@article {Kalotay1, author = {Andrew Kalotay and C. Douglas Howard}, editor = {Goyal, Gauri}, title = {Practical Applications of The Tax Option in Municipal Bonds}, volume = {2}, number = {1}, pages = {1--3}, year = {2014}, doi = {10.3905/pa.2014.2.1.061}, publisher = {Institutional Investor Journals Umbrella}, abstract = {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{\textemdash}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. {\textquotedblleft}Muni bonds present unique opportunities for tax-loss harvesting,{\textquotedblright} 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}, issn = {2329-0196}, URL = {https://pa.pm-research.com/content/2/1/1.12}, eprint = {https://pa.pm-research.com/content/2/1/1.12.full.pdf}, journal = {Practical Applications} }