morning update .... 03 29 2007

Analysts in NY said that ML may have the most potential for structure-finance CDOs losses . More risky than BS -ML arranged $46 bil (24%) of the structured-finance CDOs market. BOA 11%, Bear Stearns 5%. -ML's profits could be impacted by its acquisition of nation's 10th largest originator of subprime mortgages. -BOA suggestioned trading: sell BSC CDS and buy Mer CDS MER (AA-) 5y senior CDS is at 31.5, BS (A+) 37.8 Citigroup will advise on Bar’s takeover of ABN Ambro. -less likely to bid for ABN due to conflicts of interet -Barclay takes a smart move to remove on rival bidder