Split cap sector has had a hard time

From its peak on 1 September 2000 to the low point reached in the days following the terrorist attacks on 11 September, the FTSE All-Share fell by over 35%, constituting the worst bear market experienced since the early 1970s. Against this background, the split-capital sector, where structures embody high levels of gearing, has been particularly hard hit. In particular, the sharp declines in splits' portfolios have caused some trusts to breach or risk breaching covenants relating to bank borrowings. Other trusts have run into problems in connection with Section 265 of the Compani...