TY - JOUR T1 - Practical Applications of The Tax Option in Municipal Bonds JF - Practical Applications SP - 1 LP - 3 DO - 10.3905/pa.2014.2.1.061 VL - 2 IS - 1 AU - Andrew Kalotay AU - C. Douglas Howard A2 - Goyal, Gauri Y1 - 2014/07/31 UR - https://pm-research.com/content/2/1/1.12.abstract N2 - 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 ER -