Ann: Investor Roadshow Presentation, page-174

Spec,

54.05 million HYG shares sold off last Friday. Check out the volumes over the last 6 months. Without doing the averages it looks like about 5 or 6 times the average volume was traded on Friday. These ETFs have the potential to sink the boat if punters lose confidence in these products. As I've said before the underlying bond markets are low liquidity and the promoters of the ETFs have dressed these products up as highly liquid market matching funds which they are not. The only defence when the punters start to run is to shut the gates and slow down or stop redemptions. Let's see how the market makers handle the race for the exit on HYC tonight. They need to pump the oil price up to restore confidence in a lot of these products or risk devastating runs on the bond and ETF markets. The Fed crony futures market manipulators should step in if things start getting too out of control. Oil set for a mini spike up pretty soon in my opinion.

Eshmun