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

To: Henry Volquardsen who wrote (814)	2/19/1999 8:37:00 AM
From: Worswick	Read Replies (1) \| Respond to of 2794

Mr. Market Henry will sort this out, dust us off, shuffle us around and poke us in the eye. And then we can get back up and get on with it. I truly wonder how the Greenteam in Washington think they can simply usurp the forces of gravity and supply and demand and think they can win this battle. Even gravity is against them not mention all the laws of physics and the various laws relating to waves and paticles. ...sigh. I have been posting this on various threads here. People you really should read up on deflation. Not many people get it. I drove down to WaAshington last week from upper New York state and gasoline in New Jersey.... was $.81 cents a gallon. Yes. If this isn't living deflation I really don't know what is. We are back in what 1967? My best to you, Clark

To: Henry Volquardsen who wrote (814)	2/19/1999 9:06:00 AM
From: Worswick	Respond to of 2794

And from Japan we have a stellar example of world class leadership in the ongoing economic crisis. From the Economist: "In a policy U-turn, JAPAN's finance ministry announced that it was shifting more fund-raising to short-term bond issues, hoping to cap the recent sharp rise in long-term interest rates. On the same day, foreign reports suggested that America was more amenable to a weaker yen. The finance ministry promptly announced that it now favoured depreciation too -- its second policy reversal in a single day".

To: Henry Volquardsen who wrote (814)	3/22/1999 6:16:00 PM
From: accountclosed	Read Replies (1) \| Respond to of 2794

Henry, I have a few questions that you could help me with regarding libor/eurodollar issues. TIA if you field some or all of these. 1. Do you know of site/sites on the net where I can get 1 month Libor physical (i.e. not a futures contract) on a daily basis? Bloomberg.com lists 3 month libor. I found one sight that has Bridge info believe it or not in Turkey, but it isn't that reliable a site. I have been referred to the BBA site but don't find it there. 2. Commercial banks are going much more to libor based pricing rather than prime based. Can you give some of the reasons for that? I initially thought that it had some reserve requirement issues...i.e. that banks have no reserve requirements in eurodollar based assets/liabilities versus United States based assets/liabilities. But the reasons I am getting from bankers these days are that the Eurodollar market is the largest in the world and it is easier to do asset/liability matching on the eurodollar futures market. I ask why is it so large? Why doesn't a futures market based on Fed funds get just as large? Tradition, I'm told. Sounds like a shallow answer to me. 3. I understand to some extent the swap process building a synthetic out of eurodollar futures from one month to ten years, etc. Can you differentiate for me libor versus eurodollar. I have repeatedly been told that they are the same. When I go to CME and look at their contract specifications, I see that the contract they call Libor is 1 month based and it seems that the Eurodollar contract is a three-month based. Bankers have told me that the terms libor and eurodollar are interchangeable. However, I don't believe this information. Daily on quote.yahoo.com under fannie mae i can find this link from bridge via ap Eurodollar rates: Overnight, 4.8125-4.875 1 month, 4.8125-4.875 3 months, 4.875-4.9375 6 months, 4.96875-5.03125 1 year, 5.15625-5.21875 London Interbk Offered Rate: 3 months, 5.00 6 months, 5.06 1 year, 5.31 biz.yahoo.com Obviously they are not the same. Again, tia.