Salomon IR 96 1 Q Page 4
Salomon Swapco Inc
To Our Clients
Swapco's capital, as we have explained many
times in this space, is dynamic, varying with the
level, concentration, and credit quality of our
counterparty receivables. Its appropriate
measurement, as the foregoing discussion
undoubtedly makes all too clear, depends upon
the purpose for which the measure is taken.
You rely upon the adequacy of Swapco's capital
for protection against the risk of counterparty
default. In order to lend a greater level of
transparency, and consistency, to assessments of
our capital levels, we expect to include in future
financial statements, as we have in Note 4 to this
quarterly report, a detailed reconciliation between
Stockholder's equity and rating agency capital.
If you have any questions about our capital
structure or any other topic involving Swapco,
please contact any of the representatives listed on
page 24 of this report.
Yours very truly,
John G. Macfarlane III
Chairman of the Board
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