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Technology Stocks : Lucent Technologies (LU)

LU 2.555

-0.8%

3:59 PM EST

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To: GVTucker who wrote (18570)	8/3/2001 5:00:24 PM
From: Dave	Read Replies (1) of 21876

GV, If Lucent waits a little while before shooting up to 20, there is no loss. Technically no loss since the fund will be able to pocket both the interest on the short and the 8% coupon, correct? Then the fund levers the position, on average, about 5 to 1. Some will take it to 10 to 1. By "position", do you mean that fund will utilize 5:1 or 10:1 leverage in order to purchase the conv't? This last question is completely unrelated to Lucent, how does a hedge fund find financing to have that type of leverage? GV, Thanks for the information...

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