What are the specifics of those bonds are they insured what are they rated?  Can you work up a ladder from 2015-2026?  Shouldn't I buy more than just one or two issues?

 -----Original Message-----
From: 	"Matthews, Steven" <steven.matthews@ubspainewebber.com>@ENRON  
Sent:	Tuesday, November 13, 2001 9:56 AM
To:	Allen, Phillip K.
Subject:	RE:

You are correct.  With your tax bracket a 5% muni would be the equivalent of
an 8.2% taxable yield.  I looked at the inventory.  Right know we have only
180 bonds of a San Jacinto Community with a YTM of 4.92% maturing 2022.
Also, a Lubbock Texas Heath Facility with a YTM of 5.1% maturing 2023.  Let
me know what you think.

Steve

-----Original Message-----
From: Phillip.K.Allen@enron.com [mailto:Phillip.K.Allen@enron.com]
Sent: Tuesday, November 13, 2001 11:34 AM
To: Matthews, Steven
Subject: RE:


I would like to achieve a yield of 5%.  I am expecting an average maturity
date of 2020.

Since the treasury is only paying 6.25% taxable at 39%, isn't the effective
yield only 3.8%?  Why wouldn't I move this money to muni's?

Phillip

      -----Original Message-----
     From:   "Matthews, Steven" <steven.matthews@ubspainewebber.com>@ENRON
     Sent:   Tuesday, November 13, 2001 9:22 AM
     To:     Allen, Phillip K.
     Subject:

     Phillip,

     Right now you can use the entire amount in your money market ( approx.
     $785,000) for your muni bond portfolio.  After the treasury comes due
     on Jan
     31, 2002, you will have another $750,000.  You really don't have to
     worry
     about your margin requirements because you still get  80% of the value
     of
     your municipals credited  towards marginable securities.  So, the
     bottom
     line is 785m right now.  Jan 31, 2002 another 750m.  One thing to keep
     in
     mind are 28 put contracts you still have out there.  Unless you close
     that
     position you will probably get put those.

     Let me know how much you want for your Muni Proposal to be for.  Also,
     if
     there are any specifics that you want me to consider with your
     proposal such
     as duration, maturity, etc.

     Steve
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