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To: Dennis J. who wrote (8705)	10/14/1998 4:25:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34813

Actually, I'm with Wizzie right now. Flew in to Houston today and going over stuff. Stock fixins. We are off to Virginia on Friday to hang with the Big 'un this weekend. Will post later on. :-) Jan and Preston

To: Dennis J. who wrote (8705)	10/14/1998 9:39:00 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 34813

Excerpt from MSNBC on those clandestine hedge funds... According to a top Wall Street fixed income markets expert, Ellington Capital Management may well be suffering from a boomeranged hedge that is now devastating the portfolio positions of a large number of funds: buying corporate or mortgage debt, then "hedging" the position with an offsetting short-sale of U.S. Treasuries. "Putting on this type hedge makes sense in stable markets," says the source. "It allows you to pick up the spread between corporates and Treasuries with a lot of leverage and very little risk. But the problems at Long Term Capital Management created a flight to quality that has caused corporate debt to decline against Treasuries. As a consequence, anyone with a short position in Treasuries is now getting slaughtered." This source, and others, says that the drying up of liquidity throughout the fixed income market is being aggravated by continuing uncertainties regarding the future of Long Term Capital Management itself. The fund collapsed last month with nearly $100 billion of borrowed money on its books. Long Term Capital was rescued by a consortium of Wall Street investment banks and others, but sources on Wall Street say that nearly a month later the hedge fund's positions still have not been unwound. "We hear lots of rumors that much of the rescue capital at Long Term Capital Management is gone already," says the source. "And a lot of the selling of corporate debt that is now hitting the market appears to be coming from funds that are not involved in the Long Term Capital situation at all, but that know there is still more selling to come straight out of the fund's portfolio. They thus want to get out in front of it." Bottom line? Instead of being simply another "isolated incident," the troubles at Ellington Capital Management are shaping up as the next in what could well turn out to be a very long line of such stories still to come. It is a situation over which lack of public knowledge - and private accountability of the funds themselves - hangs like a dark and foreboding cloud.