In 2006 - 2007 I started arguing on the stock methods/clubs boards for an pre-thought out cash management strategy. How do we do the same for a bond heavy port? Or should we bother?

jack

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Personally, this year I have taken scads of bonds I bought at a deep discount that hit par or better and sold them off. The proceeds went to prepay a chunk of my mortgage, take Pen Fed up on their CD offer and invest in beaten down equities. As you point out, these securities are ultimately going to par unless they default, so I am happy to book my gains and move on. I still have a couple of individual bonds which mature in under 5 years that I have not yet sold. One is a small issue that trades by appointment and it is hard to get a decent bid, the other is a junk name I am intimately familiar with that will most likely get called within a couple of years and pay its 9.5% coupon in the meantime. But at the right price, both of those bonds get tossed out as well.