"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?"Personally i find S&P ratings easier to remember and rank. If you look at any rating on my sheet, they are all S&P. None are cherry picked as you imply for reasons i don't have a clue. In actual fact, i don't use ratings and only note them in passing as i know others do. I certainly wouldn't take the time to type in two of them so i standardize on the one i prefer. I always use S&P."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 informationWhy 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."Trading flat simply means there is no accrued interest since the last dividend/coupon payment."Trade Flat definition: For convertibles, trade without accrued interest. Preferred stock always "trades flat," as do bonds on which interest is in default or is in doubt. In general, trade in and out of a position at the same price, neither making a profit nor taking a loss."There aren't a lot of utility etd's/pfds/ trading under par and over 6% or with much liquidity. The market finds utility issues to be highly desirable. I'll speculate the only reason this issue is doing so is it started trading Tuesday and there's liquidity around a new IPO. As to why it's so cheap, my speculation is the same. I also think this situation will be temporary. Entergy has three 6.00% Series First Mortgage bonds. Two from Mississippi and one Louisiana. The other Mississippi issue (EMQ) trades at 25.25 yielding 5.94% callable in 2007. If anything, i think this past call situation would tend to depress the price of EMQ. The Louisiana issue (ELB) trades at 26.11 yielding 5.74%. It's logical to think that EMZ can at least move to rough parity with the other issues as to price and yield. A yield of 5.94% puts it at 25.25.There's an opportunity here to pick up a gain of roughly 2.72% if EMZ rises to 25.25 plus there is an upcoming ex-div good for a partial dividend. I thought enough of the short term gain potential here to make some sales today of recent ex-div fully priced pfd issues to pick up 1225 shares. Nothing i know of the pfd/etd market tells me this issue won't pass par in short order. It's depressed due to a temporary situation not related to fundamentals and out of position in relation to sister issues....imho. And that means buy to me. If my scenario doesn't work out, this is a good utility issue with ample current liquidity and a suitable holding.Please note the manner and civilty of my answers to your questions....................Xot
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