Watford,I had a quick look at timpb but they are a little more...

Watford,

I had a quick look at timpb but they are a little more opaque than aazpb and a little riskier IMO.

Firstly, they are set at such a low yield that even after step up they are are not flash. This increases the chance that TIM will step-up for maybe a long period of time. Secondly, if things go custard for TIM then there is a 50c per share minimium cap on redemption that leaves holders potentially under water.

The idea of hedging through CFD's against TIM price drop is complicated, ties up margin equity that could be used for other things, no finite date for redemption and you could be left with ever larger loss position on TIM without resolution to timpb. CFD could withdraw shorting rights leaving holder high and dry. Just complicated I think when sometimes the simplest plans are best.

cheers