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To: robnhood who wrote (5507)	9/9/1998 9:09:00 PM
From: robnhood	Respond to of 86076

further to my last post--- <<the other interesting abnormality in hedge land is that the short positions that people put on to hedge interest rate exposure are now biting hard. If, for example, a person wished to hedge long mortgage backed securities portfolios for interest rate risk, the normal hedge is short T-Bond futures. The recent rush to avoid risk assets of all sorts have caused all assets, other than treasuries, to decline. Thus the interest rate hedges aren't working to protect interest rate risk, and in fact have added to exposures since people are short T-Bonds, and long nearly every other fixed income item, thus adding a component of short-covering to the flight to quality.>>>