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To: Investor2 who wrote (42614)	5/24/1999 10:44:00 PM
From: Lymond	Respond to of 86076

Corporate valuations look attractive now versus recent history, but it seems that spreads will likely to continue to drift wider in the near term given poor liquidity technicals and the absence of significant economic data until the June employment report. With sentiment so weak, corporates are now especially vulnerable to pressure on equities. Of course, if the big one is truly upon us <g>, then we'll get crushed. Don't have a strong opinion on GNMAs -- MBS are not really my field. I believe they've lagged vs FNMAs and FHLMCs recently, and would seem to offer OK value vs other pass-throughs, but I'm afraid I can't really offer much help here. Bear in mind that MBS liquidity far surpasses that of corporates. Regards, John