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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (24834)	11/1/2002 7:22:37 AM
From: TobagoJack	Respond to of 74559

Hi energyplay, <<Okay, energyplay, how could they NOT blow up ? Some steps - 1) Shift to Freddie Mac securities, which are better balanced for duration and out of Fannie Maes. 2) Short Fannie Mae Stock. This is a standard bond hedge technique, especailly for convertible bonds. 3) Short or buy puts on banks and insurance comapnies who issue credit risk insurance 4) Use some of their surplus to buy more credit lines & long Treasuries 5) Buy swap options to swap some of their long term Fannie paper for short term Fannie paper>> Appreciate these points and now I have something to check with my bond pals. <<I also don't like to short stock that pay 15% interest, either>> ... I can understand your reluctance:0) <<I currently have lots of AMGN puts - AMGN was suggested by "gravity rules" a poster who said the chart looked 'toppy'>> Will look at this matter. My concentration was elsewhere and so appreciate the heads-up. Chugs, Jay