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JULY WILL BREAK ALL PRIOR RECORDS FOR BOND REDEMPTIONS; VOLUME MAY TOP $25 BILLION

 NEW YORK, June 28 /PRNewswire/ -- 1993 has been deemed "the year of the bond call" and the month of July could be the biggest bond call month in the history of the bond market.
 According to Redemption Digest and Corporate Actions, a daily financial newspaper in New York, the month of July will see as much as $25 billion of bonds paid off early from over 7,500 different bond issues. To put it in perspective, that's nearly twice the volume for the entire year of 1983.
 The Digest predicts $178 billion worth of redemptions of publicly traded municipal and corporate bonds for all of 1993.
 "There's a human dimension to this story," says Redemption Digest associate publisher Rafi Reguer. "Millions of ordinary people have invested in bonds to pay for their children's college education or their own retirement. Now, they're getting their money refunded to them. When they call up a broker, looking for a place to reinvest, they are finding that the best they can do is to earn 5.5 percent tax-free or 6.5 percent in a treasury. This yield reduction (200 to 400 basis points) is going to put a real dent in their plans."
 "The numbers are staggering," says Ugis Sprudzs, a market research analyst with John Nuveen & Co. "So many private investors are scrambling to find out if their bonds are among those called, and then trying to figure out where to reinvest the proceeds. We are using the redemption data from Redemption Digest and Corporate Actions to market a service to brokers so they can find out about redemptions and recommend Nuveen funds to fit their customers' reinvestment needs. 1993 really is the year of the bond call."
 1993: The Year of the Call
 Key statistics at a glance
 Number of municipal and corporate bond redemptions
 1983 4,875
 1984 11,159
 1985 14,430
 1986 16,398
 1987 26,715
 1988 26,657
 1989 28,065
 1990 31,340
 1991 37,851
 1992 61,931
 1993 (proj.) 84,000
 Dollar value of municipal and corporate bond redemptions
 (In billions)
 1990 $ 60.3
 1991 74.0
 1992 133.0
 1993 (proj.) 178.0
 1994 (proj.) 120.5
 Number of Bond Redemptions so far in 1993
 January 6,431
 February 4,833
 March 6,627
 April 5,499
 May 5,245
 June (Est.) 6,876
 July (Proj.) 7,530
 Source: Redemption Digest and Corporate Actions
 -0- 6/28/93
 /NOTE TO THE EDITORS: Additional background information, including a set of story ideas, and a table on "How do you know if your bond is likely to be called?" is available to be faxed to anyone interested. As well, Rafi Reguer is available for interviews/
 /CONTACT: Rafi Reguer, associate publisher of Redemption Digest, 212-219-1550/


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MP-TS -- NY079 -- 6435 06/28/93 17:06 EDT
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Date:Jun 28, 1993
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