04/28/2008

G/L	10d,Theta	10d,65%VAR	10d,95%VAR	10d,99%VAR

1.4%	2.7%	0.2%	10.7%	33.0%

4/21/2008

G/L	10d,Theta	10d,65%VAR	10d,95%VAR	10d,99%VAR

0.3%	1.6%	0.3%	6.6%	18.6%

4/20/2008

G/L	10d,Theta	10d,65%VAR	10d,95%VAR	10d,99%VAR

0.0%	0.9%	0.6%	4.1%	9.3%

April 2008 Result

April 2008 Return: 5.6%

Reduced risk appears to contribute to the less account volatility during the last several months .

Inflation in the Future?

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+March+2008.htm

Quoted from Bill Gross's Investment outlook:

1) home price declines have to be halted in order to revive the U.S. economy,
2) the Bear Stearns crisis and its solution will lead to increased government regulation and a higher probability of inflation,
3) J.P. Morgan (the old man) was right – character, not assets, should form the foundation for lending, although a reversion to this old-fashioned model is not likely anytime soon, and
4) whether you know it or not – whether you like it or not – you are bailing out Wall Street.