Income-focused SMAs oﬀering tax-advantaged core exposure to the municipal and corporate bond markets
Step up to a smarter approach
Constructing your own bond ladders—and factoring in interest rate risk, credit risk, and other crucial aspects of fixed income investing—can consume an advisor’s time. Parametric’s professionally managed municipal and corporate ladders make it easy, helping you oﬀer your clients portfolios tailored to their needs, all in a way that’s simple and scalable for you.
Whether you choose a municipal or corporate ladder, our SMA structure makes the portfolio fully customizable:
Just as we do for our Custom Core® equity SMAs, Parametric monitors your clients’ laddered bond SMAs throughout the year for opportunities to harvest losses. While doing so, we seek to maintain consistency of market exposures while avoiding wash sales and minimizing transaction costs.
With bonds, the value of tax-loss harvesting is influenced by the direction in which interest rates are moving. As you can see from the table below, as rates rise, so does the potential value of loss harvesting.
Parametric monitors your clients’ bond portfolios throughout the year for opportunities.
Make transitions more transparent
From start to finish, we make the portfolio transition process clear and cost effective for both you and your clients, helping you build custom bond ladders with confidence and ease.
Discover how our solutions can help you grow your practice.
Systematic Tax-Loss Harvesting in Laddered Bond Portfolios
by Dan Codreanu, Director, Fixed Income Portfolio Management and Quantitative Research; Issac Kuo, Managing Director, Portfolio Management and Head of Quantitative Research
June 23, 2022
Systematic TLH helps laddered bond investors improve their portfolios’ after-tax performance, especially in today’s rapidly changing market.