FORM 13F COVER PAGE

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

Check here if Amendment [ x ]; Amendment Number:1
This Amendment (Check only one.):  [ x ]  is a restatement.
                                   [   ] adds new holdings entries.

Institutional Investment Manager Filing this Report:

Name:    The Continental Corporation
Address: CNA Plaza
         Chicago, Il 60685


13F File Number:  28-172

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:
October 28,2002
Chicago, Illinois,
Report Type (Check only one.):

 [  X ]              13F HOLDINGS REPORT.

 [    ]              13F NOTICE.

 [    ]              13F COMBINATION REPORT.

List of Other Managers Reporting for this Manager:

I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXCHANGE
ACT OF 1934

The securities on which The Continental Corporation exercises
investment discretion have been reported upon by CNA Financial
Corporation on behalf of The Continental Corporation.
<PAGE>

FORM 13F SUMMARY PAGE

Report Summary:

Number of Other Included Managers: 4

Form 13F Information Table Entry Total: 311

Form 13F Information Table Value 1,391,497.7(in thousands)

List of Other Included Managers:

No.     13F File Number  Name

   1     28-386         Continental Assurance Company
   2     28-387         Continental Casualty Company
   3     28-346         CNA Financial Corporation
   4     28-172         The Continental Corporation
<PAGE>

<TABLE><S><C>
FORM 13F INFORMATION TABLE

                            CLASS               VALUE     OTHER                       INVSTMT   VOTING AUTHORITY
NAME OF ISSUER               TITLE    CUSIP     (X1000)    MGRS     AMOUNT     TYPE    DSCRETN     SOLE
ACCENTURE LTD                     CL A   G1150G111    2491      2,3      131100      SH     Defined    131100
ACME COMMUNICATIONS INC           COM    004631107    486       2,3      66071       SH     Defined    66071
ACUITY BRANDS INC                 COM    00508Y102    490       1,3      26950       SH     Defined    26950
ACXIOM CORP                       COM    005125109    979       1,3      56000       SH     Defined    56000
AETNA INC                         COM    00817Y108    1385      1,3      28875       SH     Defined    28875
AFFIL COMPUTER                  SUBNTCV  008190AF7    3058      1,3     2400000     PRN     Defined    55256
AFFILIATED COMPUTER SVCS          CL A   008190100    2013      1,3      42400       SH     Defined    42400
AGCO CORP                         COM    001084102    139       1,3       7125       SH     Defined     7125
AGERE SYSTEMS INC-A               CL A   00845V100    910       2,3      649900      SH     Defined    649900
AGILENT TECHNOLOGIES INC          COM    00846U101    4236     1,2,3     179100      SH     Defined    179100
ALCOA INC                         COM    013817101    4906     1,2,3     148000      SH     Defined    148000
ALLSTATE CORPORATION              COM    020002101    762       1,3      20600       SH     Defined    20600
ALLTEL CORP                       COM    020039103    8836     1,2,3     188000      SH     Defined    188000
AMBAC FINANCIAL GROUP INC         COM    023139108    7392     1,2,3     110000      SH     Defined    110000
AMER INTL GROUP                   DBCV   026874AP2    1225      2,3     2000000     PRN     Defined    12125
AMERADA HESS                      COM    023551104    9075     1,2,3     110000      SH     Defined    110000
AMERICA ONLINE                    NOTE   02364JAC8    6350      2,3     12450000    PRN     Defined    72631
AMERICAN EXPRESS                  COM    025816109    2361      1,3      65000       SH     Defined    65000
AMERICAN INTL GROUP INC           COM    026874107    2900      1,3      42500       SH     Defined    42500
AMERICAN NATIONAL INSURANCE       COM    028591105    482       1,3       5000       SH     Defined     5000
AMERICAN PHYSICIANS CAP INC       COM    028884104    521       1,3      28200       SH     Defined    28200
AMERISOURCEBERGEN CORP            COM    03073E105    3124      1,3      41110       SH     Defined    41110
AMGEN INC                         COM    031162100    5645     1,2,3     134800      SH     Defined    134800
ANADARKO PETROLEUM CORP           COM    032511107    5780      2,3      117250      SH     Defined    117250
ANIXTER INTERNATIONAL INC         COM    035290105    328       1,3      13975       SH     Defined    13975
ANNUITY AND LIFE RE HOLDINGS      ORD    G03910109    218       1,3      12050       SH     Defined    12050
ANTEC CORP                        NOTE   03664PAB1    2019      2,3     2250000     PRN     Defined    93750
AON CORP                          COM    037389103   11645     1,2,3     395000      SH     Defined    395000
APACHE CORP                       COM    037411105    2328      1,3      40500       SH     Defined    40500
APPLIED MATERIALS INC.            COM    038222105    2625      1,3      138000      SH     Defined    138000
ARDEN REALTY GROUP INC            COM    039793104    1007      2,3      35400       SH     Defined    35400
ARRIS GROUP                       COM    04269Q100    176       2,3      40000       SH     Defined    40000
ARTESYN TECHNOLOGIES INC          COM    043127109    392       1,3      60525       SH     Defined    60525
ARVINMERITOR INC                  COM    043353101    350       1,3      14575       SH     Defined    14575
AT & T CORPORATION                COM    001957109    4315      2,3      403300      SH     Defined    403300
AT&T WIRELESS SERVICES INC        COM    00209A106    550       2,3      93993       SH     Defined    93993
ATLAS AIR WORLDWIDE HLDGS         COM    049164106    181      2,3,4     49000       SH     Defined    49000
AVAYA INC                         COM    053499109    509      1,2,3     102900      SH     Defined    102900
AVAYA INC                        LYONZR  053499AA7    1622     1,2,3    4500000     PRN     Defined    168497
BARNES & NOBLE INC                COM    067774109    1493      1,3      56480       SH     Defined    56480
BARRICK GOLD CORP                 COM    067901108    1875      2,3      150000      SH     Defined    150000
BECTON DICKINSON & CO             COM    075887109    2308      2,3      67000       SH     Defined    67000
BEDFORD PROPERTY INVESTORS       COMPR   076446301    154       2,3       5700       SH     Defined     5700
BELLSOUTH CORP                    COM    079860102    2520      2,3      80000       SH     Defined    80000
BISYS GROUP                       SBCV   055472AB0    3119      1,3     2650000     PRN     Defined    79356
BISYS GROUP INC/THE               COM    055472104    1692      1,3      50800       SH     Defined    50800
BJ SERVICES CO                    COM    055482103    1525     1,2,3     45000       SH     Defined    45000
BKF CAPITAL GROUP INC             COM    05548G102    189       1,3       6625       SH     Defined     6625
BOEING COMPANY                    COM    097023105    1207      1,3      26825       SH     Defined    26825
BORG WARNER AUTOMOTIVE INC        COM    099724106    458       1,3       7925       SH     Defined     7925
BOSTON PROPERTIES INC             COM    101121101    1199      2,3      30000       SH     Defined    30000
BOWNE & CO INC                    COM    103043105    458       1,3      31050       SH     Defined    31050
BRANDYWINE REALTY TRUST         SHINTNW  105368203    510       2,3      19700       SH     Defined    19700
BRISTOL-MYERS SQUIBB CO           COM    110122108    4518      2,3      175800      SH     Defined    175800
BURLINGTON RESOURCES INC          COM    122014103    2117      2,3      55700       SH     Defined    55700
BURR-BROWN CORP                   NOTE   122574AF3    1012      2,3     1000000     PRN     Defined    22497
CABLEVISION SYSTEMS             CLANYCBL 12686C109    1674     1,2,3     177000      SH     Defined    177000
CARDINAL HEALTH  INC.             COM    14149Y108    3957      1,3      64437       SH     Defined    64437
CARNIVAL CORP                     COM    143658102    9171     1,2,3     331200      SH     Defined    331200
CATELLUS DEVELOPMENT CORP         COM    149111106    2200      2,3      107724      SH     Defined    107724
CELESTICA INC                   SUBVTGSH 15101Q108    2251     1,2,3     99100       SH     Defined    99100
CELESTICA INC                    LYONZR  15101QAA6   10279     1,2,3    24380000    PRN     Defined    138352
CENDANT CORP                      DEBT   151313AF0    9382     1,2,3    14005000    PRN     Defined    467767
CENDANT CORPORATION               COM    151313103    4218     1,2,3     265600      SH     Defined    265600
CENTEX CORP                       COM    152312104    751       1,3      13000       SH     Defined    13000
CEPHALON INC                      COM    156708109    1311      1,3      29000       SH     Defined    29000
CHARLES RIVER                     DBCV   159863AL3    1611      1,3     1450000     PRN     Defined    37304
CHARLES RIVER LABORATORIES        COM    159864107    950       1,3      27100       SH     Defined    27100
CHARTER COMM INC                 SUBCV   16117MAB3    2995      2,3     5600000     PRN     Defined    259740
CHARTER COMMUNICATIONS            CLA    16117M107    1979     1,2,3     485000      SH     Defined    485000
CHIRON CORP                       COM    170040109    3146     1,2,3     89000       SH     Defined    89000
CHIRON CORP                      LYONZR  170040AE9   29898     1,2,3    54500000    PRN     Defined    390291
CISCO SYSTEMS INC                 COM    17275R102    3418      1,3      245000      SH     Defined    245000
CITIGROUP INC                     COM    172967101    7479     1,2,3     193000      SH     Defined    193000
CLEAR CHANNEL                     NOTE   184502AB8    2855      2,3     3000000     PRN     Defined    48426
CLEAR CHANNEL                     NOTE   184502AE2    6240      2,3     6500000     PRN     Defined    61425
CLEAR CHANNEL                     COM    184502102    1761     1,2,3     55000       SH     Defined    55000
CLEVELAND-CLIFFS INC              COM    185896107    467       1,3      16925       SH     Defined    16925
CNA SURETY CORPORATION            COM    12612L108   399036    2,3,4    27425147     SH     Defined    27425147
CNF INC                           COM    12612W104    1868      1,3      49175       SH     Defined    49175
COCA COLA CO                      COM    191216100    1960      1,3      35000       SH     Defined    35000
COLT TELECOM GROUP              SPNSADR  196877104     15       2,3       5760       SH     Defined     5760
COMCAST CORP CL A SPL            CLASPL  200300200    2146      1,3      90000       SH     Defined    90000
COMMSCOPE INC                     COM    203372107    238       1,3      19000       SH     Defined    19000
COMPUTER ASSOCIATES INTL INC      COM    204912109    1280      1,3      80575       SH     Defined    80575
CONOCO INC                        COM    208251504    1877      2,3      67500       SH     Defined    67500
CORRECTIONS CORP                PFDCVB12 22025Y308     0        2,3        2         SH     Defined      2
CSX CORP.                         COM    126408103    2909      2,3      83000       SH     Defined    83000
CYTEC INDUSTRIES INC              COM    232820100    1428      1,3      45425       SH     Defined    45425
DARDEN RESTAURANTS INC            COM    237194105    296       1,3      12000       SH     Defined    12000
DEL MONTE FOODS CO                COM    24522P103    429       1,3      36375       SH     Defined    36375
DELL COMPUTER CORP                COM    247025109    2091      1,3      80000       SH     Defined    80000
DELPHI FINANCIAL GROUP            CL A   247131105    5531     1,2,3     127600      SH     Defined    127600
DILLARDS INC-CL A                 CL A   254067101    406       1,3      15450       SH     Defined    15450
DOMINION RESOURCES INC            COM    25746U109    1655     1,2,3     25000       SH     Defined    25000
DR HORTON INC                     COM    23331A109   14837     1,2,3     570000      SH     Defined    570000
DTE ENERGY COMPANY                COM    233331107    893       2,3      20000       SH     Defined    20000
DU PONT DE NEMOURS E.I.           COM    263534109    888       2,3      20000       SH     Defined    20000
DYCOM INDUSTRIES INC              COM    267475101    2641      2,3      225934      SH     Defined    225934
DYNEGY INC-CL A                   CL A   26816Q101     50       1,3       6975       SH     Defined     6975
EATON VANCE CORP                COMNOVTG 278265103    771      1,2,3     24700       SH     Defined    24700
ECHOSTAR COMM                     SBCV   278762AD1    454       1,3      590000     PRN     Defined    12984
ECHOSTAR COMMUNICATIONS           CL A   278762109    180       1,3       9685       SH     Defined     9685
EDO CORP                          COM    281347104    333       1,3      11700       SH     Defined    11700
EL PASO CORP                      COM    28336L109    3011      2,3      146100      SH     Defined    146100
ELDERTRUST                      COMSHINT 284560109    1645      2,3      208200      SH     Defined    208200
ELEC DATA SYSTEM                SRCVZRO  285661AB0   15637     1,2,3    21000000    PRN     Defined    204317
ELECTRONIC DATA SYSTEMS CORP      COM    285661104    1356     1,2,3     36500       SH     Defined    36500
ENCANA CORP                       COM    292505104    1397      2,3      45669       SH     Defined    45669
ENTERASYS NETWORKS INC            COM    293637104    367       1,3      206150      SH     Defined    206150
ESTERLINE TECHNOLOGIES CORP       COM    297425100    586       1,3      25825       SH     Defined    25825
FIFTH THIRD BANCORP               COM    316773100    333       1,3       5000       SH     Defined     5000
FIRST CITIZENS BCSHS  -CL A       CL A   31946M103     55       1,3       500        SH     Defined     500
FIRST DATA CORP                   COM    319963104    4464      1,3      120000      SH     Defined    120000
FLEET BOSTON FINANCIAL CORP       COM    339030108    1456      2,3      45000       SH     Defined    45000
FLEMING COS INC                   COM    339130106    1131      1,3      62300       SH     Defined    62300
FMC CORP (NEW)                    COM    302491303    1325      1,3      43925       SH     Defined    43925
FMC TECHNOLOGIES INC              COM    30249U101    209       1,3      10050       SH     Defined    10050
FOOT LOCKER INC                   COM    344849104    1714      1,3      118600      SH     Defined    118600
FOOTSTAR INC                      COM    344912100    217       1,3       8850       SH     Defined     8850
FORD CAP TRST II                 PFDTR   345395206   25875     1,2,3     460000      SH     Defined    460000
FORD MOTOR COMPANY                COM    345370860   15520     1,2,3     970000      SH     Defined    970000
FPL GROUP                         COM    302571104    5465     1,2,3     91100       SH     Defined    91100
FRANKLIN RES INC                  NOTE   354613AC5   23673      2,3     40000000    PRN     Defined    374416
FREDDIE MAC                       COM    313400301   13709     1,2,3     224000      SH     Defined    224000
FREEPORT MCMORAN COPPER&GOLD      CLB    35671D857    1261      1,3      70625       SH     Defined    70625
FRONTLINE LTD.                    ORD    G3682E127    2383     1,2,3     250000      SH     Defined    250000
GABLES RESIDENTIAL TRUST         SHINT   362418105    441       1,3      13825       SH     Defined    13825
GENENTECH INC                     COM    368710406    1307      1,3      39000       SH     Defined    39000
GENERAL CABLE CORP                COM    369300108    255       1,3      40400       SH     Defined    40400
GENERAL ELECTRIC CO               COM    369604103    3980      1,3      137000      SH     Defined    137000
GENERAL MOTORS CORP               COM    370442105   21915     1,2,3     410000      SH     Defined    410000
GM-HUGHES ELECT                   CLH    370442832    816       2,3      78500       SH     Defined    78500
GENUITY INC-A                     CLA    37248E202     38       2,3      10000       SH     Defined    10000
GEORGIA-PACIFIC CORPORATION     COMGAPAC 373298108    940       1,3      38225       SH     Defined    38225
GLIMCHER REALTY TRUST            SHINT   379302102    794       1,3      42900       SH     Defined    42900
GREAT LAKES REIT INC              COM    390752103    1234      2,3      65000       SH     Defined    65000
HARRIS CORP                       COM    413875105    362       1,3      10000       SH     Defined    10000
HCA INC                           COM    404119109    3800      1,3      80000       SH     Defined    80000
HEALTH CARE PPTYS INVEST INC      COM    421915109    1416      2,3      33000       SH     Defined    33000
HEALTH NET INC                    COM    42222G108    1532      1,3      57225       SH     Defined    57225
HEALTHCARE REALTY TRUST INC       COM    421946104    7293     1,2,3     227900      SH     Defined    227900
HEALTHSOUTH CORP                  SBCV   421924AF8    3920      2,3     4000000     PRN     Defined    109200
HEALTHSOUTH CORP.                 COM    421924101    7994      2,3      625000      SH     Defined    625000
HEARST-ARGYLE TELEVISION INC      COM    422317107    3721     1,2,3     165000      SH     Defined    165000
HERCULES INC                      COM    427056106    912       2,3      78600       SH     Defined    78600
HEWLETT-PACKARED CO               COM    428236103    935       1,3      61200       SH     Defined    61200
HOME DEPOT                        COM    437076102    2314      1,3      63000       SH     Defined    63000
HOUSEHOLD INTL INC                COM    441815107    7952     1,2,3     160000      SH     Defined    160000
IDEC PHARMACEUTICALS CORP         COM    449370105    1209     1,2,3     34100       SH     Defined    34100
IMC GLOBAL INC                    COM    449669100    834       2,3      66700       SH     Defined    66700
INGERSOLL RAND CO                 CL A   G4776G101    1370      2,3      30000       SH     Defined    30000
INSITUFORM TECHNOLOGIES           CL A   457667103    148       2,3       7000       SH     Defined     7000
INSWEB CORPORATION                COM    45809K202    252       2,3      112019      SH     Defined    112020
INTEL CORP                        COM    458140100    1447      1,3      79200       SH     Defined    79200
INT'L BUSINESS MACHINE            COM    459200101   16416     1,2,3     228000      SH     Defined    228000
INTERNATIONAL PAPER CO.           COM    460146103    4358      2,3      100000      SH     Defined    100000
INTERSTATE BAKERIES               COM    46072H108    232       1,3       8050       SH     Defined     8050
INTL RECTIFIER CORP               COM    460254105    376       1,3      12900       SH     Defined    12900
IONICS INC                        COM    462218108    1698      2,3      70000       SH     Defined    70000
IPC HOLDINGS LTD                  ORD    G4933P101    1061      1,3      34725       SH     Defined    34725
IVAX CORP                         COM    465823102    654       1,3      60525       SH     Defined    60525
IVAX CORP                       SRSBNTCV 465823AD4    1953      1,3     2400000     PRN     Defined    80754
JOHNSON & JOHNSON                 COM    478160104    2108     1,2,3     40340       SH     Defined    40340
KELLWOOD CO                       COM    488044108    365       1,3      11225       SH     Defined    11225
KENNAMETAL INC                    COM    489170100    366       1,3      10000       SH     Defined    10000
KERR MC GEE CORP                  COM    492386107    7497     1,2,3     140000      SH     Defined    140000
KEY3MEDIA GROUP                   COM    49326R104     18       1,3      38950       SH     Defined    38950
KEYSPAN CORP                      COM    49337W100    565       2,3      15000       SH     Defined    15000
KINDRED HEALTHCARE INC            COM    494580103     14       2,3       314        SH     Defined     314
KULICKE & SOFFA                  SUBCV   501242AE1    2898      1,3     3450000     PRN     Defined    150657
KULICKE & SOFFA INDUSTRIES        COM    501242101    1306      1,3      105400      SH     Defined    105400
L-3 COMMUNICATIONS CORP           COM    502424104    4846      1,3      89740       SH     Defined    89740
LABORATORY CRP OF AMER HLDGS      COM    50540R409    8783     1,2,3     192400      SH     Defined    192400
LAMAR ADVERTISIN                  NTCV   512815AF8    2845      1,3     2800000     PRN     Defined    60540
LAMAR ADVERTISING CO              CL A   512815101    1453      1,3      39050       SH     Defined    39050
LATTICE SEMICOND                 SUBCV   518415AC8    2085      1,3     2450000     PRN     Defined    118243
LATTICE SEMICONDUCTOR CORP        COM    518415104    776       1,3      88800       SH     Defined    88800
LEAR CORP                         COM    521865105    1234      1,3      26675       SH     Defined    26675
LEHMAN BROS HLDG                  FRNT   524908EC0    2538      2,3     2500000     PRN     Defined    26016
LIBERTY MEDIA                     COMA   530718105   13480     1,2,3    1348048      SH     Defined   1348048
LINCOLN NATIONAL CORP INDIANA     COM    534187109    3780     1,2,3     90000       SH     Defined    90000
LOCKHEED MARTIN CORP              COM    539830109    3267      1,3      47000       SH     Defined    47000
LONGVIEW FIBRE CO                 COM    543213102    539       2,3      57200       SH     Defined    57200
LOWES COMPANIES                   NOTE   548661CG0   19467     1,2,3    20000000    PRN     Defined    344240
LOWE'S COS INC                    COM    548661107    7431     1,2,3     163680      SH     Defined    163680
LUBRIZOL CORP                     COM    549271104    1331      1,3      39725       SH     Defined    39725
LUCENT TECHNOLOGIES               COM    549463107    4579     1,2,3    2758500      SH     Defined   2758500
MARATHON OIL CORP                 COM    565849106    5536     1,2,3     204125      SH     Defined    204125
MAXTOR CORP                       COM    577729205    205       1,3      45350       SH     Defined    45350
MBIA INC                          COM    55262C100    1413      2.3      25000       SH     Defined    25000
MEDTRONIC INC                     COM    585055106    6128      1,3      143000      SH     Defined    143000
MERRILL LYNCH                     NOTE   590188A65   14188     1,2,3    28000000    PRN     Defined    159004
MERRILL LYNCH                     FRNT   590188A73   35268     1,2,3    36500000    PRN     Defined    504477
MERRILL LYNCH & CO INC            COM    590188108    4803     1,2,3     118600      SH     Defined    118600
METLIFE INC                       COM    59156R108    5702     1,2,3     198000      SH     Defined    198000
MICRON TECHNOLOGY INC             COM    595112103    1517      1,3      75000       SH     Defined    75000
MICROSOFT CORP                    COM    594918104    3009      1,3      55000       SH     Defined    55000
MILACRON INC                      COM    598709103    433       1,3      42675       SH     Defined    42675
MONSANTO CO                       COM    61166W101    564       1,3      31675       SH     Defined    31675
MORGAN STANLEY INDIA INVEST       COM    61745C105    530       2,3      57366       SH     Defined    57366
MSDW ASIA PACIFIC FUND            COM    61744U106    2176      2,3      252990      SH     Defined    252990
NABORS INDS INC                   DBCV   629568AF3    7068      2,3     12000000    PRN     Defined    84894
NABORS INDUSTRIES INC             COM    629568106    318       1,3       9000       SH     Defined     9000
NACCO INDUSTRIES-CL A             CL A   629579103    527       1,3       9075       SH     Defined     9075
NATIONWIDE FINANCIAL SERV-A       CL A   638612101    1975      2,3      50000       SH     Defined    50000
NEWHALL LAND & FARMING CO        DEPREC  651426108    3536      2,3      110500      SH     Defined    110500
NEWMONT MINING CORP HLDG CO       COM    651639106    1711      2,3      65000       SH     Defined    65000
NEWS AMER INC                     NOTE   652482AZ3   33116     1,2,3    70300000    PRN     Defined    854025
NEWS CORP LTD -SPONS ADR         ADRNEW  652487703    459       2,3      20000       SH     Defined    20000
NIKE INC CL B                     CL B   654106103    1878      1,3      35000       SH     Defined    35000
NORFOLK SOUTHERN CORP.            COM    655844108   13210      2,3      565000      SH     Defined    565000
NORTH FORK BANCORPORATION         COM    659424105    3981      2,3      100000      SH     Defined    100000
NVIDIA CORP                       COM    67066G104    625       1,3      36400       SH     Defined    36400
NVIDIA CORP                      SBNTCV  67066GAA2    1850      1,3     2250000     PRN     Defined    48538
OGDEN CORP                        SDCV   676346AC3    688       2,3     2500000     PRN     Defined    63976
OLD REPUBLIC INTL CORP            COM    680223104    8089     1,2,3     256800      SH     Defined    256800
OMNICOM GROUP                     COM    681919106    2322     1,2,3     50700       SH     Defined    50700
OMNICOM GROUP                     NOTE   681919AK2    8340      2,3     9000000     PRN     Defined    81810
ON COMMAND CORPORATION           WTBEX   682160122     6        2,3      113266      SH     Defined    113266
PACIFICARE HEALTH SYSTEMS         COM    695112102    377       1,3      13875       SH     Defined    13875
PALL CORP                         COM    696429307    2283      2,3      110000      SH     Defined    110000
PATHMARK STORES INC               COM    70322A101   13815      2,3      734432      SH     Defined    734432
PAYCHEX INC                       COM    704326107     18       2,3       560        SH     Defined     560
PAYLESS SHOESOURCE INC            COM    704379106    1634      1,3      28350       SH     Defined    28350
PEABODY ENERGY CORP               COM    704549104    1981      1,3      70000       SH     Defined    70000
PEPSI BOTTLING GROUP INC          COM    713409100    6160      2,3      200000      SH     Defined    200000
PEPSICO INCORPORATED              COM    713448108    3952      1,3      82000       SH     Defined    82000
PERFORMANCE FOOD                SUBNTCV  713755AA4    3263      1,3     2600000     PRN     Defined    78907
PERFORMANCE FOOD GROUP CO         COM    713755106    2203      1,3      65050       SH     Defined    65050
PFIZER INC                        COM    717081103    5705      1,3      163000      SH     Defined    163000
PHARMACIA CORPORATION             COM    71713U102    2629      2,3      70200       SH     Defined    70200
PHILLIPS PETROLEUM COMPANY        COM    718507106    674       1,3      11450       SH     Defined    11450
PHOENIX COMPANIES INC             COM    71902E109    2129      2,3      116000      SH     Defined    116000
PIONEER STANDARD ELECTRONICS      COM    723877106    513       1,3      49375       SH     Defined    49375
PLUM CREEK TIMBER CO              COM    729251108    1535      2,3      50000       SH     Defined    50000
PPL CORPORATION                   COM    69351T106    992       2,3      30000       SH     Defined    30000
PRECISION DRILLING CORP           COM    74022D100    1153      1,3      33200       SH     Defined    33200
PREMCOR INC.                      COM    74045Q104     72       2,3       2800       SH     Defined     2800
PRESIDENTIAL LIFE CORP            COM    740884101    167       1,3       8225       SH     Defined     8225
PRIME HOSPITALITY CORP            COM    741917108     83       2,3       6375       SH     Defined     6375
PROSPECT STREET INC SHARES        COM    743590101    1016      2,3     161283       SH     Defined    161283
PROVINCE HEALTHC                 SBNTCV  743977AC4    1947      1,3     1850000     PRN     Defined    69957
PROVINCE HEALTHCARE CO            COM    743977100    1087      1,3      48600       SH     Defined    48600
PRUDENTIAL FINANCIAL INC          COM    744320102    2402      2,3      72000       SH     Defined    72000
PUBLIC SVC CO N MEX COM           COM    69349H107    446       1,3      18450       SH     Defined    18450
PULTE CORP                        COM    745867101   11266     1,2,3     196000      SH     Defined    196000
QUALCOMM INC                      COM    747525103    1787      1,3      65000       SH     Defined    65000
QUANTUM CORP-DLT & STORAGE      COM DSSG 747906204    498       1,3      118500      SH     Defined    118500
QWEST COMMUNICATIONS INTL         COM    749121109    980       2,3      350000      SH     Defined    350000
R.H. DONNELLEY CORP               COM    74955W307    478       1,3      17100       SH     Defined    17100
RADIAN GROUP INC                  COM    750236101    672       1,3      13750       SH     Defined    13750
RAYTHEON COMPANY                  COM    755111507    1526     1,2,3     37440       SH     Defined    37440
REGENERON PHARM                   NOTE   75886FAB3    2054      2,3     2600000     PRN     Defined    85947
REPUBLIC BANCORP                  COM    760282103    448       1,3      29955       SH     Defined    29955
RESMED INC                        COM    761152107    423       1,3      14400       SH     Defined    14400
RESMED INC                        NOTE   761152AB3    1200      1,3     1450000     PRN     Defined    23927
SARA LEE CORP                     COM    803111103    1066      1,3      51650       SH     Defined    51650
SCANA CORP                        COM    80589M102    1995      2,3      64621       SH     Defined    64621
SCHLUMBERGER LIMITED              COM    806857108    2725      1,3      58600       SH     Defined    58600
SEMTECH CORP                      COM    816850101    1151      1,3      43100       SH     Defined    43100
SEMTECH CORP                     SBNTCV  816850AD3    2273      1,3     2400000     PRN     Defined    56832
SENIOR HOUSING PROP TRUST        SHINT   81721M109    471       2,3      30000       SH     Defined    30000
SERVICEMASTER COMPANY             COM    81760N109    1032      1,3      75250       SH     Defined    75250
SHERWIN WILLIAMS CO               COM    824348106    687       1,3      22950       SH     Defined    22950
SIRIUS SATELLITE RADIO INC        COM    82966U103    6103      2,3     1619172      SH     Defined   1619172
SIZELER PROP INV                  SDCV   830137AC9    4000      2,3     4000000     PRN     Defined    363636
SOUTHTRUST CORP                   COM    844730101    400       1,3      15325       SH     Defined    15325
SOUTHWEST AIR CO                  COM    844741108    323       1,3      20000       SH     Defined    20000
SPANISH BROADCASTING              CLA    846425882    2448      2,3      244800      SH     Defined    244800
SPRINT CORP-FON GROUP            COMFON  852061100    212       2,3      20000       SH     Defined    20000
SPRINT CORP-PCS GROUP           PCSCOM1  852061506    6283    1,2,3,4    1405628     SH     Defined   1405628
STAR GAS PARTNER                 SRSBUN  85512C204    303       2,3      29229       SH     Defined    29229
STARBUCKS CORP                    COM    855244109    1740      1,3      70000       SH     Defined    70000
STEIN MART INC                    COM    858375108    148       1,3      12475       SH     Defined    12475
SUNOCO INC                        COM    86764P109    3207      2,3      90000       SH     Defined    90000
TECH DATA CORP                    COM    878237106    4054     1,2,3     107100      SH     Defined    107100
TEEKAY SHIPPING CORP              COM    Y8564W103    7400     1,2,3     200500      SH     Defined    200500
TEJON RANCH                       COM    879080109    1216      2,3      37300       SH     Defined    37300
TELLABS INC                       COM    879664100    633       1,3      102025      SH     Defined    102025
TENET HEALTHCARE CORP             COM    88033G100    501       1,3       7000       SH     Defined     7000
TJX COS INC                       NOTE   872540AL3    9017     1,2,3    11800000    PRN     Defined    385471
TJX COS. INC.    NEW              COM    872540109    4436     1,2,3     226200      SH     Defined    226200
TRANSOCEAN SEDCO                  DBCV   893830AA7    3038      2,3     5000000     PRN     Defined    40783
TRAVELERS PPTY CASUALTY           CL A   89420G109    708      1,2,3     40000       SH     Defined    40000
TRENWICK GROUP LTD                COM    G9032C109   27806      2,3     3707400      SH     Defined   3707400
TRIBUNE CO NEW                    COM    896047107    3915      1,3      90000       SH     Defined    90000
TRINITY INDUSTRIES                COM    896522109    306       1,3      14775       SH     Defined    14775
TRIZEC PROPERTIES INC             COM    89687P107    1019      1,3      60425       SH     Defined    60425
TYCO INTERNATIONAL LTD            COM    902124106    226       1,3      16750       SH     Defined    16750
UNION PACIFIC                     COM    907818108    1228      1,3      19400       SH     Defined    19400
UNITED PARCEL SERVICE -CL B       CL B   911312106    2748      1,3      44500       SH     Defined    44500
UNIVERSAL CORP-VA                 COM    913456109    459       1,3      12500       SH     Defined    12500
UNOCAL CORP                       COM    915289102    924       2,3      25000       SH     Defined    25000
US BANCORP                       COMNEW  902973304    2102     1,2,3     90000       SH     Defined    90000
USFREIGHTWAYS CORPORATION         COM    916906100    482       1,3      12725       SH     Defined    12725
VALERO ENERGY CORP                COM    91913Y100    7858     1,2,3     210000      SH     Defined    210000
VEECO INSTRUMENTS INC.            COM    922417100    500       1,3      21650       SH     Defined    21650
VENATOR GROUP                     NOTE   922944AB9    2825      1,3     2500000     PRN     Defined    158168
VENTAS INC                        COM    92276F100    2585     1,2,3     202750      SH     Defined    202750
VIAD CORP                         COM    92552R109    954       1,3      36700       SH     Defined    36700
VISHAY INTERTECHNOLOGY INC        COM    928298108    494       1,3      22463       SH     Defined    22463
WAL MART STORES INC               COM    931142103    3548      1,3      64500       SH     Defined    64500
WASHINGTON MUTUAL INC             COM    939322103    1187      1,3      31975       SH     Defined    31975
WELLS FARGO & COMPANY             COM    949746101    5006      1,3      100000      SH     Defined    100000
WEYERHAEUSER COMPANY              COM    962166104    319       1,3       5000       SH     Defined     5000
WILLIAMS COS INC                  COM    969457100     14       3,4       2312       SH     Defined     2312
WILSONS THE LEATHER EXPERTS       COM    972463103    232       1,3      16575       SH     Defined    16575
WORLDCOM GROUP                    COM    98157D106    128       1,3      154650      SH     Defined    154650
XL CAPITAL LTD-CLASS A            CL A   G98255105    551       1,3       6500       SH     Defined     6500
YOUNG BROADCASTING INC-A          CL A   987434107    1181     1,2,3     66400       SH     Defined    66400
</TABLE>