In a yr the place nothing appeared to work on Wall Avenue, traders nonetheless have a uncommon alternative to make the perfect of a foul scenario by tax-loss harvesting their bond portfolio.
Bond holders don’t do a lot tax-loss promoting in an extraordinary yr. It’s usually executed on the finish of the yr and entails traders promoting shedding inventory positions to offset taxable beneficial properties. However with this yr’s 12% drop within the Bloomberg U.S. Combination Bond Index, traders shouldn’t ignore the fixed-income portion of their portfolios.
