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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (145596)	1/23/2002 2:37:18 PM
From: reaper	Read Replies (3) \| Respond to of 436258

<<amazing how fast paper goes out the door >> Actually, not the least bit amazing. Convertible arb hedgies buy all this stuff, its free money. Do the math. Note that the convertible arb hedging community had a +12%-ish year last year, despite the fact the the prices of convertible bonds were actually DOWN; that shows you the level of economics that are being given away in the deal STRUCTURE. This deal (and almost all convert deals) is nothing but a transfer of wealth from Ford equity holders to hedge funds. And the market is only too aware of this; note that money is FLYING into convertible arb hedge funds to collect monies the management of corporate America is giving away. Unbelievable racket! Cheers