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Subject:  Re: EMZ - liquidity now Date:  4/21/2011  3:36 PM
Author:  charliebonds Number:  32711 of 36328

Entergy has 7 First Series Mortgage bonds … All are A- rated except Texas at BBB+.


If you wouldn't mind, I have a tiny question for you. Why do you say they are rated A- when Moody’s has them notched at BBB+? Why do you report only the more favorable rating rather than both ratings?

Also, if I may, I have another tiny question. The description of the newly-issued EMZ clearly says The bonds are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. See the IPO prospectus for further information

Why would what amount to a very long-dated, zero-coupon bond be attractive to an investor seeking current-yield? Much thanks in advance for your thoughts.

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