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Old 01-31-2008, 02:12 AM   #101
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Originally Posted by charlie View Post
I bailed on ISM at a loss some time ago. A similar exchange traded debt
security is PFK. It pays 2+% plus YOY CPI and has a better credit rating.
If you want to stay in an inflation linked security you might
consider selling ISM and buying PFK and harvest the tax loss if you
are underwater on ISM. You can check out PFK on Quantumonline.com
This is just a suggestion, of course. Follow my advise or any other
recommendation you find on this forum at your own risk.

Cheers,

Charlie
Thanks Charlie.

At A-, PFK has the same rating as ISM when I bought it. ISM is now BBB+. PFK's nominal yield is 2.4% + yr to yr cpi-u. (I think your 2% figure is a typo) Priced at about $22, it's current yield and YTM are less than ISM.
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Old 01-31-2008, 11:19 AM   #102
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Yeah but you might have a better chance of not losing your principal.
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Old 01-31-2008, 03:29 PM   #103
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Yeah but you might have a better chance of not losing your principal.
You might..... BBB+ vs A-
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Old 01-31-2008, 03:54 PM   #104
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The SLM chairman said "We are still open to being taken over."
So while that may not be immediately in the offing, it may just be a matter of time.

As we have seen, takeovers often suck for bondholders.

Ha
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Old 01-31-2008, 05:21 PM   #105
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And after seeing the clowns running SLM in action, I think that BBB+ rating will give way to something a whole lot lower before too long.

Probably right after the next press conference/metal detector situation actually occurs.
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Old 01-31-2008, 11:43 PM   #106
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And after seeing the clowns running SLM in action, I think that BBB+ rating will give way to something a whole lot lower before too long.

Probably right after the next press conference/metal detector situation actually occurs.
didn't they get rid of that guy and bring in another... someone who used to run it? Just curious if you are talking about the current CEO...
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Old 02-01-2008, 06:48 AM   #107
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They brought in a new chairman, but the moron is vice chairman and still CEO.

The moron is also now under heavy investigation for dumping 97% of his SLM shares shortly after being named CEO and sinking the Flowers takeover.
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Old 02-01-2008, 12:50 PM   #108
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A couple of my thoughts on SLM.

I would think that in this environment, a takeover of SLM (should it occur) is more likely to be by a higher credit company, rather than a LBO, which could actually result in an upgrade of SLM's debt.

IMO, the more serious threat to SLM's future comes from the noises being made by the Democratic candidates (in particular, HC), that the government should lend directly to students, thereby eliminating the middlemen like SLM. At the moment, this is my biggest concern.

In the meantime, I'm happy to be collecting my inflation indexed interest payments each month, which will average nearly 6% (on par) for the next three months
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Old 02-01-2008, 01:39 PM   #109
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My thinking is pretty much in line with yours FIRE'D@51.

I still have significant concerns, but with the attractive rate being paid for the next few months, I'm holding unless it bumps up a buck where I can sell and break even.

Of course, I regularly find ways to lose my butt in the market making everyone here and DW wife wonder how I ever got to FIRE...........
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Old 02-01-2008, 01:46 PM   #110
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Another thing that should help you sleep at night is that SLM is taking direct action to improve their credit rating (secondary offering, new lines of credit, etc.) "Fallen Angels" are the most consistent source of high junk bond returns, I believe.

I scooped up a bit of ISM when it fell below 17.
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Old 02-05-2008, 06:02 PM   #111
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Ha, I sold off the balance of SLM today at $20.42 concluding the wild trading and exciting times. Back to the mutual funds.
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Old 02-08-2008, 08:13 PM   #112
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The latest in the OSM/ISM saga:

I got my 1099 from Fidelity today. 11 out of 12 ISM interest payments are properly reported on line 1 of 1099 INT as interest income. However, the 1/16/2007 payment was reported as a Qualified dividend on Line 1b of 1099-DIV.

Not sure if this is Fidelity's fault or SLM's negligent classification of payments. I'm guessing the latter, based on past SLM incompetencies in correctly calculating monthly interest payments using a simple formula.

Has anyone else noticed this on Fidelity's statements or elsewhere? I'm expecting a revised 1099 eventually.
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Old 02-08-2008, 09:02 PM   #113
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Yep, you'll possibly get one.

In the meanwhile, bask in the slightly improved tax treatment that you may be enjoying.
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Old 02-08-2008, 10:53 PM   #114
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Has anyone else noticed this on Fidelity's statements or elsewhere? I'm expecting a revised 1099 eventually.
Fidelity sent a letter out last week saying that they have IRS permission to blow us off send 1099s out in late Feb... in order to ensure their utmost accuracy.

In other words their Jan 1099s were just a diversion to keep us happy while they pull together the actual data.

I got their 1099 for one of my accounts this week (an account I shut down in July, so it wasn't likely to have any last-minute trading activity) but I'm still waiting on our (busier) joint account.

You could also log onto their website and send them an e-mail query.
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Old 02-10-2008, 10:37 AM   #115
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I got a similar notice from schwab, so I now have a real good excuse to procrastinate on the tax filing.
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Old 02-24-2008, 05:03 PM   #116
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I got a similar notice from schwab, so I now have a real good excuse to procrastinate on the tax filing.
In my experience, the only change has been the amount of dividends
which is qualified.
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Old 02-24-2008, 05:12 PM   #117
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Has anyone recently tried to reproduce the interest calculation
for ISM/OSM ?

For ISM for 2007, I show the following per-share dividends
(in reverse order, last one is Jan 07):

$0.09057
$0.09359
$0.09734
$0.10067
$0.09818
$0.09923
$0.09480
$0.08478
$0.09748
$0.07717
$0.07124
$0.08731

I can't seem to massage these numbers into anthing correlating
with the CPI numbers (ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt)
even given the 4-month lag (or whatever it is).
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Old 02-24-2008, 05:16 PM   #118
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Quote:
Originally Posted by FUEGO View Post
The latest in the OSM/ISM saga:

I got my 1099 from Fidelity today. 11 out of 12 ISM interest payments are properly reported on line 1 of 1099 INT as interest income. However, the 1/16/2007 payment was reported as a Qualified dividend on Line 1b of 1099-DIV.

Not sure if this is Fidelity's fault or SLM's negligent classification of payments. I'm guessing the latter, based on past SLM incompetencies in correctly calculating monthly interest payments using a simple formula.

Has anyone else noticed this on Fidelity's statements or elsewhere? I'm expecting a revised 1099 eventually.
My ISM/OSM is an IRA so I guess I'll avoid this latest fiasco. I think I am going to edit this thread, and send it to investor relation at Sallie Mae. I am trying to think of a snappy salutation. Dear incompetent idiots is accurate but may not be received positively.
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Old 02-24-2008, 05:44 PM   #119
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I suspect the investor relations folks at SLM either quit or jumped out of a window some months ago...

I'm pleased to have done reasonably well with this fiasco. Jumped out at about the same price I jumped in at and raked in $1700 in dividends.
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Old 02-24-2008, 11:51 PM   #120
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Quote:
Originally Posted by JohnEyles View Post
Has anyone recently tried to reproduce the interest calculation
for ISM/OSM ?

For ISM for 2007, I show the following per-share dividends
(in reverse order, last one is Jan 07):

$0.09057
$0.09359
$0.09734
$0.10067
$0.09818
$0.09923
$0.09480
$0.08478
$0.09748
$0.07717
$0.07124
$0.08731

I can't seem to massage these numbers into anthing correlating
with the CPI numbers (ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt)
even given the 4-month lag (or whatever it is).
Where did the above numbers come from? Did SLM provide them or did you calculate them? If you calculated them, how did you do so?

I calculate the expected yield for my ISM shares based on the bls inflation data every month and, so far, get matching results, except for the two months they screwed up.......

For example, for the current period, Feb 15 - March 14, they're paying 6.36% based on $25 PAR. March 15 - Apr 14 = 6.13% Apr 15 - May 14 = 6.33%. Just multiply those percentages by 25/your price to get your effective yield.

Edited to add: I was able to duplicate your numbers from the bls CPI-U data. See my following post.
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