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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (36750)	2/27/1998 8:27:00 PM
From: Dee Jay	Read Replies (1) \| Respond to of 61433

it has nothing to do with Cisco itself, only its stock and only as a means of determining what the final payment is going to be. It's as if CSCO is an index against which the interest rate is compared to determine what the final payout will be. Now if the CSCO stock price gets played around with in those final 10 days ("naw, couldn't happen - that would be manipulation!") then the effective interest rate becomes that which is stated in the security which is low. If the underlying stock's price is high enough then the yield will be enhanced accordingly. That's my take on it. I wouldn't go into one of those, but what the hell do I know?

To: Glenn D. Rudolph who wrote (36750)	2/27/1998 10:46:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 61433

I also would like to have a clearer understanding of those CSCO "YEELDS". I'm going to forward that announcement to the CSCO thread and see if they can shed any light on it. Sounds almost too good to be true, so I must have a misunderstanding of what its all about. I only read it three times and was trying to determine if the brokerage house was making a loan??? Totally lost<G> Gents, It's not too good to be true - I think. Style I responded to you on the Cisco thread. Bottom line, it's a loan YOU would be making to the underwriter of the YEELD. They pay you a 5% interest rate for three years. At maturity you get 100.75/share so long as Cisco is trading at 100.75 or higher. If Cisco is trading lower you get that lower share price. If Cisco is trading higher....well tough luck. The question I posed on that thread is if Cisco looks like it's going to tank, can you get out of the YEELD?...that is, is it transferable? If not, I'm not so sure it's a good deal. Gary (not Korn)