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

To: Tim McCormick who wrote (32543)	9/11/1998 2:49:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Tim, I agree that when serious news like this is taking place, Willy pulling a Swaggart is all the press covers. A lot of what is happening is taking place because the folks there do not believe the USA has the political will, and perhaps not even the military capability, to take action. Although I believe the cost in human suffering is much more important, we could find oil gonzo pretty quick in a regional war. When you start talking about Iranians rattling swords in the direction, as least tangentially, of Saudi Arabia, you are talking a huge part of world reserves. MB

To: Tim McCormick who wrote (32543)	9/11/1998 5:29:00 PM
From: Knighty Tin	Respond to of 132070

Tim, I didn't answer your duration question because, I forgot it after reading the rest of your note. <G> Do I adjust the ratio of taxable to non-taxable futures speads for duration? No. I do adjust it for price differential when that is appropriate. With the T-Bond at 127 and the Muni at 126, there is no current adjustment in the way I play it. I have found duration to be the least useful concept there is in bond management, other than cheapest to deliver into the futures contract. At least the latter is important if you plan to make or take delivery, which I don't. So far, I have seen no practical use for duration analysis. It is similar to the "years to payback" concept in valuing converts. Sounds nice on paper, but means diddly squat in the real world. MB