RE:

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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