In fixed income investing, trade execution plays an important role in overall portfolio performance. The ability to source bonds efficiently, invest capital thoughtfully and execute trades at competitive prices can directly affect investor returns.
What were the key takeaways from last month’s numbers? Our corporate bond specialists look back at the market’s performance and provide incisive commentary to help you make sense of what drove the market—and what may be on the horizon for fixed income investors.
April delivered a constructive backdrop for preferred securities, with the ICE BofA Fixed-Rate Preferred Securities Index rebounding 2.23% and bringing YTD returns back into positive territory at 0.8%.
In a year that started with volatility, direct indexing had ample opportunity to take advantage of loss harvesting opportunities.
In environments of geopolitical stress, diversification* is tested, and investors may need to think more wholistically about the assets included in their portfolio.
Fixed income markets have faced a challenging stretch following the escalation of conflict in the Middle East. Sharply rising oil prices and renewed inflation concerns have pushed US Treasury yields higher, and municipal bonds have moved in tandem.
While the tax conversation may seem to end on April 15, we think tax season could be the time to start a better approach to tax planning—a natural moment to reflect on how investments are managed, looking for ways to help reduce tax drag and increase the potential for after-tax performance going forward.
If you’re not sure what direct indexing means, you’re not alone. Even after the recent growth, direct indexing remains relatively unknown. As our risk review team never fails to remind us, you can’t invest directly in an index. So what exactly is direct indexing?
The Qualified Opportunity Zone (QOZ) program is entering a pivotal transition period, with some legacy incentives expiring this year and a redesigned framework set to take effect next year.
As investor expectations evolve, and tax awareness becomes more central to portfolio construction, active tax management has emerged as a defining feature of sophisticated investment strategies. Across both equities and fixed income, disciplined processes may help investors retain more of what they earn.
Corporate pension funding continues to improve. Market moves over the last five years, both in yields and equity returns, have corporate pension plans at funding levels not seen since before the Tech Bubble.
In our view, 2025 reinforced a familiar conclusion that tax management remains as relevant as ever, even though tax policy may no longer be a moving target.
Coming into 2026, investors face a landscape shaped by persistent inflation, evolving US monetary policy and global uncertainty. At Parametric, our systematic and customized approach is designed to help clients navigate these complexities while preserving after-tax returns.
Equity markets have delivered strong returns in recent years, leaving many investors with substantial unrealized gains across their portfolios. Let’s consider how a tax-managed long-short strategy could be a powerful tool in the pursuit of tax efficiency—for the right investor.
Another strong year for US equities in 2025 reminds us that tax loss harvesting has the potential to contribute substantial value to direct indexing portfolios—even during bull markets.
Here we consider an area that is less explored: the ability to implement systematic strategies like trend following within an overlay program. We see a natural opportunity for integrating overlay and trend strategies, given that both have similar architecture as predominantly rules-based derivatives strategies.
Portfolio customization and tax management were once reserved for a financial advisor’s wealthiest clients. That era is ending. Tax efficiency and customization are fast becoming core components of wealth management beyond the top income tiers.
We expect the US economy to remain resilient in 2026, providing a constructive backdrop for risk assets, as well as corporate and municipal credit. But the mix of macro uncertainty, policy division and elevated deficits could widen the range of potential outcomes and increase rate volatility—especially as the Federal Reserve approaches the neutral rate.
Energy commodities enter 2026 at an interesting crossroads. On one hand, oil and gas markets have abundant supply and somewhat softer pricing. On the other hand, the ongoing energy transition is accelerating investment in new energy sources.
In today’s complex financial landscape, taxable US institutions face unique challenges in balancing their investment objectives with tax efficiency. They simply cannot afford to overlook the impact of taxes on their portfolios.
As wealth continues to grow along with soaring equity markets, and technology enables customization and choices once reserved for a select few investors, financial advisors are tasked with constantly evolving to maintain their value position.
As the year winds down, many investors focus on year-end charitable giving and tax planning. Finding a charity and donating money is the easy part. Taking slightly different approaches to gifting can yield dramatically different results from a tax perspective.
With an economy exceeding $1.1 trillion and a proven record of conservative budgeting, New York City stands apart as both a global capital and a dependable municipal credit. Let’s look at 10 reasons why we believe NYC’s fiscal health and credit strength may continue.
Think all commodity indexes are created equal? Index design choices made behind the scenes can lead to wildly different—and sometimes disappointing—investment outcomes. Here’s why we think a diversified approach may be a better bet.
The interest rate volatility over the last three years has many investors reaching for bond ladders. We think there’s a best number of bonds to navigate the market and, coincidentally, it has something in common with a sci-fi classic.
If an investor has ever asked “Can you help me pay less in taxes?” then you’re not alone.
As our title suggests, September saw positive performance in fixed income markets but a great and overdue catch-up for municipal bonds.
Separately managed accounts, paired with systematic tax management, had the power to capture losses in the third quarter—even when the market was up.
Higher yields earlier in the year opened a window for meaningful tax loss harvesting. Investors who acted captured valuable tax savings, while those who waited saw opportunities diminish as yields retraced lower through the end of the third quarter.
Taxes can have a major impact on the long-term growth of a portfolio. Find out how continuous, thoughtful tax management can help investors maximize their wealth.
As regional misalignments risk significant performance deviations amid trade uncertainty, let’s look at how overlay management can potentially help to guide global equity portfolios.
Customization can significantly impact after-tax yield. Explore powerful tools for tailoring investment strategies to meet unique client objectives.
Discover how the One Big Beautiful Bill Act (OBBBA) may impact the municipal bond market, and find out which institutions are better positioned to overcome the sweeping policy reforms.
As demand for personalized investing strategies has increased, direct indexing has become one of the fastest-growing types of separately managed accounts (SMAs).
Streamlining government spending is a worthy cause in the effort to establish a more sustainable budget. Let’s review the progress of the Department of Government Efficiency (DOGE) and outline some areas for improvement.
For taxable investors, an appreciating portfolio can be a mixed blessing. But regular loss harvesting isn’t the only way to reduce your portfolio’s tax bill, especially as its value rises. We share four important tax management techniques for the future.
Economic resilience allowed the Fed to remain in wait-and-see mode in July, but July’s non-farm payroll report may cloud the horizon.
While the One Big Beautiful Bill Act (OBBBA) has something for each constituency in President Trump’s political coalition, we think it could be a squandered opportunity to alter the unsustainable trajectory of federal debt.
The ICE BofA Fixed Rate Preferred Index returned 1.45% in July, bringing YTD gains to 2.47%. The $25 par ICE BofA Core Plus Fixed Rate Preferred Securities Index rebounded with a 2.77% return, while ETF inflows exceeded $150 million.
The popularity of direct indexing has grown significantly since the pandemic, with no signs of easing.
Fixed income investors often think of changes in US Treasury rates as the tide that lifts or lowers all other domestic bond yields.
In a series of blogs, our experts look back on an exceptionally volatile first half, then offer their insights on what we might expect to see for the balance of the year. Let’s start with a high-level overview.
Congressional Republicans delivered the much anticipated One Big, Beautiful Bill Act (OBBBA) to President Trump’s desk just in time for a symbolic July 4 signing.
June was a month of stabilization and subtle strength for preferreds.
For many years, the pension plan has often been a drag on a corporation’s financial positions. Now that’s generally no longer the case, and it’s time to consider what’s next.
The second quarter’s rapid recovery from April’s market volatility reminds us how powerful a systematic rules-based approach to tax management can be.
As we reach the midpoint of 2025, we reflect on the notably volatile trajectory of bond yields so far this year, considering the potential opportunity for tax-aware fixed income investors to harvest losses.
We expect tariff policy to remain a key part of the narrative pushed by the administration.
We began the year optimistic that an environment of slowing growth, disinflation and easier monetary policy would be favorable for fixed income markets. Now at midyear, we maintain that view, while acknowledging that policy uncertainty and geopolitical risks may likely result in continued volatility.
