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Subject:  Re: Building Bond Portfolios Date:  11/10/2002  3:25 PM
Author:  nnn12345 Number:  5178 of 36383

Charlie--Your original post did state:
40% Treas & AAA
30% AA/A
20% BBB/BB
10% B/CCC

Such an allocation would create a fairly high-quality portfolio that offers a bit more total return than a purely investment-grade portfolio over the long haul"

I personally see quite a bit to take objection to in this type of portfolio, but of course that is simply my opinion.

My original point was simply to state out that there may be other and possibly superior ways to create a bond portfolio to get that "bit more total return".

Regarding your statement:

"But the point remains that I was playing, as I almost always am --with words, with ideas-- but playing, because that's what message boards are for - to play."

Are you playing around with your choice of words, "screwing around, financially irresponsible and morally bankrupt"? Its hard to have a discussion with these comments.

If you are stating your view of Tobacco bonds, please recall that these are not bonds of the Tobacco Companies, that these are in no way investments in Tobacco Companies, but represent the financial penalty, actually the record legal settlement, which the States of the United States imposed upon these companies and which the States of the United States have issued State Bonds in order to have more up front money for State programs instead of raising general tax revenues. Specifically, and without any misstatement, these bonds are in fact bonds of the States of the United States.

I also wonder if you are sincere or are somewhat playing around regarding your discussions about bonds in the C +/-rated category. Surely they are not for everyone but for those who have the knowledge and experience trading such stuff maybe there is real money to be made.I prefer the buy and hold strategy for bonds, not the least of which is due to the high costs of buying and selling individual bonds, whic is one reason I think such horse trading of low rated bonds is best done on a level where the trading costs are minimal, not where I am at I admit.

Lastly, I will admit that I am participating on this board not as a game, but as a way to gain knowledge and information and have tried to share some as well.

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