( S ( S-PRP-TPC-1 ( VP ( TO To ) ( VP ( VB lure ) ( NP ( NNS buyers ) ) ( PP-DIR ( TO to ) ( NP ( DT the ) ( NNP Chicago ) ( CC & ) ( NNP North ) ( NNP Western ) ( NNS bonds ) ) ) ) ) ) ( NP-SBJ ( NN portfolio ) ( NNS managers ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-2 ( NNP Donaldson ) ( NNP Lufkin ) ) ( VP ( VBD sweetened ) ( NP ( DT the ) ( NN transaction ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG offering ) ( NP ( DT the ) ( NNS bonds ) ) ( PP-MNR ( IN with ) ( NP ( NP ( DT a ) ( JJ resettable ) ( NN interest ) ( NN rate ) ) ( CC and ) ( NP ( DT a ) ( ADJP ( CD 10 ) ( NN % ) ) ( NN equity ) ( NN kicker ) ) ) ) ) ) ) ) ) ) ) )

To lure buyers to the Chicago & North Western bonds portfolio managers said Donaldson Lufkin sweetened the transaction by offering the bonds with a resettable interest rate and a 10 % equity kicker


( S ( NP-SBJ-1 ( DT The ) ( NNS bonds ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB have ) ( NP ( DT a ) ( ADJP ( QP ( CD 14 ) ( CD 1\/2 ) ) ( NN % ) ) ( NN coupon ) ( NN rate ) ) ) ) ) ) ) )

The bonds are expected to have a 14 1\/2 % coupon rate


( S ( NP-SBJ ( DT The ) ( NN equity ) ( NN arrangement ) ) ( ADVP ( RB apparently ) ) ( VP ( MD would ) ( VP ( VB allow ) ( S ( NP-SBJ ( NNS bondholders ) ) ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( DT a ) ( NN total ) ) ( PP ( IN of ) ( NP ( NP ( CD 10 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN stock ) ) ( PP ( IN of ) ( NP ( NP ( NNP CNW ) ( NNP Corp. ) ) ( NP ( NP ( NNP Chicago ) ( CC & ) ( NNP North ) ( NNP Western ) ( POS 's ) ) ( NN parent ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The equity arrangement apparently would allow bondholders to buy a total of 10 % of the stock of CNW Corp. Chicago & North Western 's parent company


( S ( NP-SBJ-1 ( NNP Donaldson ) ( NNP Lufkin ) ) ( VP ( VBD declined ) ( S ( VP ( TO to ) ( VP ( VB comment ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( NN restructuring ) ) ) ) ) ) ) )

Donaldson Lufkin declined to comment on the restructuring


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( NP ( DT some ) ( NNS analysts ) ) ( ADJP ( JJ familiar ) ( PP ( IN with ) ( NP ( DT the ) ( NNS negotiations ) ) ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( CD 10 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NN equity ) ) ) ) ( VP ( MD would ) ( VP ( VP ( VB come ) ( ADVP-MNR ( RB directly ) ) ( PP-DIR ( IN from ) ( NP ( NP ( NNP Donaldson ) ( NNP Lufkin ) ) ( CC and ) ( NP ( NP ( DT a ) ( NN fund ) ) ( VP ( VBN affiliated ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NN investment ) ( NN bank ) ( NNP Blackstone ) ( NNP Group ) ) ) ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( MD would ) ( VP ( VB reduce ) ( NP ( PRP$ their ) ( NNP CNW ) ( NN equity ) ( NNS holdings ) ) ( PP-CLR ( IN by ) ( NP ( NP ( CD 5 ) ( NN % ) ) ( NP-ADV ( DT each ) ) ) ) ) ) ) ) ) ) )

According to some analysts familiar with the negotiations the 10 % of equity would come directly from Donaldson Lufkin and a fund affiliated with the investment bank Blackstone Group which would reduce their CNW equity holdings by 5 % each


( S ( NP-SBJ ( DT That ) ) ( VP ( MD would ) ( VP ( VP ( VB leave ) ( NP-1 ( DT the ) ( NNP Blackstone ) ( NN fund ) ) ( PP-2 ( IN with ) ( NP ( DT a ) ( ADJP ( CD 60 ) ( NN % ) ) ( NN stake ) ) ) ) ( CC and ) ( VP ( NP=1 ( NNP Donaldson ) ( NNP Lufkin ) ) ( PP=2 ( IN with ) ( NP ( CD 15 ) ( NN % ) ) ) ) ) ) )

That would leave the Blackstone fund with a 60 % stake and Donaldson Lufkin with 15 %


( S ( PP ( IN Despite ) ( NP ( NP ( DT the ) ( NNS problems ) ) ( PP ( IN with ) ( NP ( JJ new ) ( NNS issues ) ) ) ) ) ( NP-SBJ ( JJ high-yield ) ( NNS bonds ) ) ( VP ( VBD showed ) ( NP ( NNS gains ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( ADJP ( JJ secondary ) ( CC or ) ( JJ resell ) ) ( NN market ) ) ) ) )

Despite the problems with new issues high-yield bonds showed gains in the secondary or resell market


( S ( NP-SBJ ( NN Junk ) ( NNS bonds ) ) ( VP ( VBD ended ) ( ADVP-CLR ( NP ( QP ( RB about ) ( JJ one-half ) ) ( NN point ) ) ( RBR higher ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( NP ( JJ so-called ) ( JJ high-quality ) ( NNS issues ) ) ( PP ( IN from ) ( NP ( NP ( NNP RJR ) ( NNP Capital ) ( NNP Holdings ) ( NNP Corp. ) ) ( CC and ) ( NP ( NNP Petrolane ) ( NNP Gas ) ( NNP Service ) ( NNP Limited ) ( NNP Partnership ) ) ) ) ) ( VP ( VBG rising ) ( NP-EXT ( CD one ) ( NN point ) ) ) ) ) ) )

Junk bonds ended about one-half point higher with so-called high-quality issues from RJR Capital Holdings Corp. and Petrolane Gas Service Limited Partnership rising one point


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( NNP Treasury ) ( NN market ) ) ) ( NP-SBJ ( DT the ) ( NN benchmark ) ( JJ 30-year ) ( NN bond ) ) ( VP ( VBD rose ) ( NP-EXT ( NP ( JJ seven-eighths ) ( NN point ) ) ( CC or ) ( NP ( NP ( CD 8.75 ) ) ( PP ( IN for ) ( NP ( DT each ) ( ADJP ( CD 1,000 ) ) ( NN face ) ( NN amount ) ) ) ) ) ) )

In the Treasury market the benchmark 30-year bond rose seven-eighths point or 8.75 for each 1,000 face amount


( S ( NP-SBJ ( DT The ) ( NN gain ) ) ( VP ( VBZ reflects ) ( NP ( JJ fresh ) ( JJ economic ) ( NN evidence ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NN inflation ) ) ( VP ( VBZ is ) ( VP ( VBG moderating ) ( SBAR-TMP ( IN while ) ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( VBZ slows ) ) ) ) ) ) ) ) ) ) )

The gain reflects fresh economic evidence that inflation is moderating while the economy slows


( S ( NP-SBJ ( DT That ) ) ( VP ( VBD raised ) ( NP ( NNS hopes ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NN interest ) ( NNS rates ) ) ( VP ( MD will ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB move ) ( ADVP-DIR ( RBR lower ) ) ) ) ) ) ) ) ) ) ) )

That raised hopes that interest rates will continue to move lower


( S ( NP-SBJ ( DT The ) ( NNP Labor ) ( NNP Department ) ) ( VP ( VBD reported ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN consumer ) ( NNS prices ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( RB just ) ( CD 0.2 ) ) ( NN % ) ) ( NP-ADV ( JJ last ) ( NN month ) ) ( ADVP ( ADVP ( RB slightly ) ( JJR lower ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( DT some ) ( NNS economists ) ) ( VP ( VBD had ) ( VP ( VBN expected ) ) ) ) ) ) ) ) ) ) )

The Labor Department reported that consumer prices rose just 0.2 % last month slightly lower than some economists had expected


( S ( CC But ) ( NP-SBJ ( EX there ) ) ( VP ( VBD were ) ( ADVP ( RB also ) ) ( NP-PRD ( NNS rumors ) ) ( NP-TMP ( NN yesterday ) ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ-2 ( JJ several ) ( JJ Japanese ) ( JJ institutional ) ( NNS investors ) ) ( VP ( VBD were ) ( VP ( VP ( VBG shifting ) ( NP ( PRP$ their ) ( NNS portfolios ) ) ) ( CC and ) ( VP ( VBG buying ) ( NP ( JJ long-term ) ( NNS bonds ) ) ) ( SBAR-TMP ( IN while ) ( S ( VP ( VBG selling ) ( NP ( JJ shorter-term ) ( NNPS Treasurys ) ) ) ) ) ) ) ) ) ) )

But there were also rumors yesterday that several Japanese institutional investors were shifting their portfolios and buying long-term bonds while selling shorter-term Treasurys


( S ( NP-SBJ ( NNP Short-term ) ( NNP Treasury ) ( NNS securities ) ) ( VP ( VBD ended ) ( ADJP-CLR ( RB narrowly ) ( VBN mixed ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( JJ two-year ) ( NNS notes ) ) ( VP ( VBG posting ) ( NP ( JJ slight ) ( NNS declines ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( JJ three-year ) ( NNS notes ) ) ( VP ( VBD were ) ( ADJP-PRD ( RB slightly ) ( JJR higher ) ) ) ) ) ) )

Short-term Treasury securities ended narrowly mixed with two-year notes posting slight declines while three-year notes were slightly higher


( S ( NP-TMP ( NN Yesterday ) ) ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( VBD executed ) ( NP ( NP ( JJ four-day ) ( VBN matched ) ( NNS sales ) ) ( NP ( NP ( DT a ) ( JJ technical ) ( NN trading ) ( NN operation ) ) ( VP ( VBN designed ) ( S ( VP ( TO to ) ( VP ( VB drain ) ( NP ( NNS reserves ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NN banking ) ( NN system ) ) ) ) ) ) ) ) ) ) )

Yesterday the Fed executed four-day matched sales a technical trading operation designed to drain reserves from the banking system


( S ( NP-SBJ-1 ( DT The ) ( NN move ) ) ( VP ( VBD was ) ( VP ( VBN interpreted ) ( PP ( IN by ) ( NP-LGS ( DT some ) ( NNS economists ) ) ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( NN sign ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB want ) ( S ( NP-SBJ ( DT the ) ( JJ federal ) ( NNS funds ) ( NN rate ) ) ( VP ( TO to ) ( VP ( VB move ) ( ADVP-DIR ( ADVP ( DT any ) ( RBR lower ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( QP ( CD 8 ) ( CD 3\/4 ) ) ( NN % ) ) ( SBAR ( WHPP-2 ( IN at ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBG hovering ) ( PP-CLR ( RP around ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( JJ past ) ( NN week ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The move was interpreted by some economists as a sign that the Fed does n't want the federal funds rate to move any lower than the 8 3\/4 % at which it has been hovering around during the past week


( S ( NP-SBJ ( DT The ) ( ADJP ( RB closely ) ( VBN watched ) ) ( NNS funds ) ( NN rate ) ) ( VP ( VBZ is ) ( SBAR-NOM-PRD ( WHNP ( WP what ) ) ( S ( NP-SBJ ( NNS banks ) ) ( VP ( VBP charge ) ( NP ( DT each ) ( JJ other ) ) ( PP ( IN on ) ( NP ( JJ overnight ) ( NNS loans ) ) ) ) ) ) ) )

The closely watched funds rate is what banks charge each other on overnight loans


( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( VBZ is ) ( VP ( VBN considered ) ( S ( NP-PRD ( NP ( DT an ) ( JJ early ) ( NN signal ) ) ( PP ( IN of ) ( NP ( NNP Fed ) ( NN credit ) ( NN policy ) ( NNS changes ) ) ) ) ) ) ) )

It is considered an early signal of Fed credit policy changes


( S ( NP-SBJ ( DT The ) ( NN fact ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD did ) ( NP ( JJ four-day ) ( VBN matched ) ( NNS sales ) ) ) ) ) ) ( VP ( VBZ means ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( RB not ) ( PP-PRD ( IN in ) ( NP ( NP ( DT a ) ( NN mood ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB ease ) ( ADVP-MNR ( RB aggressively ) ) ) ) ) ) ) ) ) ) ) ) )

The fact that they did four-day matched sales means they are not in a mood to ease aggressively


( SINV ( S-TPC-2 ( NP-SBJ ( PRP They ) ) ( VP ( VBP are ) ( VP ( VBG telling ) ( NP ( PRP us ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( QP ( CD 8 ) ( CD 3\/4 ) ) ( NN % ) ) ( VP ( VBZ is ) ( ADVP-PRD ( ADVP ( RB as ) ( JJ low ) ) ( SBAR ( IN as ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP want ) ( S ( VP ( TO to ) ( VP ( VB see ) ( NP ( DT the ) ( NN fed ) ( NNS funds ) ( NN rate ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Robert ) ( NNP Chandross ) ) ( PP-LOC ( IN at ) ( NP ( NNP Lloyds ) ( NNP Bank ) ( NNP PLC ) ) ) ) )

They are telling us that 8 3\/4 % is as low as they want to see the fed funds rate said Robert Chandross at Lloyds Bank PLC


( NP-HLN ( NNP Treasury ) ( NNP Securities ) )

Treasury Securities


( S ( NP-SBJ-1 ( DT The ) ( NN benchmark ) ( JJ 30-year ) ( NN bond ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( ADVP-TMP ( RB late ) ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN price ) ) ( PP ( IN of ) ( NP ( QP ( CD 101 ) ( CD 25\/32 ) ) ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.955 ) ( NN % ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( FRAG ( NP ( QP ( CD 100 ) ( CD 29\/32 ) ) ) ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 8.032 ) ( NN % ) ) ) ) ) ( NP-TMP ( NNP Wednesday ) ) ) ) ) ) ) )

The benchmark 30-year bond was quoted late at a price of 101 25\/32 to yield 7.955 % compared with 100 29\/32 to yield 8.032 % Wednesday


( S ( NP-SBJ-1 ( DT The ) ( JJS latest ) ( JJ 10-year ) ( NNS notes ) ) ( VP ( VBD were ) ( VP ( VBN quoted ) ( ADVP-TMP ( RB late ) ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 100 ) ( CD 9\/32 ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.937 ) ( NN % ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( FRAG ( NP ( QP ( CD 99 ) ( CD 26\/32 ) ) ) ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 8.007 ) ( NN % ) ) ) ) ) ) ) ) ) ) )

The latest 10-year notes were quoted late at 100 9\/32 to yield 7.937 % compared with 99 26\/32 to yield 8.007 %


( S ( NP-SBJ ( JJ Short-term ) ( NNS rates ) ) ( VP ( VBD rose ) ( NP-TMP ( NN yesterday ) ) ) )

Short-term rates rose yesterday


( S ( NP-SBJ ( NP ( DT The ) ( NN discount ) ( NN rate ) ) ( PP ( IN on ) ( NP ( JJ three-month ) ( NNP Treasury ) ( NNS bills ) ) ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( CD 7.56 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 7.51 ) ( NN % ) ) ) ( NP-TMP ( NNP Wednesday ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NP ( DT the ) ( NN rate ) ) ( PP ( IN on ) ( NP ( JJ six-month ) ( NNS bills ) ) ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( CD 7.57 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 7.53 ) ( NN % ) ) ) ) ) ) ) )

The discount rate on three-month Treasury bills rose to 7.56 % from 7.51 % Wednesday while the rate on six-month bills rose to 7.57 % from 7.53 %


( S ( ADVP ( RB Meanwhile ) ) ( NP-SBJ ( DT the ) ( NNP Treasury ) ) ( VP ( VBD sold ) ( NP ( NP ( QP ( CD 9.75 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( JJ 52-week ) ( NNS bills ) ) ) ) ( NP-TMP ( NN yesterday ) ) ) )

Meanwhile the Treasury sold 9.75 billion of 52-week bills yesterday


( S ( NP-SBJ ( NP ( DT The ) ( JJ average ) ( NN yield ) ) ( PP ( IN on ) ( NP ( DT the ) ( NNS bills ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( CD 7.35 ) ( NN % ) ) ( ADVP ( RB down ) ( PP ( IN from ) ( NP ( CD 7.61 ) ( NN % ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT the ) ( JJ previous ) ( JJ 52-week ) ( NN bill ) ( NN auction ) ) ( NP-TMP ( NNP Sept. ) ( CD 21 ) ) ) ) ) ) ) )

The average yield on the bills was 7.35 % down from 7.61 % at the previous 52-week bill auction Sept. 21


( S ( NP-SBJ ( NP ( NN Yesterday ) ( POS 's ) ) ( NN yield ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT the ) ( JJS lowest ) ) ( PP ( IN since ) ( NP ( NP ( CD 7.22 ) ( NN % ) ) ( PP-TMP ( IN on ) ( NP ( NNP July ) ( CD 27 ) ) ) ) ) ) ) )

Yesterday 's yield was the lowest since 7.22 % on July 27


( SINV ( ADVP-LOC-PRD-TPC-1 ( RB Here ) ) ( VP ( VBP are ) ) ( NP-SBJ ( NP ( NNS details ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN auction ) ) ) ) )

Here are details of the auction


( S ( NP-SBJ-1 ( NNS Rates ) ) ( VP ( VBP are ) ( VP ( VBN determined ) ( PP-MNR ( IN by ) ( NP ( NP ( DT the ) ( NN difference ) ) ( PP ( IN between ) ( NP ( DT the ) ( NN purchase ) ( NN price ) ( CC and ) ( NN face ) ( NN value ) ) ) ) ) ) ) )

Rates are determined by the difference between the purchase price and face value


( S ( ADVP ( RB Thus ) ) ( NP-SBJ ( JJR higher ) ( NN bidding ) ) ( VP ( VBZ narrows ) ( NP ( NP ( DT the ) ( NN investor ) ( POS 's ) ) ( NN return ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( JJR lower ) ( NN bidding ) ) ( VP ( VBZ widens ) ( NP ( PRP it ) ) ) ) ) ) )

Thus higher bidding narrows the investor 's return while lower bidding widens it


( S ( NP-SBJ-1 ( DT The ) ( NN percentage ) ( NNS rates ) ) ( VP ( VBP are ) ( VP ( VBN calculated ) ( PP-MNR ( IN on ) ( NP ( DT a ) ( JJ 360-day ) ( NN year ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( DT the ) ( JJ coupon-equivalent ) ( NN yield ) ) ( VP ( VBZ is ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( DT a ) ( JJ 365-day ) ( NN year ) ) ) ) ) ) ) ) ) )

The percentage rates are calculated on a 360-day year while the coupon-equivalent yield is based on a 365-day year


( NP-HLN ( JJ Corporate ) ( NNS Issues ) )

Corporate Issues


( S ( NP-SBJ ( NN Junk ) ( NN bond ) ( NN price ) ) ( VP ( VBD climbed ) ( NP-TMP ( NN yesterday ) ) ( PP ( IN despite ) ( NP ( NP ( NN skittishness ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJ new-issue ) ( NN market ) ) ( PP ( IN for ) ( NP ( JJ high-yield ) ( NNS securities ) ) ) ) ) ) ) ) )

Junk bond price climbed yesterday despite skittishness in the new-issue market for high-yield securities


( S ( NP-SBJ ( NNS Dealers ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NN junk ) ( NN bond ) ( NNS issues ) ) ( PP ( IN on ) ( NP ( NN average ) ) ) ( VP ( VBD were ) ( ADVP-PRD ( RB up ) ) ( PP-EXT ( IN by ) ( NP ( QP ( CD 1\/4 ) ( TO to ) ( CD 1\/2 ) ) ( NN point ) ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( NP ( JJ so-called ) ( NN quality ) ( NNS issues ) ) ( PP ( IN from ) ( NP ( NP ( NNP RJR ) ( NNP Capital ) ( NNP Holdings ) ( NNP Corp. ) ) ( CC and ) ( NP ( NNP Petrolane ) ( NNP Gas ) ( NNP Service ) ( NNP Limited ) ( NNP Partnership ) ) ) ) ) ( VP ( VBG posting ) ( NP ( JJ one-point ) ( NNS gains ) ) ) ) ) ) ) ) ) )

Dealers said junk bond issues on average were up by 1\/4 to 1\/2 point with so-called quality issues from RJR Capital Holdings Corp. and Petrolane Gas Service Limited Partnership posting one-point gains


( S ( S ( NP-SBJ-1 ( NP ( NNP Petrolane ) ( NNP Gas ) ( NNP Service ) ( POS 's ) ) ( ADJP ( QP ( CD 13 ) ( CD 1\/4 ) ) ( NN % ) ) ( NNS debentures ) ) ( VP ( VBN traded ) ( PP-CLR ( IN at ) ( NP ( CD 102 ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG trading ) ( PP-CLR ( IN around ) ( NP ( NN par ) ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN week ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( NP ( NP ( NNP RJR ) ( POS 's ) ) ( ADJP ( QP ( CD 13 ) ( CD 1\/2 ) ) ( NN % ) ) ( VBN subordinated ) ( NNS debentures ) ) ( PP ( IN of ) ( NP ( CD 2001 ) ) ) ) ( VP ( VBD were ) ( PP-PRD ( IN at ) ( NP ( CD 101 ) ( CD 5\/8 ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG trading ) ( PP-CLR ( IN at ) ( PP ( IN below ) ( NP ( NN par ) ) ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN week ) ) ) ) ) ) ) )

Petrolane Gas Service 's 13 1\/4 % debentures traded at 102 after trading around par earlier this week and RJR 's 13 1\/2 % subordinated debentures of 2001 were at 101 5\/8 after trading at below par earlier this week


( S ( NP-SBJ ( JJ Investment-grade ) ( NNS bonds ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ unchanged ) ) ) )

Investment-grade bonds were unchanged


Municipals


( S ( NP-SBJ ( NN Activity ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ brisk ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ high-grade ) ( JJ general ) ( NN obligation ) ( NN market ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NP ( DT a ) ( NN series ) ) ( PP ( IN of ) ( NP ( NN sell ) ( NNS lists ) ) ) ) ( VP ( VP ( VBD hit ) ( NP ( DT the ) ( NN Street ) ) ) ( CC and ) ( VP ( VBD capped ) ( NP ( JJ upward ) ( NN price ) ( NN movement ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN sector ) ) ) ) ) ) ) ) )

Activity was brisk in the high-grade general obligation market as a series of sell lists hit the Street and capped upward price movement in the sector


( S ( NP-SBJ ( NNS Traders ) ) ( VP ( VBD estimated ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( QP ( JJR more ) ( IN than ) ( CD 140 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ high-grade ) ( NNS bonds ) ) ) ) ( VP ( VBD was ) ( VP ( VBN put ) ( PRT ( RP up ) ) ( PP-CLR ( IN for ) ( NP ( NN sale ) ) ) ( PP-MNR ( IN via ) ( NP ( NP ( JJ bid-wanted ) ( NNS lists ) ) ( VP ( VBN circulated ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( NN handful ) ) ( PP ( IN of ) ( NP ( JJ major ) ( NNS brokers ) ) ) ) ) ) ) ) ) ) ) ) ) )

Traders estimated that more than 140 million of high-grade bonds was put up for sale via bid-wanted lists circulated by a handful of major brokers


( S ( NP-SBJ ( EX There ) ) ( VP ( VBD was ) ( NP-PRD ( NN speculation ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN supply ) ) ( VP ( VBD was ) ( VP ( VBG coming ) ( PP-DIR ( IN from ) ( NP ( NP ( DT a ) ( JJ commercial ) ( NN bank ) ( POS 's ) ) ( NNS portfolios ) ) ) ) ) ) ) ) ) )

There was speculation that the supply was coming from a commercial bank 's portfolios


( S ( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( NN market ) ( NNS participants ) ) ) ) ( NP-SBJ-1 ( DT the ) ( NNS bonds ) ) ( VP ( VBD were ) ( VP ( VBN met ) ( PP-CLR ( IN with ) ( NP ( JJ decent ) ( NNS bids ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NP ( DT the ) ( NN volume ) ) ( PP ( IN of ) ( NP ( NN paper ) ) ) ) ( VP ( VBD left ) ( NP ( JJ high ) ( NNS grades ) ) ( PP-LOC-CLR ( IN in ) ( NP ( DT the ) ( ADJP ( JJ 10-year ) ( CC and ) ( JJ under ) ) ( NN maturity ) ( NN range ) ) ) ( ADVP-CLR ( ADJP-ADV ( JJ unchanged ) ) ( TO to ) ( ADVP ( CD 0.05 ) ( NN percentage ) ( NN point ) ( JJR higher ) ) ( PP ( IN in ) ( NP ( NN yield ) ) ) ) ) ) )

According to market participants the bonds were met with decent bids but the volume of paper left high grades in the 10-year and under maturity range unchanged to 0.05 percentage point higher in yield


( S ( ADVP-LOC ( RB Away ) ( PP ( IN from ) ( NP ( DT the ) ( JJ general ) ( NN obligation ) ( NN sector ) ) ) ) ( NP-SBJ ( NN activity ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ modest ) ) ) )

Away from the general obligation sector activity was modest


( S ( NP-SBJ ( JJ Long ) ( NN dollar ) ( NNS bonds ) ) ( VP ( VBD were ) ( UCP-PRD ( ADJP-PRD ( JJ flat ) ) ( TO to ) ( ADVP-PRD ( RB up ) ( NP ( CD 3\/8 ) ( NN point ) ) ) ) ) )

Long dollar bonds were flat to up 3\/8 point


( S ( NP-SBJ-1 ( NP ( NP ( NNP New ) ( NNP Jersey ) ( NNP Turnpike ) ( NNP Authority ) ( POS 's ) ) ( ADJP ( CD 7.20 ) ( NN % ) ) ( NN issue ) ) ( PP ( IN of ) ( NP ( CD 2018 ) ) ) ) ( VP ( VBD was ) ( ADVP-PRD ( RB up ) ( NP ( CD 3\/8 ) ) ) ( PP ( IN at ) ( NP ( NP ( QP ( CD 98 ) ( CD 3\/8 ) ) ) ( VP ( NN bid ) ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( NP ( QP ( RB about ) ( CD 7.32 ) ) ( NN % ) ) ( ADVP ( RB down ) ( NP ( CD 0.03 ) ( NN percentage ) ( NN point ) ) ) ) ) ) ) ) )

New Jersey Turnpike Authority 's 7.20 % issue of 2018 was up 3\/8 at 98 3\/8 bid to yield about 7.32 % down 0.03 percentage point


( S ( NP-SBJ ( NP ( DT The ) ( NN debt ) ) ( PP ( IN of ) ( NP ( DT some ) ( NNP California ) ( NNS issuers ) ) ) ) ( VP ( VBD pulled ) ( PP-DIR ( RP off ) ( NP ( NP ( NNS lows ) ) ( VP ( VBN reached ) ( PP-TMP ( IN after ) ( NP ( NP ( NNP Tuesday ) ( POS 's ) ) ( JJ massive ) ( NN earthquake ) ) ) ) ) ) ( SBAR-ADV ( IN although ) ( S ( NP-SBJ ( NNS traders ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NN market ) ( NNS participants ) ) ( VP ( VBD remained ) ( ADJP-PRD ( JJ cautious ) ) ) ) ) ) ) ) ) )

The debt of some California issuers pulled off lows reached after Tuesday 's massive earthquake although traders said market participants remained cautious


( S ( NP-SBJ-1 ( NNP California ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB rely ) ( PP-CLR ( IN on ) ( NP ( NP ( JJ federal ) ( NN emergency ) ( NNS funds ) ) ( CC and ) ( NP ( NP ( PRP$ its ) ( QP ( CD 1.06 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( JJ general ) ( NN fund ) ( VBZ reserves ) ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB meet ) ( NP ( NP ( DT the ) ( VBN estimated ) ( QP ( CD 500 ) ( CD million ) ( TO to ) ( CD 1 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS damages ) ) ( VP ( VBG resulting ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NN quake ) ) ) ) ) ) ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( DT a ) ( NN state ) ( NN official ) ) ) ) ) )

California expects to rely on federal emergency funds and its 1.06 billion in general fund reserves to meet the estimated 500 million to 1 billion in damages resulting from the quake according to a state official


( SINV ( S-TPC-4 ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBZ 's ) ( ADVP ( RB also ) ) ( ADJP-PRD ( JJ unclear ) ) ( SBAR-2 ( WHADVP-3 ( RB precisely ) ( WRB how ) ) ( S ( NP-SBJ ( DT the ) ( NN state ) ) ( VP ( MD will ) ( VP ( VB rebuild ) ( NP ( PRP$ its ) ( NN reserve ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Cindy ) ( NNP Katz ) ) ( NP ( NP ( JJ assistant ) ( NN director ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP California ) ( POS 's ) ) ( NN department ) ) ( PP ( IN of ) ( NP ( NN finance ) ) ) ) ) ) ) ( SBAR-ADV ( IN although ) ( S ( NP-SBJ ( PRP she ) ) ( VP ( VBD noted ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( DT a ) ( NN bond ) ( NN offering ) ) ( PP ( IN for ) ( NP ( DT that ) ( NN purpose ) ) ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN anticipated ) ) ) ) ) ) ) ) )

It 's also unclear precisely how the state will rebuild its reserve said Cindy Katz assistant director of California 's department of finance although she noted that a bond offering for that purpose is n't anticipated


( S ( ADVP ( RB Meanwhile ) ) ( NP-SBJ ( JJ new ) ( NN issuance ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ slow ) ) ) )

Meanwhile new issuance was slow


( S ( NP-SBJ ( NP ( DT The ) ( JJS largest ) ( NN sale ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ competitive ) ( NN arena ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( ADJP ( QP ( CD 55.7 ) ( CD million ) ) ) ( NN issue ) ) ( PP ( IN of ) ( NP ( NN school ) ( NN financing ) ( NNS bonds ) ) ) ( PP ( IN from ) ( NP ( DT the ) ( NNP Virginia ) ( NNP Public ) ( NNP School ) ( NNP Authority ) ) ) ) ) )

The largest sale in the competitive arena was a 55.7 million issue of school financing bonds from the Virginia Public School Authority


( S ( NP-SBJ ( NP ( DT A ) ( NN balance ) ) ( PP ( IN of ) ( NP ( QP ( CD 25.8 ) ( CD million ) ) ) ) ) ( VP ( VBD remained ) ( PP-LOC ( IN in ) ( NP ( JJ late ) ( NN order-taking ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( DT the ) ( JJ lead ) ( NN manager ) ) ) ) ) )

A balance of 25.8 million remained in late order-taking according to the lead manager


( NP-HLN ( JJ Mortgage-Backed ) ( NNS Securities ) )

Mortgage-Backed Securities


( S ( NP-SBJ ( NN Mortgage ) ( NNS securities ) ) ( ADVP ( RB generally ) ) ( VP ( VP ( VBD ended ) ( ADVP-CLR ( NP ( QP ( CD 6\/32 ) ( TO to ) ( CD 9\/32 ) ) ( NN point ) ) ( RBR higher ) ) ) ( CC but ) ( VP ( VBN lagged ) ( NP ( NP ( NNS gains ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Treasury ) ( NN market ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( NP ( DT a ) ( NN shift ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN shape ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Treasury ) ( NN yield ) ( NN curve ) ) ) ) ) ) ( CC and ) ( NP ( NP ( VBN rumored ) ( NN mortgage ) ( NNS sales ) ) ( PP ( IN by ) ( NP ( NNS thrifts ) ) ) ) ) ) ) ) )

Mortgage securities generally ended 6\/32 to 9\/32 point higher but lagged gains in the Treasury market because of a shift in the shape of the Treasury yield curve and rumored mortgage sales by thrifts


( S ( NP-SBJ ( NP ( NNP Premium ) ( NNP Government ) ( NNP National ) ( NNP Mortgage ) ( NNP Association ) ( NNS securities ) ) ( PP ( IN with ) ( NP ( NP ( NN coupon ) ( NNS rates ) ) ( PP ( IN of ) ( NP ( NP ( CD 13 ) ( NN % ) ) ( CC and ) ( NP ( JJR higher ) ) ) ) ) ) ) ( ADVP ( RB actually ) ) ( VP ( VBD declined ) ( PP-LOC ( IN amid ) ( NP ( NP ( NNS concerns ) ) ( PP ( IN about ) ( NP ( VBN increased ) ( NNS prepayments ) ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( DT a ) ( NN plan ) ) ( VP ( VBG being ) ( VP ( VBN considered ) ( PP ( IN by ) ( NP-LGS ( NNP Congress ) ) ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB speed ) ( NP ( NP ( DT the ) ( NN refinancing ) ) ( PP ( IN of ) ( NP ( JJ government-subsidized ) ( NNS mortgages ) ) ) ) ) ) ) ) ) ) )

Premium Government National Mortgage Association securities with coupon rates of 13 % and higher actually declined amid concerns about increased prepayments because of a plan being considered by Congress to speed the refinancing of government-subsidized mortgages


( S ( NP-SBJ ( NNP Ginnie ) ( NNP Mae ) ( ADJP ( CD 13 ) ( NN % ) ) ( NNS securities ) ) ( VP ( VBD were ) ( ADVP-PRD ( RB down ) ( NP ( QP ( RB about ) ( CD 1\/4 ) ) ) ) ( PP ( IN at ) ( NP ( QP ( CD 109 ) ( CD 30\/32 ) ) ) ) ) )

Ginnie Mae 13 % securities were down about 1\/4 at 109 30\/32


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NN refinancing ) ( NN plan ) ) ( VP ( VBZ clears ) ( NP ( NNP Congress ) ) ) ) ) ( NP-SBJ ( EX there ) ) ( VP ( MD could ) ( VP ( VB be ) ( NP-PRD ( NP ( RB fairly ) ( JJ heavy ) ( NNS prepayments ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN premium ) ( NNS securities ) ) ) ) ( S-ADV ( VP ( VBG hurting ) ( NP ( NP ( DT any ) ( NN investor ) ) ( VP ( VBG paying ) ( NP ( ADVP ( RB much ) ( JJ above ) ) ( NN par ) ) ( PP-CLR ( IN for ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) )

If the refinancing plan clears Congress there could be fairly heavy prepayments on the premium securities hurting any investor paying much above par for them


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( JJ current-coupon ) ( NN sector ) ) ) ( NP-SBJ ( NP ( NP ( DT a ) ( NN shift ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Treasury ) ( NN yield ) ( NN curve ) ) ) ) ( VP ( VBG resulting ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( JJR better ) ( NN performance ) ) ( PP ( IN of ) ( NP ( JJ long-dated ) ( NNS issues ) ) ) ( PP ( IN over ) ( NP ( JJ short-dated ) ( NNS securities ) ) ) ) ) ) ) ( VP ( VBP hurt ) ( NP ( JJ major ) ( NNS coupons ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( MD will ) ( VP ( VB become ) ( ADJP-PRD ( RBR more ) ( JJ difficult ) ) ( S-1 ( VP ( TO to ) ( VP ( VB structure ) ( NP ( JJ new ) ( JJ derivative ) ( NNS securities ) ( NNS offerings ) ) ) ) ) ) ) ) ) ) )

In the current-coupon sector a shift in the Treasury yield curve resulting from the better performance of long-dated issues over short-dated securities hurt major coupons because it will become more difficult to structure new derivative securities offerings


( S ( S ( NP-SBJ ( NNP Ginnie ) ( NNP Mae ) ( ADJP ( CD 9 ) ( NN % ) ) ( NNS securities ) ) ( VP ( VBD ended ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 98 ) ( CD 6\/32 ) ) ) ) ( ADVP ( IN up ) ( NP ( CD 9\/32 ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Federal ) ( NNP Home ) ( NNP Loan ) ( NNP Mortgage ) ( NNP Corp. ) ( ADJP ( CD 9 ) ( NN % ) ) ( NNS securities ) ) ( VP ( VBD were ) ( PP-PRD ( IN at ) ( NP ( QP ( CD 97 ) ( CD 10\/32 ) ) ) ) ( ADVP ( RB up ) ( NP ( CD 6\/32 ) ) ) ) ) )

Ginnie Mae 9 % securities ended at 98 6\/32 up 9\/32 and Federal Home Loan Mortgage Corp. 9 % securities were at 97 10\/32 up 6\/32


( S ( NP-SBJ ( DT The ) ( NNP Ginnie ) ( NNP Mae ) ( ADJP ( CD 9 ) ( NN % ) ) ( NN issue ) ) ( VP ( VBD was ) ( VP ( VBG yielding ) ( NP ( CD 9.42 ) ( NN % ) ) ( PP ( TO to ) ( NP ( DT a ) ( JJ 12-year ) ( NN average ) ( NN life ) ( NN assumption ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NP ( DT the ) ( NN spread ) ) ( PP ( IN above ) ( NP ( DT the ) ( NNP Treasury ) ( JJ 10-year ) ( NN note ) ) ) ) ( VP ( VBD widened ) ( NP-EXT ( CD 0.03 ) ( NN percentage ) ( NN point ) ) ( PP-DIR ( TO to ) ( NP ( CD 1.48 ) ) ) ) ) ) ) ) )

The Ginnie Mae 9 % issue was yielding 9.42 % to a 12-year average life assumption as the spread above the Treasury 10-year note widened 0.03 percentage point to 1.48


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NNP Remic ) ( NN issuance ) ) ( VP ( MD may ) ( VP ( VB slow ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( VBG coming ) ( NNS days ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( DT the ) ( NN shift ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Treasury ) ( NN yield ) ( NN curve ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( NNS underwriters ) ) ( VP ( VBD continued ) ( S ( VP ( TO to ) ( VP ( VB crank ) ( PRT ( RP out ) ) ( NP ( NP ( JJ new ) ( JJ real ) ( NN estate ) ( NN mortgage ) ( NN investment ) ( NNS conduits ) ) ( VP ( VBN structured ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN yield ) ( NN curve ) ) ( VP ( VBD was ) ( ADJP-PRD ( RBR more ) ( JJ favorable ) ) ) ) ) ) ) ) ) ) ) )

While Remic issuance may slow in the coming days because of the shift in the Treasury yield curve underwriters continued to crank out new real estate mortgage investment conduits structured when the yield curve was more favorable


( S ( NP-SBJ-1 ( NP ( CD Two ) ( JJ new ) ( NNS Remics ) ) ( VP ( VBG totaling ) ( NP ( QP ( CD 900 ) ( CD million ) ) ) ) ) ( VP ( VBD were ) ( VP ( VBN announced ) ( PP ( IN by ) ( NP-LGS ( NNP Freddie ) ( NNP Mac ) ) ) ( NP-TMP ( NN yesterday ) ) ) ) )

Two new Remics totaling 900 million were announced by Freddie Mac yesterday


Foreign Bonds


( S ( NP-SBJ ( JJ British ) ( NN government ) ( NNS bonds ) ) ( VP ( VBD ended ) ( ADJP-CLR ( RB little ) ( VBN changed ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( VBD awaited ) ( NP ( NP ( DT an ) ( JJ economic ) ( NN policy ) ( NN address ) ) ( NP-TMP ( JJ last ) ( NN night ) ) ( PP ( IN by ) ( NP ( NX ( NNP Chancellor ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Exchequer ) ) ) ) ( NNP Nigel ) ( NNP Lawson ) ) ) ) ) ) ) ) )

British government bonds ended little changed as investors awaited an economic policy address last night by Chancellor of the Exchequer Nigel Lawson


( S ( NP-SBJ-1 ( NP ( DT The ) ( NNP Treasury ) ( ADJP ( QP ( CD 11 ) ( CD 3\/4 ) ) ( NN % ) ) ( NN bond ) ) ( ADJP ( RB due ) ( NP-TMP ( CD 2003\/2007 ) ) ) ) ( VP ( VBD was ) ( ADVP-PRD ( RB down ) ( NP ( CD 2\/32 ) ) ) ( PP ( IN at ) ( NP ( QP ( CD 111 ) ( CD 29\/32 ) ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 10.09 ) ( NN % ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( NP ( DT the ) ( ADJP ( QP ( CD 11 ) ( CD 3\/4 ) ) ( NN % ) ) ( NNS notes ) ) ( ADJP ( JJ due ) ( NP-TMP ( CD 1991 ) ) ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ unchanged ) ) ( PP ( IN at ) ( NP ( QP ( CD 98 ) ( CD 19\/32 ) ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 12.94 ) ( NN % ) ) ) ) ) ) ) ) ) )

The Treasury 11 3\/4 % bond due 2003\/2007 was down 2\/32 at 111 29\/32 to yield 10.09 % while the 11 3\/4 % notes due 1991 were unchanged at 98 19\/32 to yield 12.94 %


( S ( S ( PP-LOC ( IN In ) ( NP ( NNP Japan ) ) ) ( NP-SBJ-1 ( NP ( DT the ) ( NN bellwether ) ( NN No. ) ( CD 111 ) ( ADJP ( CD 4.6 ) ( NN % ) ) ( NN bond ) ) ( PP ( IN of ) ( NP ( CD 1998 ) ) ) ) ( VP ( VBD ended ) ( ADVP-CLR ( JJ off ) ( NP ( CD 0.03 ) ) ) ( PP ( IN at ) ( NP ( CD 95.72 ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 5.32 ) ( NN % ) ) ) ) ) ) ) ( CC and ) ( S ( PP-LOC ( IN in ) ( NP ( NNP West ) ( NNP Germany ) ) ) ( NP-SBJ-2 ( NP ( DT the ) ( ADJP ( CD 7 ) ( NN % ) ) ( NN benchmark ) ( NN issue ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP October ) ( CD 1999 ) ) ) ) ( VP ( VBD ended ) ( ADVP-CLR ( NP ( CD 0.05 ) ( NN point ) ) ( RBR lower ) ) ( PP ( IN at ) ( NP ( CD 99.85 ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.02 ) ( NN % ) ) ) ) ) ) ) )

In Japan the bellwether No. 111 4.6 % bond of 1998 ended off 0.03 at 95.72 to yield 5.32 % and in West Germany the 7 % benchmark issue due October 1999 ended 0.05 point lower at 99.85 to yield 7.02 %


( S ( NP-SBJ ( NNP American ) ( NNP Express ) ( NNP Co. ) ) ( VP ( VBD posted ) ( NP ( NP ( DT a ) ( ADJP ( CD 21 ) ( NN % ) ) ( NN increase ) ) ( PP ( IN in ) ( NP ( JJ third ) ( NN quarter ) ( JJ net ) ( NN income ) ) ) ) ( PP ( IN despite ) ( NP ( NP ( DT a ) ( JJ sharp ) ( NN rise ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNS reserves ) ) ( PP ( IN for ) ( NP ( NNP Third ) ( NNP World ) ( NNS loans ) ) ) ) ) ( PP-LOC ( IN at ) ( NP ( PRP$ its ) ( NN banking ) ( NN unit ) ) ) ) ) ) )

American Express Co. posted a 21 % increase in third quarter net income despite a sharp rise in reserves for Third World loans at its banking unit


( S ( S-ADV ( VP ( VBN Aided ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( JJ sharp ) ( NN gain ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( NN travel ) ( NN business ) ) ) ) ) ) ) ( NP-SBJ-1 ( NNP American ) ( NNP Express ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ net ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 331.8 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 77 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 273.9 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 64 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) )

Aided by a sharp gain in its travel business American Express said net rose to 331.8 million or 77 cents a share from 273.9 million or 64 cents a share


( S ( NP-SBJ ( DT The ) ( JJ year-earlier ) ( NNS figures ) ) ( VP ( VBD included ) ( NP ( NP ( NP ( QP ( CD 9.9 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD three ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( IN in ) ( NP ( NP ( NN income ) ) ( PP ( IN from ) ( NP ( VBN discontinued ) ( NNS operations ) ) ) ) ) ) ) )

The year-earlier figures included 9.9 million or three cents a share in income from discontinued operations


( S ( NP-SBJ ( NP ( NN Income ) ) ( PP ( IN from ) ( NP ( VBG continuing ) ( NNS operations ) ) ) ) ( VP ( VBD was ) ( ADVP-PRD ( RB up ) ( NP ( CD 26 ) ( NN % ) ) ) ) )

Income from continuing operations was up 26 %


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 24 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 6.5 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 5.23 ) ( CD billion ) ) ) ) ) )

Revenue rose 24 % to 6.5 billion from 5.23 billion


( S ( NP-SBJ ( DT The ) ( NN travel ) ( NN investment ) ( NNS services ) ( NN insurance ) ( CC and ) ( NN banking ) ( NN concern ) ) ( VP ( VBD added ) ( NP ( QP ( CD 110 ) ( CD million ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NNS reserves ) ) ( PP ( IN for ) ( NP ( NN credit ) ( NNS losses ) ) ) ( PP-LOC ( IN at ) ( NP ( PRP$ its ) ( NNP American ) ( NNP Express ) ( NNP Bank ) ( NN unit ) ) ) ) ) ( S-ADV ( VP ( VBG boosting ) ( NP ( DT the ) ( NN reserve ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 507 ) ( CD million ) ) ) ) ( PP-TMP ( IN as ) ( PP ( IN of ) ( NP ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ) )

The travel investment services insurance and banking concern added 110 million to reserves for credit losses at its American Express Bank unit boosting the reserve to 507 million as of Sept. 30


( S ( NP-SBJ ( NP ( DT The ) ( NN bank ) ( POS 's ) ) ( NNP Third ) ( NNP World ) ( NN debt ) ( NN portfolio ) ) ( VP ( VBZ totals ) ( NP ( QP ( CD 560 ) ( CD million ) ) ) ( ADVP ( RB down ) ( PP ( IN from ) ( NP ( QP ( CD 2.2 ) ( CD billion ) ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( CD 1986 ) ) ) ) ) ) ) ) )

The bank 's Third World debt portfolio totals 560 million down from 2.2 billion at the end of 1986


( S ( NP-SBJ ( DT The ) ( NN bank ) ) ( VP ( VBD charged ) ( PRT ( RP off ) ) ( NP ( NP ( QP ( CD 53 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NNS loans ) ) ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( NN quarter ) ) ) ) )

The bank charged off 53 million in loans during the quarter


( S ( PP-LOC ( IN At ) ( NP ( DT the ) ( NNP American ) ( NNP Express ) ( NNP Travel ) ( NNP Related ) ( NNP Services ) ( NNP Co. ) ( NN unit ) ) ) ( NP-SBJ ( JJ net ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 17 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( DT a ) ( NN record ) ( QP ( CD 240.8 ) ( CD million ) ) ) ) ( PP ( IN on ) ( NP ( DT a ) ( ADJP ( CD 19 ) ( NN % ) ) ( NN revenue ) ( NN increase ) ) ) ) )

At the American Express Travel Related Services Co. unit net rose 17 % to a record 240.8 million on a 19 % revenue increase


( S ( NP-SBJ ( DT The ) ( NNS figures ) ) ( VP ( VBP exclude ) ( NP ( NP ( NNS businesses ) ) ( VP ( ADVP-TMP ( RB now ) ) ( VBN organized ) ( PP-MNR ( IN as ) ( NP ( NNP American ) ( NNP Express ) ( NNP Information ) ( NNP Services ) ( NNP Co ) ) ) ) ) ) )

The figures exclude businesses now organized as American Express Information Services Co


( S ( NP-SBJ ( NNP American ) ( NNP Express ) ( NN card ) ( NN charge ) ( NN volume ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 12 ) ( NN % ) ) ) )

American Express card charge volume rose 12 %


( S ( NP-SBJ-1 ( NN Travel ) ( NNS sales ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 11 ) ( NN % ) ) ( S-ADV ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS gains ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ) ) ) ) )

Travel sales rose 11 % led by gains in the U.S.


( S ( PP-LOC ( IN At ) ( NP ( NP ( NNP IDS ) ( NNP Financial ) ( NNP Services ) ) ( NP ( DT the ) ( JJ financial ) ( NN planning ) ( CC and ) ( JJ mutual ) ( NN fund ) ( NN unit ) ) ) ) ( NP-SBJ ( JJ net ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 19 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( DT a ) ( NN record ) ( QP ( CD 47.6 ) ( CD million ) ) ) ) ( PP ( IN on ) ( NP ( DT a ) ( ADJP ( CD 33 ) ( NN % ) ) ( NN revenue ) ( NN gain ) ) ) ) )

At IDS Financial Services the financial planning and mutual fund unit net rose 19 % to a record 47.6 million on a 33 % revenue gain


( S ( S ( NP-SBJ ( NP ( NNS Assets ) ) ( VP ( VBN owned ) ( CC or ) ( VBN managed ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 20 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 45 ) ( CD billion ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( JJ mutual ) ( NN fund ) ( NNS sales ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 45 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN quarter ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 923 ) ( CD million ) ) ) ) ) ) )

Assets owned or managed rose 20 % to 45 billion and mutual fund sales rose 45 % in the quarter to 923 million


( S ( NP-SBJ ( NNP American ) ( NNP Express ) ( NNP Bank ) ( NNS earnings ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 50 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 21.3 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 42.5 ) ( CD million ) ) ) ) ( PP ( IN despite ) ( NP ( DT a ) ( ADJP ( CD 29 ) ( NN % ) ) ( NN revenue ) ( NN gain ) ) ) ) )

American Express Bank earnings fell 50 % to 21.3 million from 42.5 million despite a 29 % revenue gain


( S ( NP-SBJ ( DT The ) ( NNS results ) ) ( VP ( VBP include ) ( NP ( NP ( QP ( CD 106 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( NN tax ) ( NNS benefits ) ) ( VP ( VBN associated ) ( PP-CLR ( IN with ) ( NP ( NP ( JJ previous ) ( NNS years ) ( POS ' ) ) ( JJ Third ) ( NNP World ) ( NN loan ) ( NN activity ) ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( QP ( CD 15 ) ( CD million ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) ) ) )

The results include 106 million of tax benefits associated with previous years ' Third World loan activity compared with 15 million a year earlier


( S ( NP-SBJ ( NN Profit ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 38 ) ( NN % ) ) ( PP-LOC ( IN at ) ( NP ( NNP American ) ( NNP Express ) ( NNP Information ) ( NNP Services ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 21.6 ) ( CD million ) ) ) ) ) )

Profit rose 38 % at American Express Information Services to 21.6 million


( S ( S ( NP-SBJ ( NNP Shearson ) ( NNP Lehman ) ( NNP Hutton ) ( NNP Holdings ) ( NNP Inc. ) ) ( SBAR-ADV ( RB as ) ( S ( ADVP-TMP ( RB previously ) ) ( VP ( VBN reported ) ) ) ) ( VP ( VBD had ) ( NP ( NP ( JJ net ) ) ( PP ( IN of ) ( NP ( QP ( CD 65.9 ) ( CD million ) ) ) ) ) ( S-ADV ( VP ( VBG reversing ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 3.5 ) ( CD million ) ) ) ( NN loss ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) ) ) ( S ( NP-SBJ ( PRP$ its ) ( JJS latest ) ( NNS results ) ) ( VP ( VBP include ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 37 ) ( CD million ) ) ) ( NN gain ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( DT an ) ( JJ institutional ) ( NN money ) ( NN management ) ( NN business ) ) ) ) ) ) ) ) )

Shearson Lehman Hutton Holdings Inc. as previously reported had net of 65.9 million reversing a 3.5 million loss a year earlier its latest results include a 37 million gain from the sale of an institutional money management business


( S ( S ( NP-SBJ ( NP ( NP ( NNP American ) ( NNP Express ) ( POS 's ) ) ( NN share ) ) ( PP ( IN of ) ( NP ( NP ( NNP Shearson ) ( POS 's ) ) ( NNS earnings ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( QP ( CD 41 ) ( CD million ) ) ) ( PP ( RB after ) ( NP ( VBN preferred ) ( NN stock ) ( NNS dividends ) ) ) ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ owns ) ( NP ( NP ( QP ( RB about ) ( CD 68 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Shearson ) ( POS 's ) ) ( NN common ) ) ) ) ) ) )

American Express 's share of Shearson 's earnings was 41 million after preferred stock dividends it owns about 68 % of Shearson 's common


( S ( PP-TPC-1 ( IN For ) ( NP ( DT the ) ( CD nine ) ( NNS months ) ) ) ( NP-SBJ ( NNP American ) ( NNP Express ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ net ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 11 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 899.8 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 2.09 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 807.5 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.89 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) )

For the nine months American Express said net rose 11 % to 899.8 million or 2.09 a share from 807.5 million or 1.89 a share


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 24 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 18.73 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 15.09 ) ( CD billion ) ) ) ) ) )

Revenue rose 24 % to 18.73 billion from 15.09 billion


( S ( S-TPC-3 ( SBAR-SBJ ( RB Just ) ( IN because ) ( S ( NP-SBJ ( NAC-LOC ( NNP Stamford ) ( NNP Conn. ) ) ( NNP High ) ( NNP School ) ) ( VP ( VBD did ) ( NP ( NN nothing ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ-1 ( PRP$ its ) ( JJ valuable ) ( NNS 1930s ) ( NN mural ) ) ( VP ( VBD was ) ( VP ( VBN thrown ) ( PP-DIR ( IN in ) ( NP ( DT the ) ( NN trash ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB mean ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN city ) ) ( ADVP-TMP ( RB no ) ( RBR longer ) ) ( VP ( VBZ owns ) ( NP ( NP ( DT the ) ( NN work ) ) ( PP ( IN of ) ( NP ( NN art ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT a ) ( JJ federal ) ( NN judge ) ) ( VP ( VBD ruled ) ) )

Just because Stamford Conn. High School did nothing when its valuable 1930s mural was thrown in the trash does n't mean the city no longer owns the work of art a federal judge ruled


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN mural ) ) ( VP ( ADVP-TMP ( RB now ) ) ( VBN valued ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 1.3 ) ( CD million ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NNS appraisers ) ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN tossed ) ( PP-DIR ( IN in ) ( NP ( DT a ) ( NN trash ) ( NN heap ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1971 ) ) ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS workers ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBD were ) ( VP ( VBG renovating ) ( NP ( DT the ) ( NN building ) ) ) ) ) ) ) ) ) ) )

The mural now valued at 1.3 million according to appraisers was tossed in a trash heap in 1971 by workers who were renovating the building


( S ( NP-SBJ-1 ( NP ( DT The ) ( JJ 100-foot-long ) ( NN mural ) ) ( VP ( VBN painted ) ( PP ( IN by ) ( NP-LGS ( NNP James ) ( NNP Daugherty ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1934 ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN commissioned ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( JJ federal ) ( NNP Works ) ( NNP Project ) ( NNP Administration ) ) ) ) ) )

The 100-foot-long mural painted by James Daugherty in 1934 was commissioned by the federal Works Project Administration


( S ( SBAR-TMP ( IN After ) ( S ( NP-SBJ-1 ( DT the ) ( VBN discarded ) ( NN mural ) ) ( VP ( VBD was ) ( VP ( VBN found ) ( PP-LOC ( IN outside ) ( NP ( DT the ) ( NN school ) ) ) ( PP ( IN by ) ( NP-LGS ( DT a ) ( JJ concerned ) ( NNP Stamford ) ( NN graduate ) ) ) ) ) ) ) ( NP-SBJ-2 ( PRP it ) ) ( ADVP-TMP ( RB eventually ) ) ( VP ( VBD was ) ( VP ( VBN turned ) ( PRT ( RP over ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NNP Hiram ) ( NNP Hoelzer ) ) ( NP ( DT a ) ( JJ professional ) ( NN art ) ( NN restorer ) ) ) ) ) ) )

After the discarded mural was found outside the school by a concerned Stamford graduate it eventually was turned over to Hiram Hoelzer a professional art restorer


( S ( PP-TMP ( IN Throughout ) ( NP ( DT the ) ( NNS 1970s ) ) ) ( NP-SBJ ( NNP Stamford ) ( NN school ) ( CC and ) ( NN city ) ( NNS officials ) ) ( VP ( VBD made ) ( NP ( DT no ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB locate ) ( NP ( DT the ) ( NN mural ) ) ) ) ) ) ) )

Throughout the 1970s Stamford school and city officials made no effort to locate the mural


( S ( ADVP ( RB Apparently ) ) ( NP-SBJ ( DT the ) ( NNS officials ) ) ( VP ( VBD did ) ( RB n't ) ( ADVP ( RB even ) ) ( VP ( VB know ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN mural ) ) ( VP ( VBD was ) ( VP ( VBG missing ) ) ) ) ) ( PP-TMP ( IN until ) ( NP ( NP ( CD 1980 ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( DT a ) ( NN researcher ) ) ( VP ( VP ( VBD found ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN painting ) ) ( VP ( VBD was ) ( PP-LOC-PRD ( IN in ) ( NP ( NP ( NNP Mr. ) ( NNP Hoelzer ) ( POS 's ) ) ( NN studio ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD questioned ) ( NP ( NN school ) ( NNS officials ) ) ( PP-CLR ( IN about ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) )

Apparently the officials did n't even know the mural was missing until 1980 when a researcher found that the painting was in Mr. Hoelzer 's studio and questioned school officials about it


( S ( PP-TMP ( IN In ) ( NP ( CD 1986 ) ) ) ( NP-SBJ ( NNP Stamford ) ( NNS officials ) ) ( VP ( VP ( VBD thanked ) ( NP-1 ( NNP Mr. ) ( NNP Hoelzer ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG taking ) ( NP-CLR ( NN care ) ) ( PP-CLR ( IN of ) ( NP ( DT the ) ( NN mural ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD demanded ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VB return ) ( NP ( PRP it ) ) ( ADVP-TMP ( ADVP ( RB as ) ( RB soon ) ) ( PP ( IN as ) ( ADJP ( JJ possible ) ) ) ) ) ) ) ) ) )

In 1986 Stamford officials thanked Mr. Hoelzer for taking care of the mural and demanded he return it as soon as possible


( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Hoelzer ) ) ( ADVP ( RB however ) ) ( VP ( VBD sued ) ( NP ( NNP Stamford ) ) ( S-ADV ( VP ( VBG claiming ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN city ) ) ( VP ( VBD had ) ( VP ( VBN abandoned ) ( NP ( DT the ) ( NN artwork ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBD had ) ( VP ( VBN waited ) ( ADVP-TMP ( RB too ) ( JJ long ) ) ( S ( VP ( TO to ) ( VP ( VB reclaim ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Hoelzer however sued Stamford claiming that the city had abandoned the artwork and that it had waited too long to reclaim it


( S ( CC But ) ( NP-SBJ ( NP ( NNP Judge ) ( NNP Louis ) ( NNP L. ) ( NNP Stanton ) ) ( PP ( IN of ) ( NP ( NP ( JJ federal ) ( NN court ) ) ( PP-LOC ( IN in ) ( NP ( NNP Manhattan ) ) ) ) ) ) ( VP ( VBD ruled ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT the ) ( NN city ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN faulted ) ( PP-CLR ( IN for ) ( S-NOM ( VP ( VBG waiting ) ( ADVP-TMP ( RB too ) ( RB long ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB realize ) ( PP-TMP ( IN until ) ( NP ( CD 1986 ) ) ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NP ( PRP$ its ) ( NN ownership ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN painting ) ) ) ) ( VP ( VBD was ) ( PP-PRD ( IN in ) ( NP ( NN dispute ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But Judge Louis L. Stanton of federal court in Manhattan ruled that the city could n't be faulted for waiting too long because it did n't realize until 1986 that its ownership of the painting was in dispute


( S ( NP-SBJ ( DT The ) ( NN judge ) ) ( ADVP ( RB also ) ) ( VP ( VBD ruled ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( DT the ) ( NN painting ) ) ( VP ( VBD was ) ( RB n't ) ( VP ( VBN abandoned ) ( SBAR-TMP ( IN because ) ( S ( NP-SBJ ( NNS officials ) ) ( VP ( VP ( VBD did ) ( RB n't ) ( VP ( VB intend ) ( SBAR ( IN for ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN thrown ) ( PRT ( RP away ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD were ) ( ADJP-PRD ( JJ unaware ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNS workmen ) ) ( VP ( VBD had ) ( VP ( VBN discarded ) ( NP ( PRP it ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The judge also ruled that the painting was n't abandoned because officials did n't intend for it to be thrown away and were unaware that the workmen had discarded it


( S ( NP-SBJ ( NNP Mr. ) ( NNP Hoelzer ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB return ) ( NP ( NP ( NN phone ) ( NNS calls ) ) ( VP ( VBG seeking ) ( NP ( NP ( NN comment ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN judge ) ( POS 's ) ) ( NN decision ) ) ) ) ) ) ) ) )

Mr. Hoelzer did n't return phone calls seeking comment on the judge 's decision


( S ( NP-SBJ ( DT The ) ( NN judge ) ) ( VP ( VBD ordered ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT a ) ( NN hearing ) ) ( VP ( VB be ) ( VP ( VBN held ) ( NP-TMP ( NNP Nov. ) ( CD 17 ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB determine ) ( SBAR ( WHNP-2 ( WRB how ) ( JJ much ) ) ( S ( NP-SBJ ( DT the ) ( NN city ) ) ( VP ( MD should ) ( VP ( VB pay ) ( NP ( NNP Mr. ) ( NNP Hoelzer ) ) ( PP-CLR ( IN for ) ( NP ( PRP$ his ) ( NNS services ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The judge ordered that a hearing be held Nov. 17 to determine how much the city should pay Mr. Hoelzer for his services


( S ( NP-SBJ ( NP ( NNP Mary ) ( NNP E. ) ( NNP Sommer ) ) ( NP ( NP ( JJ corporate ) ( NN counsel ) ) ( PP ( IN for ) ( NP ( NNP Stamford ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN city ) ) ( VP ( VBZ has ) ( VP ( VBN discussed ) ( NP ( NP ( JJ several ) ( JJ possible ) ( NNS plans ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG displaying ) ( NP ( NP ( DT the ) ( NN mural ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ portrays ) ( NP ( NP ( JJ various ) ( NNS scenes ) ) ( PP ( IN from ) ( NP ( DT the ) ( NNP Great ) ( NNP Depression ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mary E. Sommer corporate counsel for Stamford said the city has discussed several possible plans for displaying the mural which portrays various scenes from the Great Depression


( S ( NP-SBJ ( PRP She ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN mural ) ) ( VP ( VBZ preserves ) ( NP ( NP ( DT an ) ( NN era ) ) ( PP-LOC ( PP ( IN in ) ( NP ( NNP Stamford ) ) ) ( CC and ) ( PP ( IN in ) ( NP ( PRP$ our ) ( NN country ) ) ) ) ( SBAR ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ-1 ( NP ( DT this ) ( NN type ) ) ( PP ( IN of ) ( NP ( NN work ) ) ) ) ( VP ( VBD was ) ( VP ( VBG being ) ( VP ( VBN done ) ) ) ) ) ) ) ) ) ) ) )

She said the mural preserves an era in Stamford and in our country when this type of work was being done


( S ( NP-SBJ-1 ( NP ( NP ( NNP James ) ( NNP F. ) ( NNP Gero ) ) ( NP ( NP ( JJ former ) ( NX ( NX ( NN chairman ) ) ( CC and ) ( NX ( JJ chief ) ( JJ executive ) ( NN officer ) ) ) ) ( PP ( IN of ) ( NP ( NNP Varo ) ( NNP Inc. ) ) ) ) ) ( CC and ) ( NP ( NP ( NNP Richard ) ( NNP J. ) ( NNP Hatchett ) ( NNP III ) ) ( NP ( DT a ) ( NNP Dallas ) ( NN investment ) ( NN banker ) ) ) ) ( VP ( VBD were ) ( VP ( VBN elected ) ( S ( NP-PRD ( NP ( NNS directors ) ) ( PP ( IN of ) ( NP ( DT this ) ( NNS medical-products ) ( NN concern ) ) ) ) ) ( S-ADV ( VP ( VBG boosting ) ( NP ( DT the ) ( NN board ) ) ( PP-CLR ( TO to ) ( NP ( CD seven ) ( NNS members ) ) ) ) ) ) ) )

James F. Gero former chairman and chief executive officer of Varo Inc. and Richard J. Hatchett III a Dallas investment banker were elected directors of this medical-products concern boosting the board to seven members


( S ( NP-SBJ ( NP ( NN Stock-market ) ( NNS fears ) ) ( CC and ) ( NP ( ADJP ( RB relatively ) ( RBR more ) ( JJ attractive ) ) ( NN interest ) ( NNS rates ) ) ) ( VP ( VP ( VBD pushed ) ( NP ( ADJP ( JJ money-market ) ( JJ mutual ) ) ( NN fund ) ( NNS assets ) ) ( ADVP-DIR ( RB up ) ( NP ( QP ( CD 6.07 ) ( CD billion ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJS latest ) ( NN week ) ) ) ) ( NP ( NP ( DT the ) ( JJS sharpest ) ( NN increase ) ) ( PP-TMP ( IN in ) ( NP ( QP ( RB almost ) ( CD two ) ) ( NNS years ) ) ) ) ) )

Stock-market fears and relatively more attractive interest rates pushed money-market mutual fund assets up 6.07 billion in the latest week the sharpest increase in almost two years


( S ( NP-SBJ ( NP ( DT The ) ( CD 473 ) ( NNS funds ) ) ( VP ( VBN tracked ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NNP Investment ) ( NNP Company ) ( NNP Institute ) ) ( NP ( DT a ) ( JJ Washington-based ) ( NN trade ) ( NN group ) ) ) ) ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 356.1 ) ( CD billion ) ) ) ( NP ( DT a ) ( NN record ) ) ) ) ) )

The 473 funds tracked by the Investment Company Institute a Washington-based trade group rose to 356.1 billion a record


( S ( NP-SBJ ( DT The ) ( ADJP ( QP ( CD 6.07 ) ( CD billion ) ) ) ( NN increase ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT the ) ( JJS strongest ) ( JJ weekly ) ( NN inflow ) ) ( PP ( IN since ) ( NP ( NNP January ) ( CD 1988 ) ) ) ) ) )

The 6.07 billion increase was the strongest weekly inflow since January 1988


( S ( NP-SBJ-1 ( DT The ) ( NN increase ) ) ( VP ( VBD was ) ( VP ( VBN spread ) ( ADVP-MNR ( RB fairly ) ( RB evenly ) ) ( PP-CLR ( IN among ) ( NP ( NP ( DT all ) ( CD three ) ( NNS types ) ) ( PP ( IN of ) ( NP ( NNS funds ) ) ) ) ) ) ) )

The increase was spread fairly evenly among all three types of funds


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( JJ Individual ) ( NNS investors ) ) ( VP ( VBN represented ) ( PP-LOC-CLR ( IN in ) ( NP ( DT the ) ( ADJP ( JJ general-purpose ) ( CC and ) ( JJ broker-dealer ) ) ( NN fund ) ( NNS categories ) ) ) ) ) ( VP ( VP ( VBD pulled ) ( NP ( NN money ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ( PP-TMP ( IN after ) ( NP ( NP ( PRP$ its ) ( JJ big ) ( NN drop ) ) ( NP-TMP ( JJ last ) ( NNP Friday ) ) ) ) ) ( CC and ) ( VP ( VBD put ) ( NP ( DT the ) ( NN money ) ) ( PP-PUT ( IN into ) ( NP ( NNS funds ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Jacob ) ( NNP Dreyer ) ) ( NP ( NP ( NP ( NN vice ) ( NN president ) ) ( CC and ) ( NP ( JJ chief ) ( NN economist ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Institute ) ) ) ) ) )

Individual investors represented in the general-purpose and broker-dealer fund categories pulled money from the stock market after its big drop last Friday and put the money into funds said Jacob Dreyer vice president and chief economist of the Institute


( S ( S-TPC-1 ( NP-SBJ ( JJ Insitutional ) ( NNS investors ) ) ( PP ( IN on ) ( NP ( DT the ) ( JJ other ) ( NN hand ) ) ) ( VP ( VBD reacted ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ steep ) ( NN decline ) ) ( PP ( IN in ) ( NP ( NP ( NNS yields ) ) ( PP ( IN on ) ( NP ( JJ direct ) ( JJ money-market ) ( NNS instruments ) ) ) ) ) ( PP-TMP ( VBG following ) ( NP ( NP ( DT the ) ( NN stock-market ) ( NN decline ) ) ( NP-TMP ( JJ last ) ( NNP Friday ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Dreyer ) ) ( VP ( VBD said ) ) )

Insitutional investors on the other hand reacted to the steep decline in yields on direct money-market instruments following the stock-market decline last Friday Mr. Dreyer said


( S ( NP-SBJ ( NP ( NNS Yields ) ) ( PP ( IN on ) ( NP ( NN money ) ( NNS funds ) ) ) ) ( VP ( VBD dropped ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( NN week ) ) ( VP ( VBN ended ) ( NP-TMP-CLR ( NNP Tuesday ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( NP ( NNP Donoghue ) ( POS 's ) ) ( NNP Money ) ( NNP Fund ) ( NNP Report ) ) ( NP ( DT a ) ( NAC-LOC ( NNP Holliston ) ( NNP Mass. ) ) ( NN newsletter ) ) ) ) ) ) )

Yields on money funds dropped in the week ended Tuesday according to Donoghue 's Money Fund Report a Holliston Mass. newsletter


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( JJ average ) ( JJ seven-day ) ( VBN compounded ) ( NN yield ) ) ( VP ( VBD fell ) ( PP-DIR ( TO to ) ( NP ( CD 8.55 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 8.60 ) ( NN % ) ) ( ADVP-TMP ( NP ( DT the ) ( NN week ) ) ( RBR earlier ) ) ) ) ) ( NP-SBJ ( NNP Donoghue ) ( POS 's ) ) ( VP ( VBD said ) ) )

The average seven-day compounded yield fell to 8.55 % from 8.60 % the week earlier Donoghue 's said


( S ( PP ( IN At ) ( NP ( NP ( DT the ) ( NN auction ) ) ( PP ( IN of ) ( NP ( JJ six-month ) ( NNP U.S. ) ( NNP Treasury ) ( NNS bills ) ) ) ( PP-TMP ( IN on ) ( NP ( NNP Monday ) ) ) ) ) ( NP-SBJ ( DT the ) ( JJ average ) ( NN yield ) ) ( VP ( VBD fell ) ( PP-DIR ( TO to ) ( NP ( CD 7.61 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 7.82 ) ( NN % ) ) ) ) )

At the auction of six-month U.S. Treasury bills on Monday the average yield fell to 7.61 % from 7.82 %


( S ( ADVP ( RB Likewise ) ) ( NP-SBJ ( NP ( NNS certificates ) ) ( PP ( IN of ) ( NP ( NN deposit ) ) ) ) ( PP ( IN on ) ( ADJP ( JJ average ) ) ) ( VP ( VBD posted ) ( NP ( JJR lower ) ( NNS yields ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( NN week ) ) ( VP ( VBD ended ) ( NP-TMP-CLR ( NNP Tuesday ) ) ) ) ) ) )

Likewise certificates of deposit on average posted lower yields in the week ended Tuesday


( S ( NP-SBJ ( DT The ) ( CD 142 ) ( JJ institutional-type ) ( NN money ) ( NNS funds ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 2.23 ) ( CD billion ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 85.49 ) ( CD billion ) ) ) ) ) )

The 142 institutional-type money funds rose 2.23 billion to 85.49 billion


( S ( NP-SBJ ( DT The ) ( CD 235 ) ( JJ general-purpose ) ( NNS funds ) ) ( VP ( VBD increased ) ( NP-EXT ( QP ( CD 2.53 ) ( CD billion ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 116.56 ) ( CD billion ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( CD 96 ) ( JJ broker-dealer ) ( NNS funds ) ) ( VP ( VBD increased ) ( NP-EXT ( QP ( CD 1.3 ) ( CD billion ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 154.05 ) ( CD billion ) ) ) ) ) ) ) ) )

The 235 general-purpose funds increased 2.53 billion to 116.56 billion while 96 broker-dealer funds increased 1.3 billion to 154.05 billion


( S ( NP-SBJ ( NP ( NNP MC ) ( NNP SHIPPING ) ( NNP Inc. ) ) ( NP-LOC ( NNP New ) ( NNP York ) ) ) ( VP ( VBD declared ) ( NP ( NP ( DT an ) ( JJ initial ) ( NN quarterly ) ) ( PP ( IN of ) ( NP ( NP ( CD 60 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADJP ( JJ payable ) ( NP-TMP ( NNP Nov. ) ( CD 15 ) ) ( PP ( TO to ) ( NP ( NP ( NNS shares ) ) ( PP ( IN of ) ( NP ( NN record ) ) ) ( NP-TMP ( NNP Oct. ) ( CD 30 ) ) ) ) ) ) ) )

MC SHIPPING Inc. New York declared an initial quarterly of 60 cents a share payable Nov. 15 to shares of record Oct. 30


( S ( NP-SBJ ( DT The ) ( NN announcement ) ) ( VP ( VBD boosted ) ( NP ( NP ( NP ( DT the ) ( JJ charter-shipping ) ( NN company ) ( POS 's ) ) ( NNS shares ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( CD 15.125 ) ) ) ( ADVP ( RB up ) ( NP ( NP ( CD 1.25 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ composite ) ( NN trading ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP American ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) ) ) ) ) ) )

The announcement boosted the charter-shipping company 's shares which closed at 15.125 up 1.25 a share in composite trading on the American Stock Exchange


( S ( S ( NP-SBJ-2 ( NP ( DT The ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD went ) ( ADJP-PRD ( NN public ) ) ( PP-TMP ( IN in ) ( NP ( NNP May ) ) ) ) ) ) ) ( VP ( VBZ intends ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( NNS dividends ) ) ( PP-CLR ( IN from ) ( NP ( JJ available ) ( NN cash ) ( NN flow ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( DT the ) ( NN amount ) ) ( VP ( MD may ) ( VP ( VB vary ) ( PP-CLR ( PP ( IN from ) ( NP ( NN quarter ) ) ) ( PP ( TO to ) ( NP ( NN quarter ) ) ) ) ) ) ) )

The company which went public in May intends to pay dividends from available cash flow the amount may vary from quarter to quarter


( S ( NP-SBJ ( NNP Mattel ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ third-quarter ) ( JJ net ) ( NN income ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 73 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 38 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 76 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 21.9 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 45 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RB ago ) ) ) ) ) ) ) )

Mattel Inc. said third-quarter net income rose 73 % to 38 million or 76 cents a share from 21.9 million or 45 cents a share a year ago


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 34 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 410 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 306.6 ) ( CD million ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) )

Revenue rose 34 % to 410 million from 306.6 million a year earlier


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( NNP Mattel ) ( POS 's ) ) ( JJ world-wide ) ( NN volume ) ) ( VP ( VBZ has ) ( VP ( VBN grown ) ( NP-EXT ( CD 25 ) ( NN % ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( NN climate ) ) ( PP ( IN of ) ( NP ( ADJP ( RB relatively ) ( JJ flat ) ) ( NN industry ) ( NNS sales ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP John ) ( NNP W. ) ( NNP Amerman ) ) ( NP ( NN chairman ) ) ) )

Mattel 's world-wide volume has grown 25 % in a climate of relatively flat industry sales said John W. Amerman chairman


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NP ( DT the ) ( NN toy ) ( NN company ) ( POS 's ) ) ( NNS prospects ) ) ( PP ( IN for ) ( NP ( DT a ) ( JJ strong ) ( JJ fourth ) ( NN quarter ) ) ) ) ( VP ( VBP are ) ( ADVP ( RB also ) ) ( ADJP-PRD ( JJ good ) ) ) ) ) ) )

He said the toy company 's prospects for a strong fourth quarter are also good


( S ( NP-SBJ ( NNP Mattel ) ) ( VP ( VBD attributed ) ( NP ( NP ( DT the ) ( NN jump ) ) ( PP ( IN in ) ( NP ( NN quarter ) ( NN net ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( JJ strong ) ( JJ world-wide ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NP ( NP ( NNP Barbie ) ( NN doll ) ) ( NP ( NNP Hot ) ( NNP Wheels ) ( NNS cars ) ) ( NP ( NNP Disney ) ( NNS toys ) ) ( CC and ) ( NP ( JJ other ) ( JJ well-known ) ( NN toy ) ( NNS lines ) ) ) ) ) ) ) ) )

Mattel attributed the jump in quarter net to strong world-wide sales of its Barbie doll Hot Wheels cars Disney toys and other well-known toy lines


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( ADVP ( RB also ) ) ( VP ( VBD cited ) ( NP ( NP ( NP ( JJ retail ) ( NN trade ) ) ( CC and ) ( NP ( NN consumer ) ( NN demand ) ) ) ( PP ( IN for ) ( NP ( NP ( JJ new ) ( NNS products ) ) ( VP ( VBN introduced ) ( NP-TMP ( DT this ) ( NN year ) ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Cherry ) ( NNP Merry ) ( NNP Muffin ) ) ( CC and ) ( NP ( NNP Turtle ) ( NNP Tots ) ) ) ) ) ) ) ) )

The company also cited retail trade and consumer demand for new products introduced this year such as Cherry Merry Muffin and Turtle Tots


( S ( PP ( IN For ) ( NP ( DT the ) ( CD nine ) ( NNS months ) ) ) ( NP-SBJ ( NNP Mattel ) ( JJ net ) ) ( ADVP ( RBR more ) ( IN than ) ) ( VP ( VBN doubled ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 58.9 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.19 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 25.4 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 53 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( NP-TMP ( NP ( DT a ) ( NN year ) ) ( RB ago ) ) ) ) )

For the nine months Mattel net more than doubled to 58.9 million or 1.19 a share from 25.4 million or 53 cents a share a year ago


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 25 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 877.6 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 702.4 ) ( CD million ) ) ) ) ) )

Revenue rose 25 % to 877.6 million from 702.4 million


( S ( NP-SBJ ( NNP Mattel ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NP ( NNS rights ) ) ( PP ( TO to ) ( NP ( NP ( NN land ) ( CC and ) ( NNS buildings ) ) ( PP-LOC ( IN at ) ( NP ( PRP$ its ) ( NAC-LOC ( NNP Hawthorne ) ( NNP Calif. ) ) ( NN headquarters ) ) ) ) ) ) ) ) ( VP ( VBD resulted ) ( PP-CLR ( IN in ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 13 ) ( CD million ) ) ) ( NN charge ) ) ( PP ( TO to ) ( NP ( JJ third-quarter ) ( NN operating ) ( NN profit ) ) ) ) ) ) ) ) ) )

Mattel said the company 's sale of rights to land and buildings at its Hawthorne Calif. headquarters resulted in a 13 million charge to third-quarter operating profit


( S ( NP-SBJ ( DT The ) ( NN charge ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB affect ) ( NP ( NP ( JJ net ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN quarter ) ) ) ) ( SBAR-PRP ( IN as ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD was ) ( VP ( VBN offset ) ( PP ( IN by ) ( NP-LGS ( NN tax ) ( NNS benefits ) ) ) ) ) ) ) ) ) )

The charge did n't affect net for the quarter as it was offset by tax benefits


( S ( NP-SBJ ( NNP Mattel ) ) ( VP ( VBZ has ) ( VP ( VBN purchased ) ( NP ( NP ( DT a ) ( JJ new ) ( NN headquarters ) ( NN building ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP El ) ( NNP Segundo ) ) ( NP ( NNP Calif. ) ) ) ) ( SBAR ( WHNP ( WDT which ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB occupy ) ( PP-TMP ( IN by ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( JJ next ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) )

Mattel has purchased a new headquarters building in El Segundo Calif. which it will occupy by the end of next year


( S ( S-TPC-2 ( NP-SBJ ( NP ( NNP Switzerland ) ( POS 's ) ) ( JJ wholesale ) ( NN price ) ( NN index ) ) ( VP ( VP ( VBD increased ) ( NP-EXT ( CD 0.3 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ( PP-DIR ( IN from ) ( NP-TMP ( NNP August ) ) ) ) ( CC and ) ( VP ( VBD was ) ( PP-PRD ( IN up ) ( NP ( CD 3.9 ) ( NN % ) ) ( PP ( IN from ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RB ago ) ) ) ) ) ( S-ADV ( VP ( VBG marking ) ( NP ( NP ( DT the ) ( JJ first ) ( NN time ) ) ( NP ( DT this ) ( NN year ) ) ( SBAR ( WHADVP-1 ( IN that ) ) ( S ( NP-SBJ ( DT the ) ( NN index ) ) ( VP ( VBZ has ) ( VP ( VBN fallen ) ( PP-DIR ( IN below ) ( NP ( CD 4 ) ( NN % ) ) ) ( PP ( IN on ) ( NP ( DT a ) ( JJ year-to-year ) ( NN basis ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( VBD reported ) ) )

Switzerland 's wholesale price index increased 0.3 % in September from August and was up 3.9 % from a year ago marking the first time this year that the index has fallen below 4 % on a year-to-year basis the government reported


( S ( NP-SBJ ( DT The ) ( NN government ) ) ( VP ( VBD attributed ) ( NP ( NP ( DT the ) ( ADJP ( CD 0.3 ) ( NN % ) ) ( JJ month-to-month ) ( NN rise ) ) ( PP ( IN in ) ( NP ( DT the ) ( NN index ) ) ) ) ( PP-CLR ( ADVP ( RB largely ) ) ( TO to ) ( NP ( JJR higher ) ( NN energy ) ( NNS prices ) ) ) ) )

The government attributed the 0.3 % month-to-month rise in the index largely to higher energy prices


( S ( PP-TMP ( IN In ) ( NP ( NNP August ) ) ) ( NP-SBJ ( DT the ) ( NN index ) ) ( VP ( VP ( VBD was ) ( ADVP-PRD ( RB up ) ( NP ( CD 0.2 ) ( NN % ) ) ( PP ( IN from ) ( NP-TMP ( DT the ) ( JJ previous ) ( NN month ) ) ) ) ) ( CC and ) ( VP ( VBD was ) ( ADVP-PRD ( RB up ) ( NP ( CD 4.5 ) ( NN % ) ) ( PP ( IN on ) ( NP ( DT a ) ( JJ year-to-year ) ( NN basis ) ) ) ) ) ) )

In August the index was up 0.2 % from the previous month and was up 4.5 % on a year-to-year basis


( S ( NP-SBJ ( DT The ) ( JJ wholesale ) ( NN price ) ( NN index ) ) ( S-ADV ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( NP ( CD 1963 ) ) ( PP ( IN as ) ( NP ( CD 100 ) ) ) ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( CD 180.9 ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) )

The wholesale price index based on 1963 as 100 was 180.9 in September


( S ( NP-SBJ ( DT THE ) ( NNP SALES ) ( NNP PITCH ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB sound ) ( ADJP-PRD ( RBR better ) ) ) ) )

THE SALES PITCH could n't sound better


( S ( ADVP ( RB First ) ) ( NP-SBJ ( EX there ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT the ) ( NN name ) ) ( NP ( JJ asset-backed ) ( NNS securities ) ) ) ) )

First there 's the name asset-backed securities


( ADJP ( ADJP ( RBR Better ) ) ( PP ( IN than ) ( NP ( NP ( DT all ) ( DT those ) ( NNS offers ) ) ( SBAR ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP get ) ) ) ) ( S-2 ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( NNS securities ) ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( NN nothing ) ) ) ) ) ) ) ) ) ) )

Better than all those offers you get to buy securities backed by nothing


( S ( CC And ) ( NP-SBJ ( EX there ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJR more ) ) ) )

And there 's more


( S ( NP-SBJ ( NP ( DT The ) ( NNS assets ) ) ( VP ( VBG backing ) ( NP ( DT the ) ( NNS securities ) ) ) ) ( VP ( VBP come ) ( PP-DIR ( IN from ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( ADJP ( ADJP ( JJS biggest ) ) ( CC and ) ( ADJP ( RBS most ) ( JJ secure ) ) ) ( NNS institutions ) ) ) ) ) ) )

The assets backing the securities come from some of the country 's biggest and most secure institutions


( S ( NP-SBJ ( JJS Most ) ) ( VP ( VBP earn ) ( NP ( NP ( JJ high ) ( NNS ratings ) ) ( PP ( IN from ) ( NP ( NN credit ) ( NNS agencies ) ) ) ) ) )

Most earn high ratings from credit agencies


( S ( NP-SBJ ( PRP$ Their ) ( NNS yields ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADJP ( JJR higher ) ) ( PP ( IN than ) ( NP ( NP ( DT those ) ) ( PP ( IN of ) ( NP ( NNP U.S. ) ( NNP Treasury ) ( NNS issues ) ) ) ) ) ) ) )

Their yields are higher than those of U.S. Treasury issues


( S ( CC And ) ( NP-SBJ ( DT the ) ( JJ booming ) ( NN market ) ) ( VP ( VBZ has ) ( ADVP ( RB already ) ) ( VP ( VBN attracted ) ( NP ( NP ( JJ many ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( JJS biggest ) ( JJ institutional ) ( NNS investors ) ) ) ) ) ) )

And the booming market has already attracted many of the nation 's biggest institutional investors


( ADJP ( JJ Ready ) ( S ( VP ( TO to ) ( VP ( VB jump ) ) ) ) )

Ready to jump


( S ( INTJ ( RB Well ) ) ( VP ( VB think ) ( ADVP ( RB twice ) ) ) )

Well think twice


( S ( S ( NP-SBJ ( DT The ) ( NN concept ) ) ( VP ( MD may ) ( VP ( VB be ) ( ADJP-PRD ( JJ simple ) ) ) ) ) ( S ( VP ( VP ( VB Take ) ( NP ( NP ( DT a ) ( NN bunch ) ) ( PP ( IN of ) ( NP ( NNS loans ) ) ) ) ) ( VP ( VB tie ) ( NP ( PRP them ) ) ( PRT ( RP up ) ) ( PP-MNR ( IN in ) ( NP ( CD one ) ( JJ neat ) ( NN package ) ) ) ) ( CC and ) ( VP ( VB sell ) ( NP ( NP ( NNS pieces ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN package ) ) ) ) ( PP-DTV ( TO to ) ( NP ( NNS investors ) ) ) ) ) ) )

The concept may be simple Take a bunch of loans tie them up in one neat package and sell pieces of the package to investors


( S ( CC But ) ( NP-SBJ ( DT the ) ( NN simplicity ) ) ( VP ( MD may ) ( VP ( VB be ) ( ADJP-PRD ( VBG misleading ) ) ) ) )

But the simplicity may be misleading


( S ( NP-SBJ ( NNS Skeptics ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( DT the ) ( ADJP ( RB slightly ) ( JJR higher ) ) ( NNS returns ) ) ( VP ( VBP are ) ( RB n't ) ( ADJP-PRD ( JJ enough ) ( S ( VP ( TO to ) ( VP ( VB compensate ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( JJ extra ) ( NN risk ) ) ) ) ) ) ) ) ) ) ) )

Skeptics say the slightly higher returns are n't enough to compensate for the extra risk


( S ( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP warn ) ( SBAR ( IN that ) ( S ( NP-SBJ ( JJ asset-backed ) ( NNS securities ) ) ( VP ( VBP are ) ( ADVP ( RB only ) ) ( ADJP-PRD ( ADJP ( RB as ) ( JJ good ) ) ( PP ( IN as ) ( NP ( NP ( DT the ) ( NNS assets ) ( CC and ) ( NN credit ) ( NN backing ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP support ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT those ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ hard ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB evaluate ) ) ) ) ) ) ) ) )

They warn that asset-backed securities are only as good as the assets and credit backing that support them and those are hard to evaluate


( S ( S ( ADVP ( RB Moreover ) ) ( NP-SBJ-1 ( DT the ) ( NNS securities ) ) ( VP ( VBD were ) ( VP ( VBN introduced ) ( ADVP-TMP ( NP ( QP ( RB only ) ( RB about ) ( CD 4 ) ( CD 1\/2 ) ) ( NNS years ) ) ( RB ago ) ) ) ) ) ( S ( NP-SBJ ( DT the ) ( JJS biggest ) ( NN unknown ) ) ( VP ( VBZ is ) ( SBAR-PRD ( WHADVP-2 ( WRB how ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD will ) ( VP ( VB fare ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( NN recession ) ) ) ) ) ) ) ) ) )

Moreover the securities were introduced only about 4 1\/2 years ago the biggest unknown is how they will fare in a recession


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( DT A ) ( NN lot ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN stuff ) ) ) ) ( ADVP ( RB really ) ) ( VP ( VBZ is ) ( PP-LOC-PRD ( IN in ) ( NP ( JJ untested ) ( NNS waters ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Owen ) ( NNP Carney ) ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN investment ) ( NNS securities ) ( NN division ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP U.S. ) ( NN comptroller ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN currency ) ) ) ) ) ) ) ) ) )

A lot of this stuff really is in untested waters says Owen Carney director of the investment securities division of the U.S. comptroller of the currency


( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB know ) ( SBAR ( WHADVP ( WRB how ) ) ( S ( NP-SBJ ( DT this ) ( JJ whole ) ( NN market ) ) ( VP ( MD will ) ( VP ( VB work ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( JJ serious ) ( JJ economic ) ( NN downturn ) ) ) ) ) ) ) ) ) )

We do n't know how this whole market will work in a serious economic downturn


( S ( NP-SBJ ( JJ Such ) ( NNS concerns ) ) ( ADVP ( RB however ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN stopped ) ( NP-1 ( JJ asset-backed ) ( NNS securities ) ) ( PP-CLR ( IN from ) ( S-NOM ( VP ( VBG becoming ) ( NP-PRD ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( NNP Wall ) ( NNP Street ) ( POS 's ) ) ( JJS hottest ) ( JJ new ) ( NNS products ) ) ) ) ) ) ) ) ) )

Such concerns however have n't stopped asset-backed securities from becoming one of Wall Street 's hottest new products


( S ( PP-TMP ( IN Since ) ( NP ( NP ( DT the ) ( NN spring ) ) ( PP ( IN of ) ( NP ( CD 1985 ) ) ) ) ) ( NP-SBJ ( JJ financial ) ( NNS alchemists ) ) ( VP ( VBP have ) ( VP ( VBN transformed ) ( NP ( NP ( DT a ) ( JJ wide ) ( NN variety ) ) ( PP ( IN of ) ( NP ( NN debt ) ) ) ) ( PP-CLR ( IN into ) ( NP ( DT these ) ( JJ new ) ( NNS securities ) ) ) ) ) )

Since the spring of 1985 financial alchemists have transformed a wide variety of debt into these new securities


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP have ) ( VP ( VBN sold ) ( NP ( NP ( NNS issues ) ) ( VP ( VBD backed ) ( PP ( IN by ) ( NP-LGS ( NP ( NN car ) ( NNS loans ) ) ( NP ( NN boat ) ( NNS loans ) ) ( CC and ) ( NP ( JJ recreational-vehicle ) ( NNS loans ) ) ) ) ) ) ) ) )

They have sold issues backed by car loans boat loans and recreational-vehicle loans


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP have ) ( VP ( VBN offered ) ( NP ( NP ( NP ( NNS bundles ) ) ( PP ( IN of ) ( NP ( NN homeequity ) ( NNS loans ) ) ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( NP ( NP ( NNS packages ) ) ( PP ( IN of ) ( NP ( NNS loans ) ) ) ( VP ( VBN used ) ( S-CLR ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NN vacation ) ( NNS time-shares ) ) ) ) ) ) ) ) ) ) )

They have offered bundles of homeequity loans as well as packages of loans used to buy vacation time-shares


( S ( NP-TMP ( JJ Last ) ( NN year ) ) ( NP-SBJ ( EX there ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT an ) ( NN issue ) ) ( PP ( IN of ) ( NP ( NP ( JJ death-backed ) ( NNS bonds ) ) ( NP ( NP ( NNS securities ) ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS loans ) ) ( PP ( TO to ) ( NP ( NN life-insurance ) ( NNS policyholders ) ) ) ) ) ) ) ) ) ) ) )

Last year there was an issue of death-backed bonds securities backed by loans to life-insurance policyholders


( S ( NP-SBJ ( DT Some ) ) ( VP ( VBP predict ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( NP ( NNP Third ) ( NNP World ) ( NNS bonds ) ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS loans ) ) ( PP ( TO to ) ( NP ( NP ( NNP Brazil ) ) ( NP ( NNP Argentina ) ) ( CC and ) ( NP ( JJ other ) ( JJ debt-ridden ) ( NNS nations ) ) ) ) ) ) ) ) ) ) ) ) ) )

Some predict there will be Third World bonds backed by loans to Brazil Argentina and other debt-ridden nations


( S ( CC And ) ( NP-SBJ ( DT the ) ( JJS biggest ) ( NN volume ) ) ( NP-TMP ( DT this ) ( NN year ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( PP-PRD ( IN on ) ( NP ( NP ( NNS securities ) ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( NP ( NN credit-card ) ( NN receivables ) ) ( VP ( ADVP-TMP ( RB sometimes ) ) ( VBN known ) ( PP-CLR ( IN as ) ( NP ( JJ plastic ) ( NNS bonds ) ) ) ) ) ) ) ) ) ) ) )

And the biggest volume this year has been on securities backed by credit-card receivables sometimes known as plastic bonds


( SINV ( S-TPC-1 ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN heyday ) ) ( PP ( IN of ) ( NP ( NN debt ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP James ) ( NNP Grant ) ) ( NP ( NP ( NN editor ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Grant ) ( POS 's ) ) ( NNP Interest ) ( NNP Rate ) ( NNP Observer ) ) ( NP ( DT a ) ( NN newsletter ) ) ) ) ) ) )

This is the heyday of debt says James Grant editor of Grant 's Interest Rate Observer a newsletter


( S ( SBAR-TMP ( RB Before ) ( S ( NP-SBJ ( DT the ) ( NN sun ) ) ( VP ( VBZ sets ) ( PP ( IN on ) ( NP ( DT the ) ( CD '80s ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ seems ) ( SBAR ( S ( NP-SBJ-1 ( NN nothing ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN left ) ( S ( VP ( VBN unhocked ) ) ) ) ) ) ) ) ) )

Before the sun sets on the '80s it seems nothing will be left unhocked


( S ( NP-SBJ ( DT The ) ( NN result ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( ADJP ( QP ( CD 45 ) ( CD billion ) ) ) ( NN market ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NNP Securities ) ( NNP Data ) ( NNP Co ) ) ) ) ) )

The result is a 45 billion market according to Securities Data Co


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ includes ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 9.5 ) ( CD billion ) ) ) ( VP ( VBD issued ) ( PP-TMP ( IN through ) ( NP ( NP ( NNP August ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN year ) ) ) ) ) ) ( ADVP ( ADVP ( RP up ) ( ADVP ( RB sharply ) ) ( PP ( IN from ) ( NP ( QP ( CD 6.5 ) ( CD billion ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ comparable ) ( CD 1988 ) ( NN period ) ) ) ) ) ( CC and ) ( ADVP ( ADVP ( JJR more ) ) ( PP ( IN than ) ( PP-TMP ( IN in ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( CD 1987 ) ) ) ) ) ) ) ) ) ) )

That includes more than 9.5 billion issued through August of this year up sharply from 6.5 billion in the comparable 1988 period and more than in all of 1987


( S ( NP-SBJ-1 ( JJS Most ) ( NNS issues ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBN sold ) ( PP-CLR ( TO to ) ( NP ( NP ( JJ professional ) ( NN money ) ( NNS managers ) ) ( NP ( NN pension ) ( NNS funds ) ) ( NP ( NN bank ) ( NN trust ) ( NNS departments ) ) ( CC and ) ( NP ( JJ other ) ( NNS institutions ) ) ) ) ) ) ) )

Most issues have been sold to professional money managers pension funds bank trust departments and other institutions


( S ( S ( CC But ) ( NP-SBJ ( JJ wealthy ) ( NNS individuals ) ) ( ADVP ( RB also ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG jumping ) ( ADVP-DIR ( RP in ) ) ) ) ) ) ( CC and ) ( S ( ADVP-TMP ( RB lately ) ) ( NP-SBJ ( NNS brokers ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG pushing ) ( NP ( JJR smaller ) ( NNS investors ) ) ( PP-DIR ( IN into ) ( NP ( DT the ) ( JJ asset-backed ) ( NN market ) ) ) ) ) ) ) )

But wealthy individuals also have been jumping in and lately brokers have been pushing smaller investors into the asset-backed market


( S ( S ( NP-SBJ ( DT The ) ( NN entry ) ( NN fee ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ affordable ) ) ) ) ( S ( NP-SBJ-1 ( NNS Issues ) ) ( ADVP ( RB typically ) ) ( VP ( VBP are ) ( VP ( VBN sold ) ( PP-MNR ( IN in ) ( NP ( NP ( NN minimum ) ( NNS denominations ) ) ( PP ( IN of ) ( NP ( CD 1,000 ) ) ) ) ) ) ) ) )

The entry fee is affordable Issues typically are sold in minimum denominations of 1,000


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP expect ) ( NP ( NP ( JJ additional ) ( NNS offerings ) ) ( PP ( IN of ) ( NP ( NP ( JJ asset-backed ) ( NNS securities ) ) ( VP ( VBN targeted ) ( PP-DIR ( IN toward ) ( NP ( JJ individual ) ( NNS investors ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Bill ) ( NNP Addiss ) ) ( NP ( NP ( DT a ) ( JJ senior ) ( NN vice ) ( NN president ) ) ( PP-LOC ( IN at ) ( NP ( NNP Shearson ) ( NNP Lehman ) ( NNP Hutton ) ( NNP Inc ) ) ) ) ) )

We expect additional offerings of asset-backed securities targeted toward individual investors says Bill Addiss a senior vice president at Shearson Lehman Hutton Inc


( S ( NP-SBJ ( DT The ) ( NN process ) ) ( ADVP ( RB typically ) ) ( VP ( VBZ begins ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NP ( DT an ) ( NN institution ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Citibank ) ) ( CC or ) ( NP ( NNP Sears ) ( NNP Roebuck ) ( CC & ) ( NNP Co. ) ) ) ) ) ( VP ( VP ( VBZ takes ) ( NP ( NP ( DT a ) ( NN pool ) ) ( PP ( IN of ) ( NP ( ADJP ( NN credit-card ) ( CC or ) ( JJ other ) ) ( NN receivables ) ) ) ) ) ( CC and ) ( VP ( VBZ sells ) ( NP ( PRP them ) ) ( PP-CLR ( TO to ) ( NP ( DT a ) ( ADJP ( RB specially ) ( VBN created ) ) ( NN trust ) ) ) ) ) ) ) ) )

The process typically begins when an institution such as Citibank or Sears Roebuck & Co. takes a pool of credit-card or other receivables and sells them to a specially created trust


( S ( NP-SBJ ( DT The ) ( NN trust ) ) ( ADVP ( RB then ) ) ( VP ( VBZ issues ) ( NP ( NP ( NNS securities ) ) ( PRN ( ADJP ( RB generally ) ( JJ due ) ( PP-TMP ( IN in ) ( NP ( CD five ) ( NNS years ) ( QP ( CC or ) ( JJR less ) ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP are ) ( VP ( VP ( JJ underwritten ) ( PP ( IN by ) ( NP-LGS ( NNP Wall ) ( NNP Street ) ( NN brokerage ) ( NNS firms ) ) ) ) ( CC and ) ( VP ( VBN offered ) ( PP-DTV ( TO to ) ( NP ( NNS investors ) ) ) ) ) ) ) ) ) ) )

The trust then issues securities generally due in five years or less that are underwritten by Wall Street brokerage firms and offered to investors


( S ( NP-SBJ ( NNS Issues ) ) ( ADVP ( RB typically ) ) ( VP ( VP ( VB come ) ( PP-MNR ( RP with ) ( NP ( NP ( NN credit ) ( NNS enhancements ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( DT a ) ( NN bank ) ( NN letter ) ) ( PP ( IN of ) ( NP ( NN credit ) ) ) ) ) ) ) ) ( CC and ) ( VP ( ADVP ( RB thus ) ) ( VBP have ) ( VP ( VBN received ) ( NP ( JJ high ) ( NN credit ) ( NNS ratings ) ) ) ) ) )

Issues typically come with credit enhancements such as a bank letter of credit and thus have received high credit ratings


( S ( NP-SBJ ( NNS Enthusiasts ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( JJ booming ) ( NN market ) ) ( VP ( VBZ has ) ( VP ( VBN opened ) ( PRT ( RP up ) ) ( NP ( NP ( DT a ) ( JJ valuable ) ( JJ new ) ( NN source ) ) ( PP ( IN of ) ( NP ( NNS funds ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NNS issuers ) ) ) ( SBAR-ADV ( IN while ) ( S ( VP ( VBG providing ) ( NP ( DT a ) ( JJ valuable ) ( JJ new ) ( NN investment ) ) ( PP-CLR ( IN for ) ( NP ( NNS individuals ) ( CC and ) ( NNS institutions ) ) ) ) ) ) ) ) ) ) ) )

Enthusiasts say the booming market has opened up a valuable new source of funds to issuers while providing a valuable new investment for individuals and institutions


( SINV ( S-TPC-1 ( NP-SBJ ( JJ Asset-backed ) ( NNS securities ) ) ( VP ( VBP are ) ( NP-PRD ( DT an ) ( JJ attractive ) ( NN investment ) ) ( PP ( VBN compared ) ( PP ( TO to ) ( NP ( NP ( NP ( NN bank ) ( NNS certificates ) ) ( PP ( IN of ) ( NP ( NN deposit ) ) ) ) ( CC or ) ( NP ( JJ other ) ( JJ corporate ) ( NNS bonds ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Craig ) ( NNP J. ) ( NNP Goldberg ) ) ( NP ( NP ( NP ( VBG managing ) ( NN director ) ) ( CC and ) ( NP ( NN head ) ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ asset-backed ) ( NNS securities ) ( NN group ) ) ( PP-LOC ( IN at ) ( NP ( NNP Merrill ) ( NNP Lynch ) ( NNP Capital ) ( NNP Markets ) ) ) ) ) ) ) )

Asset-backed securities are an attractive investment compared to bank certificates of deposit or other corporate bonds says Craig J. Goldberg managing director and head of the asset-backed securities group at Merrill Lynch Capital Markets


( S ( CC But ) ( NP-SBJ ( NNS skeptics ) ) ( VP ( VBP question ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( JJ asset-backed ) ( NNS bonds ) ) ( VP ( VBP offer ) ( NP ( NP ( JJ sufficient ) ( NNS rewards ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB compensate ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( JJ extra ) ( NNS risks ) ) ) ) ) ) ) ) ) ) ) ) )

But skeptics question whether asset-backed bonds offer sufficient rewards to compensate for the extra risks


( S ( VP ( VB Consider ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 500 ) ( CD million ) ) ) ( NN offering ) ) ( PP ( IN of ) ( NP ( NP ( ADJP ( CD 9 ) ( NN % ) ) ( NNS securities ) ) ( VP ( VP ( VBD issued ) ( NP-TMP ( JJ last ) ( NN spring ) ) ) ( CC and ) ( VP ( VBD backed ) ( PP ( IN by ) ( NP-LGS ( NNP Citibank ) ( NN credit-card ) ( NN receivables ) ) ) ) ) ) ) ) ) )

Consider a 500 million offering of 9 % securities issued last spring and backed by Citibank credit-card receivables


( S ( NP-SBJ ( DT The ) ( JJ triple-A-rated ) ( NN issue ) ) ( VP ( VBD offered ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( IN of ) ( NP ( NP ( QP ( RB only ) ( RB about ) ( CD 0.5 ) ) ( NN percentage ) ( NN point ) ) ( PP ( IN above ) ( NP ( JJ four-year ) ( NNP Treasury ) ( NNS issues ) ) ) ) ) ) ) )

The triple-A-rated issue offered a yield of only about 0.5 percentage point above four-year Treasury issues


( S ( PP ( IN On ) ( NP ( DT a ) ( ADJP ( CD 10,000 ) ) ( NN investment ) ) ) ( NP-SBJ ( DT that ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT a ) ( NN difference ) ) ( PP ( IN of ) ( NP ( NP ( QP ( RB only ) ( CD 50 ) ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ) ) ) )

On a 10,000 investment that 's a difference of only 50 a year


( S ( NP-SBJ ( NP ( DT That ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NN spread ) ) ) ) ( VP ( MD can ) ( VP ( VB be ) ( ADJP-PRD ( JJ critical ) ( PP ( IN for ) ( NP ( NP ( NN money ) ( NNS managers ) ) ( SBAR ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP buy ) ( NP ( NNS bonds ) ) ( PP-MNR ( IN in ) ( NP ( JJ large ) ( NNS quantities ) ) ) ) ) ) ( CC and ) ( SBAR ( WHNP-2 ( WP$ whose ) ( NN livelihood ) ) ( S ( VP ( VBZ depends ) ( PP-CLR ( IN on ) ( S-NOM ( VP ( VBG outperforming ) ( NP ( NP ( DT the ) ( NN money ) ( NN manager ) ) ( PP-LOC ( IN across ) ( NP ( DT the ) ( NN street ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

That kind of spread can be critical for money managers who buy bonds in large quantities and whose livelihood depends on outperforming the money manager across the street


( S ( CC But ) ( PP ( IN for ) ( NP ( NP ( NNS individuals ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VP ( VBP buy ) ( NP ( ADJP ( RB much ) ( JJR smaller ) ) ( NNS amounts ) ) ) ( CC and ) ( VP ( VBP care ) ( ADVP ( ADVP ( RBR less ) ) ) ( PP-CLR ( IN about ) ( NP ( JJ relative ) ( NN performance ) ) ) ( PP-2 ( IN than ) ( PP ( IN in ) ( S-NOM ( VP ( VBG preserving ) ( SBAR-NOM ( WHNP-3 ( WP what ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT that ) ( NN margin ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ meaningless ) ) ) )

But for individuals who buy much smaller amounts and care less about relative performance than in preserving what they have that margin is meaningless


( SINV ( S-TPC-2 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ-1 ( PRP you ) ) ( VP ( VBP 're ) ( PP-LOC-PRD ( IN in ) ( NP ( DT the ) ( NN bond ) ( NN business ) ) ) ( S-ADV ( VP ( VBG playing ) ( NP ( DT the ) ( JJ relative-performance ) ( NN derby ) ) ) ) ) ) ) ( ADVP ( RB then ) ) ( NP-SBJ ( NP ( RB even ) ( DT an ) ( JJ extra ) ( CD 25 ) ( NN basis ) ( NNS points ) ) ( PRN ( NP ( CD 0.25 ) ( NN percentage ) ( NN point ) ) ) ) ( VP ( VBZ becomes ) ( NP-PRD ( DT an ) ( JJ important ) ( NN consideration ) ) ( PP ( IN on ) ( NP ( DT a ) ( NN career ) ( NN basis ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Grant ) ) )

If you 're in the bond business playing the relative-performance derby then even an extra 25 basis points 0.25 percentage point becomes an important consideration on a career basis says Mr. Grant


( S ( CC But ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP 're ) ( NP-PRD ( NP ( DT an ) ( JJ individual ) ) ( VP ( VP ( VBG investing ) ( NP ( NN money ) ) ) ( CC and ) ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB get ) ( NP ( PRP it ) ) ( PRT ( RP back ) ) ( ADVP ( RB again ) ) ) ) ) ) ) ) ) ) ) ( ADVP ( RB then ) ) ( NP-SBJ ( IN that ) ) ( VP ( VBZ is ) ( RB n't ) ( PP-PRD ( IN of ) ( NP ( JJ overwhelming ) ( NN importance ) ) ) ) )

But if you 're an individual investing money and trying to get it back again then that is n't of overwhelming importance


( S ( ADVP ( RB Moreover ) ) ( NP-SBJ ( NP ( DT the ) ( NN interest ) ) ( PP ( IN on ) ( NP ( JJ asset-backed ) ( NNS securities ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB fully ) ( JJ taxable ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NP ( NN interest ) ) ( PP ( IN on ) ( NP ( NNP Treasury ) ( NNS issues ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ tax-free ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( UCP ( NN state ) ( CC and ) ( JJ local ) ) ( NN level ) ) ) ) ) ) ) )

Moreover the interest on asset-backed securities is fully taxable while interest on Treasury issues is tax-free at the state and local level


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( SBAR-PRD ( WHADVP ( WRB why ) ) ( S ( NP-SBJ ( NP ( DT some ) ( NN investment ) ( NNS managers ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Alex ) ( NNP Powers ) ) ( NP ( NP ( DT a ) ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP Chase ) ( NNP Manhattan ) ( NNP Bank ) ( POS 's ) ) ( JJ private ) ( NN banking ) ( NN division ) ) ) ) ) ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB recommend ) ( NP ( JJS most ) ( JJ asset-backed ) ( NNS issues ) ) ( PP-CLR ( IN for ) ( NP ( NP ( NNS individuals ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ high-tax ) ( NNS states ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP New ) ( NNP York ) ) ( CC or ) ( NP ( NNP California ) ) ) ) ) ) ) ) ) ) ) ) ) )

That 's why some investment managers such as Alex Powers a vice president of Chase Manhattan Bank 's private banking division do n't recommend most asset-backed issues for individuals in high-tax states such as New York or California


( S ( CC But ) ( NP-SBJ ( NNP Mr. ) ( NNP Powers ) ) ( VP ( VBZ has ) ( VP ( VBN purchased ) ( NP ( JJ asset-backed ) ( NNS issues ) ) ( PP-CLR ( IN for ) ( NP ( NP ( NNS individuals ) ) ( PP ( IN with ) ( NP ( NP ( JJ tax-deferred ) ( NNS accounts ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NN retirement ) ( NNS plans ) ) ) ) ) ) ) ) ) )

But Mr. Powers has purchased asset-backed issues for individuals with tax-deferred accounts such as retirement plans


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ points ) ( PRT ( RP out ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS institutions ) ) ( VP ( VBG buying ) ( NP ( JJ asset-backed ) ( NNS issues ) ) ( PP-MNR ( IN in ) ( NP ( JJ large ) ( NNS quantities ) ) ) ) ) ( VP ( MD can ) ( VP ( VB earn ) ( NP ( NP ( JJR higher ) ( NNS spreads ) ) ( PP ( IN over ) ( NP ( NNPS Treasurys ) ) ) ( PP ( IN than ) ( NP ( NP ( NNS individuals ) ) ( VP ( VBG buying ) ( NP ( JJR smaller ) ( NNS amounts ) ) ) ) ) ) ) ) ) ) ) )

He points out that institutions buying asset-backed issues in large quantities can earn higher spreads over Treasurys than individuals buying smaller amounts


( S ( NP-SBJ ( DT Another ) ( NN concern ) ) ( VP ( VBZ is ) ( UCP-PRD ( NP ( NN liquidity ) ) ( CC or ) ( SBAR ( WHADVP-2 ( WRB how ) ( RB easily ) ) ( S ( NP-SBJ-1 ( DT a ) ( NN security ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN converted ) ( PP-CLR ( IN into ) ( NP ( NN cash ) ) ) ) ) ) ) ) ) ) )

Another concern is liquidity or how easily a security can be converted into cash


( S ( NP-SBJ ( NP ( DT The ) ( UCP ( JJ secondary ) ( CC or ) ( NN resale ) ) ( NN market ) ) ( PP ( IN for ) ( NP ( JJ asset-backed ) ( NNS securities ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( RB relatively ) ( JJ new ) ) ( CC and ) ( ADJP ( ADJP ( RB much ) ( RBR less ) ( JJ active ) ) ( PP ( IN than ) ( PP ( IN for ) ( NP ( NNP Treasury ) ( NNS issues ) ) ) ) ) ) ) )

The secondary or resale market for asset-backed securities is relatively new and much less active than for Treasury issues


( S ( NP-SBJ ( DT That ) ) ( VP ( MD could ) ( VP ( VB make ) ( S ( NP-SBJ ( PRP it ) ) ( ADJP-PRD ( JJ tricky ) ) ) ( PP ( IN for ) ( NP ( NP ( NNS investors ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP need ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( PRP$ their ) ( NNS holdings ) ) ( ADVP-MNR ( RB quickly ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( DT the ) ( NNS securities ) ) ( VP ( VBP mature ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

That could make it tricky for investors who need to sell their holdings quickly before the securities mature


( S-1 ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( RB particularly ) ( JJ true ) ) ) ( PRN ( S ( NP-SBJ ( NNS analysts ) ) ( VP ( VBP say ) ) ) ) ( PP ( IN for ) ( NP ( NP ( JJ certain ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS securities ) ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( DT those ) ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( JJ time-share ) ( NNS loans ) ) ) ) ) ) ) ) )

That 's particularly true analysts say for certain of the securities such as those backed by time-share loans


( SINV ( S-TPC-1 ( NP-SBJ ( PRP You ) ) ( VP ( MD could ) ( VP ( VB see ) ( NP ( JJ massive ) ( NNS gyrations ) ) ( ADVP-LOC ( RB here ) ) ( SBAR-TMP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( NP-PRD ( JJ such ) ( DT a ) ( ADJP ( RB thinly ) ( VBN traded ) ) ( NN market ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Jonathan ) ( NNP S. ) ( NNP Paris ) ) ( NP ( NP ( DT a ) ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP European ) ( NNP Investors ) ( NNP Inc. ) ) ( NP ( DT a ) ( NNP New ) ( NNP York ) ( JJ investment-management ) ( NN firm ) ) ) ) ) ) )

You could see massive gyrations here because it 's such a thinly traded market says Jonathan S. Paris a vice president of European Investors Inc. a New York investment-management firm


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NP ( DT an ) ( NN investor ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ wants ) ( S ( VP ( TO to ) ( VP ( VB know ) ( NP ( NP ( DT the ) ( JJ daily ) ( NN value ) ) ( PP ( IN of ) ( NP ( NP ( NNP Treasury ) ( NNS bonds ) ) ( CC or ) ( NP ( NP ( JJ corporate ) ( NNS bonds ) ) ( VP ( VBN traded ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( MD can ) ( ADVP ( RB simply ) ) ( VP ( VB check ) ( NP ( NN newspaper ) ( NNS listings ) ) ) ) )

In addition an investor who wants to know the daily value of Treasury bonds or corporate bonds traded on the New York Stock Exchange can simply check newspaper listings


( S ( NP-SBJ ( EX There ) ) ( VP ( VBP are ) ( RB n't ) ( NP-PRD ( NP ( DT any ) ( JJ such ) ( NNS listings ) ) ( PP ( IN for ) ( NP ( JJ asset-backed ) ( NNS securities ) ) ) ) ) )

There are n't any such listings for asset-backed securities


( S ( S-NOM-SBJ ( VP ( VBG Evaluating ) ( NP ( JJ asset-backed ) ( NNS securities ) ) ) ) ( VP ( VBZ poses ) ( NP ( DT another ) ( NN problem ) ) ) )

Evaluating asset-backed securities poses another problem


( S ( NP-SBJ ( NNS Investors ) ) ( PP ( IN for ) ( NP ( NN instance ) ) ) ( VP ( MD may ) ( ADVP ( RB mistakenly ) ) ( VP ( VB assume ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN bank ) ( CC or ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( ADVP ( RB originally ) ) ( VP ( VBD held ) ( NP ( DT the ) ( NNS assets ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG guaranteeing ) ( NP ( DT the ) ( NNS securities ) ) ) ) ) ) ) ) )

Investors for instance may mistakenly assume that the bank or company that originally held the assets is guaranteeing the securities


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ is ) ( RB n't ) ) )

It is n't