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To: GrillSgt who wrote (65244)	2/4/2003 12:05:16 AM
From: Doppler	Read Replies (1) \| Respond to of 209892

why not just buy the cubes Who? ML, or the suckers they will sell them to. If you mean the suckers, then I guess they figure the investing public will think that 10 bucks is a great price to pay for the Cubes.

To: GrillSgt who wrote (65244)	2/4/2003 12:14:18 AM
From: Luis Bardi	Read Replies (1) \| Respond to of 209892

It's a beauty of a deal (for Merrill) They get the money upfront, they use a fraction of the proceedings to hedge to neutral, and on top of it they get to keep the difference if the NDX goes up more than roughly 6.3% per year. (because the notes value is capped) I can hear the Merrill "pushers": "The market is going to rebound strongly, and you'll be able to triple, TRIPLE, what the NASDAQ does..." To answer your question, these are similar to the Rydex (or ProFunds) dynamic funds except that: Dynamic funds are liquid. If the NDX goes down with a Dynamic fund you lose twice the % instead of three times. If the NDX goes up you get only twice the NDx instead of 3 times, but you are not capped to 6.3% annually. see more comments here: investorshub.com