A bond swap that aims to contain the effect of increasing interest rates on a portfolio by selling a bond at a loss and replacing it with a higher yielding bond. The bond swap loss will allow the manager to offset tax liability on a client from ordinary income or capital gains (short-term and long-term gains). The losses deducted against ordinary income in any year can be carried forward to the very far future.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Comments