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Techniques to lower your taxes and improve the
quality of your portfolio
What is a Bond Swap?
A bond swap is a technique whereby an investor chooses to sell a bond and
simultaneously purchase another bond with the proceeds from the sale.
Fixed-income securities make excellent candidates for swapping because it is
often easy to find two bonds with similar features in terms of credit
quality, coupon, maturity and price.
In a bond swap, you sell one fixed-income holding for another in order to
take advantage of current market and/or tax conditions and better meet your
current investment objectives or adjust to a change in your investment
status. A wide variety of swaps are generally available to help you meet
your specific portfolio goals.
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