RE: Motif/ amp rise12 Feb 2019 20:36
As an example.....I take out a £200K mortgage. Yes that is debt, and I need to pay £800 a month.
That £800 is a current liability. As long as I serve the mortgage, the whole amount due does not become current. If the bank foreclose.....I'm f...ed. The whole amount becomes current.
As long as I keep working and pay the current liability of £800 per month....everything is cool....but hey I only have a car and £1000 in the bank, Jesus.....my debt position is minus £190K+. Sequestrate me now!
That's not how it works and that is why AMP have renegotiated terms, pushing liabilities away from being current liabilities.
This is the angle MM's are taking (on this board) to have you sell your holding. Yip, if invested you are at risk....if the FDA answer is no, you will lose 75%......but that loss will have absolutely nothing to do with liabilities, current or otherwise.
IMHO DYOR