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To: peter michaelson who wrote (9058)	11/8/2005 12:09:26 PM
From: Clase Azul	Read Replies (1) \| Respond to of 12465

nice post! I posted a link on Ruff's nekid shorting thread.

To: peter michaelson who wrote (9058)	11/9/2005 12:39:20 AM
From: Jeffrey S. Mitchell	Respond to of 12465

I think this distinction is far more powerfully explanatory than that between naked and 'clothed' shorting. Yes, toxic converts (aka death spiral financing) is somewhere in the middle. It's not naked since you have the debentures to convert to shares, but it's not 'clothed' since you are not obligated to buy back an equal number of shares like you would with a "conventional" short. So how about the term "leveraged short"? In this form of shorting you are essentially taking out a loan with the debentures as collateral. - Jeff