely generous should the SP fall any further - however, I think we should be prepared for a fall, at least in the short term.)

If we look at AAZPB (about which admittedly I know nothing): this originally had a margin of 2.3%, and before the step-up was announced, had closed at $87.50. The day they resumed trading after the step-up was announced (with new margin 4.8%), they closed at $79.75: a fall of 8.9%.

Has anyone encountered this sort of reaction with other hybrids? Could a similar thing happen with SEVPC?