Klotz responds We have always favored premium bonds. California's financial outlook would be very bleak. Our point is, the vast majority of insured issues are adequately secured on their own merit, and the fact they are insured provides an additional level of credit enhancement, which rarely comes into play. There is no charge, nor is any kind of registration required.

To the best of our knowledge, they have discontinued this practice. Beta shown is based on monthly returns over the last three years. Their larger coupons provide more cash flow, as you point out, and generally carry higher yields than comparable quality par or discount bonds. Consequently, I have given up the idea of switching brokers. One way to play the foreign debt issue is to do some investing overseas. Posted e-mails may be edited for length and clarity. The Fund's investments may include general obligation and revenue bonds, industrial development bonds, pollution control bonds, and zero-coupon bonds. The decision to transfer from your California holdings is a tricky one in light of the fact the Supreme Court has indicated that they were leaning toward Kentucky's argument. Your conclusions about why we don't recommend them is inaccurate. The yield anomaly you describe is really a function of merchandising rather than bond fundamentals. Klotz, the president and co-founder of FMSbonds, Inc.

Development Revenue bonds were issued primarily for pollution control. At one time, individual portfolio insurance was made available by some of the bond insurers. Quotes supplied by ComStock, an Interactive Data company. We are not afraid of shooting ourselves in the foot.

Please click here for a complete discussion of this issue. Times regarding the economic future of the state of California. These products are not federally insured or guaranteed by the U.