Podcast Center
Video Center
Webcasts
Resource Center
Events
October 18, 2013 at 08:38 AM
October was a cruel month for banks selling fixed annuities. The most recent compilation from Kehrer Saltzman & Associates’s Fixed Annuity YieldTrend Report disclosed that the average yield of a fixed-rate annuity sold through banks tumbled 11 basis points to 1.88 percent in October.
That drop off represents a significant reversal from the rise registered in the previous four consecutive months, culminating in the 1.99 percent average annual yield recorded in September.
The Fixed Annuity YieldTrend Report is produced in conjunction with Beacon Research, which studies the fixed-annuity industry. It’s based on data from more than 60 individual fixed annuity products sold at banks by 20 different carriers.
According to Steve Saltzman, principal at Kehrer Saltzman, the firm spotlights yields rather than rates. In that way, the report highlights not just first-year rates, but measures current and guaranteed yields through the end of the surrender charge period. Thusly, it provides a better picture of the probable annual yield for the purchaser, Saltzman detailed in a statement accompanying the report. A consulting firm, Kehrer Saltzman & Associates works with banks, credit unions, broker-dealers, insurance companies and other financial services entities.
