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Feb 26, 2010 7:55 pm

nope.



busting trade illogical



he OWNS F common (lower on capital food chain).



preferred by definition is "safer"



BUT because of the lawsuits from subprime we going too far the other way.



so, in the firms rule book a ford preferred needs a more aggressive profile the ford common (brilliant)



we take our medicine and move on with life



we understand we are part of the Borg and resistance is futile…



no, we bought a name because the client asked to buy it in a disret. account.



Im with U and Us

Feb 26, 2010 7:58 pm

If you’re giving me the whole story, then that’s retarded.  I’m glad I’m not at a B/D anymore.

  My answer is: MAC
Feb 26, 2010 8:01 pm

[quote=Shania Twain] nope.



busting trade illogical



he OWNS F common (lower on capital food chain).



preferred by definition is "safer"



BUT because of the lawsuits from subprime we going too far the other way.



so, in the firms rule book a ford preferred needs a more aggressive profile the ford common (brilliant)



we take our medicine and move on with life



we understand we are part of the Borg and resistance is futile…



no, we bought a name because the client asked to buy it in a disret. account.



Im with U and Us[/quote]



Feb 26, 2010 8:05 pm

[quote=Wet_Blanket] If you’re giving me the whole story, then that’s retarded. I’m glad I’m not at a B/D anymore.



My answer is: MAC [/quote]





hahah.    We laugh it off. part of deal.



compliance is there to protect us.



what is mac?



Feb 26, 2010 8:46 pm

what is sma?

Feb 26, 2010 8:48 pm

Seperately Managed Account.

  Are you screwing with me?
Feb 26, 2010 8:49 pm

No



Im stupid.   I’ve never heard that.



Must be an Indy term?



Feb 26, 2010 8:51 pm

No.  I’m pretty sure your firm calls it that.  If you personally manage your own clients’ discretionary accounts, then you wouldn’t have any use for it.

Feb 26, 2010 8:52 pm

No, it’s not just Indy. In fact Wirehouses use them quite frequently. It’s basically a fee only account that has discretionary authority typically given to one or more professional money managers.

  It's a way to have Bill Gross manage your FI holdings directly for you at the behest of the client. They can issue edicts on what securities can and can not be purchased (i.e. no tobacco holdings of any kind).
Feb 26, 2010 8:53 pm

ive heard



macs, pim,pspm,pim.pia,consults,select,CSD,gpm…



Feb 26, 2010 9:00 pm

If you guys really want to get into it, SMAs are largely governed by the Investment Company Act of 1940: Rule 3(a)-4.  This is what keeps these sponsored programs from being considered Investment Company products.

  Put simply, ithas to meet 5 basic requirements:   1. Must be managed on the basis of client's financial situation and objectives. 2. Client can impose reasonable restrictions. 3. Client receives a statement at least quarterly detailing the account activity and fees. 4. Client retains shareholder rights on each security (for the most part). 5. Personnel of the manager is available to the client.
Feb 26, 2010 9:04 pm

[quote=mlgone][quote=LSUAlum]No, it’s not just Indy. In fact Wirehouses use them quite frequently. It’s basically a fee only account that has discretionary authority typically given to one or more professional money managers.

  It's a way to have Bill Gross manage your FI holdings directly for you at the behest of the client. They can issue edicts on what securities can and can not be purchased (i.e. no tobacco holdings of any kind).[/quote]   pssst dude......it's a joke.......everyone knows this[/quote] I assumed he was being serious by how he responded to Wetblanket. Again, this site is for learning so you can't assume 'everyone knows this'.
Feb 26, 2010 9:07 pm

It's a safe assumption that Shania is being an ass.

 
Feb 26, 2010 9:25 pm
Wet_Blanket:

Private REITs in fee based accounts is an issue (seperate from what you guys are discussing).  The main reason is that you are lucky if the REIT is priced annually and potentially you can be charging fees on $10 share price when in reality it is $8.

  Firms are only required to re-price every 18 months.  However, some firms will update all client accounts when one client liquidates or purchases secondary shares of the REIT.  Jones does this, so they get more accurate pricing more often than every 18 months.  However, if no clients place transactions on a particular, then there's no updated price.  Jones actually goes to the REIT's every 12 months for a price to be safer.   Wouldn't surprise me if there was some $7.00 and $6.00 junk out there right now.  I am waiting for pricing and bids on 3 of them right now.  I'm holding my breath.