Perspectives Blog

The three tax thresholds of the new tax regime

Abram Claude, Vice President, Columbia Management Learning Center | September 11, 2013

Recent legislation has added new provisions to the Internal Revenue Code that will impose new tax rates beginning in 2013. These taxes will impact many high income individuals, as well as certain estates and trusts. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New Tax Regime” topic, which will appear here over the next seven weeks. In 2013, there are new tax rates…

The taxman cometh

James Dearborn, Head of Municipal Bonds | March 13, 2014

…ys been an attractive investment feature for investors, last year’s tax changes make this element even more compelling. Exhibit 1: Attractive taxable-equivalent yields Sources: Morgan Stanley Research, Yield Book, Bloomberg, Columbia Management; as of January 21, 2014 Assumes S&P Main and S&P High Yield Indices for muni yields. Assumes the “HYM 10+ years” corporate index and broad IG corporate bond index (excluding financials…

Understanding the power of alpha

Matt Scales, CFA, Head of Product Development and Strategy | January 27, 2014

…the Russell 1000 Index (yellow line), the same benchmark used by the active manager. The shaded red area ranges from October 2007 through February 2009, or the peak-to-trough in equities during the Financial Crisis. Source: Columbia Management Investment Advisers, LLC, November 2013. Past performance does not guarantee future results. Source: Columbia Management Investment Advisers, LLC, November 2013. Past performance does not guarantee futur…

Predatory trading – Just how big an issue is high-speed trading?

Matt Waldner, Head of U.S. Equity Trading | April 7, 2014

In recent years, U.S. equity markets have become far more complex, competitive and fragmented. Against that backdrop, high-frequency trading was born. With faster connections to exchanges, high-frequency firms are able to get faster signals, and “jump ahead” of slower orders, reaping huge profits. Columbia Management will continue to implement tools to protect our clients’ best interests. High-frequency trading (HFT) is a topic institutional i…

Hungry for income? High yield munis could be your meal ticket

Chad Farrington, CFA, Head of Municipal Bond Credit Research and Senior Portfolio Manager | May 28, 2014

…sis in 2008, fears of tax reform and dwindling market liquidity due to dealer contraction, high yield municipal yields have averaged more than 6% over the past 10 years, as detailed in the following chart. Sources: Barclays, Columbia Management Investment Advisers, LLC, May 2014. It is not possible to invest in an index. Past performance does not guarantee future results. With personal income tax burdens increasing and likely to go higher, high…

Maximizing workplace retirement plans to reduce or eliminate the net investment income tax

Abram Claude, Vice President, Columbia Management Learning Center | September 25, 2013

The net investment income tax (NIIT) is a new, permanent tax that is effective beginning in 2013. Investors’ workplace retirement plans, such as 401(k) plans, may offer several opportunities to reduce exposure to the tax. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New Tax Regime” topic. Many higher-income investors with taxable investments encountered a new tax b…