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 |
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| 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 |
| CM.PR.O | FixedReset | Quote: 19.42 – 19.92 Spot Rate : 0.5000 Average : 0.3041 YTW SCENARIO |
| RY.PR.Q | FixedReset | Quote: 26.30 – 26.72 Spot Rate : 0.4200 Average : 0.2996 YTW SCENARIO |
| CU.PR.E | Perpetual-Discount | Quote: 24.70 – 25.05 Spot Rate : 0.3500 Average : 0.2303 YTW SCENARIO |
| BNS.PR.E | FixedReset | Quote: 26.70 – 26.94 Spot Rate : 0.2400 Average : 0.1586 YTW SCENARIO |
| CU.PR.G | Perpetual-Discount | Quote: 22.72 – 23.01 Spot Rate : 0.2900 Average : 0.2109 YTW SCENARIO |