Throughout this report, the terms "Swapco" and
"the Company" refer to Salomon Swapco Inc.
"Salomon" refers to Salomon Inc, Swapco's
ultimate parent, or to any of its affiliates other than
Swapco. "SBHC" refers to Salomon Brothers
Holding Company Inc, Swapco's immediate parent.
"Salomon Brothers Inc" or "SBI" refers to Salomon
Brothers Inc, the U.S. broker-dealer affiliate of
Swapco. "Salomon Brothers" refers to Salomon
Brothers Inc or other affiliates of SBHC.
Copyright Salomon Swapco Inc
1997
All Rights Reserved.
This interim report and more information about Swapco are
available on the Internet at www.salomon.com/Swapco
Salomon Swapco Inc
To Our Clients
October 31, 1997
On September 24, Travelers Group and Salomon
Inc announced that they have agreed to a merger
in which Salomon will combine with Travelers'
subsidiary Smith Barney Holdings Inc. to form
Salomon Smith Barney Holdings Inc. The
combined entity will be a wholly-owned
subsidiary of Travelers Group Inc.
Swapco is structurally unaffected by this change
in its ultimate ownership. The merger is not a
trigger event for Swapco; no Swapco trades will
be terminated because of it. Swapco's triple-A
rating has been reaffirmed by all of its rating
agencies: Fitch, Moody's and Standard & Poor's.
The merger is a positive development for
Swapco and for Swapco's counterparties.
Swapco's own credit strength is unaffected: the
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