The Boston Fed has released a working paper by lizabeth Llanes, Jeffrey P. Thompson, and Alice Henriques Volz Do the Rich Really Save More? Answering an Old Question Using the Survey of Consumer Finances with Direct Measures of Lifetime Earnings and an Expanded Wealth Concept:
To address the question of whether the “rich”—typically identified as households with high levels of lifetime income or earnings—save a greater share of their income compared with less affluent households, this paper includes direct measures of lifetime earnings, the full range of assets that low- and middle-income households depend on to finance their retirement, and data that include sufficient samples of households that are in the extreme upper tails of the wealth or income distribution. Specifically, the authors use the 2022 Survey of Consumer Finances (which oversamples high-net-worth households) in combination with direct estimation of lifetime earnings (LE) to explore wealth-to-lifetime-earnings ratios—the cumulative impact of saving over time—across the lifetime earnings distribution. In addition, they use an expanded measure of wealth that includes the asset value of defined benefit pensions and Social Security.
…
- As indicated by wealth-to-LE ratios, the rich do indeed save more than households further down the LE distribution. In general, elevated wealth-to-LE ratios are consistently observed only in the top one or two deciles of the lifetime earnings distribution.
- When the analysis includes defined benefit assets, which are excluded from most of the previous research, wealth-to-LE ratios rise even higher in the top half of the LE distribution.
- Adding the asset value of Social Security benefits, however, pulls these ratios up disproportionately across the bottom half of the LE distribution.
- When accumulated capital gains are excluded from the measure of wealth, wealth-to-LE ratios remain elevated in the top decile of LE distribution and are flat over most of the distribution.
| 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 | -0.0764 % | 2,419.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0764 % | 4,586.8 |
| Floater | 5.96 % | 6.22 % | 60,846 | 13.56 | 3 | -0.0764 % | 2,643.4 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4236 % | 3,694.4 |
| SplitShare | 4.73 % | 4.18 % | 68,751 | 3.27 | 5 | 0.4236 % | 4,411.9 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4236 % | 3,442.4 |
| Perpetual-Premium | 5.65 % | -7.66 % | 80,934 | 0.09 | 6 | 0.2096 % | 3,115.0 |
| Perpetual-Discount | 5.41 % | 5.50 % | 47,593 | 14.62 | 25 | 0.5442 % | 3,457.7 |
| FixedReset Disc | 5.74 % | 5.89 % | 114,334 | 13.81 | 30 | 0.4988 % | 3,118.2 |
| Insurance Straight | 5.36 % | 5.37 % | 55,203 | 14.73 | 21 | 0.2610 % | 3,390.0 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4988 % | 3,709.4 |
| FixedReset Prem | 5.86 % | 4.69 % | 111,407 | 2.35 | 21 | 0.2603 % | 2,644.9 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4988 % | 3,187.4 |
| FixedReset Ins Non | 5.18 % | 5.30 % | 58,253 | 14.53 | 15 | 1.3934 % | 3,095.8 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BN.PF.B | FixedReset Disc | -2.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 22.65 Evaluated at bid price : 23.45 Bid-YTW : 5.93 % |
| SLF.PR.C | Insurance Straight | -1.84 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 21.65 Evaluated at bid price : 21.90 Bid-YTW : 5.13 % |
| GWO.PR.L | Insurance Straight | -1.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 24.64 Evaluated at bid price : 24.90 Bid-YTW : 5.74 % |
| PWF.PR.T | FixedReset Disc | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 23.16 Evaluated at bid price : 24.50 Bid-YTW : 5.25 % |
| PWF.PR.F | Perpetual-Discount | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 23.65 Evaluated at bid price : 23.92 Bid-YTW : 5.51 % |
| POW.PR.C | Perpetual-Premium | 1.02 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-03 Maturity Price : 25.00 Evaluated at bid price : 25.86 Bid-YTW : -29.35 % |
| MFC.PR.M | FixedReset Ins Non | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 23.05 Evaluated at bid price : 24.50 Bid-YTW : 5.30 % |
| NA.PR.G | FixedReset Prem | 1.10 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-11-16 Maturity Price : 25.00 Evaluated at bid price : 26.69 Bid-YTW : 4.60 % |
| POW.PR.G | Perpetual-Premium | 1.12 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-12-03 Maturity Price : 25.00 Evaluated at bid price : 25.35 Bid-YTW : -7.66 % |
| BMO.PR.E | FixedReset Prem | 1.12 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-11-25 Maturity Price : 25.00 Evaluated at bid price : 27.00 Bid-YTW : 3.91 % |
| ENB.PR.T | FixedReset Disc | 1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 22.64 Evaluated at bid price : 23.46 Bid-YTW : 5.91 % |
| CU.PR.F | Perpetual-Discount | 1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 21.11 Evaluated at bid price : 21.11 Bid-YTW : 5.43 % |
| GWO.PR.R | Insurance Straight | 1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 22.19 Evaluated at bid price : 22.47 Bid-YTW : 5.39 % |
| GWO.PR.Q | Insurance Straight | 1.53 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 23.69 Evaluated at bid price : 23.96 Bid-YTW : 5.43 % |
| GWO.PR.Z | Insurance Straight | 1.57 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2034-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.81 Bid-YTW : 5.37 % |
| GWO.PR.S | Insurance Straight | 1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 24.13 Evaluated at bid price : 24.38 Bid-YTW : 5.44 % |
| IFC.PR.A | FixedReset Ins Non | 1.77 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 21.51 Evaluated at bid price : 21.88 Bid-YTW : 5.18 % |
| PVS.PR.K | SplitShare | 1.78 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2029-05-31 Maturity Price : 25.00 Evaluated at bid price : 25.80 Bid-YTW : 3.72 % |
| PWF.PR.L | Perpetual-Discount | 1.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 23.04 Evaluated at bid price : 23.31 Bid-YTW : 5.49 % |
| PWF.PR.R | Perpetual-Discount | 1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 24.55 Evaluated at bid price : 24.80 Bid-YTW : 5.57 % |
| PWF.PR.E | Perpetual-Discount | 1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 24.68 Evaluated at bid price : 24.99 Bid-YTW : 5.53 % |
| ENB.PR.B | FixedReset Disc | 1.93 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 21.10 Evaluated at bid price : 21.10 Bid-YTW : 6.20 % |
| CIU.PR.A | Perpetual-Discount | 2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 21.44 Evaluated at bid price : 21.70 Bid-YTW : 5.38 % |
| BN.PR.R | FixedReset Disc | 2.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 20.23 Evaluated at bid price : 20.23 Bid-YTW : 6.18 % |
| SLF.PR.H | FixedReset Ins Non | 2.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 21.93 Evaluated at bid price : 22.48 Bid-YTW : 5.33 % |
| BN.PF.G | FixedReset Disc | 2.98 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 22.89 Evaluated at bid price : 24.20 Bid-YTW : 5.78 % |
| IFC.PR.C | FixedReset Ins Non | 3.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 23.76 Evaluated at bid price : 24.30 Bid-YTW : 5.45 % |
| ENB.PF.G | FixedReset Disc | 4.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 22.00 Evaluated at bid price : 22.52 Bid-YTW : 6.17 % |
| BN.PR.T | FixedReset Disc | 5.10 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 20.18 Evaluated at bid price : 20.18 Bid-YTW : 6.17 % |
| MFC.PR.I | FixedReset Ins Non | 11.79 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2027-09-19 Maturity Price : 25.00 Evaluated at bid price : 25.60 Bid-YTW : 5.08 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BMO.PR.E | FixedReset Prem | 69,700 | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-11-25 Maturity Price : 25.00 Evaluated at bid price : 27.00 Bid-YTW : 3.91 % |
| ENB.PR.F | FixedReset Disc | 57,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 21.63 Evaluated at bid price : 22.05 Bid-YTW : 6.09 % |
| MFC.PR.K | FixedReset Ins Non | 52,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 23.38 Evaluated at bid price : 24.95 Bid-YTW : 5.19 % |
| BN.PR.X | FixedReset Disc | 42,100 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 20.12 Evaluated at bid price : 20.12 Bid-YTW : 5.71 % |
| BN.PR.T | FixedReset Disc | 40,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-11-03 Maturity Price : 20.18 Evaluated at bid price : 20.18 Bid-YTW : 6.17 % |
| POW.PR.H | Perpetual-Premium | 28,400 | YTW SCENARIO Maturity Type : Call Maturity Date : 2034-10-15 Maturity Price : 25.00 Evaluated at bid price : 25.84 Bid-YTW : 5.41 % |
| There were 7 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible. | ||
| Issue | Index | Quote Data and Yield Notes |
| POW.PR.H | Perpetual-Premium | Quote: 25.84 – 39.53 Spot Rate : 13.6900 Average : 7.5035 YTW SCENARIO |
| BN.PF.B | FixedReset Disc | Quote: 23.45 – 24.50 Spot Rate : 1.0500 Average : 0.6842 YTW SCENARIO |
| PVS.PR.L | SplitShare | Quote: 26.01 – 27.01 Spot Rate : 1.0000 Average : 0.7445 YTW SCENARIO |
| PWF.PR.Z | Perpetual-Discount | Quote: 23.38 – 24.17 Spot Rate : 0.7900 Average : 0.6117 YTW SCENARIO |
| GWO.PR.L | Insurance Straight | Quote: 24.90 – 25.91 Spot Rate : 1.0100 Average : 0.8381 YTW SCENARIO |
| CCS.PR.C | Insurance Straight | Quote: 23.20 – 24.00 Spot Rate : 0.8000 Average : 0.6311 YTW SCENARIO |