Sent · Nov 13, 2001, 5:33 PM
RE:

FromAllen <phillip.allen@enron.com>
To'Matthews Steven <steven.matthews@ubspainewebber.com>
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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