RE: Vol. 10 Risk/ Reward Sent: Friday, July 30, 2010 3:22 PM T

THIS IS NOT ADVICE.  IT IS A PERSONAL REFLECTION ON INVESTING.  RELY ON NOTHING STATED HEREIN   As a loyal reader, you know that I have been studying TruPS for several days.  In addition to the article that I attached to the last edition, one of the readers sent me some research on the topic.  Since TruPS will lose Tier 1 status under FinReg by 2015, they will likely be redeemed before then and thus should be looked upon as a 3 year investment  They currently yield 7% and when redeemed will pay $25 in principal. Today, I bought CpR, CpZ, MWG, DUA and BACB (Citigroup, Morgan Stanley, Deutsche Bank and BankAmerica) some as low a $21, off of the headlines in the WSJ and FT touting the ability of financial institutions to float cheap bonds.  I decided to grap some yield while I can, with a good likelihood of a 10-20% capital gain in a couple of years.  I chose ones with sufficient volume to insure an exit if I don't like the play.   All of these are deemed non qualified dividends so I bought them in the 401k.      I also bought some Aegon qualified preferred in my personal account because of the continued improvement of the the Dutch insurer and its attractive 8% yield.    I have also continued to add to my Ford exchange traded debt in light of the continuing good news from the company and its often stated desire (veritable mantra) to become an investment grade issuer asap.   I have held off buying more AIG exchange traded debt pending the resolution of its disposition of AIA.  With the news that it will be via an IPO, I may not wait for its completion.  The yields on AFF and AVF are now just above 9% , their prices having jumped over 30% ytd.  I may just have to take another plunge which should not be too risky in light of the volume traded daily.