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

To: James M. Belin who wrote (34010)	10/15/1998 5:28:00 PM
From: Knighty Tin	Respond to of 132070

Jim, If the economy wasn't stinking to high heaven we would not have gotten this Pearl Harbor cut. Though it is true that the Tipsys are trading at a lower absolute spread, that spread still represents 25% of the total yield. I think that is awfully big premium to pay. I haven't worked the #s, but I would bet it is cheaper to buy the 10 year and buy puts each year 10% below the current strike for a much better risk/reward tradeoff, IMHO. I do think we will see higher rates, but I don't think the Tips are the way to play them. MB