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To: Lymond who wrote (88935)	4/2/2001 6:40:11 PM
From: pater tenebrarum	Respond to of 436258

Hi John! nice to hear from you. well, the banks have the most leeway of all industries w.r.t. cooking the results...but eventually the economic slowdown will catch up with their meager loan loss reserves. noticed the AA spread coming in quite a bit, but the 100 bps. its at is still a long way from the 30 or so as recently as '97. but obviously the rate cuts have taken a lot of pressure off the high grade spreads. we'll see if that continues...deterioration of corporate credit quality happens with astonishing speed nowadays, see the Cali utilities for an extreme example...or LU.