Room, of course I don't mind any of your inquiries...however, I feel bad that you felt compelled to read all those damned posts! You are right: I am certainly beyond my comfort zone when we get outside the REIT space, and hope that anyone reading my non-REIT posts takes them with many more grains of salt than usual. Although I was a business lawyer for many years, I never got into bankruptcy law; that's a real specialty, and is governed by all sorts of strange rules (and is run by strange people). Thus I can provide no comfort on whether JCP would have to go into bankruptcy to get rid of (or to reduce the principal amounts of) these debentures. Certainly, however, holders are better off with these debentures than they would be if they owned preferred stock of a troubled issuer. The only way to get some comfort on this issue would be to get access to the "debenture indenture" that governs the conditions of default.As I think I mentioned in my prior post, I no longer own KTP or its sister, PFH (they have similar terms and trade at prices that are close to one another). If I were to guess, there is probably a greater than 50% change that they will continue to pay the interest on these, and will not default. Note, though, that JCP's liquidity isn't in great shape, so they could face lots of pressure from creditors if they can't get their stores to become more productive. However, that's a long way from default. On the other hand, there's rarely a free lunch in the investment world, and a bond yielding 8.5% is well into the junk category, as you know. The big drop in the stock probably relates to the difficulties JCP is having with its "same price, all the time" strategy; same-store sales have been declining at an alarming rate, down 26% in Q3 ending October 2012. They have GOT to right the ship!As to whether or not you should hold onto these bonds, I would say, "Take your profits and run." I don't think the 8.5% yield is sufficient reward to compensate you for having to worry about these little critters. You have done very well, and won the game, in a short period of time; why ask to play in overtime? Of course, the bonds will continue to rise in price should JCP turn things around. But will they? I have no idea.No reason for you to lurk; we welcome your posts!Ralph
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