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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (5335)	12/13/2001 5:34:10 PM
From: Davy Crockett	Read Replies (1) \| Respond to of 36161

Nice Iso, I dunno how you do it. I find the bond market way too opaque, & have a lot of trouble understanding how this huge market works ( I understand that it dwarfs the stock the NYSE & NAZ collectively). Regards, Peter ps. thanks for the insight

To: isopatch who wrote (5335)	12/13/2001 5:42:57 PM
From: yard_man	Read Replies (2) \| Respond to of 36161

but if they are selling bonds to reduce USD exposure what are they buying? They have to buy something else otherwise they have USDs, right? any way to guage if any of this is an exodus of "foreign" investors -- thanks All the selling does seem counter-intuitive if we just considered it a closed-system and that the bond market simply anticipated the chance for increased economic activity and some resulting price inflation ... these guys aren't casting a vote to say they think recovery is closer to us, right?

To: isopatch who wrote (5335)	12/13/2001 6:13:09 PM
From: ldo79	Read Replies (1) \| Respond to of 36161

Iso - here's a little derivatives note: Enron files to negotiate derivatives termination NEW YORK, Dec 13 (Reuters) - Hobbled energy giant Enron Corp. (NYSE:ENE - news) filed an emergency motion in bankruptcy court earlier this week to allow it to negotiate with counterparties to terminate derivatives contracts immediately, according to court documents obtained by Reuters. Enron is looking to cash in on derivatives assets it holds as soon as possible, because the amounts it is owed could erode or turn into deficits given market volatility, it said in the filing. A spokesman for Enron was not immediately available. A derivative is a security whose value is dependent on the performance of an underlying asset. Enron filed for bankruptcy on Dec. 2 after questions about highly-leveraged off-balance sheet partnerships raised concerns about the transparency of the company's finances and its potential future solvency. The emergency motion, filed on Monday, shows that Enron is trying to collect on assets it is owed, an industry lawyer said. ``Potentially, parties that have not terminated would owe Enron money if they terminated the contracts. By not terminating, they may be trying to avoid that liability.'' It is not an unusual motion for a bankrupt party to file, he added. Several derivatives traders were surprised that any parties had yet to terminate the contracts, but although Enron does not mention an amount it is owed, it said in the filing that they constitute ``significant assets of the Debtors' estates.'' ``Debtors'' refers to Enron Corp. and direct and indirect subsidiaries that have filed for reorganization under chapter 11 of the bankruptcy code. Derivatives counterparties to a bankrupt company typically terminate the contracts themselves to extract themselves from the potentially messy bankruptcy process and to establish their positions as early as possible, said Seth Grosshandler, partner at Cleary, Gottlieb, Steen & Hamilton in New York. He declined to comment on Enron, due to client relationships. The Enron debacle has prompted lawsuits from investors, Congressional hearings and an investigation by the Securities and Exchange Commission. Enron said on Wednesday that it plans to realign its business, sell up to $6 billion of assets, and sell a controlling stake in its key energy trading unit. biz.yahoo.com Regards, ldo79

To: isopatch who wrote (5335)	12/13/2001 10:22:40 PM
From: rails99	Read Replies (1) \| Respond to of 36161

Iso: Thanks for those words of warning. I did not get the pop back I was expecting in the 30 year I went for, although it was up. Bond chart in 31 shows turned down right after the 1st of Jan. APA's historically top inventory this weekend. Old GG turned up this whole year. Let me think about what sector/market seems to scream hold me. Now if Roebear just would say that NEM chart is showing the short MACD turning up! That would be great, indeed. Best Wishes; Rails