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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: bill meehan who wrote (65910)	8/6/1999 5:59:00 PM
From: Knighty Tin	Respond to of 132070

Bill, great paragraph. Was Moral Hazard the Dukes cousin? <g>

To: bill meehan who wrote (65910)	8/6/1999 7:10:00 PM
From: Henry Volquardsen	Read Replies (3) \| Respond to of 132070

Bill, fwiw swap spreads have been widening out for close to two months now. Yesterdays blowout in all maturities of the swap curve was a continuation of the trend not something new. The 'big guy' in trouble rumours added a bit of fuel but didn't start the trend. The widening in all spreads and premiums seems to have begun around the time it became obvious the Fed would have to tighten. Probably background concern of increased credit risk as the Fed tries to prick the bubble. Also I believe the trade behind the rumours is a forward start sterling vs euro convergence trade. A number of firms have it on and have gotten hurt. Henry