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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (50037)	11/14/2012 10:56:39 AM
From: rllee	Read Replies (1) \| Respond to of 78714

KTP and PFH- Are these bets regarding the solvency of JCP? What would happen if JCP goes under? Comments welcome.

To: Jurgis Bekepuris who wrote (50037)	11/14/2012 12:04:32 PM
From: MCsweet	Read Replies (1) \| Respond to of 78714

One item to consider with KTP and PFH -- I have not read the fine print, but many of these 3rd party trusts that hold bonds are required to liquidate (i.e., sell the bonds in the market) in the event of a bankruptcy. This makes these 3rd party trust securities inferior to owning outright bonds if solvency is a concern. In other words, in the event of bankruptcy I'd rather own the bonds themselves and take my chances than be forced to liquidate willy nilly in a bad market. Quantum online has a links to prospectuses if you want to check it out. MC