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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: gronieel who wrote (41775)	12/29/2008 1:52:22 PM
From: Kirk ©	Respond to of 42834

What a foolish reply! Can't you address the issue without lying about me? "The bond pre-refunded bond will be called at the scheduled call date but the investor was well aware of this possibility when he purchased the bond." What is a "bond pre-refunded bond?" Oh... do you too make typos and silly mistakes like I do? Maybe we should call you an idiot for making up new types of bonds! BTW.... how do you know what the bond purchaser knew when she bought the bond? It didn't sound like she knew her bond might have been "pre called" or whatever technical name you want to call it... I usually say it was called and she will get her money on the call date... but I suppose you can be more technically accurate and say it was pre-refunded to the call date.... but I don't recall Brinker even mentioning the bonds HE RECOMMENDED on the radio were called.... BOTTOM LINE: BRINKER COWARDLY REFUSED TO ANSWER HER QUESTION ABOUT A RECOMMENDATION HE GAVE ON THE RADIO. THAT IS WHAT MATTERS!

To: gronieel who wrote (41775)	12/29/2008 2:00:05 PM
From: Midwest_Investor	2 Recommendations Respond to of 42834

A pre-refunded municipal bond (often called a "pre-re") is a bond that the issuer has decided to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. ....snip..... The early redemption feature is one that appears in most bond issues and is limited to specific dates outlined in the bond's official statement. The call feature gives the issuer the ability to lower their overall interest expense by retiring existing bonds with high interest (coupon) rates. .............. A tax-free bond issuer will distribute new bonds at lower rates and pledge the proceeds of the new issue to retire (pre-refund) outstanding bonds at their earliest possible call date. In many instances, the issuer will use the proceeds of the new bond issue to purchase Treasury securities that mature in conjunction with the call date on the bond being retired. When this occurs, the "pre-refunded" bond is said to be escrowed to maturity. The condition of a bond that has been repaid in advance by means of an escrow account, which holds the funds needed to pay the periodic coupon payments and the principal in government bonds and as such takes on the credit quality of the underlying treasury security. thefreelibrary.com