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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Tundra who wrote (593)	10/23/1998 9:41:00 AM
From: Henry Volquardsen	Read Replies (2) \| Respond to of 2794

Tundra, There are in fact derivatives of the type you mention. I'm not directly familiar with the portfolio of LTCB so much of what I say will be guesswork. But LTCB has been on the ropes for quite awhile now. Their credit hasn't allowed them to be active in the interbank markets for some time. Since most of the type of derivatives are dealt by more sophisticated players I suspect LTCB has not been able to get involved. Also LTCB's resources, I would think, have been stretched for a while and I doubt they have been active in a broad range of derivative products. I suspect their derivative exposure is in much more straight forward areas like currency forwards, interest rate swaps, futures, plain vanilla options etc. As such I don't think there is as much contingent risk and it would be pretty straight forward and easily identified and priced. Henry