FORM 13F
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Report for the Calendar Year or Quarter Ended: 3/31/99
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: MacKay-Shields Financial Corporation
Address: 9 West 57th Street
New York, New York 10019
Form 13F File Number: 28-46
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: Robert A. Nisi
Title: General Counsel
Phone: 212-230-3025
Signature, Place, and Date of Signing:
/s/ Robert A. Nisi
New York, New York
May 10, 1999
Report Type (Check only one):
[X] 13F HOLDINGS REPORT
[ ] 13F NOTICE
[ ] 13F COMBINATION REPORT
Form 13F Summary Page
Number of Other Included Managers: 0
Form 13F Information Table Entry Total: 340
Form 13F Information Table Value Total: 18,260,716
List of Other Included Managers:
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FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- -------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <S> <C> <C> <C> <C> <C>
AT&T CORP Common 00195710 106,121,493 1,329,635 1,329,635 1,329,635
ABGENIX INC Common 00339B10 3,009,875 199,000 199,000 199,000
AXCIOM CORP Common 00512510 1,894,750 71,500 71,500 71,500
ADAPTEC INC Common 00651F10 124,086,313 5,439,400 5,439,400 5,439,400
ADVANCED MICRO DEVICES Common 00790310 542,500 35,000 35,000 35,000
AGRIBRANDS INTERNATIONAL Common 00849R10 943,513 28,700 28,700 28,700
ALBERTSON'S Common 01310410 1,088,750 20,000 20,000 20,000
ALLEGHENY ENERGY INC Common 01736110 236,000 8,000 8,000 8,000
ALLIANCE GAMING CORP Common 01859P60 733,149 162,922 162,922 162,922
ALLIEDSIGNAL INC Common 01951210 393,500 8,000 8,000 8,000
ALLMERICA FINANCIAL CORP Common 01975410 468,031 8,500 8,500 8,500
ALLSTATE CORP Common 02000210 139,435,240 3,762,165 3,762,165 3,762,165
ALLTEL CORP Common 02003910 121,986,788 1,955,700 1,955,700 1,955,700
ALTERA CORP Common 02144110 428,400 7,200 7,200 7,200
ALZA CORP Common 02261510 765,000 20,000 20,000 20,000
AMAZON.COM INC Common 02313510 1,360,281 7,900 7,900 7,900
AMERADA HESS CORP Common 02355110 2,940,575 57,800 57,800 57,800
AMERICAN INTL GROUP INC Common 02687410 457,563,556 3,793,273 3,793,273 3,793,273
AMER ITALIAN PASTA CO-A Common 02707010 1,450,000 58,000 58,000 58,000
AMERICAN RETIREMENT CORP Common 02891310 1,024,938 71,300 71,300 71,300
AMERICAN STANDARD CO Common 02971210 98,081,328 2,853,275 2,853,275 2,853,275
AMERISOURCE HEALTH CORP Common 03071P10 2,304,238 67,400 67,400 67,400
AMWAY JAPAN LTD Common 03234J10 993,773 227,148 227,148 227,148
ANDRX CORP Common 03455110 2,114,100 23,200 23,200 23,200
APACHE CORP Common 03741110 613,172 23,527 23,527 23,527
APOLLO GROUP INC -CLS A Common 03760410 507,875 17,000 17,000 17,000
<PAGE>
- ------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- ------------------------------------------------------------------------------------------------------------------------------
APPLIED MATLS INC Common 03822210 4,009,688 65,000 65,000 65,000
APPLIED PWR INC Common 03822510 2,645,975 97,100 97,100 97,100
ARCHSTONE COMMUNITIES TRUST Conv Pfd 03958120 1,237,550 46,700 46,700 46,700
ARMCO INC CONV $3.625 PFD B Conv Pfd 04217040 1,073,600 24,400 24,400 24,400
ARMSTRONG WORLD IND Common 04247610 451,875 10,000 10,000 10,000
ASSOCIATES FIRST CAPTL CORP Common 04600810 296,513,550 6,589,190 6,589,190 6,589,190
ATLANTIC RICHFIELD CO Common 04882510 277,875 3,800 3,800 3,800
ATMEL CORP Common 04951310 212,625 14,000 14,000 14,000
AVONDALE INDUSTRIES INC Common 05435010 2,144,650 72,700 72,700 72,700
BMC SOFTWARE INC Common 05592110 81,828,441 2,207,850 2,207,850 2,207,850
BANK NEW YORK INC Common 06405710 898,438 25,000 25,000 25,000
BANK ONE CORP Common 06423A10 124,733,632 2,265,310 2,265,310 2,265,310
BANKAMERICA CORP Common 06605F10 110,905,545 1,570,344 1,570,344 1,570,344
BED BATH & BEYOND INC Common 07589610 147,186,615 4,032,510 4,032,510 4,032,510
BELL ATLANTIC CORP Common 07785310 5,398,759 104,450 104,450 104,450
BEVERLY ENTERPRISES Common 08785130 3,076,538 600,300 600,300 600,300
BLUE RHINO CORP Common 09581110 892,500 68,000 68,000 68,000
BOSTON SCIENTIFIC CORP Common 10113710 243,750 6,000 6,000 6,000
BOWATER INC Common 10218310 45,965,000 1,160,000 1,160,000 1,160,000
BOYDS COLLECTION LTD Common 10335410 1,080,000 60,000 60,000 60,000
BRANDYWINE REALTY TRUST Common 10536820 729,625 44,900 44,900 44,900
BRIGHT HORIZONS FAM SOLUTIO Common 10919510 1,487,500 68,000 68,000 68,000
BROWNING FERRIS INDS INC Common 11588510 92,756,309 2,405,350 2,405,350 2,405,350
BUILDING ONE SERVICES CORP Common 12011410 886,875 51,600 51,600 51,600
BURLINGTON INDS INC Common 12169310 236,513 35,700 35,700 35,700
BURLINGTON RES INC Common 12201410 1,597,500 40,000 40,000 40,000
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- ------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- ------------------------------------------------------------------------------------------------------------------------------
CIGNA CORP Common 12550910 122,810,456 1,465,300 1,465,300 1,465,300
C.I.T. GROUP INC -A Common 12557710 13,056,300 427,200 427,200 427,200
CVS CORPORATION Common 12665010 255,593,463 5,380,915 5,380,915 5,380,915
CALLAWAY GOLF CO Common 13119310 17,191,406 1,687,500 1,687,500 1,687,500
CALPINE CORPORATION Common 13134710 1,749,000 48,000 48,000 48,000
CARDINAL HEALTH INC Common 14149Y10 206,998,506 3,136,341 3,136,341 3,136,341
CASE CORP Common 14743R10 3,983,875 157,000 157,000 157,000
CENDANT CORPORATION Common 15131310 145,729,265 9,143,797 9,143,797 9,143,797
CENTEX CORP Common 15231210 1,001,250 30,000 30,000 30,000
CENTOCOR INC Common 15234210 1,543,988 41,800 41,800 41,800
CENTRAL PARKING Common 15478510 1,580,100 45,800 45,800 45,800
CHANCELLOR MEDIA CORP Common 15891510 147,681,503 3,133,825 3,133,825 3,133,825
CHESAPEAKE ENERGY CNVPFD 7% Conv Pfd 16516730 510,000 40,000 40,000 40,000
CHEVRON Common 16675110 602,630 6,790 6,790 6,790
CHIQUITA BRANDS INTL INC Conv Pfd 17003250 6,574,406 163,100 163,100 163,100
CHUBB CORP Common 17123210 98,051,194 1,674,300 1,674,300 1,674,300
CINERGY CORP Common 17247410 860,750 31,300 31,300 31,300
CIRCUIT CITY STORE INC Common 17273710 118,354,975 1,544,600 1,544,600 1,544,600
CIRRUS LOGIC INC Common 17275510 707,625 111,000 111,000 111,000
CISCO SYS INC Common 17275R10 476,289,990 4,347,199 4,347,199 4,347,199
CITADEL COMMUNICATIONS CORP Common 17285320 2,613,450 78,600 78,600 78,600
CITIGROUP INC Common 17296710 384,491,730 6,019,440 6,019,440 6,019,440
CLEAR CHANNEL COMMUNICA Common 18450210 209,880,477 3,129,625 3,129,625 3,129,625
COASTAL CORP Common 19044110 107,759,850 3,265,450 3,265,450 3,265,450
COLGATE PALMOLIVE CO Common 19416210 222,817,100 2,421,925 2,421,925 2,421,925
COLTEC INDUSTRIES Common 19687910 2,760,863 151,800 151,800 151,800
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- ------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) C)
- ------------------------------------------------------------------------------------------------------------------------------
COLUMBIA ENERGY GROUP Common 19764810 3,662,725 70,100 70,100 70,100
COMPLETE BUSINESS SOLUTIONS Common 20452F10 333,625 17,000 17,000 17,000
COMPUWARE CORP Common 20563810 228,419,526 9,567,310 9,567,310 9,567,310
CONMED CORP Common 20741010 1,838,300 59,300 59,300 59,300
CONOCO INC-CL A Common 20825130 15,250,856 620,900 620,900 620,900
CONSECO INC Common 20846410 77,816,887 2,520,385 2,520,385 2,520,385
CONSOLIDATED GRAPHICS INC Common 20934110 2,084,775 36,100 36,100 36,100
CONSOLIDATED NATURAL GAS Common 20961510 55,912,725 1,148,400 1,148,400 1,148,400
CORNING Common 21935010 600,000 10,000 10,000 10,000
CORP EXECUTIVE BOARD CO Common 21988R10 685,750 26,000 26,000 26,000
COUNTRYWIDE CR INDS INC Common 22237210 21,611,250 576,300 576,300 576,300
COVAD COMMUNICATIONS GROUP Common 22281420 920,500 14,000 14,000 14,000
CULLEN/FROST BANKERS INC Common 22989910 1,677,813 35,000 35,000 35,000
CUMULUS MEDIA INC - CL A Common 23108210 3,172,500 270,000 270,000 270,000
CYPRESS SEMICONDUCTOR CORP Common 23280610 450,000 50,000 50,000 50,000
CYPRUS AMAX MINERALS CO Common 23280910 6,866,388 566,300 566,300 566,300
DTE ENERGY COMPANY Common 23333110 73,377,188 1,909,000 1,909,000 1,909,000
DAISYTEK INTL CORP Common 23405310 1,195,338 71,900 71,900 71,900
DANA CORP Common 23581110 76,273,296 2,007,192 2,007,192 2,007,192
DANAHER CORP Common 23585110 4,524,850 86,600 86,600 86,600
DAVE & BUSTER'S INC Common 23833N10 758,500 37,000 37,000 37,000
DEVELOPRS DIVERS REALTY COR Common 25159110 1,057,694 73,900 73,900 73,900
DEVON ENERGY CORPORATION Common 25179910 551,250 20,000 20,000 20,000
DIAMOND OFFSHORE DRILLING Common 25271C10 790,625 25,000 25,000 25,000
DILLARDS, INC. CLS A Common 25406710 710,500 28,000 28,000 28,000
DOLLAR GEN CORP Common 25666910 151,356,134 4,451,651 4,451,651 4,451,651
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- ---------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- ---------------------------------------------------------------------------------------------------------------------------
DOLLAR TREE STORES INC Common 25674710 1,577,813 51,000 51,000 51,000
DUANE READE INC Common 26357810 1,784,000 64,000 64,000 64,000
DUKE ENERGY CORP Common 26439910 602,938 11,000 11,000 11,000
E M C CORP MASS Common 26864810 470,266,913 3,681,150 3,681,150 3,681,150
EDISON INTL (SCE CORP Common 28102010 556,250 25,000 25,000 25,000
EL PASO ELECTRIC COMPANY Common 28367785 446,063 58,500 58,500 58,500
EL PASO ENER CAP TRUST Conv Pfd 28367820 16,001,563 332,500 332,500 332,500
EL PASO ENERGY CORP Common 28390510 51,567,800 1,577,600 1,577,600 1,577,600
ELAN PLC Common 28413120 162,321,851 2,327,195 2,327,195 2,327,195
ELDERTRUST Common 28456010 642,600 71,400 71,400 71,400
EMBRATEL PARTICIPACOES-ADR Common 29081N10 794,742 47,625 47,625 47,625
ENERGY EAST CORPORATION Common 29266M10 64,005,356 1,217,700 1,217,700 1,217,700
ENRON OIL & GAS CO Common 29356210 8,086,400 486,400 486,400 486,400
ENTRUST TECHNOLOGIES INC Common 29384810 5,568,750 165,000 165,000 165,000
EQUIFAX INC Common 29442910 100,060,984 2,910,865 2,910,865 2,910,865
EQUITABLE COMPS INC Common 29444G10 91,339,500 1,304,850 1,304,850 1,304,850
EQUITY OFFICE PROPERTIES TR Common 29474110 6,273,969 247,250 247,250 247,250
EQUITY OFFICE PROP TRUST Conv Pfd 29474150 3,722,813 95,000 95,000 95,000
EVEREST REINSURANCE HLDGS Common 29980810 3,605,275 115,600 115,600 115,600
EXPEDITORS INTL WASH INC Common 30213010 2,451,600 45,400 45,400 45,400
FPL GROUP Common 30257110 234,300 4,400 4,400 4,400
FEDERAL HOME LOAN MTG CORP Common 31340030 112,342,530 1,960,175 1,960,175 1,960,175
FANNIE MAE Common 31358610 135,299,888 1,953,789 1,953,789 1,953,789
FEDERATED DEPT STORES Common 31410H10 89,281,134 2,225,075 2,225,075 2,225,075
FERRO CORP Common 31540510 242,550 9,800 9,800 9,800
FIRST MIDWEST BANCORP INC Common 32086710 953,800 25,100 25,100 25,100
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
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ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETIN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- -----------------------------------------------------------------------------------------------------------------------------
FISERV INC Common 33773810 2,434,575 45,400 45,400 45,400
FLOWERS INDUSTRIES INC Common 34349610 812,625 33,000 33,000 33,000
FOX ENTERTAINMENT GRP INC-A Common 35138T10 32,528,300 1,199,200 1,199,200 1,199,200
FREEPORT-MC COPP SERIES A Conv Pfd 35671D50 847,725 53,400 53,400 53,400
GENERAL ELEC CO Common 36960410 752,250 6,800 6,800 6,800
GENERAL INSTRUMENT CORP Common 37012010 606,250 20,000 20,000 20,000
GEON CO Common 37246W10 17,301,375 760,500 760,500 760,500
GEORGIA GULF CORP-PAR $.01 Common 37320020 21,066,622 1,883,050 1,883,050 1,883,050
GEORGIA-PAC(GEORGIA PAC GRP) Common 37329810 102,732,300 1,383,600 1,383,600 1,383,600
GLENBOROUGH REALTY PFD A Conv Pfd 37803P20 1,256,250 75,000 75,000 75,000
GRAND UNION CO Common 38653240 229,500 20,400 20,400 20,400
GREAT PLAINS SOFTWARE INC Common 39119E10 1,377,275 35,600 35,600 35,600
GUIDANT CORP Common 40169810 367,658,803 6,077,005 6,077,005 6,077,005
HCR MANOR CARE Common 40413410 254,359 11,150 11,150 11,150
HANGER ORTHOPEDIC GROUP INC Common 41043F20 360,450 26,700 26,700 26,700
HARLEY DAVIDSON INC Common 41282210 284,528,076 4,959,095 4,959,095 4,959,095
HARRAH'S ENTERTAINMENT INC Common 41361910 110,539,625 5,798,800 5,798,800 5,798,800
HEALTHSOUTH CORP. Common 42192410 798,875 77,000 77,000 77,000
HEICO CORP-CL A Common 42280620 448,875 21,000 21,000 21,000
HIGHWOODS PROPERTIES INC Common 43128410 16,051,953 681,250 681,250 681,250
HOME DEPOT INC Common 43707610 318,122,089 5,110,395 5,110,395 5,110,395
HONEYWELL INC Common 43850610 56,677,425 747,600 747,600 747,600
HOSPITALITY PROPERTIES TRUST Common 44106M10 2,231,168 82,445 82,445 82,445
ICG COMMUNICATIONS INC Common 44924610 1,108,000 55,400 55,400 55,400
IMC GLOBAL INC Common 44966910 83,658,863 4,093,400 4,093,400 4,093,400
IMS HEALTH INC Common 44993410 187,806,328 5,669,625 5,669,625 5,669,625
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- -------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- -------------------------------------------------------------------------------------------------------------------------------
ITT EDUCATIONAL SERVICES INC Common 45068B10 1,803,000 48,000 48,000 48,000
IDEXX LABORATORIES INC Common 45168D10 1,910,213 79,800 79,800 79,800
ILLINOIS TOOL WORKS Common 45230810 81,802,153 1,322,055 1,322,055 1,322,055
ILLINOVA CORP Common 45231710 68,526,731 3,234,300 3,234,300 3,234,300
IMPERIAL CREDIT COMMERCIAL Common 45272T10 654,500 68,000 68,000 68,000
INFINITY BROADCASTING Common 45662S10 40,409,475 1,569,300 1,569,300 1,569,300
INFOUSA INC-CL B Common 45681810 450,000 100,000 100,000 100,000
INTERGRATED HEALTH SYSTEMS Common 45812C10 56,909 10,347 10,347 10,347
INTEL CORP Common 45814010 234,245,565 1,970,520 1,970,520 1,970,520
IBM Common 45920010 28,360,000 160,000 160,000 160,000
INTERNATIONAL PAPER CO Common 46014610 77,249,531 1,831,100 1,831,100 1,831,100
IRON MOUNTAIN INC Common 46284P10 2,490,406 79,693 79,693 79,693
ISLE OF CAPRIS CASINOS INC Common 46459210 1,067,538 233,981 233,981 233,981
I2 TECHNOLOGIES INC Common 46575410 1,662,109 62,500 62,500 62,500
JOHNSON & JOHNSON Common 47816010 311,920,395 3,336,047 3,336,047 3,336,047
KLA-TENCOR CORP Common 48248010 1,893,938 39,000 39,000 39,000
K MART CORP Common 48258410 76,763,353 4,565,850 4,565,850 4,565,850
KERR MCGEE CORP Common 49238610 60,065,709 1,830,574 1,830,574 1,830,574
KEYSPAN ENERGY CORP Common 49337K10 48,264,723 1,920,984 1,920,984 1,920,984
KMART FINANCING 7.75% Conv Pfd 49877820 3,690,500 61,000 61,000 61,000
KOHLS CORP Common 50025510 340,319,424 4,801,685 4,801,685 4,801,685
KROGER CO Common 50104410 238,486,616 3,983,075 3,983,075 3,983,075
LNR PROPERTY CORP Common 50194010 493,355 24,980 24,980 24,980
L-3 COMMUNICATIONS HLDGS INC Common 50242410 2,002,625 43,300 43,300 43,300
LAKES GAMING INC Common 51206P10 983,319 120,100 120,100 120,100
LASON INC Common 51808R10 1,659,375 29,500 29,500 29,500
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
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ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- --------------------------------------------------------------------------------------------------------------------------------
LILLY (ELI) & CO. Common 53245710 375,773,283 4,427,373 4,427,373 4,427,373
LINENS 'N THINGS INC Common 53567910 2,640,825 58,200 58,200 58,200
LIZ CLAIBORNE Common 53932010 57,072,544 1,749,350 1,749,350 1,749,350
LOEWS CINEPLEX ENTERTAINMENT Common 54042310 6,956,250 700,000 700,000 700,000
LUCASVARITY PLC-ADR Common 54939510 48,565,275 1,050,060 1,050,060 1,050,060
LUCENT TECHNOLOGIES INC Common 54946310 428,926,968 3,971,546 3,971,546 3,971,546
LYONDELL PETROCHEMICAL Common 55207810 150,563 11,000 11,000 11,000
MCI WORLDCOM INC Common 55268B10 470,585,611 5,313,599 5,313,599 5,313,599
MGIC INVT CORP WIS Common 55284810 80,778,741 2,303,850 2,303,850 2,303,850
MALLINCKRODT GROUP INC Common 56123210 332,813 12,500 12,500 12,500
MARK IV INDUSTRIES INC Common 57038710 37,114,090 2,854,930 2,854,930 2,854,930
MARKETWATCH.COM INC Common 57061910 524,513 7,100 7,100 7,100
MARVEL ENTERPRISES INC Common 57383M10 410,813 62,600 62,600 62,600
MASCO CORP Common 57459910 5,243,200 185,600 185,600 185,600
MASCOTECH INC Common 57467010 465,000 30,000 30,000 30,000
MATTEL INC Common 57708110 37,588,294 1,507,300 1,507,300 1,507,300
MAXIMUS INC Common 57793310 1,278,588 43,900 43,900 43,900
MEDE AMERICA CORP Common 58406710 496,875 25,000 25,000 25,000
MEDQUIST INC Common 58494910 525,000 17,500 17,500 17,500
MEDITRUST CORP-PAIRED STOCK Common 58501T30 576,826 46,378 46,378 46,378
MEDTRONIC INC Common 58505510 333,092,109 4,634,325 4,634,325 4,634,325
THE MEN'S WEARHOUSE INC Common 58711810 1,640,071 56,799 56,799 56,799
MERCK & CO INC Common 58933110 206,071,084 2,571,870 2,571,870 2,571,870
METROMEDIA INTL GROUP CNV PFD Conv Pfd 59169520 1,177,000 44,000 44,000 44,000
METTLER-TOLEDO INTERNATIONAL Common 59268810 1,749,825 70,700 70,700 70,700
METZLER GROUP INC Common 59290310 1,427,563 45,500 45,500 45,500
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- --------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- --------------------------------------------------------------------------------------------------------------------------------
FRED MEYER INC Common 59290710 192,820,041 3,275,075 3,275,075 3,275,075
MICROSOFT CORP Common 59491810 432,296,329 4,823,390 4,823,390 4,823,390
MICROSOFT CONV PFD 2.196 Conv Pfd 59491820 7,318,550 74,300 74,300 74,300
MICRON TECHNOLOGY INC Common 59511210 289,125 6,000 6,000 6,000
MOBIL Common 60705910 7,251,200 82,400 82,400 82,400
MONSANTO Common 61166210 106,601,368 2,320,574 2,320,574 2,320,574
MUTUAL RISK MANAGEMENT LTD Common 62835110 1,817,200 47,200 47,200 47,200
NATIONAL STEEL CORP-CL B Common 63784430 495,000 60,000 60,000 60,000
NEON SYSTEMS Common 64050910 495,000 9,000 9,000 9,000
NETWORK ASSOCIATES INC Common 64093810 214,813 7,000 7,000 7,000
NIPPON TELEGRAPH&TELE SP ADR Common 65462410 70,707,000 1,450,400 1,450,400 1,450,400
NOBLE AFFILIATES INC Common 65489410 97,087,650 3,347,850 3,347,850 3,347,850
NORDSTROM INC Common 65566410 149,911,106 3,667,550 3,667,550 3,667,550
NORTHWEST AIRLS CORP CL A Common 66728010 38,899,953 1,398,650 1,398,650 1,398,650
OGE ENERGY CORP Common 67083710 7,066,575 313,200 313,200 313,200
OCULAR SCIENCES INC Common 67574410 585,225 20,400 20,400 20,400
OCWEN ASSET INVESTMENT CORP Common 67574M10 265,869 72,100 72,100 72,100
OMNICOM GROUP INC Common 68191910 122,648,106 1,534,300 1,534,300 1,534,300
ORACLE CORPORATION Common 68389X10 203,932,555 7,732,040 7,732,040 7,732,040
OWENS ILLINOIS INC Common 69076840 70,378,750 2,815,150 2,815,150 2,815,150
OWENS-ILLINOIS INC Conv Pfd 9076850 7,378,594 202,500 202,500 202,500
PATTERSON DENTAL COMPANY Common 70341210 2,067,350 47,800 47,800 47,800
PAYLESS SHOESOURCE INC Common 70437910 29,070,638 625,175 625,175 625,175
TELEKOMUNIK INDONESIA - SP AD Common 71568410 126,225 19,800 19,800 19,800
PFIZER INC Common 71708110 219,440,895 1,581,556 1,581,556 1,581,556
PHILIP MORRIS COS INC Common 71815410 102,526,171 2,913,710 2,913,710 2,913,710
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- -------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) C)
- -------------------------------------------------------------------------------------------------------------------------------
PHYCOR INC Common 71940F10 159,600 33,600 33,600 33,600
PILLOWTEX CORP Common 72150110 293,568 20,692 20,692 20,692
PINNACLE HOLDINGS INC Common 72346N10 1,134,375 75,000 75,000 75,000
PITTSTON BRINK'S GROUP Common 72570110 474,700 20,200 20,200 20,200
PLACER DOME Common 72590610 15,003,556 1,341,100 1,341,100 1,341,100
PLANTRONICS INC Common 72749310 1,951,950 31,200 31,200 31,200
PLAYERS INTL INC Common 72790310 1,325,625 212,100 212,100 212,100
PRE PAID LEGAL SVCS Common 74006510 1,795,850 73,300 73,300 73,300
PREMIER PARKS INC Common 74054020 1,609,200 43,200 43,200 43,200
PREMISYS COMMUNICATIONS INC Common 74058410 431,250 50,000 50,000 50,000
PROFIT RECOVERY GROUP INTL Common 74316810 754,450 19,100 19,100 19,100
PROVANT INC Common 74372410 491,563 27,500 27,500 27,500
PROVIDIAN CORP Common 74406A10 285,400,500 2,594,550 2,594,550 2,594,550
QRS CORP Common 74726X10 2,164,663 34,600 34,600 34,600
QLOGIC CORP Common 74727710 637,688 9,500 9,500 9,500
QUANTA SERVICES INC Common 74762E10 508,750 20,000 20,000 20,000
QUEST DIAGNOSTICS INC Common 74834L10 16,606,288 746,350 746,350 746,350
QWEST COMMUNICATIONS INTL Common 74912110 7,917,696 109,825 109,825 109,825
R & B FALCON CORP Common 74912E10 1,098,006 127,305 127,305 127,305
RJR NABISCO HLDGS CORP Common 74960K87 58,452,000 2,338,080 2,338,080 2,338,080
RPM INC OHIO Common 74968510 8,620,378 647,540 647,540 647,540
RAYTHEON CO - CLASS A Common 75511130 43,251,863 748,950 748,950 748,950
RAYTHEON CO - CLASS B Common 75511140 252,088 4,300 4,300 4,300
REHABCARE GROUP INC Common 75914810 608,525 40,400 40,400 40,400
REYNOLDS METALS CO Common 76176310 101,953,869 2,110,300 2,110,300 2,110,300
ROWECOM INC Common 77957X10 872,500 20,000 20,000 20,000
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- --------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- --------------------------------------------------------------------------------------------------------------------------------
SBC COMMUNICATIONS (SOUTHWESTE Common 78387G10 2,493,340 52,839 52,839 52,839
SLM HOLDING CORP Common 78442A10 53,498,868 1,281,410 1,281,410 1,281,410
SAFEWAY INC Common 78651420 325,569,089 6,344,830 6,344,830 6,344,830
SANCHEZ COMPUTER ASSOC Common 79970210 430,125 18,500 18,500 18,500
SANDISK CORP Common 80004C10 477,000 18,000 18,000 18,000
SANTA FE ENERGY RES INC Common 80201210 48,868,225 6,626,200 6,626,200 6,626,200
SAPIENT CORPORATION Common 80306210 3,069,125 43,000 43,000 43,000
SCHERING-PLOUGH Common 80660510 370,099,639 6,698,636 6,698,636 6,698,636
SEALED AIR CORP Conv Pfd 81211K20 6,187,500 125,000 125,000 125,000
SHAW INDUSTRIES INC Common 82028610 33,464,650 1,808,900 1,808,900 1,808,900
SHERWIN-WILLIAMS Common 82434810 59,639,063 2,120,500 2,120,500 2,120,500
SIMON PROPERTY GROUP, INC Common 82880610 4,230,863 154,200 154,200 154,200
SMURFIT-STONE CONTAINER CORP Common 83272710 77,592,797 4,017,750 4,017,750 4,017,750
SNYDER OIL CORP Common 83348210 722,272 48,761 48,761 48,761
SOLUTIA INC Common 83437610 173,750 10,000 10,000 10,000
SPEEDFAM INTL INC Common 84770610 223,200 18,600 18,600 18,600
SPIEKER PROPERTIES INC Common 84849710 2,527,425 71,700 71,700 71,700
STAPLES INC Common 85503010 340,941,792 10,370,853 10,370,853 10,370,853
STERLING COMMERCE INC Common 85920510 3,101,753 100,870 100,870 100,870
SUN MICROSYSTEMS INC Common 86681010 472,716,865 3,779,845 3,779,845 3,779,845
SUN HEALTHCARE GROUP INC Common 86693310 18,200 18,200 18,200 18,200
SUNGARD DATA SYSTEMS INC Common 86736310 3,972,000 99,300 99,300 99,300
SUNOCO INC Common 86764P10 1,846,400 51,200 51,200 51,200
SUNRISE ASSISTED LIVING INC Common 86768K10 546,750 12,000 12,000 12,000
SUPERVALU Common 86853610 907,500 44,000 44,000 44,000
SYLVAN LEARNING SYSTEMS INC Common 87139910 2,036,700 74,400 74,400 74,400
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- --------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) C)
- --------------------------------------------------------------------------------------------------------------------------------
SYSTEM SOFTWARE ASSOC INC Common 87183910 112,500 50,000 50,000 50,000
TALBOTS INC Common 87416110 1,998,750 82,000 82,000 82,000
TELECENTRO SUL PARTICIPA-ADR Common 87923910 441,091 9,550 9,550 9,550
TELENORTE LESTE PARTICIP-ADR Common 87924610 732,619 47,650 47,650 47,650
TELESP PARTICIPACOES SA-ADR Common 87952K10 984,844 47,750 47,750 47,750
TELESP CELULAR PARTICIPA-ADR Common 87952L10 399,906 19,100 19,100 19,100
TEMPLE INLAND INC Common 87986810 26,160,475 416,900 416,900 416,900
TENET HEALTHCARE CORP Common 88033G10 9,468,750 500,000 500,000 500,000
TESORO PETROLEUM CORP Common 88160910 2,096,600 190,600 190,600 190,600
TEVA PHARMACEUTICAL INDS Common 88162420 4,150,781 87,500 87,500 87,500
TETRA TECH INC Common 88162G10 3,238,591 153,761 153,761 153,761
TEXACO INC Common 88169410 116,856,763 2,059,150 2,059,150 2,059,150
TEXAS UTILITIES Common 88284810 116,760,000 2,780,000 2,780,000 2,780,000
TICKETMASTER ONLINE-CITY -B Common 88633P20 235,375 7,000 7,000 7,000
TIME WARNER INC Common 88731510 183,715,950 2,594,400 2,594,400 2,594,400
TOSCO CORP Common 89149030 102,355,284 4,125,150 4,125,150 4,125,150
TRANS WORLD ENTERTAINMENT CP Common 89336Q10 537,570 48,870 48,870 48,870
TRANSAMERICA CORP Common 89348510 21,518,680 303,080 303,080 303,080
TUPPERWARE CORP Common 89989610 360,000 20,000 20,000 20,000
TUT SYSTEMS INC Common 90110310 746,250 15,000 15,000 15,000
TYCO INTL LTD Common 90212410 444,370,925 6,193,323 6,193,323 6,193,323
UCAR INTERNATIONAL INC Common 90262K10 24,059,113 1,703,300 1,703,300 1,703,300
USX-MARATHON GROUP Common 90290582 319,000 11,600 11,600 11,600
USX-US STEEL GROUP Common 90337T10 28,251,700 1,202,200 1,202,200 1,202,200
UNION PACIFIC RESOURCES Common 90783410 122,877,156 10,347,550 10,347,550 10,347,550
UNISYS CORP Common 90921410 2,609,187 94,237 94,237 94,237
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- --------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) C)
- --------------------------------------------------------------------------------------------------------------------------------
UNISYS CORP Conv Pfd 90921420 18,851,894 363,410 363,410 363,410
UNITED HEALTHCARE CORP Common 91058110 123,774,000 2,352,000 2,352,000 2,352,000
UNITED INTL HLDGS INC Common 91073410 22,257,950 511,677 511,677 511,677
US INDUSTRIES INC Common 91208010 263,000 16,000 16,000 16,000
U S WEST INC Common 91273H10 74,856,092 1,359,475 1,359,475 1,359,475
UNIVERSAL CORP VA Common 91345610 774,544 30,300 30,300 30,300
UNIVERSAL FOODS CORP Common 91353810 532,125 25,800 25,800 25,800
UNIVISION COMMUNICATIONS INC Common 91490610 19,325,000 386,500 386,500 386,500
UNOCAL CORP Common 91528910 110,120,144 2,986,309 2,986,309 2,986,309
VALERO ENERGY CORP Common 91913Y10 88,286,972 3,549,225 3,549,225 3,549,225
VERTICALNET INC Common 92532L10 1,038,750 10,000 10,000 10,000
VETERINARY CTRS OF AMERICA Common 92551410 610,200 43,200 43,200 43,200
WHX CORP PFD B Conv Pfd 92924830 6,771,600 188,100 188,100 188,100
WASHINGTON FEDERAL INC Common 93882410 42,318,612 2,015,172 2,015,172 2,015,172
WASHINGTON MUTUAL SAVINGS BANK Common 93932210 127,359,347 3,115,825 3,115,825 3,115,825
WATERS CORPORATION Common 94184810 5,295,150 50,400 50,400 50,400
WELLS FARGO COMPANY Common 94974610 149,967,397 4,277,145 4,277,145 4,277,145
WILLIAMS COS Common 96945710 26,320,154 666,333 666,333 666,333
WORLD COLOR PRESS INC Common 98144310 1,428,000 67,200 67,200 67,200
WORTHINGTON INDUSTRIES Common 98181110 776,675 66,100 66,100 66,100
XILINX INC Common 98391910 7,472,262 184,216 184,216 184,216
XOMED SURGICAL PRODUCTS INC Common 98412V10 2,023,338 51,550 51,550 51,550
YPF SOCIEDAD ANONIMA Common 98424510 2,935,313 93,000 93,000 93,000
YOUNG & RUBICAM INC Common 98742510 5,248,600 128,800 128,800 128,800
GLOBAL CROSSING LTD Common G3921A10 6,891,250 149,000 149,000 149,000
LORAL SPACE & COMM CNV PFD C Conv Pfd G5646214 1,349,625 30,500 30,500 30,500
<PAGE>
FORM 13F
REPORTING MANAGER : MACKAY-SHIELDS FINANCIAL
- ---------------------------------------------------------------------------------------------------------------------------------
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 ITEM 6 ITEM 7 ITEM 8
NAME OF ISSUER TITLE CUSIP FAIR SHARES OR INVEST DSCRETN MANA- VOTING AUTHORITY
OF NUMBER MARKET PRINCIPAL SHARED GERS
CLASS VALUE AMOUNT SOLE SHARED OTHER SOLE SHARED NONE
(A) (B) (C) (A) (B) (C)
- ---------------------------------------------------------------------------------------------------------------------------------
GILAT SATELLITE NETWORKS LTD Common M5147410 3,066,000 51,100 51,100 51,100
J RAY MCDERMOTT S A Common P6465810 1,359,313 45,500 45,500 45,500
------------ ------------- -------------- -------
REPORT TOTALS 18,260,715,541 387,049,368 387,049,368 387,049,368
=============== ============= =============== ============
</TABLE>
