Article: USAA's Shirley sells off a quarter of munis so far in 1995.(Bill Shirley of USAA Investment Management Co.)

Since the beginning of the year, Bill Shirley has sold off more than a quarter of the $1.4 billion municipal portfolio he manages for San Antonio- based USAA Group's two property and casualty insurers.

USAA's municipal holdings, which are split between United Service Automobile Association and USAA Casualty Insurance Co., now stand at $1 billion - $400 million less than at the end of 1994, according to data from USAA and CDA/Spectrum BondWatch.

Yet Shirley said he has no problems with municipals: "No dissatisfaction whatsoever. There's nothing that we see wrong with the municipal market."

USAA's rationale for cutting back on municipal holdings is ...

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