Fixed Annuity Sales at Banks Drop $1.2 B

Bank sales of fixed annuities reached $8.7 billion in the second quarter, according to Beacon Research in Chicago, a drop in sales from $10.9 billion in the first quarter...

The decline in sales would have been even more severe if the spread between corporate bonds and Treasuries had not been so wide, which hurt CD sales... Fixed annuity rates, which are based on corporate bonds, have been higher than CD rates, which are based on Treasuries, since November last year. At that time, five-year fixed annuities were returning 5.04% compared to 4.48% for five-year CDs...

On Wall Street: Fixed Annuity Sales at Banks Drop $1.2 B