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To: Beachbumm who wrote (9477)	5/2/1998 10:12:00 PM
From: Eugene Goodman	Respond to of 64865

Seligman Hi Income Trust. Yield after 4 years, 10.7 % after all fees and costs. Most of the bonds are not of investment grade, but were better than junk. Interest rates [ 30 yr T's ] dropped over this period from say 7 % to 6 $. Assuming that the yield on junk was proportional to AAA this alone gave a yield of 16.7 %. If you have a junk bond portfolio of 100 bonds and can show that historically 2 will die during the year, you need an incremental interest rate of 100/98 to break even. The point is that the risk can be quantified. The money that you have in a stock is all at risk. Some stock groups more or less than the average. But in all truth, I have never come across a comparison of the bets for the various grades of bonds and stocks. Gene