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

To: Investor-ex! who wrote (24137)	8/13/1998 9:39:00 AM
From: Oeconomicus	Read Replies (1) \| Respond to of 94695

Wouldn't ML CREATE the warrants for the transaction (sales) fees and then hedge away their exposure? You know -- with some sort of derivative arrangement. :o) You are correct, sir. I'm sure their position is neutral. Of course, whoever they laid the risk off to, or somewhere down the chain, someone has to have a bullish position. The thing I see in this is that they see an environment coming where they can make money by creating products that bears would buy. If they saw this as a correction that had, or soon would run its course, to be followed quickly by the return of the bull, would they be introducing such products? Merrill didn't become Merrill by loading their clients up with investments they really expected to become worthless (Pru and oil & gas partnerships - now that's another approach to client service altogether) or by creating products they saw no potential demand for. BWDIK?