5min chapter

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Episode 35: A Deep Dive into Municipal Bonds

Guggenheim Macro Markets

CHAPTER

The Tax Implications of Selling Bonds Close to the Maturity

Mortgage bonds with low coupons and short call protection are attractive to investors. But they have big discounts to par, which could lead to higher tax rates in the future. If you're buying them now, you can exit those positions at a gain without paying an owner's tax rate of ordinary income level.

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