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

To: ratan lal who wrote (28738)	9/24/1998 12:31:00 PM
From: yard_man	Read Replies (1) \| Respond to of 94695

Question is: Where is their exposure? Anybody have anything on this?

To: ratan lal who wrote (28738)	9/24/1998 12:35:00 PM
From: yard_man	Read Replies (1) \| Respond to of 94695

Think they bought some ALA on margin or debt related to foreign telco? ADR REPORT - Long Term Capital woes hit ADRs By Daniel Bases NEW YORK, Sept 24 (Reuters) - Prices of American Depository Receipts were mixed Thursday, but traders took a cautious tone on the news that both commercial banks and the New York Federal Reserve have gathered together to bail-out the multi-billion dollar hedge fund, Long-Term Capital Management LP. Traders in the ADR market remarked that LTCM's exposure to non-U.S. markets was having a negative impact on prices, after it was disclosed that $3.75 billion had been committed to keep the fund from going belly-up because of heavy losses incurred in the global financial turmoil. ''Long-Term Capital is having an effect on the foreign markets,'' said a senior ADR trader at Dresdner Kleinwort Benson. ''I think the rally in the U.S. markets yesterday(Wednesday) wasn't backed up by the local markets, so there's some selling going on and the Euro-banks are caught up in Long-Term Capital,'' the trader added. Banking authorities in Britain and Switzerland have asked banks in their jurisdictions to provide them with details of their exposure to LTCM and other hedge funds. UBS AG , Europe's largest bank said Thursday that market turmoil since mid-August had caused a substantial drop in income leading to an expected third quarter loss after taxes of $360 million (500 million Swiss francs) to $720 million. The bank said it had to write down the value of its investment in LTCM, resulting in a charge of 950 million Swiss francs. One barometer of the ADR market, the Bank of New York index of leading ADR's is down 1.86 points or 1.89 percent to a level of 96.65. Telecommunications stocks, darlings of the ADR market Wednesday, were the volume leaders and losers Thursday. ''I think this selloff in the telcos is just a technical condition of the market,'' noted one trader. Brazil's Telebras (NYSE:TBR - news), the volume leader among the ADRs was down 1-5/16 at 76-5/8; Finnish telecoms equipment maker Nokia (NYSE:NOKa - news) was off 2-13/16 at 80-9/16; Sweden's LM Ericsson (Nasdaq:ERICY - news) was down 1-1/16 to 19-1/2; France's Alcatel Altsthom (NYSE:ALA - news) lost 1-1/8 at 18-7/8; the Netherlands' Philips Electronics (NYSE:PHG - news) fell 2-3/16 to 51-1/16 and Mexico's Telefonos de Mexico (NYSE:TMX - news) was down 1-1/4 at 47.