{"id":48118,"date":"2017-02-15T11:10:00","date_gmt":"2017-02-15T16:10:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48118"},"modified":"2025-07-10T11:11:46","modified_gmt":"2025-07-10T15:11:46","slug":"february-15-2017","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48118","title":{"rendered":"February 15, 2017"},"content":{"rendered":"

There’s a great piece in the WSJ about the practical effects of the fiduciary rule<\/a>:<\/p>\n

Judith Friedlander, an 80-year-old retiree from Murrieta, Calif., doesn\u2019t appreciate the government trying to regulate how she manages her roughly $400,000 individual retirement account. <\/p>\n

After the Labor Department last year approved the fiduciary rule, which generally requires advice on retirement assets to be conflict-free, Ms. Friedlander says her financial adviser suggested she transition from a commission-based account of the sort that could run afoul of the rule into a fee-only account.<\/p>\n

But Ms. Friedlander isn\u2019t interested in a switch. She trades only a few times a year and says moving to a fee-only account that charges a percentage of her assets would be far pricier than the periodic commissions she currently pays. \u201cI don\u2019t see any advantage to the regulation for someone like me,\u201d says Ms Friedlander, who adds that she hasn\u2019t decided what to do.
…<\/b>
As brokerage firms over the past several months have announced their compliance plans, some approaches have put new limits on IRA investors. Bank of America Corp.\u2019s Merrill Lynch, for example, has said it will no longer offer individual retirement accounts that charge commissions, and will instead favor charging retirement savers a fee based on a percentage of their assets. J.P. Morgan Chase is taking a similar tack, offering brokerage retirement clients only a fee-based IRA.<\/p>\n<\/blockquote>\n

Of course, fee-based accounts in a sell-side brokerage is a whole nuther can of worms. New issue commissions, proxy solicitation fees … the potential for conflict is endless. I continue to advocate that buy-side and sell-side be strictly separated, with the former charging account fees and the latter charging commissions; that anybody on the buy-side be required to publish a performance history from inception that is subject to audit and in which any defined groups be strictly mapped onto the fiduciary’s contemporary KYC form; and that only one ‘side’ can be owned by a single entity (e.g., brokerages and advisory firms can’t have a common owner).<\/p>\n\n\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>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1991 %<\/td>\n2,010.4<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1991 %<\/td>\n3,688.9<\/td>\n<\/tr>\n
Floater<\/td>\n3.76 %<\/td>\n3.94 %<\/td>\n48,490<\/td>\n17.51<\/td>\n4<\/td>\n0.1991 %<\/td>\n2,125.9<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0490 %<\/td>\n2,974.0<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.70 %<\/td>\n4.17 %<\/td>\n57,396<\/td>\n0.79<\/td>\n4<\/td>\n0.0490 %<\/td>\n3,551.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.0490 %<\/td>\n2,771.1<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.43 %<\/td>\n-3.39 %<\/td>\n70,487<\/td>\n0.09<\/td>\n16<\/td>\n-0.0196 %<\/td>\n2,729.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.17 %<\/td>\n5.17 %<\/td>\n102,773<\/td>\n15.07<\/td>\n22<\/td>\n-0.1161 %<\/td>\n2,911.9<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.48 %<\/td>\n4.13 %<\/td>\n229,690<\/td>\n6.72<\/td>\n97<\/td>\n0.3169 %<\/td>\n2,296.2<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.04 %<\/td>\n0.45 %<\/td>\n128,795<\/td>\n0.12<\/td>\n31<\/td>\n-0.0633 %<\/td>\n2,836.8<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.49 %<\/td>\n3.22 %<\/td>\n49,177<\/td>\n4.68<\/td>\n9<\/td>\n0.0431 %<\/td>\n2,450.5<\/td>\n<\/tr>\n<\/table>\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
FTS.PR.J<\/td>\nPerpetual-Discount<\/td>\n-1.42 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 22.60
\nEvaluated at bid price : 22.95
\nBid-YTW : 5.17 %<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 15.15
\nBid-YTW : 8.96 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 18.09
\nEvaluated at bid price : 18.09
\nBid-YTW : 4.27 %<\/td>\n<\/tr>\n
BNS.PR.P<\/td>\nFixedReset<\/td>\n1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.90
\nBid-YTW : 3.32 %<\/td>\n<\/tr>\n
VNR.PR.A<\/td>\nFixedReset<\/td>\n1.13 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 21.44
\nEvaluated at bid price : 21.44
\nBid-YTW : 4.62 %<\/td>\n<\/tr>\n
BAM.PR.R<\/td>\nFixedReset<\/td>\n1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 19.22
\nEvaluated at bid price : 19.22
\nBid-YTW : 4.35 %<\/td>\n<\/tr>\n
PWF.PR.T<\/td>\nFixedReset<\/td>\n1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 22.22
\nEvaluated at bid price : 22.52
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 21.17
\nEvaluated at bid price : 21.17
\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n
BAM.PF.A<\/td>\nFixedReset<\/td>\n1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 22.93
\nEvaluated at bid price : 23.33
\nBid-YTW : 4.35 %<\/td>\n<\/tr>\n
FTS.PR.H<\/td>\nFixedReset<\/td>\n1.30 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 15.55
\nEvaluated at bid price : 15.55
\nBid-YTW : 4.08 %<\/td>\n<\/tr>\n
BAM.PR.T<\/td>\nFixedReset<\/td>\n1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 19.11
\nEvaluated at bid price : 19.11
\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n1.40 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 15.25
\nBid-YTW : 9.42 %<\/td>\n<\/tr>\n
CU.PR.C<\/td>\nFixedReset<\/td>\n1.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 21.69
\nEvaluated at bid price : 22.09
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
TRP.PR.F<\/td>\nFloatingReset<\/td>\n1.86 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 17.02
\nEvaluated at bid price : 17.02
\nBid-YTW : 3.54 %<\/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
MFC.PR.R<\/td>\nFixedReset<\/td>\n236,521<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-03-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.80
\nBid-YTW : 4.41 %<\/td>\n<\/tr>\n
BMO.PR.S<\/td>\nFixedReset<\/td>\n120,938<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 21.41
\nEvaluated at bid price : 21.74
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
MFC.PR.H<\/td>\nFixedReset<\/td>\n105,781<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.05
\nBid-YTW : 4.94 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n90,405<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.32
\nBid-YTW : 4.61 %<\/td>\n<\/tr>\n
TRP.PR.K<\/td>\nFixedReset<\/td>\n86,235<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2022-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.60
\nBid-YTW : 4.38 %<\/td>\n<\/tr>\n
IAG.PR.G<\/td>\nFixedReset<\/td>\n79,902<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.15
\nBid-YTW : 5.21 %<\/td>\n<\/tr>\n
There were 45 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
FTS.PR.J<\/td>\nPerpetual-Discount<\/td>\nQuote: 22.95 – 23.30
\nSpot Rate : 0.3500
\nAverage : 0.2319<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 22.60
\nEvaluated at bid price : 22.95
\nBid-YTW : 5.17 %<\/td>\n<\/tr>\n

GWO.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.51 – 25.80
\nSpot Rate : 0.2900
\nAverage : 0.2024<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.51
\nBid-YTW : 5.22 %<\/td>\n<\/tr>\n

FTS.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 23.65 – 23.90
\nSpot Rate : 0.2500
\nAverage : 0.1772<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 23.36
\nEvaluated at bid price : 23.65
\nBid-YTW : 5.18 %<\/td>\n<\/tr>\n

CU.PR.I<\/td>\nFixedReset<\/td>\nQuote: 26.36 – 26.67
\nSpot Rate : 0.3100
\nAverage : 0.2461<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2020-12-01
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.36
\nBid-YTW : 2.94 %<\/td>\n<\/tr>\n

NA.PR.W<\/td>\nFixedReset<\/td>\nQuote: 21.04 – 21.22
\nSpot Rate : 0.1800
\nAverage : 0.1162<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2047-02-15
\nMaturity Price : 21.04
\nEvaluated at bid price : 21.04
\nBid-YTW : 4.09 %<\/td>\n<\/tr>\n

TD.PR.Z<\/td>\nFloatingReset<\/td>\nQuote: 23.64 – 23.88
\nSpot Rate : 0.2400
\nAverage : 0.1815<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 23.64
\nBid-YTW : 3.28 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

There’s a great piece in the WSJ about the practical effects of the fiduciary rule: Judith Friedlander, an 80-year-old retiree from Murrieta, Calif., doesn\u2019t appreciate the government trying to regulate how she manages her roughly …<\/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-48118","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48118","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=48118"}],"version-history":[{"count":2,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48118\/revisions"}],"predecessor-version":[{"id":48120,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48118\/revisions\/48120"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}