State G.O. Muni bonds

From: Don DeLair <chassen@hawaii.rr.com>
Subject: State G.O. Muni bonds
Date: Thu, 07 May 1998 12:46:19 -1000

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<html>
 currently own a lot=A0 of zero coupon Hawaii State General obligation
bonds.=A0 <br>
They are laddered in increasing amounts mautring every year from
2002-2009. <br>
Moodys recently downgraded the state of Hawaii from AA3 to A1.<br>
I am a retired senior citizen, and these bonds represent the bulk of my
nestegg.<br>
My concern is ---How safe are the bonds?<br>
I don=92t plan on selling any of these bonds prior to maturity. My main
concern is<br>
what are the chances of a DEFAULT. I have considered diversifying , but
the bids <br>
I can get at retail are awful. I would much prefer to hold them to
maturity but also<br>
need some peace of mind.<br>
<br>
Are State G.O.s generally safe.<br>
Is =93a1=94 to low a rating to feel comfortable with.<br>
<br>
I am pulling my hair trying to make a decision.<br>
Should I hold or take a bath by trying to sell?<br>
<br>
Any help/comments would be greatly appreciated.<br>
<br>
Don<br>
<BR>
</html>



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