FRM2. LR: sự khác nhau giữa tax swapping và portfolio shifting

[Teaching Assistant]

05/02/2024 at 4:16 pm

Học viên: Cô giáo cho em hỏi sự khác nhau giữa tax swapping và portfolio shifting là gì ạ? Em đọc trong sách thì đều thấy là bán tài sản at a loss để giảm tax trong ngắn hạn. Em chưa hiểu sự khác nhau là gì ạ 

Giảng viên: Note from sách SWS  

Tax swapping: Lending institutions which experience years of high loan revenues may engage in tax swapping. This strategy allows the lender to sell lower-yielding investment securities at a loss to reduce current taxable income, and concurrently purchase new higher-yielding securities to generate higher future income. The strategy is particularly attractive to lending institutions in the highest tax bracket with significant loan revenues. However, there are limits to the use of tax swapping. One key consideration in whether to use this strategy is the amount of tax-exempt income the institution can use.  

Portfolio shifting: The portfolio shifting strategy allows lending institutions to sell securities at a loss to offset significant loan income to reduce its tax liability. The institution could also shift new, higher- yielding securities for older, loweryielding securities whose yield is below market levels. The disadvantage of this strategy is that it could result in significant short-term losses, but could generate long-term gains  

Trả lời Để phân biệt 2 chiến lược trên, mình sẽ tóm tắt đơn giản ở dưới đây 

 3/11/2023