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To: t2 who wrote (15848)	1/4/2001 3:48:23 PM
From: SJS	Respond to of 24042

Maybe so, but again.....I've had an opportunity to read the Lehman report, and I don't know if you have. I only have a paper copy, so I can't get it to you. I'd suggest reading that for a position on telecom debt. However, for guys like XOXO, MCLD, Q and other quality companies, this is good news. Q is up about 20% in 2 days. Steve

To: t2 who wrote (15848)	1/4/2001 5:54:52 PM
From: Stocker	Read Replies (1) \| Respond to of 24042

Steve, My point is that if a good CLEC's debt is received warmly--ie over subcribed; that implies that companies that are a little weaker financially would also be able to get credit. t2, what you say is possible but it consider this....it's usually high yields that attract investors in corporate bonds and sometimes those high yields are the result of a perceived high risk. An increased interest in CLEC debt may just be the result of the fact that their yields have increased, not as much as a result of any fundamental change in the financial situations at those companies. In fact, you could also make the case that for a new CLEC bond issue to be attractive it has to be offered at a higher rate than bonds of its peer companies. That would mean a bigger financial drain on CLEC's forced to issue debt in current markets. It's no given that weaker co's can get credit, UNLESS they're willing to offer it at even higher rates. It's similar in a reverse sense to a stock issue - if you offer new stock at a low enough price, even stock of bad co's can end up oversubscribed. (Note that I haven't seen the rates involved in today's issue so I am only speaking about bonds from a general perspective.)