Here is a question and answer from the CC that is interesting:

Matthew Howlett - Fox-Pitt Kelton

On the capital management side, you have this excess cash. I know you really can't talk about the preferred tender that’s out there. It looks like it's going to cost you somewhere between $40 million and $45 million, but how do you manage that cash going forward?

You are buying back CDO debt at huge discounts, but possibly you can tender for the preferred. There is TRuPS outstanding. You could even possibly buy back common or even redeploy that capital. How do we look at that over the next six months?

Sort of how do you look at deploying that excess capital? Are you more focused on getting this preferred done? If you continue to see CDO liabilities at this price, would you continue buying that back?

There are a lot of things to weigh. How do you look at things over the next six months? What is more accretive to shareholders? Any sort of color you can give us on that end?

Ken Riis

Well, we can't talk about the preferred transaction right now, because it's not a transaction yet, because there is nothing to talk about. What we are always trying to do is do what is most accretive to the shareholders. Buying back CDO debt as we have so far this year has been very accretive to shareholders and has been helpful to keeping cash flow going on our CDOs or in some of our CDOs. So those are all good things.

It's hard for us to project forward what we are going to do next, but what we try to do is be as detailed as possible in our press release and filings so that you can take it as it comes, and that is sort of what we are doing.

Matthew Howlett - Fox-Pitt Kelton

Would everything be on the table? In other words, could that include common stock, could it includes trust preferred, and could it include just redeploying into unlevered assets?

Ken Riis

Yes, we are looking at everything. There is no specific focus right now.



There are currently 52M shares outstanding, and as we all know, NCT wants to increase the pps of common, taking out 10 to 20 million of the common would do that in a big way.