No. of Recommendations: 2
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?



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.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.