Douglas - comment

Douglas have announced they will be paying cash coupons on the PIK notes for the first time. Most market participants have been looking forward to this move, but it is somewhat relieving since the recent demise of Pepco. Not that Western European cosmetics and fragrance retail is directly linked to Eastern European apparel discounts, but the thought had crept up. Good for our remaining half position in those PIKs. We will be looking to exit once the market is a touch friendlier. Full-year figures through September will be published on Dec 20.