Commissions on CMO'S

6 replies [Last post]
forge1's picture
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Joined: 2006-11-21

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.

troll's picture
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Joined: 2004-11-29

3 points if I can get them.

Brokermike99's picture
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Joined: 2007-06-12

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

Baller's picture
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Joined: 2007-06-06

You can get 3 points, enter it into the order entry system.  Works for CMO's and long term corporates.

FreeFromJones's picture
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Joined: 2006-11-29

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.

EDJ4now's picture
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Joined: 2006-02-08

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.

EDJ4now's picture
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Joined: 2006-02-08

EDJ4now wrote:
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.

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