pretax yield

(redirected from Pre-Tax Yields)

Pretax Yield

A return rate on an investment before accounting for either income taxes or capital gains taxes. The pretax yield is not as useful for determining yield as the after tax yield, particularly given the fact that some investments are tax-exempt.

pretax yield

The rate of return on an investment before taxes have been considered. As with other measures of yield, pretax yield is usually stated on an annual basis.
References in periodicals archive ?
The yield advantage under the same pre-tax yields has dropped to 58 basis points under the revised tax law.
Furthermore, State Farm Indemnity has produced an above average five-year net investment yield relative to industry norms, despite its significant holdings in tax-exempt municipal bonds, which generally produce lower pre-tax yields than taxable bonds.
The use of net of tax investment yields allows APCapital to monitor and measure investment performance on a more comparative basis by compensating for the decline in pre-tax yields on tax-exempt securities, with the benefit of the additional federal income tax savings.
7 million in the first quarter of 1999 reflecting (i) reduced funds available for investment as a result of pre-funding premiums under reinsurance agreements, and (ii) growth of tax-exempt municipal securities as a percent of the total portfolio that earn lower pre-tax yields than taxable securities but earn higher comparable yields on a tax adjusted basis.
0 million earned in the second quarter of 1998 reflecting growth of tax-exempt municipal securities included in our portfolio that earn lower pre-tax yields than taxable securities but earn higher comparable yields on a tax adjusted basis.
The fully taxable equivalent comparison is presented because Travelers Express, Viad's payment services subsidiary, invests substantial amounts of its funds in tax-exempt securities, which have lower pre-tax yields, but produce higher income on an after-tax basis than comparable taxable investments.
Travelers Express, Viad's payment services subsidiary, is continuing to invest increasing amounts of its growing money order and official check funds in tax-exempt securities, which have lower pre-tax yields, but produce higher income on an after-tax basis than comparable taxable investments.
Travelers Express, the group's money order subsidiary, which had an outstanding quarter, is continuing to invest increasing amounts of its growing money order float in tax-exempt securities which have lower pre-tax yields, but produce more income on an after-tax basis.
Investment income for the third quarter reflected a 10% increase in average funds invested from positive cash flow, a small decrease in replacement yields on maturing instruments, the Company's continuing accumulation of very short maturities, reflecting a belief of soon to be higher interest rates, and a shift from taxable to non-taxable investments resulting in lower pre-tax yields.
The increase in investment income for the quarter in our Property and Casualty business was due to an increase in average invested assets, partially offset by a reduction in average pre-tax yields on fixed maturities due to lower prevailing fixed maturity investment rates.
Travelers Express, the group's money order subsidiary, has been investing increasing amounts in tax-exempt securities which have lower pre-tax yields but generate more income on an after-tax basis than taxable investments.