08/13/2026
BAMIX FAQ Video Series
Video 2 – Transcript (Cory Grebe version)
Understanding the Realized Distribution Rate
SUMMARY KEYWORDS
Realized distribution rate, BAMIX, income-generating vehicle, fee structure, distribution rate, net of fees, cash drag, rollover notes, platform fee, advisor fee, cash flow, market conditions, no-call cycle, compliance, client income.
Welcome in! My name is Cory Grebe, I’m Director of Sales here at BAMIX, and this is the second video in our BAMIX FAQ video series.This one’s a good one: Understanding Realized Distribution Rate.
One of the most important questions we get from advisors is, “What is my client earn after all the fees and expenses?” So today, that’s what we’re going to be talking about. I’m going to walk through BAMIX’s distribution rate, how that translates into real income, how our fees differ from individual flash notes, and, most importantly, how we handle notes getting called, how that can make a meaningful impact, the income and distribution rate that your clients can get throughout the year.
So, one thing I want to talk about here is distribution rate, right? We’re saying distribution rate. We say that a lot. Why do we say that? Why don’t we just say yield? Because this distribution is actually partially return of capital as well. So, it’s just the tax clarification for your clients’ purposes, as far as what they’re concerned on, right? Distribution is what they’re getting, okay? Think of it like the yield.
Now, we talk about what your clients earn, right? 10.5%, that’s what we quote, and that is after all of our fees are accounted for. The only fee that is not accounted for is the fee that you are charging your clients. So, let’s just say that you’re charging your clients a flat 100 bips, that would mean that 9.5% would be the actual realized rate that your clients are going to get, okay? After all fees, phenomenal.
What does this 10.5% mean, right? Okay. So, it is the current rate, and what you do is you have to look at the distributions, right? Now, this is a daily accrual, so that does factor into this, it factors into your actual rate here, because there’s certain days a month, right? So daily accruals are aggregate, and then they are paid out at the end of the month. Like I said, work can vary, number of days, 31 days, 30, 28 days.
This is all just technical to kind of walk through how this is calculated. Not super relevant for your clients, this is just more for your knowledge as far as what, you know, how this is actually calculated.
So, let’s get to something that actually really matters: an example. We had a client, they asked us about a rollover. You can see here, they had a $119,524 investment, and they wanted to roll that over into BAMIX. They wanted to know, what could they get after all of their fees?
So, roughly 9.5%—again, that’s that 10.5%, take away the 1% that you charge—means they’re going to get roughly $11,355 of annual income. BAMIX is paid out monthly, so that comes out to about $946 a month. So, that’s great. You have clients that have fixed income, trying to pay those bills, keep the lights on. You know with BAMIX, if you’re investing $119,524, you can count on that $946 as a great estimate for what you’re going to be getting every month.
I want to talk really quickly about cost, okay? One thing to note, again, we quote all of our—all of our distribution rates are quoted net of fees. So, you don’t have to subtract anything. The only thing you subtract is whatever your advisor fee is. That same principle applies to individual notes, right? The one cost that exists in individual notes that is not on BAMIX is the platform fee, right? The 50 basis points, the—the BCM.
So, moving on from that, I want to talk about something that is really important, and this is ultimately kind of one of the reasons why BAMIX was created, and that’s cash drag.
I want to talk about a real example here that we just saw, and this was at the end of April, start of May of this year, 2026. In July and August of 2025, there were three flash notes issued from UBS, Bank of America, and Nomura. Now, those notes were all called on April 23rd, 2026. The rollover trades did not go until May 13th.
So, what does that mean? That means your clients were basically sitting in cash for three weeks, earning nothing. Three weeks, that’s almost a full month, right? You want to think monthly income stream, that’s what this is all about: fixed income, fixed income, right? Paying bills. Three weeks is a long time for your clients to not have their capital in work, earning income, right? It’s an issue.
That’s where BAMIX eliminates some of this cash drag. I’ll go into that in a second here, but just to hammer this home: These are the three trades that were actually called. You can see the CUSIPs and the dates. Three weeks of cash drag. At the time, here are the top 10 holdings of BAMIX, this was as of May 1st, 2026. You can see Barclays, Citi, Bank of America, etc., their CUSIPs and maturity.
Now, let me talk about what happens when our notes get called. We don’t wait three weeks. No, no, no, no, no. We know exactly how much is going to be called, and we know exactly how much is going into the new note, which allows for the best possible pricing. So, then what we’re going to do is we’re going to work on that rollover trade ahead of time, so that way, we can get our capital redeployed immediately. Virtually no cash drag on this, right? No gap in income generation for your clients. That’s huge.
Think about if you had a bunch of clients in a bunch of notes, and everything’s going gravy, not getting called, we’re getting our income payments, and then boom, market conditions change. All of a sudden, a bunch of issuer-callable notes get called all in the same month, and all your clients are calling and saying, “Hey, what are we going to do? How am I going to get my next payment, right? I got bills to pay.” That can be a big issue, especially for advisors who are working on clients with very specific fixed income needs, right?
To finalize here: Individual notes versus BAMIX, both are great. Your notes, individual, you’re going to see double-digit yields, platform fee applies, platform fee is waived at BAMIX, cash drag on calls—whenever a new note gets called, it’s normally not going to trade for at least two and a half to three weeks. On our end, non-issue. Rollover same day, helps maximize your potential income.
So, leave this up here just for a couple seconds. Compliance always wants me to hold this slide up here for you, but this is BAMIX performance as of May 31st, and you can see here what we benchmarked to, which is the corporate high yield index and the aggregate bond index. Strong performance.
Now, what to tell your clients? Key points for when we’re talking about explaining realized income, right? 10.5% distribution is net of all fund fees. The only thing you need to factor in is whatever you are charging your client, so typically 1%.
There are no additional costs using BAMIX compared to flash notes, okay? Platform fee is waived. The only cost is your fee, which is also a cost in the individual note space. Flash notes can create cash drag, right? If they get called, sometimes that new capital might not be deployed for two to three weeks. That can be a lot of time for your cash to be on the sidelines, not earning any income. BAMIX, non-issue. We can deploy that capital same day.
So, if you have clients that are interested, love structured notes, but are kind of frustrated with some of the pain points of when a note gets called and not having that consistent income stream, please, talk to them about BAMIX. Give me a call if you have questions, would love to talk more. Thanks for the time, and we’ll see you on the next video.