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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (12895)	1/10/1998 6:10:00 AM
From: William H Huebl	Read Replies (3) \| Respond to of 94695

Mark, Everyone be careful out there... VIX did NOT expand as it should have on Friday... meaning Monday could be absolutely terrible... BWDIK? Bill

To: Mark Adams who wrote (12895)	1/13/1998 3:11:00 PM
From: Mark Adams	Respond to of 94695

Interesting tidbit on Banking exposure to Peregrine liquadation from WSJ Several big international banks are expected to incur losses on their investments in the bank, whose hard-driving reputation owed much to freewheeling Chairman Philip Tose and brash fixed-income head Andre Lee. First Chicago NBD Corp. and Credit Suisse First Boston Corp. were lead agents on a syndicated $110 million revolving line of credit to Peregrine that went into effect in April of 1997, according to Loan Pricing Corp., a New York research firm. In addition, Credit Suisse and Chase Manhattan Corp. were lead agents on a syndicated $200 million letter of credit signed in November 1996. Both credit lines were designed to be drawn in the event Peregrine stopped making payments -- as it did late last week -- on about $250 million worth of commercial paper it issued to investors. A Chase Manhattan spokesman declined to comment on whether the bank is exposed to any losses on its loans to Peregrine. First Chicago's losses on the loans aren't expected to exceed $40 million, while its losses on other, off-balance-sheet financings to Peregrine aren't likely to top $10 million, according to one person familiar with the situation. A First Chicago spokesman said the bank doesn't comment on client relationships. Credit Suisse has a maximum exposure to Peregrine of $40 million, according to a person familiar with the situation. But Credit Suisse still hopes to recover at least part of that amount and to offset any losses on it guarantees by closing out Peregrine's trading positions, the person said. A Credit Suisse spokesman declined to comment. Citicorp, which bought a stake in at least one of the syndications, has "very limited" exposure, according to a Citicorp spokesman. Fund-management firm Franklin Resources Inc. now holds at least 12.5% of Hong Kong-listed Peregrine. A spokesman for Franklin Resources said the size of the Peregrine stake held by Franklin funds was "very small" inrelation to the firm's total assets under management. He said the Peregrine shares are spread among institutional accounts and Franklin's Templeton mutual funds. Trading in shares of Peregrine has been halted. Mark Holowesko, chief investment officer and portfolio manager of Templeton Foreign Fund and Templeton Growth Fund, the two funds with the largest holdings in Peregrine, said the investment "was obviously a mistake. It was poor judgment for us to buy it." But he added that it would have "no impact. It's a tiny holding."