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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (6681)	9/24/1998 4:46:00 PM
From: DMaA	Read Replies (1) \| Respond to of 9980

LTC may be toast, but according to the WSJ they are still soliciting customers: In spite of the results, however, Mr. Meriwether tried to persuade investors to put up more capital. The firm "believes that it is prudent and opportunistic to increase the level of the Fund's capital to take full advantage of this unusually attractive environment" in the bond-arbitrage markets, he wrote. The fund, he continued, is "offering you the opportunity to invest in the Fund on special terms related to LTCM fees." Talks With Soros In recent weeks, Long-Term Capital has offered to cut its fees to an annual 1% of assets and 12.5% of profits for new investors, according to several people knowledgeable of the firm's pitch. Long-Term Capital also has held discussions recently with Soros Fund Management about a $500 million investment by Soros hedge funds into Long-Term Capital, according to someone knowledgeable about the talks. Soros declined to make an investment, this person said. Stanley Druckenmiller, Soros's chief investment strategist, declines to comment. What a deal.

To: Henry Volquardsen who wrote (6681)	9/24/1998 4:50:00 PM
From: Bill Grant	Respond to of 9980

Henry, Don, Paul Volcker didn't like the deal. I thought it was a little unusual for him to be so outspoken so quickly.

To: Henry Volquardsen who wrote (6681)	9/24/1998 7:19:00 PM
From: Jay Scott	Read Replies (2) \| Respond to of 9980

Henry, heard a report that says LTC stays in business but the terms were adjusted. Banks own 85% of profits above 5.5% floor return. Ltc gets 15% of those profits. I guess this is the "punishment" for them. They get to keep less of what they would have made, but no mention about orderly liquidation. Some have said that the Japanese have been reluctant to go after their banks because they know similar skeletons exist in their closets. By pulling the lid off of their exposure to similar lending and derivatives, they would be forced to face a problem that could potentially destabilize the world financial markets even more. Imagine that. JS