FORM 13F COVER PAGE

Report for the Calendar Year or Quarter Ended: September 30, 2002

Check here if Amendment [   ]; Amendment Number:
This Amendment (Check only one.):  [   ] is a restatement.
                                   [   ] adds new holdings entries.

Institutional Investment Manager Filing this Report:

Name:    CNA Financial Corporation
Address: CNA Plaza
         Chicago, Il 60685


13F File Number:  28-346

The institutional investment manager filing this report and the
person by whom it is signed hereby represent that the person
signing the report is authorized to submit it, that all
information contained herein is true, correct, and complete, and
that it is understood that all required items, statements,
schedules, lists, and tables, are considered integral parts of
this form.


Person Signing this Report on Behalf of Reporting Manager:

Name:  Lynne Gugenheim
Title: Senior Vice President and Deputy General Counsel
Phone: (312) 822 4921
Signature, Place, and Date of Signing:
November 8,2002
Chicago, Illinois,60685
I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXCHANGE
ACT OF 1934

Report Type (Check only one.):

 [  X ]              13F HOLDINGS REPORT.

 [    ]              13F NOTICE.

 [    ]              13F COMBINATION REPORT.

List of Other Managers Reporting for this Manager:

Assets reported herein are described as having shared
investment discretion among Loews Corporation, CNA
Financial Corporation,The Continental Corporation,
Continental Casualty Company and Continental Assurance
Company. Each of the foregoing entities specifically disclaims
ownership of any securities in this report which are not
beneficially owned by that entity and states that such
assets are solely under the control of its board of directors.
The characterization of shared investment discretion with parent
holding companies is made solely as a consequence of SEC
interpretations regarding control of the subsidiary through
share ownership.  Loews Corporation owns approximately 90%
of the outstanding shares of CNA Financial Corporation;
CNA Financial Corporation owns 100% of the outstanding
 shares of Continental Casualty Company and The Continental
Corporation; and Continental Casualty Company owns 100%
of the outstanding shares of Continental Assurance Company.
Loews Corporation will report separately on securities over which
it has investment discretion which are not part of this report.
<Page>

FORM 13F SUMMARY PAGE

Report Summary:

Number of Other Included Managers: 4

Form 13F Information Table Entry Total: 322

Form 13F Information Table Value Total: 1,346,848.42(in thousands)



List of Other Included Managers:

No. 	13F File Number		 Name

1	28-172		The Continental Corporation
2	28-217		Loews Corporation
3	28-386		Continental Assurance Company
4	28-387		Continental Casualty Company
<Page>

<Table><S><C>
                                                13F INFORMATION TABLE
                             CLASS                    VALUE    OTHER                     PUT/  INVSTMT  VOTING AUTHORITY
NAME OF ISSUER        TITLE                 CUSIP     (X1000)   MGRS     AMOUNT    TYPE  CALL  DSCRETN   SOLE
ACME COMMUNICATIONS INC           COM     004631107     515      4,2     66071      SH        DEFINED   66071
ACUITY BRANDS INC                 COM     00508Y102     330       2      26950      SH        DEFINED   26950
ACXIOM CORP                       COM     005125109     841      3,2     59100      SH        DEFINED   59100
AETNA INC                         COM     00817Y108    1034       2      28875      SH        DEFINED   28875
AFFIL COMPUTER                   NOTE     008190AF7    2937      3,2    2400000    PRN        DEFINED   55256
AFFILIATED COMPUTER SVCS-A       CL A     008190100    1806      3,2     42400      SH        DEFINED   42400
AGERE SYSTEMS INC-A              CL A     00845V100    1113      4,2    1012100     SH        DEFINED  1012100
AGILENT TECH INC                 DBCV     00846UAB7    4025     3,4,2   5000000    PRN        DEFINED   155183
AGILENT TECHNOLOGIES INC          COM     00846U101    2279     3,4,2    174100     SH        DEFINED   174100
AIR PRODUCTS & CHEMICAL           COM     009158106     294       2       7000      SH        DEFINED    7000
ALCOA INC                         COM     013817101    2239      3,2     116000     SH        DEFINED   116000
ALCON INC                         COM     H01301102    3139      3,2     81000      SH        DEFINED   81000
ALLEGHENY ENERGY INC              COM     017361106    4464      4,2     340800     SH        DEFINED   340800
ALLSTATE CORPORATION              COM     020002101     732       2      20600      SH        DEFINED   20600
AMBAC FINANCIAL GROUP INC         COM     023139108    5928      4,2     110000     SH        DEFINED   110000
AMER INTL GROUP                  DBCV     026874AP2    1258      4,2    2000000    PRN        DEFINED   12125
AMERADA HESS                      COM     023551104    7467      4,2     110000     SH        DEFINED   110000
AMERICAN EXPRESS                  COM     025816109    2027      3,2     65000      SH        DEFINED   65000
AMERICAN INTL GROUP INC           COM     026874107    1778      3,2     32500      SH        DEFINED   32500
AMERICAN NATIONAL INSURANCE       COM     028591105     345       2       5000      SH        DEFINED    5000
AMERICAN PHYSICIANS CAP INC       COM     028884104     475       2      28200      SH        DEFINED   28200
AMERISOURCE HEALTH CORP          NOTE     03071PAD4    3946      3,2    2560000    PRN        DEFINED   48331
AMERISOURCEBERGEN CORP            COM     03073E105    2909      3,2     41110      SH        DEFINED   41110
AMGEN INC                         COM     031162100    4161     3,4,2    99100      SH        DEFINED   99100
ANADARKO PETROLEUM CORP           COM     032511107    5222      4,2     117250     SH        DEFINED   117250
ANHEUSER BUSCH CO                 COM     035229103    1012      3,2     20000      SH        DEFINED   20000
ANIXTER INTERNATIONAL INC         COM     035290105     288       2      13975      SH        DEFINED   13975
ANNUITY AND LIFE RE HOLDINGS      ORD     G03910109     320       2      76300      SH        DEFINED   76300
ANTEC CORP                       NOTE     03664PAB1     204      4,2     225000    PRN        DEFINED    9375
AON CORP                          COM     037389103    11655     4,2     568800     SH        DEFINED   568800
APACHE CORP                       COM     037411105    2408       2      40500      SH        DEFINED   40500
APPLIED MATERIALS INC.            COM     038222105    1594       2      138000     SH        DEFINED   138000
ARDEN REALTY GROUP INC            COM     039793104     837      4,2     35400      SH        DEFINED   35400
ARRIS GROUP                       COM     04269Q100     148      4,2     40000      SH        DEFINED   40000
ARTESYN TECHNOLOGIES INC          COM     043127109     171       2      112925     SH        DEFINED   112925
ARVINMERITOR INC                  COM     043353101     273       2      14575      SH        DEFINED   14575
AT & T CORPORATION                COM     001957109    3754      4,2     312600     SH        DEFINED   312600
AT&T WIRELESS SERVICES INC        COM     00209A106     287      4,2     69633      SH        DEFINED   69633
ATLAS AIR WORLDWIDE HLDGS         COM     049164106     118     4,2,1    49000      SH        DEFINED   49000
BANK OF AMERICA CORP              COM     060505104     957      3,2     15000      SH        DEFINED   15000
BARNES & NOBLE                   NOTE     067774AD1    2426      3,2    2450000    PRN        DEFINED   75357
BARNES & NOBLE INC                COM     067774109    1228      3,2     56480      SH        DEFINED   56480
BARRICK GOLD CORP                 COM     067901108    7080      4,2     455300     SH        DEFINED   455300
BECTON DICKINSON & CO             COM     075887109    1903      4,2     67000      SH        DEFINED   67000
BEDFORD PROPERTY INVESTORS        COM     076446301     141      4,2      5700      SH        DEFINED    5700
BELLSOUTH CORP                    COM     079860102    1469      4,2     80000      SH        DEFINED   80000
BISYS GROUP                      NOTE     055472AB0    2428      3,2    2650000    PRN        DEFINED   79356
BISYS GROUP INC/THE               COM     055472104     882      3,2     50800      SH        DEFINED   50800
BJ SERVICES CO                    COM     055482103     789     3,4,2    30000      SH        DEFINED   30000
BKF CAPITAL GROUP INC             COM     05548G102      8        2       400       SH        DEFINED    400
BOEING COMPANY                    COM     097023105     916       2      26825      SH        DEFINED   26825
BORG WARNER AUTOMOTIVE INC        COM     099724106     161       2       3250      SH        DEFINED    3250
BOSTON PROPERTIES INC             COM     101121101    1116      4,2     30000      SH        DEFINED   30000
BOWNE & CO INC                    COM     103043105     311       2      31050      SH        DEFINED   31050
BRANDYWINE REALTY TRUST         SHINTNW   105368203     444      4,2     19700      SH        DEFINED   19700
BRISTOL-MYERS SQUIBB CO           COM     110122108    4670      4,2     196200     SH        DEFINED   196200
BURLINGTON RESOURCES INC          COM     122014103    3357      4,2     87500      SH        DEFINED   87500
BURR-BROWN CORP                  NOTE     122574AF3     990      4,2    1000000    PRN        DEFINED   22497
CABLEVISION SYSTEMS  -CL A       CL A     12686C109    2641      4,2     291500     SH        DEFINED   291500
CAMPBELL SOUP CO                  COM     134429109    1563      4,2     70800      SH        DEFINED   70800
CARDINAL HEALTH  INC.             COM     14149Y108    4008      3,2     64437      SH        DEFINED   64437
CARNIVAL CORP                     COM     143658102    4905     3,4,2    191600     SH        DEFINED   191600
CATELLUS DEVELOPMENT CORP         COM     149111106    1988      4,2     107724     SH        DEFINED   107724
CELESTICA INC                 SUBVTG SHS  15101Q108     686     3,4,2    49100      SH        DEFINED   49100
CELESTICA INC                   LYONZR    15101QAA6    22918    3,4,2   54185000   PRN        DEFINED   307489
CENDANT CORP                     DEBT     151313AF0    8653     3,4,2   14005000   PRN        DEFINED   467767
CENDANT CORP                     DBCV     151313AH6    2891     3,4,2   3000000    PRN        DEFINED   117227
CENDANT CORP                     DBCV     151313AN3    7460      4,2    8000000    PRN        DEFINED   332640
CENDANT CORPORATION               COM     151313103    2152     3,4,2    195600     SH        DEFINED   195600
CENTEX CORP                       COM     152312104     887       2      20000      SH        DEFINED   20000
CEPHALON INC                      COM     156708109    1023      3,2     25900      SH        DEFINED   25900
CHARLES RIVER                    DBCV     159863AL3    1789      3,2    1450000    PRN        DEFINED   37304
CHARLES RIVER LABORATORIES        COM     159864107    1043      3,2     27100      SH        DEFINED   27100
CHARTER COMM INC                 NOTE     16117MAB3    2328      4,2    4800000    PRN        DEFINED   222635
CHARTER COMMUNICATIONS-CL A      CL A     16117M107     846      4,2     455000     SH        DEFINED   455000
CHIRON CORP                       COM     170040109    1735     3,4,2    49300      SH        DEFINED   49300
CHIRON CORP                     LYONZR    170040AE9    19563    3,4,2   34500000   PRN        DEFINED   247065
CISCO SYSTEMS INC                 COM     17275R102    2568      3,2     245000     SH        DEFINED   245000
CIT GROUP INC                     COM     125581108    5165      4,2     287250     SH        DEFINED   287250
CITIGROUP INC                     COM     172967101    12951    3,4,2    436800     SH        DEFINED   436800
CLEAR CHANNEL                    NOTE     184502AB8    2948      4,2    3000000    PRN        DEFINED   48426
CLEAR CHANNEL                    NOTE     184502AE2    6435      4,2    6500000    PRN        DEFINED   61425
CLEAR CHANNEL COMMUNICATIONS      COM     184502102    1738      3,2     50000      SH        DEFINED   50000
CLEVELAND-CLIFFS INC              COM     185896107     407       2      16925      SH        DEFINED   16925
CNA SURETY CORPORATION            COM     12612L108   362012    4,2,1   27425147    SH        DEFINED  27425147
CNF INC                           COM     12612W104    1159       2      36925      SH        DEFINED   36925
COCA COLA CO                      COM     191216100    1679      3,2     35000      SH        DEFINED   35000
COLT TELECOM GROUP-SPONS ADR    SPNSADR   196877104     13       4,2      5760      SH        DEFINED    5760
COMCAST CORP                     DBCV     200300BH3    34210    3,4,2   44000000   PRN        DEFINED   627290
COMCAST CORP CL A SPL          CL A SPL   200300200    2501      4,2     119900     SH        DEFINED   119900
COMCAST CORP-CL A                CL A     200300101     789      4,2     37000      SH        DEFINED   37000
COMMSCOPE INC                     COM     203372107     361       2      53275      SH        DEFINED   53275
COMPUTER ASSOCIATES INTL INC      COM     204912109    1614       2      168075     SH        DEFINED   168075
COOPER INDUSTRIES LTD CL A.      CL A     G24182100     859       2      28300      SH        DEFINED   28300
CORRECTIONS CORP                PFD CV    22025Y308      0       4,2       2        SH        DEFINED     2
COX COMMUN INC                   SDEB     224044AX5    32544    3,4,2   77950000   PRN        DEFINED   591703
COX COMMUN INC                   NOTE     224044BC0    6963     3,4,2   10000000   PRN        DEFINED   118135
CSX CORP.                         COM     126408103    1910      4,2     72400      SH        DEFINED   72400
CYTEC INDUSTRIES INC              COM     232820100     997       2      45425      SH        DEFINED   45425
DARDEN RESTAURANTS INC            COM     237194105     291       2      12000      SH        DEFINED   12000
DEL MONTE FOODS CO                COM     24522P103     297       2      36375      SH        DEFINED   36375
DELL COMPUTER CORP                COM     247025109    1882      3,2     80000      SH        DEFINED   80000
DELPHI FINANCIAL GROUP-CL A      CL A     247131105    4647      4,2     127600     SH        DEFINED   127600
DILLARDS INC-CL A                CL A     254067101     312       2      15450      SH        DEFINED   15450
DOMINION RESOURCES INC            COM     25746U109    1261     3,4,2    25000      SH        DEFINED   25000
DOUBLECLICK                      NOTE     258609AC0    6521      4,2    7857000    PRN        DEFINED   190473
DR HORTON INC                     COM     23331A109    10986     4,2     590000     SH        DEFINED   590000
DU PONT DE NEMOURS E.I.           COM     263534109     361      4,2     10000      SH        DEFINED   10000
DYCOM INDUSTRIES INC              COM     267475101    2070      4,2     225934     SH        DEFINED   225934
DYNEGY INC-CL A                  CL A     26816Q101      8        2       6975      SH        DEFINED    6975
EDO CORP                          COM     281347104     267      3,2     11700      SH        DEFINED   11700
EL PASO CORP                      COM     28336L109    3781      4,2     457200     SH        DEFINED   457200
ELDERTRUST                    COM SH BEN  284560109    1530      4,2     208200     SH        DEFINED   208200
ENCANA CORP                       COM     292505104    2404      4,2     79869      SH        DEFINED   79869
ENTERASYS NETWORKS INC            COM     293637104     268       2      206150     SH        DEFINED   206150
ESTERLINE TECHNOLOGIES CORP       COM     297425100     430       2      25825      SH        DEFINED   25825
FIFTH THIRD BANCORP               COM     316773100     306       2       5000      SH        DEFINED    5000
FIRST CITIZENS BCSHS  -CL A      CL A     31946M103     52        2       500       SH        DEFINED    500
FIRST DATA CORP                   COM     319963104    3354      3,2     120000     SH        DEFINED   120000
FLEMING COS INC                   COM     339130106     310      3,2     62300      SH        DEFINED   62300
FLEMING COS INC                  NOTE     339130AR7     912      3,2    2360000    PRN        DEFINED   77965
FMC CORP                        COM NEW   302491303    1134       2      43925      SH        DEFINED   43925
FMC TECHNOLOGIES INC              COM     30249U101     945       2     56395.93    SH        DEFINED  56395.93
FOOT LOCKER INC                   COM     344849104    1200      3,2     118600     SH        DEFINED   118600
FOOTSTAR INC                      COM     344912100     301       2      38600      SH        DEFINED   38600
FPL GROUP                         COM     302571104    9214     3,4,2    174000     SH        DEFINED   174000
FRANKLIN RES INC                 NOTE     354613AC5    23458     4,2    40000000   PRN        DEFINED   374416
FREDDIE MAC                       COM     313400301    12522    3,4,2    224000     SH        DEFINED   224000
FREEPORT MCMORAN COPPER&GOLD     CL B     35671D857     951       2      70625      SH        DEFINED   70625
GABLES RESIDENTIAL TRUST         SHINT    362418105     369       2      13825      SH        DEFINED   13825
GENERAL CABLE CORP                COM     369300108     342       2      88950      SH        DEFINED   88950
GENERAL ELECTRIC CO               COM     369604103    3377      3,2     137000     SH        DEFINED   137000
GENERAL MOTORS - CLASS H          COM     370442832    1985      4,2     216900     SH        DEFINED   216900
GENERAL MOTORS CORP               COM     370442105    15717    3,4,2    395000     SH        DEFINED   395000
GEORGIA-PACIFIC CORPORATION       COM     373298108     500       2      38225      SH        DEFINED   38225
GLIMCHER REALTY TRUST            SHINT    379302102     804       2      42900      SH        DEFINED   42900
GRAFTECH INTERNATIONAL LTD        COM     384313102     38        2       5275      SH        DEFINED    5275
GREAT LAKES REIT INC              COM     390752103    1136      4,2     65000      SH        DEFINED   65000
HARRIS CORP                       COM     413875105     335       2      10000      SH        DEFINED   10000
HCA INC                           COM     404119109    3809      3,2     80000      SH        DEFINED   80000
HEALTH CARE PPTYS INVEST INC      COM     421915109    1406      4,2     33000      SH        DEFINED   33000
HEALTH NET INC                    COM     42222G108    1227       2      57225      SH        DEFINED   57225
HEALTHCARE REALTY TRUST INC       COM     421946104    6876      4,2     221100     SH        DEFINED   221100
HEALTHSOUTH CORP                 SDCV     421924AF8    3700      4,2    4000000    PRN        DEFINED   109200
HEALTHSOUTH CORP.                 COM     421924101    2386      4,2     575000     SH        DEFINED   575000
HEARST-ARGYLE TELEVISION INC      COM     422317107    4099      4,2     165000     SH        DEFINED   165000
HEWLETT-PACKARED CO               COM     428236103     714       2      61200      SH        DEFINED   61200
HOME DEPOT                        COM     437076102    1644      3,2     63000      SH        DEFINED   63000
HONEYWELL INTERNATIONAL INC       COM     438516106    1300      3,2     60000      SH        DEFINED   60000
HOUSEHOLD INTL INC                COM     441815107    4530      4,2     160000     SH        DEFINED   160000
IDEC PHARMACEUTICALS CORP         COM     449370105    1440     3,4,2    34100      SH        DEFINED   34100
IMC GLOBAL INC                    COM     449669100     804      4,2     66700      SH        DEFINED   66700
INCO LTD                          COM     453258402     583      4,2     36300      SH        DEFINED   36300
INCO LTD                         NOTE     453258AM7    2941      4,2    5000000    PRN        DEFINED   132765
INGERSOLL RAND CO                CL A     G4776G101    1722      4,2     50000      SH        DEFINED   50000
INSITUFORM TECHNOLOGIES-CL A     CL A     457667103    2009      4,2     140000     SH        DEFINED   140000
INSWEB CORPORATION                COM     45809K202     156      4,2    87619.5     SH        DEFINED  87619.5
INTEL CORP                        COM     458140100    1100      3,2     79200      SH        DEFINED   79200
INTERNATIONAL BUSINESS MACHINE    COM     459200101    12128     4,2     208000     SH        DEFINED   208000
INTERNATIONAL PAPER CO.           COM     460146103    3339      4,2     100000     SH        DEFINED   100000
INTERSTATE BAKERIES               COM     46072H108     214       2       8050      SH        DEFINED    8050
INTL RECTIFIER CORP               COM     460254105     208      3,2     12900      SH        DEFINED   12900
IONICS INC                        COM     462218108    4048      4,2     170000     SH        DEFINED   170000
IPC HOLDINGS LTD                  ORD     G4933P101    1020       2      34725      SH        DEFINED   34725
JOHNSON & JOHNSON                 COM     478160104    2704      3,2     50000      SH        DEFINED   50000
KELLWOOD CO                       COM     488044108     257       2      11225      SH        DEFINED   11225
KENNAMETAL INC                    COM     489170100     321       2      10000      SH        DEFINED   10000
KERR MC GEE CORP                  COM     492386107    6082      4,2     140000     SH        DEFINED   140000
KEYSPAN CORP                      COM     49337W100     503      4,2     15000      SH        DEFINED   15000
KINDRED HEALTHCARE INC            COM     494580103     12       4,2      314       SH        DEFINED    314
KULICKE & SOFFA                  NOTE     501242AE1    1073      3,2    2555000    PRN        DEFINED   111574
KULICKE & SOFFA INDUSTRIES        COM     501242101     229      3,2     78060      SH        DEFINED   78060
L-3 COMM HLDGS                   NOTE     502424AB0    3483      3,2    2400000    PRN        DEFINED   58896
L-3 COMMUNICATIONS CORP           COM     502424104    4833      3,2     89740      SH        DEFINED   89740
LABORATORY CRP OF AMER HLDGS    COM NEW   50540R409    4672     3,4,2    137400     SH        DEFINED   137400
LAMAR ADVERTISIN                 NOTE     512815AF8    2692      3,2    2800000    PRN        DEFINED   60540
LAMAR ADVERTISING CO             CL A     512815101    1201      3,2     39050      SH        DEFINED   39050
LEAR CORP                         COM     521865105     559       2      13425      SH        DEFINED   13425
LEHMAN BROS HLDG                 FRNT     524908EC0    2438      4,2    2500000    PRN        DEFINED   26016
LENNOX INTERNATIONAL INC          COM     526107107     437      3,2     33050      SH        DEFINED   33050
LIBERTY MEDIA                  COM SER A  530718105    9679     3,4,2   1348048     SH        DEFINED  1348048
LINCOLN NATIONAL CORP INDIANA     COM     534187109    2750      4,2     90000      SH        DEFINED   90000
LOCKHEED MARTIN CORP              COM     539830109    3039      3,2     47000      SH        DEFINED   47000
LONGVIEW FIBRE CO                 COM     543213102     397      4,2     57200      SH        DEFINED   57200
LOWES COMPANIES                  NOTE     548661CG0    19476    3,4,2   20000000   PRN        DEFINED   344240
LOWE'S COS INC                    COM     548661107    6915     3,4,2    163300     SH        DEFINED   163300
LUBRIZOL CORP                     COM     549271104     548       2      19375      SH        DEFINED   19375
MARATHON OIL CORP                 COM     565849106    2815      4,2     124125     SH        DEFINED   124125
MAXTOR CORP                       COM     577729205     199       2      76350      SH        DEFINED   76350
MBIA INC                          COM     55262C100     999      4,2     25000      SH        DEFINED   25000
MCDONALDS CORP                    COM     580135101    1408      4,2     79700      SH        DEFINED   79700
MEDTRONIC INC                     COM     585055106    6023      3,2     143000     SH        DEFINED   143000
MERRILL LYNCH                    NOTE     590188A65    14430    3,4,2   28000000   PRN        DEFINED   159004
MERRILL LYNCH                    FRNT     590188A73    34082    3,4,2   36500000   PRN        DEFINED   504477
MERRILL LYNCH & CO INC            COM     590188108    3595     3,4,2    108600     SH        DEFINED   108600
METLIFE INC                       COM     59156R108    4506      4,2     198000     SH        DEFINED   198000
MICROSOFT CORP                    COM     594918104    2403      3,2     55000      SH        DEFINED   55000
MILACRON INC                      COM     598709103     192       2      42675      SH        DEFINED   42675
MIRAMAR MINING CORP.              COM     60466E100    2159      4,2    2296406     SH        DEFINED  2296406
MONSANTO CO                       COM     61166W101    2437      4,2     159378     SH        DEFINED   159378
MORGAN STANLEY INDIA INVEST       COM     61745C105     911      4,2     106466     SH        DEFINED   106466
MOTOROLA INC                     NOTE     620076AJ8    2096      4,2    3000000    PRN        DEFINED   100602
MSDW ASIA PACIFIC FUND            COM     61744U106    2377      4,2     330190     SH        DEFINED   330190
NABORS INDS INC                  DBCV     629568AF3    7381      4,2    12000000   PRN        DEFINED   84894
NABORS INDUSTRIES INC             SHS     G6359F103     295       2       9000      SH        DEFINED    9000
NACCO INDUSTRIES-CL A            CL A     629579103     466       2      11700      SH        DEFINED   11700
NATIONWIDE FINANCIAL SERV-A      CL A     638612101    1335      4,2     50000      SH        DEFINED   50000
NEWHALL LAND & FARMING CO-LP    DEP REC   651426108    2878      4,2     117000     SH        DEFINED   117000
NEWS AMER INC                    NOTE     652482AZ3    37533    3,4,2   80300000   PRN        DEFINED   975508
NEWS CORP LTD -SPONS ADR        SPNSADR   652487703     193      4,2     10000      SH        DEFINED   10000
NICOR INC                         COM     654086107     891      4,2     31600      SH        DEFINED   31600
NORFOLK SOUTHERN CORP.            COM     655844108    11407     4,2     565000     SH        DEFINED   565000
NORTH FORK BANCORPORATION         COM     659424105    1892      4,2     50000      SH        DEFINED   50000
NORTHERN TRUST CORP               COM     665859104    1486      4,2     39400      SH        DEFINED   39400
OGDEN CORP                       SDCV     676346AC3     500      4,2    2500000    PRN        DEFINED   63976
OLD REPUBLIC INTL CORP            COM     680223104    7288      4,2     256800     SH        DEFINED   256800
OMNICOM GROUP                     COM     681919106    3173     3,4,2    56800      SH        DEFINED   56800
OMNICOM GROUP                    NOTE     681919AK2    8768      4,2    9000000    PRN        DEFINED   81810
OMNICOM GROUP                    NOTE     681919AM8    11797    3,4,2   12500000   PRN        DEFINED   113625
ON COMMAND CORPORATION- CLASS    W EXP    682160122      2       4,2     113266     SH   CALL DEFINED   113266
ORACLE CORP                       COM     68389X105    1312      4,2     166900     SH        DEFINED   166900
PACIFICARE HEALTH SYSTEMS         COM     695112102     320       2      13875      SH        DEFINED   13875
PALL CORP                         COM     696429307    1579      4,2     100000     SH        DEFINED   100000
PATHMARK STORES INC               COM     70322A101    6720      4,2     734432     SH        DEFINED   734432
PAYLESS SHOESOURCE INC            COM     704379106    1316       2      24375      SH        DEFINED   24375
PEABODY ENERGY CORP               COM     704549104    1785      3,2     70000      SH        DEFINED   70000
PEPSI BOTTLING GROUP INC          COM     713409100    4680      4,2     200000     SH        DEFINED   200000
PEPSICO INCORPORATED              COM     713448108    3030      3,2     82000      SH        DEFINED   82000
PFIZER INC                        COM     717081103    4730      3,2     163000     SH        DEFINED   163000
PHARMACIA CORPORATION             COM     71713U102    1295      4,2     33300      SH        DEFINED   33300
PHILLIPS PETROLEUM COMPANY        COM     20825C104    4805      4,2     103914     SH        DEFINED   103914
PHOENIX COMPANIES INC             COM     71902E109    1226      4,2     90000      SH        DEFINED   90000
PIONEER STANDARD ELECTRONICS      COM     723877106     357       2      49375      SH        DEFINED   49375
PLUM CREEK TIMBER CO              COM     729251108    1131      4,2     50000      SH        DEFINED   50000
PNC FINANCIAL SERVICES GROUP      COM     693475105    3766      4,2     89300      SH        DEFINED   89300
PPL CORPORATION                   COM     69351T106    3505      4,2     107700     SH        DEFINED   107700
PRECISION DRILLING CORP           COM     74022D100     963       2      32000      SH        DEFINED   32000
PRESIDENTIAL LIFE CORP            COM     740884101     118       2       8225      SH        DEFINED    8225
PRIME HOSPITALITY CORP            COM     741917108     52       4,2      6375      SH        DEFINED    6375
PROCTER & GAMBLE CO               COM     742718109    1966      3,2     22000      SH        DEFINED   22000
PROSPECT STREET INCOME SHARES     COM     743590101     947      4,2   165785.45    SH        DEFINED 165785.45
PROVINCE HEALTHC                 NOTE     743977AC4    1753      3,2    1850000    PRN        DEFINED   69957
PROVINCE HEALTHCARE CO            COM     743977100     824      3,2     48600      SH        DEFINED   48600
PRUDENTIAL FINANCIAL INC          COM     744320102    2056      4,2     72000      SH        DEFINED   72000
PUBLIC SVC CO N MEX COM           COM     69349H107     365       2      18450      SH        DEFINED   18450
PUBLIC SVC ENTERPRISE GRP INC     COM     744573106    3855     3,4,2    128300     SH        DEFINED   128300
PULTE CORP                        COM     745867101    8355      4,2     196000     SH        DEFINED   196000
QUALCOMM INC                      COM     747525103    1795      3,2     65000      SH        DEFINED   65000
QUANTUM CORP-DLT & STORAGE     COM DSSG   747906204     262       2      118500     SH        DEFINED   118500
QWEST COMMUNICATIONS INTL         COM     749121109     255      4,2     111800     SH        DEFINED   111800
R.H. DONNELLEY CORP               COM     74955W307     445       2      17100      SH        DEFINED   17100
RADIAN GROUP INC                  COM     750236101     670       2      20525      SH        DEFINED   20525
REGENERON PHARM                  NOTE     75886FAB3    3249      4,2    4520000    PRN        DEFINED   149415
RELIANT RESOURCES INC             COM     75952B105     627      4,2     358500     SH        DEFINED   358500
REPUBLIC BANCORP                  COM     760282103     389       2      29955      SH        DEFINED   29955
RESMED INC                        COM     761152107     415      3,2     14400      SH        DEFINED   14400
RESMED INC                       NOTE     761152AB3    1309      3,2    1450000    PRN        DEFINED   23927
RFS HOTEL INVESTORS INC           COM     74955J108     468       2      42600      SH        DEFINED   42600
SARA LEE CORP                     COM     803111103     945       2      51650      SH        DEFINED   51650
SCANA CORP                        COM     80589M102     451      4,2     17321      SH        DEFINED   17321
SCHLUMBERGER LIMITED              COM     806857108    2254      3,2     58600      SH        DEFINED   58600
SCHOOL SPECIALTY INC              COM     807863105     696      3,2     27370      SH        DEFINED   27370
SEALED AIR CORP                 PFD CV    81211K209    1089      4,2     49500      SH        DEFINED   49500
SEMTECH CORP                      COM     816850101     435      3,2     43100      SH        DEFINED   43100
SEMTECH CORP                     NOTE     816850AD3    1932      3,2    2400000    PRN        DEFINED   56832
SENIOR HOUSING PROP TRUST        SHINT    81721M109     340      4,2     30300      SH        DEFINED   30300
SERVICEMASTER COMPANY             COM     81760N109     540       2      49750      SH        DEFINED   49750
SHERWIN WILLIAMS CO               COM     824348106     543       2      22950      SH        DEFINED   22950
SIEBEL SYSTEMS                   NOTE     826170AC6    1780      4,2    2000000    PRN        DEFINED   85777
SIRIUS SATELLITE RADIO INC        COM     82966U103    1619      4,2    1619172     SH        DEFINED  1619172
SIZELER PROP INV                 SDCV     830137AB1    1834      4,2    1800000    PRN        DEFINED   163636
SK TELECOM CO LTD-ADR           SPS ADR   78440P108    5311      4,2     250000     SH        DEFINED   250000
SOLECTRON CORP                    COM     834182107     245       2      116225     SH        DEFINED   116225
SOUTHTRUST CORP                   COM     844730101     372       2      15325      SH        DEFINED   15325
SPANISH BROADCASTING SYS         CL A     846425882    1603      4,2     244800     SH        DEFINED   244800
SPHERION CORPORATION              COM     848420105     342       2      48475      SH        DEFINED   48475
SPRINT CORP-PCS GROUP             COM     852061506    2328     3,4,2   1228428     SH        DEFINED  1228428
STAR GAS PARTNER-SEN SUB UTS    SRSBUN    85512C204     295      4,2     29229      SH        DEFINED   29229
STARBUCKS CORP                    COM     855244109    1444      3,2     70000      SH        DEFINED   70000
STEIN MART INC                    COM     858375108     73        2      12475      SH        DEFINED   12475
STMICROELECTRON                  NOTE     861012AB8    5944      4,2    7500000    PRN        DEFINED   197190
SUNOCO INC                        COM     86764P109    3016      4,2     100000     SH        DEFINED   100000
SYMANTEC CORP                     COM     871503108    1962      3,2     57200      SH        DEFINED   57200
SYMANTEC CORP                    NOTE     871503AB4    3015      3,2    2400000    PRN        DEFINED   70299
TECH DATA CORP                    COM     878237106     858      4,2     31500      SH        DEFINED   31500
TEEKAY SHIPPING CORP              COM     Y8564W103    4574      4,2     160500     SH        DEFINED   160500
TEJON RANCH                       COM     879080109    1139      4,2     46700      SH        DEFINED   46700
TELLABS INC                       COM     879664100     415       2      102025     SH        DEFINED   102025
TENET HEALTHCARE CORP             COM     88033G100     520       2      10500      SH        DEFINED   10500
TJX COS INC                      NOTE     872540AL3    9010     3,4,2   11800000   PRN        DEFINED   385471
TJX COS. INC.                     COM     872540109    3561     3,4,2    196200     SH        DEFINED   196200
TRANSOCEAN SEDCO                 DBCV     893830AA7    3075      4,2    5000000    PRN        DEFINED   40783
TRAVELERS PROPERTY CASUALTY      CL A     89420G109     596      4,2     45184      SH        DEFINED   45184
TRENWICK GROUP LTD                COM     G9032C109    19278    4,2,1   3707400     SH        DEFINED  3707400
TRIBUNE CO                        COM     896047107    3763      3,2     90000      SH        DEFINED   90000
TRINITY INDUSTRIES                COM     896522109     243       2      14775      SH        DEFINED   14775
TRIZEC PROPERTIES INC             COM     89687P107     686       2      60425      SH        DEFINED   60425
TYCO INTERNATIONAL LTD            COM     902124106     236       2      16750      SH        DEFINED   16750
UNION PACIFIC                     COM     907818108     582       2      10050      SH        DEFINED   10050
UNITED PARCEL SERVICE            CL B     911312106    2783      3,2     44500      SH        DEFINED   44500
UNITEDHEALTH GROUP INC            COM     91324P102    24402     4,2     279775     SH        DEFINED   279775
UNIVERSAL CORP-VA                 COM     913456109     369       2      10525      SH        DEFINED   10525
UNOCAL CORP                       COM     915289102     785      4,2     25000      SH        DEFINED   25000
US BANCORP                        COM     902973304    1115      4,2     60000      SH        DEFINED   60000
USFREIGHTWAYS CORPORATION         COM     916906100     365       2      12725      SH        DEFINED   12725
VALERO ENERGY CORP                COM     91913Y100    5294      4,2     200000     SH        DEFINED   200000
VEECO INSTRUMENTS INC.            COM     922417100     233      3,2     21650      SH        DEFINED   21650
VENATOR GROUP                    NOTE     922944AB9    2388      3,2    2500000    PRN        DEFINED   158168
VENTAS INC                        COM     92276F100    2475     3,4,2    184575     SH        DEFINED   184575
VERITAS SOFTWARE CORP             COM     923436109     246      4,2     16300      SH        DEFINED   16300
VERIZON COMMUNICATIONS INC.       COM     92343V104     863      4,2     31200      SH        DEFINED   31200
VERIZON GLOBAL                   NOTE     92344GAN6    13656     4,2    25000000   PRN        DEFINED   198295
VIAD CORP                         COM     92552R109     750       2      36700      SH        DEFINED   36700
WAL MART STORES INC               COM     931142103    3176      3,2     64500      SH        DEFINED   64500
WASHINGTON MUTUAL INC             COM     939322103    1006       2      31975      SH        DEFINED   31975
WELLS FARGO & COMPANY             COM     949746101    4816      3,2     100000     SH        DEFINED   100000
WEYERHAEUSER COMPANY              COM     962166104     219       2       5000      SH        DEFINED    5000
WILLIAMS COS INC                  COM     969457100     231      4,2     102212     SH        DEFINED   102212
WILSONS THE LEATHER EXPERTS       COM     972463103     300       2      42200      SH        DEFINED   42200
XCEL ENERGY INC                   COM     98389B100    2068      4,2     222100     SH        DEFINED   222100
XL CAPITAL LTD-CLASS A           CL A     G98255105     478       2       6500      SH        DEFINED    6500
YOUNG BROADCASTING               CL A     987434107     489      4,2     56400      SH        DEFINED   56400
</Table>