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To: Defrocked who wrote (71195)	10/22/1999 2:54:00 PM
From: Ken98	Respond to of 86076

``They're going pretty far down the food chain in terms of acceptable collateral now,' the dealer said. ``So it was kind of bullish for spread product; spreads came in rapidly on that.' biz.yahoo.com That's an understatement - a lot of that MBS paper is about to become toxic and the Fed is taking it as collateral? Its one thing to take agency paper but a completely different thing to take junk paper (rated or not) to enhance liquidity. Something does not smell right about this.