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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35351  
Subject: Re: Exploring Triple-AAA Corporates Date: 8/13/2006 11:38 AM
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Asking for only AAA's returned 437 issues spread across approximately 23 issuers. But the bulk of the offerings, approximately 87%, were due to one issuer or its clones, namely GE Capital. They dominate the AAA market, both in terms of product and highest yields.
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I do this exercise myself quite often. I buy bonds to hold to maturity, not to trade, and I know we look at the market differently. But it is sobering to realize how few AAA companies there are. Even Merrill Lynch and Morgan Stanley are in the AA or A+ range. And I do have at least one GE Capital bond at the moment.

I do buy corporates in my 401k plan, and those credit levels are good enough for me, at this stage. I figure if Merrill Lynch and Morgan Stanley go bankrupt, things will be so bad that my retirement plan, and a lot of other people's, will be shot anyway.

Bill
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