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mouton29

01/23/11 12:03 AM

#113008 RE: oc631 #113007

<< guess Barron's sees no risk to Uncle Sam's AAA credit rating.>>

Irrelevant to the point, which is that it is not rational for an instrument collateralized by Treasuries to have a yield materially greater than Treasuries, since the credit risk on the municipal is not greater than the credit risk on the Treasuries, especially since the municipal instrument is tax-exempt while the Treasuries are not.