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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (25782)	9/14/1999 4:41:00 PM
From: Logain Ablar	Respond to of 99985

Haim: Yes but they like to keep the same mix (lets say 20% stock 80% bonds) but companies become real flexible in this situation. We'll have to see how bad this one is and I beleive there is still 2+ weeks left in peak season. I remember after Andrew there was Iniki (spelling??) in Hawaii. This was only a couple billion. We'll see the strong companies survive these hits but weaker companies will go under. Andrew caused 12 companies to go under with $500M in claims that had to be picked up the the state guaranty fund which had to issue bonds and assess insurers to pay the claims and pay off the bonds. Some of the new reinsurers in Bermuda are in for a surprise. I would not own Ace or XL at the momment. Also the financial industry has been selling cat bonds. There could be a lot of defaults here also. Have to go. Tim