Five for 2008 -- JSM

For our model portfolio for 2008, we intend to buy $20,000 at the close Dec. 31 of JSM which is SENIOR debt of Sallie Mae (SLM). SLM has gotten whacked lately on a failed merger, fallout from the credit crisis being expected to raise student-loan defaults, ill-tempered comments and by the CEO, and most recently, common dilution to offset an ill-timed put sale
But the senior debt, yielding over 8 percent, looks solid and there should be some capital gains in here too as it moves back toward the par price of $25.

SECURITY DESCRIPTION from Quantum: SLM Corp., 6% Senior Notes due 12/15/2043, issued in $25 denominations, redeemable at the issuer's option on or after 12/15/2008 at $25 per share plus accrued and unpaid interest, maturing 12/15/2043, distributions of 6.00% ($1.50) per annum are paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the 15th calendar day prior to the payment date.