Salomon Swapco Inc
To Our Clients
market values, for their Swapco portfolios. This
is an extension of our current practice of
mailing valuation statements to each of our
counterparties on a quarterly basis. Because
making data available on the Internet does raise
some security concerns, regardless of the
sophistication of password and other
protections, we will not post information for any
customer until they request that we do so - and
until we have established authorized user
identifications. If you are interested in this
functionality, please contact John Langer at
212-783-0634.
The third quarter was another good one for
Swapco by all of our customary measures of
growth. Notional was up $13.2 billion to $161
billion. Notional growth continues at its
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Salomon Swapco Inc
To Our Clients
historical pace of approximately $1 billion per
week. That it continues at this pace is
increasingly surprising - and gratifying - to us
given that, as the portfolio grows older, net
notional growth can be achieved, at all, only
after an increasing volume of portfolio roll-off
is replaced. During the third quarter,
outstanding transactions grew to 2,636, a 13%
increase; and the number of master swap
agreements increased by 16 to 252.
At September 30, Swapco declared and paid a
dividend of $8 million. This dividend
represented, approximately, the company's
earnings for the quarter. We expect that
Swapco's capital requirements will be
somewhat more stable going forward than they
have been, even while generally increasing with
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