PT  - JOURNAL ARTICLE
AU  - Andrew Kalotay
AU  - C. Douglas Howard
ED  - Goyal, Gauri
TI  - Practical Applications of The Tax Option in Municipal Bonds
AID  - 10.3905/pa.2014.2.1.061
DP  - 2014 Jul 31
TA  - Practical Applications
PG  - 1--3
VI  - 2
IP  - 1
4099  - https://pm-research.com/content/2/1/1.12.short
4100  - https://pm-research.com/content/2/1/1.12.full
AB  - The Tax Option in Municipal Bonds Andrew Kalotay C. Douglas Howard This article shows how investors can obtain superior results from tax-exempt municipal bonds through active management—as much as 20 to 30 basis points in additional annual return. The Tax Option in Municipal Bonds explores how tax-loss harvesting can be applied to municipal bonds, and provides portfolio managers with a framework for determining how muni bonds perform under such a strategy. “Muni bonds present unique opportunities for tax-loss harvesting,” says co-author Andrew Kalotay , President of Andrew Kalotay Associates , a bond analytics and advisory firm. The article, co-authored by Douglas Howard , Associate Professor at Baruch College in New York, quantifies the collective benefit accruing to investors from tax-loss harvesting over the life of a muni due to the volatility of interest rates.TOPICS: Legal and regulatory issues for structured finance, volatility measures