<HTML>In a message dated 8/22/2002 12:03:32 AM Eastern Daylight Time, b_rieux@yahoo.com writes: <BLOCKQUOTE TYPE=CITE style="BORDER-LEFT: #0000ff 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px">However, the big insurance firms are putting big money on hedge funds to try and get some return so they can pay what they promised on annuities. </BLOCKQUOTE> Yeah. Talk about investing in non transparent vehicles. European insurance companies faced the same problem in the mid 90's with respect to paying out on their long term liabilities. Particularly in Germany, where achieving the past promised 7% returns with low risk government bonds became impossible. The highest risk components of collateralized bond or loan obligations are dispersed throughout German, French, Italian, and Swiss insurance companies. Smart of the Japanese not to trust these securities, which are mathematically geared to be comprised of junk.  The hedge fund strategies you mention tend to be mostly invested in equities, though, not much safer nowadays.... Nomi Nomi</HTML>