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He picks most of the fund's 100 or so bonds from among issues rated investment grade by Standard & Poor's and BB, the highest grade of junk bonds, also called high-yield bonds.
The Madison and Middlesex bond issues, rated Aa by Moody's, were offered to inves tors at yields ranging from 3.90percentnt on those maturing in 1971, up to 6percentnt on those coming due in 1990.
New issues rated by S&P fell 29% in the fourth quarter of last year over the same period in 2005.Others are scrutinising "Alt A" mortgages, underwritten with little or no documentation of, say, a borrower's income.
"We hereby make a bona fide offer to pay for Olam to have one of its public debt issues rated by S.&P.," Muddy Waters said in a statement published on its Web site and circulated via e-mail.
Switch into issues rated BBB or better.
Review your holdings now, and dump all issues rated B and CCC.
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Mr. Fuss said the issue, rated BB+ by S.& P., is sharply discounted for three reasons.
(A "Field Guide to the Miami Singles' Scene" in the February 2001 issue rated local bars for categories like "swings" and "phallic themes").
For example, a recently marketed New York State Dormitory Authority issue rated Baa-1 and BBB+ yields about 6percentt in a maturity as short as 10 years.
The bond issue, rated AAA by S.& P. and Moody's, is for the Detroit Edison Co.'s Monroe and Fermi power plant project and is insured by the Financial Guaranty Insurance Co.
Motor Trend magazine, in its May issue, rated seven of the family-size sedans.
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