1.   Analysts said Japanese investors are typically wary of buying riskier securities to boost profits.

2.   Finally, a manager can stretch further in terms of risk, holding somewhat riskier securities that will command a higher yield.

3.   Higher U.S. rates discourage many investors from buying riskier securities, including Brazilian equities.

4.   Seven percent is considered by some analysts as the level at which U.S. investors will buy U.S. bonds in place of riskier securities in emerging markets.

5.   There is no prospect of returning to profits until the worldwide investor flight to quality eases, relieving the stress on riskier securities that Long-Term Capital owns.