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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (27873)	4/30/1998 10:47:00 PM
From: Knighty Tin	Respond to of 132070

Joan, In general, I have always preferred the property owners to the mortgage owners. My problem is, these are really junk bond funds and should be treated as such. There is nothing wrong with that, but I can similar or better yields buying Treasuries and selling calls against them, so I can't see any reason to take the credit risk. The tax deal may be a good reason, so, if you find one with a credit quality you can live with and a large tax-free portion of a better-than-average yield, you have to look at it. But I would wonder about a mortgage reit that is yielding 12% when govt. mortgage funds are yielding 7%. I hope this isn't insulting, but make sure it is all yield and not return of capital. Giving you your 0wn money back is an old REIT trick. MB