Consumer Finance

Don't Let Your Tax-loss Harvest Become a Harvest of Regret

Bond Buyer January 30, 2018

Andy Kalotay's commentary in The Bond Buyer explains how NOT to harvest munis. Financial advisors lack the tools to calculate the benefit from selling, and they routinely recommend transactions that are actually wasteful. With rates set to move higher, many opportunities will present themselves; smart players will want to be prepared with the right tools.

Take a Tax Loss and Then Profit From Obamacare

The Bond Buyer, December 11, 2013

A Financial Analysis of Consumer Mortgage Decisions

Mortgage Bankers Association (June 2009)

With housing prices falling and mortgage rates near historic lows, many homeowners are tempted to take advantage of this by buying or refinancing. However, due the complexity of the mortgage market, despite all the available disclosures, many consumers are still left in the dark, and by not considering all the necessary facts, they often leaves thousands of dollars on the table.

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With Estate Puts, Beauty Is in the Eye of the Beholder

CFA Institute: Private Wealth Management Newsletter (August 2009)

A bond with an estate put (or survivor’s option) can be redeemed at face value by the holder’s heirs if the holder dies — an attractive feature to investors with a short life expectancy. How should an investor value such options?

A Pointer on Points

OR/MS Today (June 2007)

Should a homebuyer pay upfront points in return for a lower mortgage rate? A proper answer requires comparing each alternative’s “option adjusted APR” – a refinement of the standard mortgage rate that adds the value of the option to refinance if interest rates decline.

The True Cost of No-Cost Mortgages

Mortgage Risk (October 2007)

Misgauging the likely prepayment behavior of no-cost loans (whose closing costs are wrapped into a higher interest rate) could leave banks with assets they cannot securitize, or investors with securities worth less than they bargained for.

Some Bonds Are Worth More Dead than Alive

Financial Engineering News (September/October 2006)

For an issuer, the choice between an institutional bond offering and a similar-maturity retail deal with an “estate put” presents special challenges.

Is There a Financial Engineer in the House?

Financial Engineering News (April 2006)

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