Hey Sparticus,
Remember having the conversation with me about hedging on the '
VB, how low can they go' thread'.
We were prattling on about options, swaps and collars. I thought collars were odd then and still think so. For
VB, they didn't use them but swaps and the the swaps have come home to roost.
That is why there is such a dramatic loss on the hedged positions. Swaps = an unproteced short or long but with No premium. Massive downside if you get it wrong.
To get naked with shareholder funds in this way is about as bad as what happened over the road with the Allco deal.
tsalta