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Mark,

You raise many good points. Unfortunately, the published financial info is limited so some of the questions can not be answered. They indicate they are raising the money in order to loan it to other clients and for "general expenses". Also I noticed that the interest rate is only 5.5 to 6.0 % to buy securities on margin, so unless they were expecting substantial trading fees they would be losing money with the 8% notes. And as you point out with such a large stash of cash why would they need an additional amount that is quite unsubstantial in comparison to total equity. Also, as someone earlier asked, I am in a high tax bracket in a high tax state (CA). I think I will start looking a t-bills (this will be my first purchase). Thanks for the assistance folks. SD
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