AMD Executive Committee Conference Call

Hybrid Securities / Venezuelan Oil Warrants / Industry Directory

This afternoon, the Executive Committee of the Asset Managers Division, had a conference call to discuss several topical items. Below is a summary of the discussion and follow-up:

Hybrid Securities: The National Association of Insurance Commissioners ("NAIC") has recently reclassified certain hybrid/debt securities equity and the NAIC could examine other offerings. Members of the Asset Managers Division agreed that the NAIC's reclassification process needs to be more transparent and the Division plans to discuss how reclassification could impact their business activities. The AMD will work with the Corporate Credit Markets Division of The Bond Market Association and the American Council of Life Insurers ("ACLI") on providing the NAIC with feedback.

Venezuelan Oil Warrants: The Asset Managers Division is supportive of EMTA's concept to establish a multilateral netting facility to solve for the settlement backlog in Venezuelan Oil Obligations ("Warrants"). The AMD and AMF support EMTA in the development of the netting facility and the AMD will address questions that relate to the process that would determine the value of the warrants.

Industry Directory Utility: The Asset Managers Division will appoint 6 buyside technology/BCP professionals to work with 6 sellside technology/BCP professionals on developing the specs for a global industry directory that could be used in a pandemic/work-from-home scenario.

For more information on these initiatives please contact Joseph Sack or Douglas Taggart at 646.637.9200.

SAVE THE DATES

The Bond Market Association's

AMF Quarterly Business Meeting - May 23

The Asset Managers Forum is pleased to announce that the next Quarterly Business meeting will be Tuesday, May 23, 2006. At this business meeting, the new Chair and Vice-Chairs of the Forum will be elected. In addition, AMF Committees such as STP, Swaps, Corporate Actions and the Bank Loans Working Group will meet in special breakout sessions. Attending members will also have the opportunity to hear about the development of an industry directory that could be used in the event of a pandemic if securities industry professionals need to work from home.

The AMF Quarterly Business meeting is open to members of The Asset Managers Forum and the Asset Managers Division and is free of charge.

Click here to view the developing agenda for the Quarterly Business Meeting and to register.

Workshop on MBS Processing - May 24

The Asset Managers Forum will host a Workshop on Mortgage-Backed Securities processing on Wednesday, May 24, 2006. Guest speakers and panelists will discuss:

How and why MBS are used by portfolio managers
Recent revisions in MBS buy-in rules
How dealers and asset managers process MBS on "A" Day
An update from Thomas Costa, Managing Director - General Manager, FICC
Asset Managers' operational challenges related to clearance and settlement
The importance of custodial and broker management in processing MBS
An update from The Bond Market Association's MBS Operations Committee

Click here to view the developing agenda for the Quarterly Business Meeting and to register.

NOTE: This Weekly Report on Policy Developments Affecting Asset Managers is a service of the Technology, Operations and Asset Manager Relations Department of The Bond Market Association. We encourage your input as this communication is designed to promote dialogue among members of the Asset Managers Division of The Bond Market Association and The Asset Managers Forum. Please feel free to contact Joseph Sack, Executive Vice President of The Bond Market Association or Douglas Taggart or Elisa Nuottajarvi of the staff of The Bond Market Association.