Commissions on CMO'S
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How much commission are you charging on CMO'S? I am looking to update my rates and would like to find out what others are charging.
Depending on the EAL anywhere from 1/4 of a point to 2 points. I’ve never heard of anyone taking 3 points on anything, most firms don’t even allow it
You can get 3 points, enter it into the order entry system. Works for CMO’s and long term corporates.
When I was at Jones, that was usually the one thing you could get 3 points on. We were taught to sell them because they provided a monthly income. No way to keep up with inflation, but a monthly income no less.
These would occasionally go up to 3.75 at EDJ. Now I can only get 1 max on any bond, and that has to be over 10 ytm. Even at 3 pts, I feel like if I am servicing this account for the next 15 years, I'm getting paid less than the equivalent of an A share sold at NAV.
In other words, I rarely sell individual fixed income securities anymore.
Now I can only get 1 max on any bond, and that has to be over 10 ytm.
Let's make that 10 YEARS to maturity, not 10 (%) YIELD to maturity. If I could get bonds yielding that high, I would probably have to start selling them again.