August 19, 2016

Who woulda thunk it? Fiduciary rules have some drawbacks:

As brokers lay plans to satisfy new federal rules governing their relationships with retirement savers, one thing is becoming clear: Some clients will see their investment options diminished or face the prospect of higher fees.

Brokerage Edward Jones, anticipating the fiduciary rule that will require brokers to put the interests of retirement savers ahead of their own, said on Wednesday that it would stop offering mutual funds and exchange-traded funds in retirement accounts that charge investors a commission. The move makes the St. Louis firm the first big player to disclose detailed plans on retirement accounts that charge a commission.

Retirement savers could be forced to make decisions in the months ahead as other firms determine how they plan to operate under the Obama administration’s new rule, which starts to take effect in April. The rule doesn’t extend to nonretirement accounts.

I’ve heard that regulators everywhere are calling their kindergarten teachers and asking why everybody doesn’t just play nicely.

HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
Index Mean
Current
Yield
(at bid)
Median
YTW
Median
Average
Trading
Value
Median
Mod Dur
(YTW)
Issues Day’s Perf. Index Value
Ratchet 0.00 % 0.00 % 0 0.00 0 -0.0702 % 1,713.2
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.0702 % 3,129.6
Floater 4.79 % 4.46 % 79,258 16.30 4 -0.0702 % 1,803.6
OpRet 4.84 % -10.50 % 63,024 0.08 1 0.0396 % 2,881.5
SplitShare 5.07 % 4.62 % 116,443 2.26 5 -0.1035 % 3,428.3
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.1035 % 2,674.9
Perpetual-Premium 5.44 % -6.60 % 76,010 0.09 12 -0.0805 % 2,703.9
Perpetual-Discount 5.10 % 5.06 % 108,410 14.95 26 -0.1084 % 2,917.7
FixedReset 4.88 % 4.13 % 146,949 7.10 89 -0.0065 % 2,089.4
Deemed-Retractible 4.96 % 1.44 % 118,761 0.26 32 0.1536 % 2,811.8
FloatingReset 2.86 % 3.97 % 32,250 5.08 11 0.1474 % 2,217.9
Performance Highlights
Issue Index Change Notes
W.PR.K FixedReset -2.07 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-01-15
Maturity Price : 25.00
Evaluated at bid price : 25.60
Bid-YTW : 4.81 %
RY.PR.Q FixedReset -1.31 % YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 26.30
Bid-YTW : 4.30 %
CU.PR.G Perpetual-Discount -1.26 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-08-22
Maturity Price : 22.44
Evaluated at bid price : 22.72
Bid-YTW : 4.96 %
PWF.PR.P FixedReset 1.02 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-08-22
Maturity Price : 13.93
Evaluated at bid price : 13.93
Bid-YTW : 4.04 %
CCS.PR.C Deemed-Retractible 1.02 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.75
Bid-YTW : 5.29 %
SLF.PR.J FloatingReset 1.04 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 13.64
Bid-YTW : 10.11 %
TRP.PR.D FixedReset 1.97 % YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-08-22
Maturity Price : 18.11
Evaluated at bid price : 18.11
Bid-YTW : 4.36 %
Volume Highlights
Issue Index Shares
Traded
Notes
BIP.PR.C FixedReset 122,110 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-09-30
Maturity Price : 25.00
Evaluated at bid price : 25.36
Bid-YTW : 5.13 %
BAM.PR.R FixedReset 106,706 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-08-22
Maturity Price : 16.26
Evaluated at bid price : 16.26
Bid-YTW : 4.58 %
BNS.PR.E FixedReset 99,773 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-25
Maturity Price : 25.00
Evaluated at bid price : 26.70
Bid-YTW : 4.01 %
GWO.PR.H Deemed-Retractible 81,136 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.23
Bid-YTW : 5.45 %
NA.PR.A FixedReset 77,390 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-08-15
Maturity Price : 25.00
Evaluated at bid price : 26.33
Bid-YTW : 4.46 %
BMO.PR.S FixedReset 56,798 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-08-22
Maturity Price : 19.65
Evaluated at bid price : 19.65
Bid-YTW : 3.95 %
There were 19 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
BAM.PR.S FloatingReset Quote: 14.75 – 15.50
Spot Rate : 0.7500
Average : 0.5516

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-08-22
Maturity Price : 14.75
Evaluated at bid price : 14.75
Bid-YTW : 4.83 %

CM.PR.O FixedReset Quote: 19.42 – 19.92
Spot Rate : 0.5000
Average : 0.3041

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-08-22
Maturity Price : 19.42
Evaluated at bid price : 19.42
Bid-YTW : 4.01 %

RY.PR.Q FixedReset Quote: 26.30 – 26.72
Spot Rate : 0.4200
Average : 0.2996

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-05-24
Maturity Price : 25.00
Evaluated at bid price : 26.30
Bid-YTW : 4.30 %

CU.PR.E Perpetual-Discount Quote: 24.70 – 25.05
Spot Rate : 0.3500
Average : 0.2303

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-08-22
Maturity Price : 24.22
Evaluated at bid price : 24.70
Bid-YTW : 4.95 %

BNS.PR.E FixedReset Quote: 26.70 – 26.94
Spot Rate : 0.2400
Average : 0.1586

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-25
Maturity Price : 25.00
Evaluated at bid price : 26.70
Bid-YTW : 4.01 %

CU.PR.G Perpetual-Discount Quote: 22.72 – 23.01
Spot Rate : 0.2900
Average : 0.2109

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2046-08-22
Maturity Price : 22.44
Evaluated at bid price : 22.72
Bid-YTW : 4.96 %

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