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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (32854)	9/25/1998 5:14:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Tip, If the positions had been unwindable, LTC would have done it without bank help. The problem is, if you are long Brazilian bonds and short Treasuries, as I understand they are, there simply is no bid for that spread for that size. And you cannot trade it in small pieces, because once you start to parcel it out, the spread will collapse even further. So, not only were these guys dumb, they were dumb in illiquid crap. The stuff that is sellable will be sold immediately. But my guess is that that stuff has already either been sold or pledged as collateral to finance the real crap and cannot be sold until said crap is unwound. My guess is that this will be another 100 Years War, not a Blitzkrieg. MB