Due to requests for examples of my trading style, I am listing below actual arbitrage trading opportunities in which I have a position. Arbitrage 1 Long--MBNA (KRB) 8.278% Junior Sub Debenture Due 2026 Price 92 (trades on NYSE) Short --MBNA Capital 8.25% Preferred (KRB Pr C) Price--$25.50--this security is backed by a Junior Sub debenture or Short MBNA Preferred A 7.5% (KRB Pr A) Price $24.43 ____________________________________________ Arbitrage 2 Long MBNA Capital D 8.125% Preferred (backed by KRB Jr. Sub Debentures) Price $24.60 Short- MBNA 7.5 % Preferred Price $24.43 ________________________________________________ Except for the "D" preferred all the above are currently callable at par. ____________________________________________________ Arbitrage 3-- Long AT&T Capital 8.125% Public Income Notes (NYSE symbol "CIC"). Callable at par (25) on 11/15/2003. These are Sr. debt obligations of CIT Corp (S&P A, Moody's A2) and rank pari passu with all sr. debt of CIT. Short CIT 5.875% bond due 10/15/08 (traded on NYSE) at 97. This is not only an interest differential play, it's a bet that CIC will be called in 2003. After talking to CIT's treasury dept, I believe their intent is to call the high yielding debt next year. (CIT has access to the commercial paper market , rated P-1). I am extra long here, taking advantage of the interest paid by CIT v. the rate I pay the clearing firm. _____________________________________________ Arbitrage 3 Long AMR 9% bond due 9/15/16 at 68.50 Short AMR Public Income Notes (7.875 due in '39) at 16.45 (Nyse symbol AAR) The AAR has moved down since I shorted it, but there's still a yield differential. _________________________________________________ They ain't sexy.....but they make money. +++++++++++++++++++++++++++++++++++++++++ "Youz eitha a trada or a trada hata"