RE: RE: RE: RE: RE: RE: HedgingGood points, Mike.
1) The issuance of those shares was to shore up the Capital position, so lets hope they will buy back
shares because of their foreseeable excess required capital that will continue swelling because of additional
earnings, the coming hedge credits and the easing by the IFRS.
2) Right, the 2007 earnings of over $4B was not normalised earnings, but because of the stock upwards movement.
....... not sustainable. The earnings from 2015 is more core earnings and should hold the stock price.
I agreed the hedging is a waste of money, but we know Investors are not relying on the core earnings only, but are
taking the mark to market earnings seriously inspite of knowing that what is written off one Quarter will be written on
another Quarter. To stop this volatility Managemant has to hedge, and remember they are projecting after 75% hedging
position they will still be making $4B annual earnings.
Markets will always be higher in the future because of inflation, so MFC should be better off being unhedged, but
can you handle the volality?. The hedging costs are not huge compare to their earnings.