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To: Tim McCormick who wrote (54910)	8/5/1999 10:48:00 AM
From: Lymond	Read Replies (1) \| Respond to of 86076

Tim, While demand for spread product remains tepid, I suspect this deal will go relatively well. WMT is a great credit and does not have a lot of liquid paper outstanding, so I'm sure most of the major players will participate. They downsized the 5-yr tranche from $2 to $1.25 bb and upsized the 10-yr tranche from $2 to $3 bb, which shows that investors are very comfortable (as they should be, IMO) taking on extra spread duration in this name. The tranche resizing also reflects the fact that the 5 yr area of the curve has been glutted with deals recently. 5yr double-A paper at +83-85 is ridiculously cheap by historical standards. Then again, we are in an unusual environment, to say the least.