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Non-Tech : Cityscape Financial (CTYS) -- Ignore unavailable to you. Want to Upgrade?

To: John Liu who wrote (1569)	11/12/1997 2:18:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 2544

John: As a subprime lender, CTYS serves the least affluent segment of society, these are social strata at the fringe, when unemployment in acountry goes up by .1% it rises in their starta by 10%. They take the brunt of economic dislocations. Even in good times a large proportion of their loans are underperforming or non performing, the fear is that we may enter a slight dislocation in these market (just a slow down, not even a recession) and that in those starat this will translate into major increases in default rates. At least, this is my opinin. Aisde of that, CTYS has a number of problems relating specifically to them, not the least of them being the floorless preferred. Zeev