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To: NOW who wrote (141791)	1/5/2002 11:28:29 AM
From: patron_anejo_por_favor	Respond to of 436258

Yah, I'm not betting the farm (yet) either. What they tell me is that even though the cost of money to the banksters is low, they won't lend...presumably because their perception is that risks are too high, and aggregate credit quality is declining. Better to use the cheap dough on SWAP spreads, CDO's, ABS/MBS deals where they can easily lay off the risk to the future bagholders. Subsequently, long rates will continue to rise and spreads (generally speaking) will fall at least in the short run.