No. of Recommendations: 1
Treasuries, agencies, and CDs haven’t been worth looking at this year. So I’ve focused my buying on corporates and munis. For accounting purposes, I segregate them into zeros vs. couponed, and invest-grade vs. spec-grade. For munis, “YTM” is the tax-equivalent yield to me based on a Fed tax-rate of 25% and a state tax-rate of 9%. For all bonds, “ADJ” is the result of assuming a 5% inflation-rate. P/L is the difference between my entry-price and where I’m currently being marked to market at.

Home-state Muni Zeros
Buy Qty Due MDY SP YTM ADJ P/L
F-11 10 J-27 Aa1 NR 6.8% 1.7% 18%

Couponed Home-state Munis
Buy Qty Due MDY SP YTM ADJ P/L
M-11 5 J-28 Aa2 AA 6.8% -0.3% 4%
M-11 5 A-28 A1 NR 7.1% -0.1% 0%
A-11 5 J-29 A2 NR 7.4% 0.0% -1%
M-11 5 O-30 A3 A- 7.9% 0.1% 5%
A-11 5 O-32 Baa1 BBB+ 9.5% 1.2% 8%
M-11 5 A-32 Nr BBB+ 7.9% 0.0% 3%
J-11 5 O-31 Nr Nr 12.9% 3.6% -10%

National Muni Zeros
Buy Qty Due MDY SP YTM ADJ P/L
M-11 5 J-32 Aa3 AA+ 6.1% 1.0% 3%
J-11 5 D-31 Aa3 A+ 6.3% 1.3% -1%
M-11 5 A-29 Aa3 A+ 6.8% 1.7% 10%

Couponed National Munis
Buy Qty Due MDY SP YTM ADJ P/L
J-11 5 J-34 A1 A- 8.3% 0.2% 8%
J-11 5 S-29 Baa1 BBB 8.3% 0.6% 2%
M-11 5 M-14 Wr BB+ 8.0% 2.8% 8%
J-11 5 J-27 Wr NR 7.6% 0.6% 0%
J-11 5 S-32 Nr NR 8.0% 0.3% 2%
M-11 5 S-18 - - 8.2% 2.2% 8%
M-11 5 J-18 Nr NR 13.0% 6.8% -4%


Invest-grade, Corporate Zeros
Buy Qty Due MDY SP YTM ADJ P/L
F-11 7 J-28 A2 A 7.4% 2.2% 0%
M-11 1 O-28 - - 5.7% 0.6% 23%
M-11 1 A-30 - - 6.0% 1.0% 8%
M-11 2 O-25 - - 6.3% 1.3% 10%



Invest-grade, Couponed Corporates
Buy Qty Due MDY SP YTM ADJ P/L
A-11 4 M-25 A2 A 6.5% -0.2% -1%
A-11 5 A-27 Aa2 AAA 6.0% -0.8% 0%
J-11 2 D-95 A2 A- 9.4% -3.2% 7%
M-11 5 N-26 A3 A- 6.7% -0.2% -6%
M-11 1 J-97 A3 A- 7.5% -3.6% 14%
A-11 1 S-33 A3 A- 5.9% -1.4% 6%
M-11 5 J-45 A1 BBB+ 6.8% -1.0% 9%
A-11 2 S-21 Baa3 BBB- 10.0% 3.3% -1%
M-11 4 A-19 Baa3 BBB- 7.1% 1.0% -2%
M-11 5 O-25 NR NR 6.9% 0.2% 2%


Spec-grade, Couponed Corporates
Buy Qty Due MDY SP YTM ADJ P/L
J-11 1 S-31 Ba2 BBB- 9.4% 1.3% 14%
F-11 1 J-18 Ba3 BBB- 6.8% 0.9% -6%
J-11 1 S-27 B2 BB- 14.0% 5.0% -9%
M-11 4 S-15 - BB+ 5.5% 0.2% 1%
J-11 2 M-25 B1 B+ 8.4% 1.3% -7%
F-11 3 N-16 B1 B+ 7.4% 1.7% -7%
J-11 5 N-16 B1 B+ 7.6% 1.9% -5%
A-11 3 A-16 B1 B+ 8.4% 2.7% 0%
A-11 5 A-18 B1 B+ 8.7% 2.7% -4%
A-11 5 M-18 B2 B 11.8% 5.6% 0%
M-11 1 A-28 B1 C 8.7% 1.1% -1%
J-11 1 N-14 B2 B 8.7% 3.2% 3%
F-11 1 D-14 Caa1 B 19.8% 13.5% -1%
A-11 5 N-17 Caa1 B- 17.4% 10.6% 3%
M-11 1 S-15 Caa3 CCC 8.9% 3.3% -1%
J-11 1 M-13 - - 11.0% 5.7% -1%
A-11 1 M-12 - - 49.4% 42.6% -100% (ET isn't valuing this position, but it's not in default)
A-11 1 J-13 - - 26.5% 20.5% -27%

Lottery Tickets (aka, Tobacco Settlement Zeros)
Buy Qty Due MDY SP YTM ADJ P/L
A-11 20 J-47 - - 10.7% 5.4% 8%
A-11 25 J-52 - - 11.3% 6.0% 13%


As you look over this schedule of holdings, you’ll see some mistakes that I need to fix but, also, evidence of the sort of shrewdly-done buying that can happen when the shopping is done daily and an effort is made to spreads risks (all of them, not just default-risk) as widely as possible. With four more moths remaining to 2011, and with a bigger pile of cash than I like to carry, I've still a got a lot more buying to do. Fortunately, things can be found if one looks.

Charlie
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