Message-ID: <14874758.1075862165254.JavaMail.evans@thyme> Date: Tue, 13 Nov 2001 13:36:58 -0800 (PST) From: k..allen@enron.com To: steven.matthews@ubspainewebber.com Subject: RE: Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Allen, Phillip K. X-To: '"Matthews, Steven" @ENRON' X-cc: X-bcc: X-Folder: \PALLEN (Non-Privileged)\Allen, Phillip K.\Sent Items X-Origin: Allen-P X-FileName: PALLEN (Non-Privileged).pst Let's start with $1 million. -----Original Message----- From: "Matthews, Steven" @ENRON Sent: Tuesday, November 13, 2001 12:49 PM To: Allen, Phillip K. Subject: RE: Phillip: Just wanted to give you an idea of what's available. Both are insured and triple A. Depending on how much we want to buy, we would definitely look at different issues. What I can do is come up with a proposal tomorrow and work the ladder with the dates you provided below. Just let me know about how much we want to start off with. Steve -----Original Message----- From: Phillip.K.Allen@enron.com [mailto:Phillip.K.Allen@enron.com] Sent: Tuesday, November 13, 2001 2:03 PM To: Matthews, Steven Subject: 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" @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" @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 ****************************************************** Notice Regarding Entry of Orders and Instructions: Please do not transmit orders and/or instructions regarding your UBSPaineWebber account(s) by e-mail. Orders and/or instructions transmitted by e-mail will not be accepted by UBSPaineWebber and UBSPaineWebber will not be responsible for carrying out such orders and/or instructions. 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