We have not done any recent analysis since the end of January or maybe even 
the end of December.  I will have Rod Nelson and Tanya Rohauer relook at the 
impact of the changing yield curve on Credit Reserve.

We have a lot of improvements we need to make on our current methodology when 
we have the time and resources to dedicate to it.

Bill




Vince J Kaminski
02/17/2000 10:14 AM
To: William S Bradford/HOU/ECT@ECT
cc: Vince J Kaminski/HOU/ECT@ECT 
Subject: Credit reserve update

Bill,

Most recent Vincent's update on what's going on with the credit  model.

Another issue. I am increasingly concerned with our general approach to the 
generation
of probabilities of default. Recent developments in the credit markets are 
likely to
change completely the dynamics and levels of  interest rate spreads. I am 
curious if
you looked at the credit reserve based on the current yield curves (as of the 
last few days).

Vince


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/17/2000 
09:05 AM ---------------------------


Vincent Tang
02/15/2000 05:12 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc: Grant Masson/HOU/ECT@ECT, Tanya Tamarchenko/HOU/ECT@ECT 
Subject: Credit reserve update