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
******************************************************
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.

Notice Regarding Privacy and Confidentiality:
UBSPaineWebber reserves the right to monitor and
review the content of all e-mail communications sent
and/or received by its employees.

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and
may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or reply
to Enron Corp. at enron.messaging.administration@enron.com and delete all
copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
**********************************************************************
******************************************************
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.

Notice Regarding Privacy and Confidentiality:
UBSPaineWebber reserves the right to monitor and
review the content of all e-mail communications sent
and/or received by its employees.