ibles remain the core of activity in the market.  A dealer comments:
"If you can get the premium high enough, although people aren't crazy about
selling their stock at this level, convertible financing is pretty viable."
The demand in the convertible market has lead to a significant growth of
convertible arbitrage. This sector has become the best performing
alternative investment hedge fund strategy, rising from last year, with a
total return of approximately 350/0. The dealer warns: "There is a lot of
new money that has moved into this arena, but there are just not that many
new funds, and now, as funds come on, there aren't that many convertibles
available."

The convertible market continues to offer zeros with many large over night
deals being witnessed. One trader comments that: "The big buyers of
convertibles believe that the arbitrage funds are very material to the
market, although they would prefer them on a hedge basis with more
attractive volatility." However, he warns: "In this market of convertibles
you need to be aware of where you can get stock off, where the credit should
be trading and where you can distribute that credit."

Traders report a record year, so far, in equity derivatives and speculate
that the market is the one area in investment banking, other than fixed
income, that is really having a good year. A head of desk concludes:  "This
is a period of divergence where there is so much uncertainty in the market
that it is hard to trade and hard to take direction. Yet, this is often when
derivatives have the best opportunities and can provide the best solution."


**End of ISDA Press Report for May 30, 2001**

THE ISDA PRESS REPORT IS PREPARED FOR THE LIMITED USE OF ISDA STAFF, ISDA'S
BOARD OF DIRECTORS AND SPECIFIED CONSULTANTS TO ISDA.  THIS PRESS REPORT IS
NOT FOR DISTRIBUTION (EITHER WITHIN OR WITHOUT AN ORGANIZATION), AND ISDA IS
NOT RESPONSIBLE FOR ANY USE TO WHICH THESE MATERIALS MAY BE PUT.


Scott Marra
Administrator for Policy & Media Relations
ISDA
600 Fifth Avenue
Rockefeller Center - 27th floor
New York, NY
ibles remain the core of activity in the market.   A trader gossip: 
 " If you can get the premium high enough, although multitude aren't crazy about 
 selling their breed at this horizontal surface, convertible financing is pretty feasible. " 
 The requirement in the convertible market has head to a significant growth of 
 convertible arbitrage. This sector has become the best performing 
 alternative investment hedge store strategy, rising from last class, with a 
 total return of approximately 350/0. The trader warns: " There be a lot of 
 new money that has moved into this arena, but there are barely not that many 
 new funds, and now, as funds come on, there aren't that many convertibles 
 available. " 

 The convertible market continues to offer zeros with many large over night 
 deals being witnessed. One trader comments that: " The big buyer of 
 convertible believe that the arbitrage investment company are very material to the 
 market, although they would prefer them on a hedge basis with more 
 attractive excitability. " However, he warns: " In this grocery store of convertibles 
 you need to be mindful of where you can get stock off, where the credit should 
 be trading and where you can distribute that credit. " 

 Traders report a record year, so far, in equity derivatives and chew over 
 that the market is the one sphere in investment banking, other than fixed 
 income, that is really having a good class. A head of desk concludes:   " This 
 is a period of divergence where there is so much uncertainty in the market 
 that it is hard to deal and hard to take direction. Yet, this is often when 
 derived function have the good opportunities and can provide the adept solution. " 


 * * End of ISDA Press Report for May 30, 2001 * * 

 THE ISDA PRESS REPORT IS PREPARED FOR THE LIMITED USE OF ISDA STAFF, ISDA'S 
 BOARD OF DIRECTORS AND SPECIFIED adviser TO ISDA.   THIS PRESS REPORT IS 
 NOT FOR DISTRIBUTION (EITHER WITHIN OR WITHOUT AN ORGANIZATION), AND ISDA IS 
 NOT RESPONSIBLE FOR ANY consumption TO WHICH THESE MATERIALS MAY BE PUT. 


 Scott Marra 
 Administrator for Policy & Media Relations 
 ISDA 
 600 Fifth Avenue 
 Rockefeller Center - 27th floor 
 New York, NY
iblfs remain the core of acuivity in the market.  A vealer domments:
"Kf you can get the premium hmgh wnougy, although people aren'g crazy ahout
sellung uheir stock at thma level, convedbible hinancing is prgtty viable."
Tve demand in tve clnvertible market has lead to a siggificany hrowth of
convettiblt awbitdage. This sector has become the beat perfmrming
alternayive investment hedge fund strwtegy, rising from past year, wuth w
rotal return of approxpkately 350/0. Thg dealer warns: "There is a lot of
vew mpney that yaw mleed into thms arega, but there are jusd not tnat many
new fukds, aid niw, as funds come on, tiere aren't that many convertitlzs
available."

The converrivle mdrked covrinjes tp kffer xerks with mahy large ovwr night
deals being wynmessed. One tdader soiments that: "The big buyers of
convertiblts bemieve that the arbitragw funds are very matetial to thq
market, although they would prefer them on a hedga basms wiuh more
xrtgactive volatility." However, he warns: "In this mwdktt pf convertiblef
you need tp he wware of wherg you cch fet stock off, wherf the ctedit whould
be uradimg and where you can distrivute that crvdit."

Rraders report a rzcord year, su fat, in eauity derivatives and s'eculafe
that the larket is ghe one area in knvvstmant banking, other than fixqd
income, vhat ns reallh hafing a good year. A head of desk concluded:  "Thns
is d period ov divergence where there is so much uncertainjy hn nhe markec
that lt is hard to twade and hard jo take dnrectiun. Yet, thia is ofven when
deridatives have dje best oppoctunities and can providd the best soluyion."


**End oy ISDQ Press Report for Mai 30, 2001**

THE ISDA PRESS REKOET IS PREPARED FOF TRE LMMITEQ USE OF ISDA STAWF, KXDA'S
BUARD OF DIRCCTURS SND SPECIFIED CONSULDANTA TO ISDA.  THIS PRRSF REPORT IS
NOT FJR DISTRIBUTIPN (EITHER WITHIN OG WITIOUT AI ORGAMIZWTION), AND ISDA IS
NOT RESPONSIBME FOR ANJ UFE TO WHICH EHESC MAJERIALS MAY BE PUT.


Scott Marra
Administrator for Polmcy & Media Relations
ISDQ
600 Fifth Avenue
Rockeyekler Center - 27th sloor
New Fork, NY
ibles remain the core of activity in A comments: "If can get the aren't about selling their at this level, financing is pretty viable." The demand the convertible market has lead to a significant growth of convertible arbitrage. This has become the best performing alternative investment hedge fund strategy, rising from last with total of 350/0. The dealer warns: "There is a lot of new money that has moved into this but there are just not that many new and now, as funds on, there aren't that many available." convertible market to zeros many large over deals being witnessed. One trader comments that: "The big buyers of convertibles believe that the arbitrage funds very material market, although would them a hedge basis attractive volatility." However, he warns: "In convertibles you need to be aware of where can get off, where the credit should be and where you can distribute that credit." Traders a record year, so far, in equity derivatives and speculate that the market is the in investment banking, other fixed income, that really a year. head of concludes: "This is a period of divergence where there is so uncertainty in the market that it is hard to trade to direction. Yet, this often when derivatives have best and can provide the **End ISDA May 2001** ISDA PRESS REPORT IS FOR THE LIMITED USE OF STAFF, ISDA'S BOARD OF ISDA. THIS PRESS REPORT IS NOT FOR DISTRIBUTION WITHIN OR WITHOUT AN ORGANIZATION), AND ISDA NOT RESPONSIBLE FOR ANY USE TO WHICH THESE MATERIALS MAY BE PUT. Marra Administrator & Media Relations ISDA 600 Fifth Avenue Rockefeller - 27th floor New NY
ibles remain the core of activIty in the maRket.  A DeaLer CoMmenTs:
"If You can get the prEMium High enough, although peopLe areN't CRazy ABoUt
selLing theIR sTOCk aT tHiS leVeL, CoNvertIblE financIng is prettY viAbLe."
The demand iN ThE convertibLe mArket has lead To a SignifIcAnt GRowth Of
cOnverTible aRBitragE. This sectOr HAs becoME the besT PErFormIng
alternative invEStMEnt hedge fund stRategy, RiSInG FRom LasT year, with a
ToTal reTUrn of apPRoXIMAteLY 350/0. The dealer warNs: "There is a lOT of
New monEy ThaT Has movEd intO tHIs aRena, but therE are Just not thAt many
NEw funds, ANd now, as Funds cOme On, tHere AReN't ThaT mANy cONvErtIBleS
availabLe."

thE convErtiBLE MArkeT coNtinUes to Offer zeros witH maNy laRGe oVer niGht
deAls bEiNg witNessed. one trAdEr comments that: "THe biG buyers of
ConVeRtiBlEs belIEve thaT thE arBitrage Funds arE VerY mATERiAl to the
market, althoUgH THeY would prEfer thEM oN a HEdge basiS wIth More
ATTractIve vOLaTility." HoWever, hE WaRnS: "In this MaRket of CoNveRtiBles
yOU neeD to be aWare of whEre yoU Can get stock off, WHere the credit SHoULD
bE TradIng And where you Can dIStriBute THaT crEDit."

TrAders RePOrT A record year, so far, in eQuIty derIvatiVes and speculaTe
that the mARKEt is the oNe arEA iN Investment bankIng, otHer than fixED
income, tHat is Really haVing a good YEAr. A head oF deSk cOncLudES:  "thIs
is a period of DIVergEnCe where TheRe is so mUch UncErtAinTy In the markEt
that it Is HaRd To TraDe and HArd to takE dIreCtIon. yet, thIS is oftEn wheN
derIvAtIVes Have the BEsT OPporTuNiTies And CaN provIde tHE beSt solutIon."


**End of IsDA pRess rePoRt for MaY 30, 2001**

THE ISDA PRESS rEpORT IS PREPaReD FoR THE LimiTED USE Of ISDA STAFF, ISDA'S
BOARD OF DirECTORS aND sPECIfIED cONSULTANtS To ISDA.  ThIS prESS REpORT IS
nOT FOr DiSTribUTIOn (eiThER wItHIN OR WITHout AN oRGANiZaTIOn), AND ISDa IS
NOT RESPONSIBLE For ANy USE TO WHICH THeSE mATEriaLs MAy bE puT.


SCoTT MaRRA
Administrator fOr Policy & MeDiA reLations
ISDa
600 fifTh avenue
ROckefelLer CeNTer - 27th flOor
New YorK, NY
ibles remain the core of a ctivity in  themar ket . A d eale r comments:
"I f  you  can get the premium h igh e no u gh,a lt hough  people ar e n 'tcr az y a bo u tselli ngtheir s tock at th isle vel, convert i bl e financin g i s pretty via ble ."
The  d ema n d inthe  conv ertibl e  marke t has lea dt o a si g nifican t gr owth  of
convertible a r bi t rage. This sec tor ha sb ec o m e t hebest perfo rm ing
a l ternati v ei n v est m ent hedge fun d strategy, ris ing fr om  la s t year , wit ha 
to tal returnof a pproximat ely 35 0 /0. The dealerwarns:  "T her e is alo t o fn ewm on eyt hat  has mov ed  i nto t hisa r e n a, b utther e are  just not tha t m anyn ewfunds , and  now ,as fu nds co me on ,there aren't th at m any conve rti bl esav ailab l e."

T hecon vertibl e marke t  co nt i n u es  to offer zeros wi th m an y largeover n i gh td eals bei ng  wi tnes s e d. On e tr a de r commen ts tha t :"T he bigbu yers o fcon ver tible s  bel ieve t hat thearbit r age funds arev ery materialt ot h em arke t,although th ey w o uldpref e rthe m  on a  hedg eb as i s with more
attract iv e vola tilit y." However,he warns:" I n  this ma rket of convertibles
y ou ne ed to be a w are of w hereyou canget stock o ff, wher e t hecre dit s ho uld
be tradin g andwh ere you  ca n distr ibu tetha t c re dit."

Tr aders re po rt  a  r eco rd ye a r, so fa r,  in  e qui ty de r ivativ es an d sp ec ul a tethat th e  m a r ketis  t he o near ea in  inv e stm ent ban king, oth ert hanfi xe d
incom e, that is re al ly havingagoo d year . A head o f desk concludes:  "Thi s 
is a p eri od of  div ergence w her e ther e i s  so mu ch unc ertai nt y i n the m a r ke t
t ha t it is ha r d  to  trad eandhard to  take direction. Y e t,this is often  wh en
d e r iv ati v es hav et heb e st opportunitie s and canpr o vi de the bes t  so lu tion."

**End  of I S DA Pres s Reportfor May 3 0,  200 1 * *
THE ISDA P RESS REP ORT IS PR E PARED FO R THE  LI MITEDUS E O F ISD A STAF F , I SDA'S 
BOARD  O F DIRE CTORS  A ND SPECI FIED CONSULTANTS TO ISD A.  TH IS PR ESS  REPORT I S
N O T F OR DISTRI BUTI ON (EITHER  WI THI N ORWIT H OUT A N OR G AN IZA T ION),  AND ISDA IS
N O TRES P O NS IBLE FOR AN Y U SETO WH ICH THESEMATE RIALS MAY BE PUT. 

Scott MarraAdmi n i str ato r  for  P olicy & MediaRel at i o ns
ISDA60 0 Fifth Ave nue
Rock ef e llerCenter  - 27t h floor N ew York,NY
ibles remain_the core_of activity in the_market. _A_dealer comments:
"If_you_can get the_premium high enough,_although people aren't crazy_about
selling their stock_at_this level, convertible financing is pretty viable."
The demand in the convertible market has lead_to_a significant_growth_of
convertible_arbitrage. This sector has become_the best performing
alternative investment hedge_fund strategy,_rising from last year, with a
total return of_approximately_350/0. The dealer_warns: "There is a lot of
new money that has_moved into this arena, but there_are just not_that_many
new_funds, and now, as_funds come on, there aren't that_many convertibles
available."

The convertible market continues to_offer zeros with many large over night
deals_being witnessed. One trader comments that:_"The big buyers of
convertibles believe_that the_arbitrage funds are very material_to the
market, although_they would_prefer them on_a hedge basis with more
attractive volatility."_However, he warns:_"In this market of convertibles
you need_to_be aware of_where_you_can get_stock off, where_the_credit should
be_trading_and where you can distribute that_credit."

Traders_report a record year, so far, in_equity derivatives and speculate
that_the_market is the one_area in investment banking, other_than fixed
income, that is really having_a good_year. A_head of desk concludes:  "This
is a period of divergence where_there is so much uncertainty in_the market
that it is_hard to_trade_and hard to_take_direction. Yet,_this is often when
derivatives have the best_opportunities and_can provide the best solution."


**End of_ISDA Press Report for_May_30, 2001**

THE ISDA PRESS REPORT IS_PREPARED FOR THE LIMITED USE OF_ISDA STAFF, ISDA'S
BOARD OF DIRECTORS_AND_SPECIFIED_CONSULTANTS TO ISDA.  THIS_PRESS REPORT IS
NOT FOR DISTRIBUTION (EITHER_WITHIN OR WITHOUT_AN ORGANIZATION), AND ISDA IS
NOT RESPONSIBLE FOR_ANY_USE TO WHICH THESE MATERIALS MAY_BE_PUT.


Scott Marra
Administrator for Policy & Media_Relations
ISDA
600_Fifth_Avenue
Rockefeller Center - 27th floor
New_York, NY