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To: Kapusta Kid who wrote (85)	9/8/2010 11:33:39 AM
From: Jurgis Bekepuris	Respond to of 187

JPM-PZ at $27 seems like a bad idea to me.

To: Kapusta Kid who wrote (85)	9/8/2010 12:26:33 PM
From: deeno	Respond to of 187

"but it seems to me that Lehmann is all wet on this one and that JPM-PZ is a very bad idea. Or am I missing something ?" Depends on what you looking at this for. 11 dividend payments - 2.00 premimum = 3.50. over 2.6666 years its about a 4.5% return. Now what are the chances of NOT getting called and if NOT called would thinges be better or worse. I would guess that its not tier one capital anymore. JPM doesnt need to pay libor plus 4.12% and they arent likely to not pay the dividend. So where would you put less than 3 year money paying 4.5%? If they dont call it 4.12% + libor floater backed by JPM doesnt look to bad. Its not my cup of tea, but when your scrounging for short term yield its not to bad. Only real fear I'd have has to do with the orginal terms of the PFD. Some of these pfd's had extrordinary call provisions if there was a change in tax structure or capital definitions. You have to assume that Lehmann did his DD when he made his reccomendation or do your own if you were putting serious money into it.