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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 221.06-1.1%Jan 5 3:59 PM EST

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To: survivin who wrote (34845)4/4/2001 5:03:06 PM
From: Neil BoothRead Replies (1) of 275872
 
Correct me if I'm wrong, but when AMD was signing a flurry of supply contracts they required a substantial cash downpayment from their customers.

I can quite believe that. The first few deliveries would in effect be a large loan from AMD to the customer. How many banks would do that without collateral?

Collateral is always used in the derivatives markets. I'm not sure it is legal to count it towards your cash balance, though, since it probably held in trust (effectively) and not in AMDs name.

Neil.
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