{"id":10982,"date":"2010-05-27T21:55:05","date_gmt":"2010-05-28T01:55:05","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=10982"},"modified":"2010-05-27T21:55:05","modified_gmt":"2010-05-28T01:55:05","slug":"may-27-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=10982","title":{"rendered":"May 27, 2010"},"content":{"rendered":"

The legislation to close the loophole on taxation of “carried interest” (discussed on May 20<\/a>) has a rather peculiar feature<\/a>:<\/p>\n

Private-equity firms, trying to derail legislation that would boost taxes on their leaders\u2019 pay, are attacking a provision that would make it more costly for executives to sell their own management firms.<\/p>\n

The provision, which also would affect operators of hedge funds, would make executives pay ordinary income tax rates on profits from selling a stake in their own management companies. Founders of other types of businesses would remain eligible to pay lower capital-gains rates when they sell. The House is scheduled to vote on the legislation today.
…<\/b>
The sales provision is intended to stop executives at buyout, venture-capital and real-estate partnerships from circumventing the higher taxes on their pay imposed by the bill, said Matthew Beck, a spokesman for the House Ways and Means Committee. Otherwise, he said, fund managers would sell their stake — and pay the lower tax rate — just before receiving income subject to higher taxes.<\/p><\/blockquote>\n

Well – I haven’t read the legislation and I’m not a tax lawyer anyway. But this sounds like a ridiculous punitive provision that will pass anyway because it bashes those evil Wall Street Types. I find it very difficult to believe that the income vs. Capital Gain question used as justification is applicable only to private equity firms.<\/p>\n

Another day of elevated volume and fine returns, as PerpetualDiscounts gained 60bp to take the total return subindex for this class to its highest level since April 21<\/a>. FixedResets gained 5bp and continue their record of outperforming PerpetualDiscounts from both that date and month-to-date.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n2.67 %<\/td>\n2.74 %<\/td>\n47,102<\/td>\n20.70<\/td>\n1<\/td>\n0.6994 %<\/td>\n2,077.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n5.24 %<\/td>\n3.31 %<\/td>\n32,729<\/td>\n19.95<\/td>\n1<\/td>\n0.4843 %<\/td>\n3,054.0<\/td>\n<\/tr>\n
Floater<\/td>\n2.17 %<\/td>\n2.50 %<\/td>\n100,422<\/td>\n21.01<\/td>\n3<\/td>\n0.1842 %<\/td>\n2,236.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.90 %<\/td>\n3.95 %<\/td>\n96,649<\/td>\n0.98<\/td>\n11<\/td>\n-0.2269 %<\/td>\n2,301.9<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.44 %<\/td>\n6.19 %<\/td>\n117,024<\/td>\n3.56<\/td>\n2<\/td>\n0.0000 %<\/td>\n2,151.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.2269 %<\/td>\n2,104.8<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.55 %<\/td>\n4.80 %<\/td>\n22,580<\/td>\n15.74<\/td>\n1<\/td>\n0.5634 %<\/td>\n1,817.0<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n6.25 %<\/td>\n6.34 %<\/td>\n210,550<\/td>\n13.41<\/td>\n77<\/td>\n0.6018 %<\/td>\n1,711.2<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.49 %<\/td>\n4.24 %<\/td>\n447,434<\/td>\n3.66<\/td>\n45<\/td>\n0.0520 %<\/td>\n2,151.5<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
BAM.PR.I<\/td>\nOpRet<\/td>\n-1.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2013-12-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.45
\nBid-YTW : 5.24 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset<\/td>\n-1.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 23.97
\nEvaluated at bid price : 24.01
\nBid-YTW : 3.92 %<\/td>\n<\/tr>\n
ELF.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.26 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 18.75
\nEvaluated at bid price : 18.75
\nBid-YTW : 7.19 %<\/td>\n<\/tr>\n
BAM.PR.M<\/td>\nPerpetual-Discount<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 16.98
\nEvaluated at bid price : 16.98
\nBid-YTW : 7.14 %<\/td>\n<\/tr>\n
SLF.PR.F<\/td>\nFixedReset<\/td>\n1.02 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.75
\nBid-YTW : 4.05 %<\/td>\n<\/tr>\n
GWO.PR.F<\/td>\nPerpetual-Discount<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 23.05
\nEvaluated at bid price : 23.33
\nBid-YTW : 6.43 %<\/td>\n<\/tr>\n
TCA.PR.X<\/td>\nPerpetual-Discount<\/td>\n1.09 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 45.06
\nEvaluated at bid price : 46.50
\nBid-YTW : 6.06 %<\/td>\n<\/tr>\n
CM.PR.J<\/td>\nPerpetual-Discount<\/td>\n1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 18.12
\nEvaluated at bid price : 18.12
\nBid-YTW : 6.29 %<\/td>\n<\/tr>\n
CM.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 23.05
\nEvaluated at bid price : 23.34
\nBid-YTW : 6.23 %<\/td>\n<\/tr>\n
IAG.PR.A<\/td>\nPerpetual-Discount<\/td>\n1.22 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 17.47
\nEvaluated at bid price : 17.47
\nBid-YTW : 6.59 %<\/td>\n<\/tr>\n
PWF.PR.I<\/td>\nPerpetual-Discount<\/td>\n1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 23.17
\nEvaluated at bid price : 23.46
\nBid-YTW : 6.47 %<\/td>\n<\/tr>\n
CM.PR.H<\/td>\nPerpetual-Discount<\/td>\n1.37 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 19.17
\nEvaluated at bid price : 19.17
\nBid-YTW : 6.34 %<\/td>\n<\/tr>\n
PWF.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.41 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 22.69
\nEvaluated at bid price : 22.94
\nBid-YTW : 6.51 %<\/td>\n<\/tr>\n
IGM.PR.B<\/td>\nPerpetual-Discount<\/td>\n1.51 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 22.73
\nEvaluated at bid price : 22.86
\nBid-YTW : 6.53 %<\/td>\n<\/tr>\n
GWO.PR.L<\/td>\nPerpetual-Discount<\/td>\n1.59 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 22.25
\nEvaluated at bid price : 22.35
\nBid-YTW : 6.44 %<\/td>\n<\/tr>\n
GWO.PR.I<\/td>\nPerpetual-Discount<\/td>\n1.71 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 17.80
\nEvaluated at bid price : 17.80
\nBid-YTW : 6.45 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nPerpetual-Discount<\/td>\n1.77 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 20.66
\nEvaluated at bid price : 20.66
\nBid-YTW : 6.42 %<\/td>\n<\/tr>\n
HSB.PR.C<\/td>\nPerpetual-Discount<\/td>\n1.88 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 6.50 %<\/td>\n<\/tr>\n
RY.PR.W<\/td>\nPerpetual-Discount<\/td>\n2.55 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 20.93
\nEvaluated at bid price : 20.93
\nBid-YTW : 5.90 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n41,689<\/td>\nRBC crossed 25,000 at 26.65.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.75
\nBid-YTW : 4.23 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nPerpetual-Discount<\/td>\n40,418<\/td>\nTD bought 14,500 from RBC at 20.30.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 20.30
\nEvaluated at bid price : 20.30
\nBid-YTW : 6.05 %<\/td>\n<\/tr>\n
RY.PR.A<\/td>\nPerpetual-Discount<\/td>\n36,672<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 18.71
\nEvaluated at bid price : 18.71
\nBid-YTW : 5.99 %<\/td>\n<\/tr>\n
BNS.PR.T<\/td>\nFixedReset<\/td>\n34,415<\/td>\nRBC crossed 25,000 at 27.00.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-05-25
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.00
\nBid-YTW : 4.23 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n31,215<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 24.40
\nEvaluated at bid price : 24.45
\nBid-YTW : 3.99 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n30,350<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-05-27
\nMaturity Price : 23.09
\nEvaluated at bid price : 24.96
\nBid-YTW : 4.85 %<\/td>\n<\/tr>\n
There were 38 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

The legislation to close the loophole on taxation of “carried interest” (discussed on May 20) has a rather peculiar feature: Private-equity firms, trying to derail legislation that would boost taxes on their leaders\u2019 pay, are …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-10982","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10982"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/10982\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}