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Strategies & Market Trends : Value Investing

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To: rllee who wrote (29396)	12/24/2007 4:53:59 PM
From: Kevyn Collins-Thompson	Read Replies (1) of 78748

> Read and heard that muni bonds (especially insured ones) > are selling at very attractive prices due to > re-insurance debacle (muni yields are only slightly > lower than taxables). Does anyone have good ideas > how to play this angle, either via direct purchase > or closed end funds? I can't speak to muni bonds directly, but in a related area (and for similar reasons) there are pretty good deals right now on "trust preferred" issues. These are issues that are above common stock but below other debt. In the past, many trust preferred issues were not available on retail market, but because of the current credit squeeze even solid companies e.g. utilities, etc are forced to seek wider money, making these available to a wider circle of investors AND the interest rates are very good considering the reasonable risk: perhaps 2% higher than just a few years ago in some cases, many around 7 to 8% or higher. A few trust preferreds are traded publicly,(e.g. On NYSE Red Lion Hotels has one paying out at 9.5%. Not recommending, just an example. I would probably stick with utility companies myself.). For others I would go through my banker. Kevyn

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