Market Axess

As a result of restrictions that Market Axess has imposed on users of its
multi-dealer online bond trading site, we will not begin using the site until
trading of high yield bonds is implemented late this year.

Legal: I suggest that we defer legal discussions until this date
approaches.

Credit Approval: This will not be an anonymous site, where our credit
exposure is to the site or clearing broker. Our exposure for Market Axess
transactions will be to one of their participating dealers. My understanding
is that we have trading agreements with each of Market Axess' current dealers
(JP Morgan, Chase, Bear Stearns, ABN Amro, Deutsche, UBS Warburg). Please
let me know if there are credit issues related to trading with these dealers
through Market Axess. Before we begin trading, we will determine if there
are any new Market Axess dealers for whom credit approval is required.

Please let me know if you like to discuss.

Thanks.

Mike
x39990