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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (12191)	7/31/1998 1:17:00 PM
From: Marconi	Respond to of 18691

Hello Mr. Buschman and all: Remember holders of discounted convertibles are required to face market risk for a period -- generally at least 90 days. Practically, there are many examples of unethical (criminal) conduct in the ranks of the floorless convertible investor groups, which is unfair and at the expense of the public at large. Public policy dictates risk versus rewards are to be on a common footing for market participants. The SEC is responsible for such issues. I believe the abuses remain widespread at this time, however. Circumventing the 90 days could be done legitimately, something I have never heard being done--and that would be to identify and hold an equivalent basket of securities that move to a predictably high degree along with the stock underlying the convertible. A synthetic derivative. Only takes a quant, some programs, data, and a PC...or so. Best regards, m