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Believe me there isn't any high-brow stuff going on here. Sometimes I'll have a specific future use for cash. When I have excess cash I'll "fund" this using a Treasury with a maturity to match.

I'm pretty conservative, so when I do it I'm almost guaranteed holding until maturity. Therefore, nothing risky here. Which is nice, because Bond knowledge is my Achilles heal in investing. And munis are lower on the knowledge totem-pole than Treasuries.

Would you mind expanding on this paragraph:

I would guess that the still rather poor liquidity and deficient transparency of the muni market might be of some concern to you, and there have been periodic supply issues that have affected the muni markets in ways that don't always reflect what happens in Treasuries. Still, if you evaluate the risks effectively -- considering that G.O. bonds have roughly the same sort of seniority claims that exist for Treasuries, for instance -- I would imagine there is some incentive to at least evaluate whether munis should be a part of your planning.

Thanks for the link to CNNfn. That has helped a lot already.


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