RE:

Let's start with $1 million.

-----Original Message-----
From: "Matthews, Steven" <steven.matthews@ubspainewebber.com<@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" <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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