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

To: James F. Hopkins who wrote (24501)	8/17/1998 11:34:00 AM
From: yard_man	Read Replies (2) \| Respond to of 94695

Hedging of course requires that somebody else take the other side of the position, right? Someone has to lose for the hedging to work. This is something that ought to be thought about. All our banks hedged their lending to institutions in Asia -- great, way to go, as long as the other parties perform their end of the contract! Some have suggested that in a market crash -- put options might not be "payable." Seems remote to me, but not out of the realm of possibility. Certainly in a 20 - 30% decline, some folks who take the other side of these positions would go out of business.

To: James F. Hopkins who wrote (24501)	8/17/1998 11:35:00 AM
From: yard_man	Read Replies (1) \| Respond to of 94695

DAX regains most ground lost to Russian worry FRANKFURT, Aug 17 (Reuters) - Germany's DAX recouped most of the losses made earlier on Monday after Russia effectively devalued the rouble and imposed a 90-day debt moratorium as investors stepped in seeking bargains. Amid a deepening Asian financial crisis, dealers warned the German market remained volatile and worried that Russian economic woes could lead to political instability. By 1333 GMT the DAX was 0.47 percent weaker at 5,422.24 points while the Xetra DAX was 0.94 percent weaker at 5,422.21 points after having fallen as far as 5,307.76. German banks, Russia's biggest creditors, were hard hit earlier but recovered. By 1338 GMT Dresdner(quote from Yahoo! UK & Ireland: DRSD.F) was the weakest of the banks and was 3.47 percent down at 91.50 marks. Deutsche Bank (quote from Yahoo! UK & Ireland: DBKG.F) was 75 pfennigs firmer at 137.55 marks and Commerzbank (quote from Yahoo! UK & Ireland: CBKG.F) was 1.69 marks down at 58.45 marks. ''Russia is obviously making people very nervous. The German banks are the biggest creditors. The financial sector doesn't like that,'' one dealer said.