Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Robert K. who wrote (7353)	9/27/1998 12:28:00 PM
From: aknahow	Read Replies (1) \| Respond to of 17367

Bob, this is old news and has already impacted the markets. Urge everyone to read TSC or thestreet.com at thestreet.com to stay up to date with coverage on any important event that has implications for the market. While I do not wish to minimize the importance of this failure note that the Trillion figure does not explain that even a simple hedge inflates a balance sheet without meaning the entire inflated amount is at risk. If one buys $100,000,000 of 30 yr. treasuries and shorts $100,000,000 of 10 year treasuries the balance sheet reflects $200,000,000 but the risk is in the relative change in price between the two securities. The transactions entered into were far more complex and involved not securities but derivatives based on the interest rates of various securities in various countries. My point? The number published by the N.Y.Times catches ones eye and scares the public but does little to explain what the real losses will be. BTW I have never been a fan of getting into overly complex positions and reliance on computer models to measure risk.