Floating interest – Bobs Birdhouse http://bobsbirdhouse.com/ Mon, 10 Jan 2022 23:55:55 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://bobsbirdhouse.com/wp-content/uploads/2021/06/cropped-icon-32x32.png Floating interest – Bobs Birdhouse http://bobsbirdhouse.com/ 32 32 Banking sector counters post gains amid fluctuating stock market fortunes – The Island https://bobsbirdhouse.com/banking-sector-counters-post-gains-amid-fluctuating-stock-market-fortunes-the-island/ Mon, 10 Jan 2022 23:29:13 +0000 https://bobsbirdhouse.com/banking-sector-counters-post-gains-amid-fluctuating-stock-market-fortunes-the-island/ Extending its support for the rapid development of a vibrant cashless payments ecosystem, Sri Lanka’s leading private bank, HNB PLC, participated in the latest edition of the Central Bank of Sri Lanka’s Rata Purama LANKAQR (CBSL ), which was held recently in Negombo. HNB interacted with merchants, including small businesses, educating them on the benefits […]]]>

Extending its support for the rapid development of a vibrant cashless payments ecosystem, Sri Lanka’s leading private bank, HNB PLC, participated in the latest edition of the Central Bank of Sri Lanka’s Rata Purama LANKAQR (CBSL ), which was held recently in Negombo.

HNB interacted with merchants, including small businesses, educating them on the benefits and strengths of its HNB SOLO payment app integrated with LANKAQR during the one-day event. Given the keen interest they have shown, HNB representatives have also integrated a significant number of these merchants into the HNB SOLO platform.

The event held at the Kadolkale grounds in Negombo was attended by CBSL Governor Ajith Nivard Cabraal as guest of honor as well as CBSL Deputy Governor Dharmasiri Kumaratunga , and senior officials from major commercial banks.

The first to introduce multiple technological developments to the Sri Lankan banking industry, HNB has played a leading role in raising public awareness of the benefits of digital payments in the country. The bank has continued to scale up and intensify these efforts, both through its own programs and by expanding its steadfast support for CBSL’s “Rata Purama LANKAQR” initiative.

“A vibrant cashless payment ecosystem has the potential to dramatically improve the economic activity that underpins Sri Lanka’s economy. These systems help speed up the speed of business, and especially for small businesses, they can help establish new markets and conduct transactions in a secure and convenient manner, ”said Chammika Weerasinghe, Head of Digital Operations at HNB.

Launched in late 2020, the “Rata Purama LANKAQR” campaign aims to increase the use of Sri Lanka’s Common Rapid Response Code (QR) national standard developed by CBSL. This initiative, which eliminates the need for merchants to have multiple QR codes for different platforms, facilitates fast, secure and affordable digital payments, to the benefit of customers and merchants. Financial institutions and telecommunications companies support CBSL in its efforts to transition to a cashless society.

HNB aims to make mobile phones and digital payments the standard for daily transactions across the country and has been at the forefront of the country’s QR code-based cashless payments revolution.

HNB SOLO (Good Food & Body Care- Negombo) merchant, Mr & Mrs Kapila Paliyakkara at the event.

HNB SOLO, launched in 2019, makes it easy to improve the efficiency of payments and transactions, while eliminating the need for physical contact. QR code based payments through HNB SOLO are more cost effective than alternative payment solutions available in the market. The intuitive, user-friendly and sophisticated application has dramatically increased the convenience of making a wide range of QR-based payments. Users can make payments via LANKA QR by scanning the code using SOLO. Upon completion, merchants will receive an instant SMS notification, confirming receipt of payment.

HNB has continuously improved the features and functionality of the app, further improving its user interface.

Taking its digital payment journey even further, the bank has also introduced Dynamic QR technology in partnership with Keells Supermarkets and Singer, in which a unique code is generated for each transaction. This enables customers using an app linked to the LANKAQR to make contactless purchases in stores by simply scanning the dynamic QR, which appears on the display screen of the point of sale (PoS) machine. By eliminating the need to manually enter the payment value, this mechanism increases customer convenience and prevents errors.

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Lument Finance Trust, Inc. (NYSE: LFT) sees significant decline in short-term interest https://bobsbirdhouse.com/lument-finance-trust-inc-nyse-lft-sees-significant-decline-in-short-term-interest/ Sat, 08 Jan 2022 20:20:56 +0000 https://bobsbirdhouse.com/lument-finance-trust-inc-nyse-lft-sees-significant-decline-in-short-term-interest/ Lument Finance Trust, Inc. (NYSE: LFT) benefited from a sharp decline in overdraft interest during the month of December. As of December 15, there was short interest totaling 31,400 shares, a decrease of 36.7% from the total of 49,600 shares as of November 30. Based on an average daily volume of 55,000 shares, the day […]]]>

Lument Finance Trust, Inc. (NYSE: LFT) benefited from a sharp decline in overdraft interest during the month of December. As of December 15, there was short interest totaling 31,400 shares, a decrease of 36.7% from the total of 49,600 shares as of November 30. Based on an average daily volume of 55,000 shares, the day / hedge ratio is currently 0.6 days. About 0.1% of stocks are sold short.

LFT traded down $ 0.14 during trading hours on Friday, reaching $ 3.69. 900 shares of the company were traded, for an average volume of 70,531. Lument Finance Trust has a 12-month low of $ 3.09 and a 12-month high of $ 4.48. The company has a 50-day moving average of $ 3.86 and a 200-day moving average of $ 4.00. The company has a market cap of $ 92.06 million, a P / E ratio of 12.77 and a beta of 1.22. The company has a current ratio of 24.30, a quick ratio of 24.30 and a debt ratio of 7.80.

Lument Finance Trust (NYSE: LFT) last reported its quarterly results on Tuesday, November 9. The tech company reported EPS of $ 0.06 for the quarter, missing Zacks’ consensus estimate of $ 0.09 by $ 0.03. Lument Finance Trust had a net margin of 29.77% and a return on equity of 9.57%. In the same quarter of the previous year, the company made a profit of $ 0.11 per share. As a group, research analysts expect Lument Finance Trust to post an EPS of 0.39 for the current year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, January 18. Shareholders of record on Friday, December 31 will receive a dividend of $ 0.09. This represents an annualized dividend of $ 0.36 and a dividend yield of 9.76%. The ex-dividend date is Thursday, December 30. Lument Finance Trust’s payout ratio is 120.00%.

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Several research firms recently commented on LFT. B. Riley began covering Lument Finance Trust in a research note on Friday October 15th. They issued a “buy” note and a price target of $ 4.50 for the company. JMP Securities reissued a “buy” note on Lument Finance Trust shares in a research note on Thursday, November 11. Zacks Investment Research downgraded Lument Finance Trust shares from a “hold” rating to a “sell” rating in a research report released on Tuesday, November 16. Finally, Piper Sandler assumed coverage of Lument Finance Trust shares in a report released on Friday, December 17. They issued an “overweight” rating and a target price of $ 4.50 on the stock. A stock research analyst rated the stock with a sell rating, and six gave the company’s stock a buy rating. According to MarketBeat, the stock has an average rating of “Buy” and an average target price of $ 4.50.

A number of large investors have recently changed their holdings of equities. Geode Capital Management LLC increased its stake in Lument Finance Trust by 7.0% during the third quarter. Geode Capital Management LLC now owns 123,847 shares of the tech company valued at $ 490,000 after purchasing an additional 8,101 shares in the last quarter. O Shaughnessy Asset Management LLC increased its position in Lument Finance Trust by 42.1% during the 3rd quarter. O Shaughnessy Asset Management LLC now owns 106,192 shares of the tech company valued at $ 421,000 after purchasing an additional 31,438 shares during the period. BlackRock Inc. increased its position in Lument Finance Trust by 34.3% during the 3rd quarter. BlackRock Inc. now owns 167,616 shares of the tech company valued at $ 664,000 after purchasing an additional 42,811 shares during the period. Advisor Group Holdings Inc. increased its position in Lument Finance Trust by 57.9% during the 3rd quarter. Advisor Group Holdings Inc. now owns 112,535 shares of the tech company valued at $ 446,000 after purchasing an additional 41,243 shares during the period. Finally, Ritholtz Wealth Management strengthened its position in Lument Finance Trust by 68.8% during the 3rd quarter. Ritholtz Wealth Management now owns 33,808 shares of the tech company valued at $ 134,000 after purchasing an additional 13,774 shares during the period. Hedge funds and other institutional investors hold 30.60% of the company’s shares.

About Lument Finance Trust

Lument Finance Trust, Inc. operates as a real estate investment finance company, which invests, finances and manages a portfolio of commercial real estate investments (CRE). It invests primarily in transitional variable rate commercial mortgages and other CRE related investments, such as preferred shares; commercial mortgage backed securities; mezzanine, fixed rate and construction loans and; other debt instruments of the CRE.

Read more: Average Daily Trade Volume – What It Means in Stock Trading

This instant news alert was powered by storytelling technology and financial data from MarketBeat to provide readers with the fastest, most accurate reports. This story was reviewed by the MarketBeat editorial team before publication. Please send any questions or comments about this story to [email protected]

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New player targets 15 MW turbines for floating wind farm off Italy https://bobsbirdhouse.com/new-player-targets-15-mw-turbines-for-floating-wind-farm-off-italy/ Fri, 07 Jan 2022 09:03:12 +0000 https://bobsbirdhouse.com/new-player-targets-15-mw-turbines-for-floating-wind-farm-off-italy/ Venice-based Repower Renewable SpA plans to build a large-scale floating offshore wind farm in the Ionian Sea and connect it to the Italian national grid. The wind farm is located in the southeast of the east coast of Calabria at a minimum distance of approximately 61.8 kilometers from Capo Rizzuto and 74.8 kilometers from the […]]]>

Venice-based Repower Renewable SpA plans to build a large-scale floating offshore wind farm in the Ionian Sea and connect it to the Italian national grid.

The wind farm is located in the southeast of the east coast of Calabria at a minimum distance of approximately 61.8 kilometers from Capo Rizzuto and 74.8 kilometers from the Monasterace marina.

The project is expected to have a capacity of 495 MW and include 33 wind turbines with an individual capacity of 15 MW installed on floating foundations.

The wind turbines will be installed over an area of ​​approximately 87 square kilometers.

Repower Renewable SpA has applied to the Ministry of Infrastructure and the Crotone Port Transport Authority for a 30-year maritime state ownership concession for the construction and operation of the wind farm.

The wind turbines will be connected to an offshore substation via 66 kV inter-grid cables. Electricity generated at the wind farm will be transported ashore via a 380 kV export cable system.

Repower Renewable SpA was founded in 2018 by the Swiss group Repower. The company has a portfolio of more than 15 renewable power generation assets, including onshore wind farms, solar plants and small hydroelectric power plants.

Repower Renewable was one of 64 developers who submitted their Expressions of Interest (EoI) to build floating wind farms in Italian waters to the country’s Ministry of Ecological Transition last year.


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What are the best ways to invest your money in 2022? https://bobsbirdhouse.com/what-are-the-best-ways-to-invest-your-money-in-2022/ Mon, 03 Jan 2022 05:02:38 +0000 https://bobsbirdhouse.com/what-are-the-best-ways-to-invest-your-money-in-2022/ 2021 was another great year for investors, as the stock market ignored concerns about Covid-19 variants and the resurgence of inflation to soar for the third year in a row. But not all asset classes have performed well. The price of gold has fallen, bonds have struggled and liquidity remains a no-go area. So what […]]]>

2021 was another great year for investors, as the stock market ignored concerns about Covid-19 variants and the resurgence of inflation to soar for the third year in a row.

But not all asset classes have performed well. The price of gold has fallen, bonds have struggled and liquidity remains a no-go area.

So what can we expect in 2022? Not surprisingly, there is a lot that can be done to make investors nervous.

The Omicron variant is spreading like wildfire, although it so far seems softer than Delta, while inflation soared to a staggering 6.8% in the United States in November. There are also geopolitical concerns.

There is another concern. Stocks, property, and cryptocurrency float on a sea of ​​fiscal and monetary stimulus, but 2022 looks like the year in which central bankers and politicians cut back. Are we finally facing the end of the great bull run?

Actions

In 2019, global stocks rose 28.4%, according to the MSCI World Index.

Last year, they ignored Covid-19 lockdowns to increase by 16.5%. They did so again in 2021, with MSCI World having grown another 17.3% so far. In the US, the S&P 500 is up 30% at the time of writing.

Obviously, this cannot go on forever. So, is 2022 the year where everything ends?

In the United States, all major sectors grew in the past year, including technology, industrials, materials, energy, healthcare, utilities, finance and real estate, according to Matt. Weller, Global Head of Research at City Index.

Historically, this suggests that we are in a mid to late bull market cycle. “If defensive sectors like utilities, consumer staples and healthcare start to outperform, it could finally signal that the bear market could be around the corner,” he said.

If defensive sectors like utilities, consumer staples and healthcare start to outperform, it could finally signal that the bear market could be around the corner.

Matt Weller, Global Head of Research, City Index

US tech companies in Megacap were the top performers again, with Alphabet, owner of Google, up 67% and Microsoft (up 55%), Apple (36 percent) and Tesla (27 percent) achieving all impressive performance.

Markets expect the US Federal Reserve to hike interest rates three or four times in 2022, which could hit “overvalued technology stocks,” said Fawad Razaqzada, market analyst at Think Markets.

“The Fed’s policy tightening will reduce the appeal of low-yielding growth stocks, especially those with overvalued valuations. Sentiment hasn’t been helped by insider selling lately.

Rising interest rates will increase debt service costs and reduce corporate profit margins, said Laith Khalaf, head of investment analysis at AJ Bell.

“The United States now accounts for two-thirds of the world’s market capitalization, much of it concentrated in a small number of tech stocks. If big tech sneezes, the rest of the world is going to catch a really bad cold, ”Khalaf said.

The travel, retail and hospitality sectors have been hit hard by the Omicron lockdowns but have yet to delist the shares, Khalaf said.

“The stock market seems to be the best game in town when it comes to generating long-term returns above inflation.

“As always, investors need to get out of the noise in the short term and keep an eye on the long term, investing regularly to mitigate volatility,” he said.

Two markets could outperform, according to Richard Whitehall, head of portfolio management at Aegon. “The UK and Japan offer relatively less demanding valuations and are well positioned to participate in the economic recovery.”

Outlook: The bull market has to end at some point and 2022 could be the year. Still, there is still no better place to invest your money and any drop could be a buying opportunity for long-term investors.

Obligations

Many investors have abandoned bonds, amid negative real yields and fears of a bond crash.

Bonds were traditionally meant to offer low risk income and capital, but some argue that they have instead become a “high risk, no return” investment.

They pay a fixed interest rate and it will look less and less attractive if inflation rises, Khalaf says.

Tightening monetary policy is underway, barring a significant resurgence of the pandemic, and this could come as a shock to the bond market

Laith Khalaf, Head of Investment Analysis, AJ Bell

“A tightening of monetary policy is underway, barring a significant resurgence of the pandemic, and this could come as a shock to the bond market, which has become accustomed to ultra-accommodative monetary policy. “

In addition to raising interest rates, central banks could start cutting back their massive bond buying programs, affecting demand.

“Unless we believe monetary policy will never normalize and quantitative easing is here forever, there must come a judgment day for the bond market. It could be gradual deflation rather than an explosive rupture, but it sounds like a question of when, not if, ”Khalaf said.

Outlook: Analysts have been warning of a bond crash for years, but it has yet to happen. The more inflation rises, the greater the danger.

Cash

The average cash account has fallen in real terms by 2.37% per year after inflation over the past decade, eroding the value of an investment from £ 10,000 ($ 13,514) to £ 8,711, according to Brewin Dolphin.

Most people still think money in the bank is safe, but inflation is a “silent killer,” according to investment manager Rob Burgeman.

A lot of people don’t realize this, and banks don’t have to issue warnings like they are with stocks.

“A more accurate bank statement would show the impact of inflation on your money and include warnings that cash savings may lose value over time,” said Burgeman.

Interest rates will rise in 2022 but inflation will rise faster, Khalaf said. “So cash always seems to be an awkward place for the foreseeable future. “

Outlook: Everyone needs a little extra cash for instant access in an emergency, but you should never leave cash in the long run. The outlook has gone from bad to worse.

Crypto-currencies

There was no Santa rally for Bitcoin at the end of 2021 with around $ 46,000. It’s still an increase of over 50%, but it has been declining in recent times and this year could be more difficult, said Vijay Valecha, chief investment officer at Century Financial. “Investors have pulled out of the more speculative asset classes, fearing that a ebb in central bank stimulus and a new variant of Covid-19 could cause problems.”

Bitcoin will need to break through the $ 50,000 mark for the bulls to gain the upper hand, he says. As always, anything could happen.

For those happy to take a kick out, cryptocurrency trader Nick Ranga at AskTraders.com advises Ethereum, which he calls “the only other digital asset besides Bitcoin worthy of being labeled as a crypto. prime currency “.

“It is the world’s most widely used blockchain and the default network for emerging non-fungible tokens, or NFTs,” he adds.

Ethereum can currently execute 30 transactions per second, but this year’s upgrade could increase that number to 100,000 per second, giving it new momentum.

Ripple’s BinanceCoin, Polkadot, Solana, Cardano and XRP are also worth watching in 2022, Mr. Ranga said.

Outlook: Cryptocurrencies will remain as volatile as ever in 2022, but it’s hard to shake the feeling that the jackpot has already been won.

Gold

Gold was perhaps the only major asset class to lose value last year, down around 5% to $ 1,800 an ounce at the time of writing.

The precious metal does not earn interest, which means it could struggle if rates rise this year and make alternative safe havens such as cash and bonds relatively more attractive.

“Money markets are now anticipating a 50 percent possibility of an interest rate hike at the US Federal Reserve’s March meeting, which limits the metal’s rise,” Mr. Valecha said.

Although gold underperformed in 2021, it hit an all-time high of $ 2,084 in August 2020, said David Jones, chief market strategist at Capital.com. “Still, those glory days are feeling good behind them right now.”

Some gold fans believe gold is expected a good year after recent struggles, Jones said. “It could do well if the economic bubble finally bursts.”

Outlook: Every investor should have some exposure to gold, but now is not the time to rush into the precious metal as inflation soars. Many also argue that Bitcoin is replacing it as a store of value. Time will tell us.

FILE PHOTO: One-kilogram gold bars are placed on a table at a factory of gold refiner and bullion maker Argor-Heraeus SA in the town of Mendrisio, southern Switzerland, March 1 2012. REUTERS / Pascal Lauener / File Photo

Surprise package?

Many analysts expect China to have a tough year as growth slows, the government tightens oversight of the tech sector, and the Evergrande meltdown threatens its real estate market, but the manager of Aegon’s portfolio, Richard Whitehall, is more optimistic.

“Stock prices may have overreacted to China’s economic and political woes, and the government can act to stabilize the economy and counter any pressure on growth. The current decline in valuations may well present opportunities over the next 12 months, ”he said.

Outlook: China is facing a turbulent year, but it may be worth buying if it lows.

Updated: January 3, 2022 5:00 a.m.


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JPMorgan Chase to repurchase all of its $ 2.0 billion of its non-cumulative variable fixed rate preferred shares, Series Z represented by custodian shares https://bobsbirdhouse.com/jpmorgan-chase-to-repurchase-all-of-its-2-0-billion-of-its-non-cumulative-variable-fixed-rate-preferred-shares-series-z-represented-by-custodian-shares/ Fri, 31 Dec 2021 21:37:02 +0000 https://bobsbirdhouse.com/jpmorgan-chase-to-repurchase-all-of-its-2-0-billion-of-its-non-cumulative-variable-fixed-rate-preferred-shares-series-z-represented-by-custodian-shares/ JPMorgan Chase & Co. (NYSE: JPM) (“JPMorgan Chase” or the “Company”) has announced that on February 1, 2022, it will repurchase all of the 200,000 outstanding shares of its non-cumulative fixed rate variable preferential program. . Series Z Shares (“Series Z Preferred Shares”). Series Z preferred shares are represented by 2,000,000 custodian shares (CUSIP 46625HKK5). […]]]>

JPMorgan Chase & Co. (NYSE: JPM) (“JPMorgan Chase” or the “Company”) has announced that on February 1, 2022, it will repurchase all of the 200,000 outstanding shares of its non-cumulative fixed rate variable preferential program. . Series Z Shares (“Series Z Preferred Shares”). Series Z preferred shares are represented by 2,000,000 custodian shares (CUSIP 46625HKK5). Each Custodian Share represents one tenth of interest in a Series Z Preferred Share. The redemption price per share of the Series Z Preferred Shares will be $ 10,000 (equivalent to $ 1,000 per Custodian Share).

Payment of the redemption price will be made on February 1, 2022, upon presentation and delivery of depositary certificates evidencing the depositary shares to be redeemed from Computershare Inc., as depositary, at 150 Royall Street, Canton, Massachusetts 02021. Shares of the depositary held in book-entry form must be remitted in accordance with the applicable procedures of The Depository Trust Company.

February 1, 2022 is also the final dividend payment date for the Series Z Preferred Shares and Custodian Shares. The recording date of this dividend is January 3, 2022.

JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services company based in the United States of America (“US”), with operations worldwide. JPMorgan Chase had $ 3.8 trillion in assets and $ 290.0 billion in equity as of September 30, 2021. The company is a leader in investment banking, consumer and small business financial services, commercial banking, financial transaction processing and asset management. Under the JP Morgan and Chase brands, the company serves millions of clients in the United States and many of the world’s largest businesses, institutions and governments. Information on JPMorgan Chase & Co. is available at www.jpmorganchase.com.

# # #

Investor contact:
Mikaël Grubb, 212-270-2479

Media contact
Joseph Evangelisti, 212-270-7438

Warning

JPMorgan Chase & Co. published this content on December 31, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on December 31, 2021 09:36:01 PM UTC.


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How Inflation Could Affect Your Student Loans https://bobsbirdhouse.com/how-inflation-could-affect-your-student-loans/ Thu, 30 Dec 2021 22:24:31 +0000 https://bobsbirdhouse.com/how-inflation-could-affect-your-student-loans/ Inflation, the rising cost of everyday items, has been on everyone’s mind lately, from investors to policy makers to borrowers. The reason this matters to borrowers is that inflation can result in higher interest rates on all types of debt, including student loans. So how can inflation impact student loans and should you be concerned? […]]]>

Inflation, the rising cost of everyday items, has been on everyone’s mind lately, from investors to policy makers to borrowers. The reason this matters to borrowers is that inflation can result in higher interest rates on all types of debt, including student loans.

So how can inflation impact student loans and should you be concerned?

If you’re like most professionals, you may have graduated with over $ 100,000 in student loans. Unlike credit card debt that was used to buy things you couldn’t use for a long time, student loans funded your education and training, which is the foundation of your career. But with rising inflation, there are growing concerns that student loan rates and payments will also increase.

Real Money contributor Ed Ponsi says we’re sandwiched between inflation and other economic concerns, and the pandemic’s turn for the worse. But he’s got a great stock to buy and hold for the New Year, with graphics and delicious reason. Learn more about it and get more real money investing ideas.

Read more: US inflation hits almost 40-year high, 6.8% in November

How inflation actually helps student loan borrowers

The good news is, if you have a fixed rate, inflation could actually help. Inflation drives up the price of everything, including wages. This means that some borrowers pay off certain fixed rate loans with dollars that are less valuable than the ones they borrowed and your monthly payment does not increase.

So if the borrower has a fixed rate student loan and has a salary that keeps pace with inflation, then inflation can help.

But inflation can hit some private loans hard

While inflation can be good for those with a fixed rate, the same is not true if you have a variable interest rate loan, such as a private variable rate student loan.

The rates that borrowers pay for variable rate loans are usually indexed to prevailing market interest rates. Market interest rates tend to rise whenever lenders see inflation on the horizon. In times of higher inflation, borrowers should expect interest rates on variable rate loans to increase. If borrowers see a higher monthly bill than expected, it’s likely an adjustable rate student loan with a rate adjustment.

So, with rising inflation expected to continue through 2022, it’s worth checking whether your student loan has a fixed or a variable rate. According to Ernest Burley, a certified financial planner, “With inflation on the rise, you don’t want to be in a variable interest rate loan. It’s a great idea to lock in a low fixed interest rate on your student loan (or any other loan).

More in our series on inflation:

Steps You Can Take To Avoid Inflation Pains

Refinancing: Experts agree that the first thing to do is swap any floating rate debt for a fixed rate, if possible. So if you have an adjustable rate private student loan, it may be a good idea to start looking for refinancing now before the rates go up.

Pay off your debt: If you have credit card debt, maybe now is the time to start paying it off to make sure your monthly payments don’t eat up a growing chunk of your paycheck, especially if you’re working. where wages don’t go up as fast.

If you invest, own stocks: you want to make sure that your savings keep pace with rising prices. When you own bonds, you’re essentially in the same position as other lenders – facing the possibility of being paid back with dollars that are less valuable than what you loaned. Inflation can cause short-term disruption in the stock market, but in the long term, corporate profits should keep pace with rising prices.

This is definitely the time to “be wise, careful and strategic”. Burley said.

Resources: From the Federal Student Aid Office, find out about:


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loan interest rates: some lenders offer low fixed rate auto loans, personal loans: here’s why it’s a good deal now https://bobsbirdhouse.com/loan-interest-rates-some-lenders-offer-low-fixed-rate-auto-loans-personal-loans-heres-why-its-a-good-deal-now/ Wed, 29 Dec 2021 06:31:00 +0000 https://bobsbirdhouse.com/loan-interest-rates-some-lenders-offer-low-fixed-rate-auto-loans-personal-loans-heres-why-its-a-good-deal-now/ The total cost of a loan depends mainly on the interest rate applied to it. If the loan term is longer than one year, the change in interest rates over the life of the loan can have a significant impact on your total interest payment. This becomes critical especially when you take out a variable […]]]>
The total cost of a loan depends mainly on the interest rate applied to it. If the loan term is longer than one year, the change in interest rates over the life of the loan can have a significant impact on your total interest payment. This becomes critical especially when you take out a variable rate loan and the interest rate increases dramatically after a year. However, if you take out a fixed rate loan at a time like today when the interest rate is near the lowest levels seen over the past two decades, it will keep your interest outflows at a low. low and will offer you better savings than a variable rate loan.

Here’s how.

Signs of a turnaround in the rising interest rate cycle

The country’s largest public sector bank, the State Bank of India (SBI), announced on December 17, 2021 that it had raised its key rate by 10 basis points (bps), marking the beginning of the end of the regime. low interest rates. In addition to being a benchmark rate for borrowers, the base rate also serves as an indicator of the direction of the overall interest rate in the economy.

A hike in the base rate indicates that the downtrend in interest rates is finally reversing and that in the future we may see a few more interest rate hikes. Crude oil (WTI) prices after falling to $ 65 in early December have now risen nearly $ 73 on December 23, indicating a resumption in global demand. If the impact of the Omicron variant of the coronavirus on the global economy does not extend over a long period of time and remains manageable, then with a double-digit increase in the WPI (Wholesale Price Index) in India, which could have a later ripple effect on the CPI (consumer price index), the probability that the RBI will hike the rate in the near future cannot be excluded.

Auto loan and personal loan at a fixed rate

Much of the personal loans available at a fixed rate comes in the form of auto loans and personal loans. Although not all lenders offer these fixed rate loans, quite a few do. “Public sector banks usually offer personal loans with floating interest rates, while most private sector banks and NBFCs offer personal loans with fixed interest rates,” says Sahil Arora, senior manager of Paisabazaar. .com.

The story is similar when it comes to auto loans. “While most PSU banks offer auto loans at floating interest rates, the State Bank of India offers auto loans at fixed interest rates. Private sector banks and NBFCs typically offer auto loans at fixed interest rates, ”says Arora.

* Additional interest rate concession of 0.20% on the purchase of an electric vehicle (Green Car Credit)
** 0.25% interest rate concession for existing home loan borrowers and company payroll account holders. 0.05% reduction on the interest rate for women and armed forces personnel subject to a minimum ceiling of RLLR.
Fixed rate vs variable rate taken from respective bank websites
Rates and charges as of December 16, 2021, Source: Paisabazaar.Com


How Fixed Rate Loans Can Save Interest

Over the long term of 5-7 years, which is usually the case with personal loans and auto loans, if the interest rate starts to rise, a fixed rate loan will help you save an amount of. important interest.

If you compare a car loan of Rs 10 lakh at a fixed interest rate of 7.5% and a floating interest rate with a starting rate of 7.5% but with a 0.5% increase in interest, within 5 years your interest will only be Rs. 2.02 lakh in the fixed rate option while it will be Rs 2.20 lakh in the variable rate option. If the interest rate hike is more than 0.5% in the first few years, the interest expense could be much higher.

The decision to opt for a fixed rate loan will be more advantageous when you are selective in the choice of the lender and the interest rate. “As fixed rate loans carry a higher interest rate risk for lenders, they usually charge higher interest rates on fixed rate loans than on variable rate loans to cover the higher risk,” explains Arora.

However, when you compare the interest rates between lenders, you can easily find many lenders offering fixed rate loan at competitive rates. For example, Canara Bank’s lowest interest rate on a variable rate auto loan is 7.30% while you can get SBI’s fixed rate loan at 7.25%. Likewise, Federal Bank’s minimum floating rate on its auto loan is 8.5% while you can get fixed rate loan from HDFC Bank at 7.95%.

Likewise, you can get a fixed rate personal loan from SBI at 9.6% if you have a salary package account with the bank. You will have to pay a minimum interest rate of 10.5% if you opt for a variable rate personal loan from Bank of Baroda according to its website. So if you do your research, you can easily find a lower fixed rate auto loan and personal loan option that is right for you.

Use a personal loan instead of a higher rate used car loan

If you are considering taking out a used car loan, you should consider all of your options critically. “Lenders charge higher interest rates on used cars because the credit risk associated with used car loans is higher than with new cars. Interest rates for used car loans typically range from 8.75% per year to 16% per year depending on the condition, age and segment of the car, ”says Arora.

Instead of opting for a user car loan, we can think of using a personal loan to finance the purchase of the vehicle. “Some banks and NBFCs actually charge lower interest rates on their personal loans than used car loans. Therefore, those who are considering purchasing used cars through loans may also consider take advantage of a personal loan, ”says Arora.

In addition, a personal loan can allow you to obtain a higher amount of financing than a used car loan. “Since lenders typically finance up to 70% of the value of a used car through a car loan, using a personal loan to finance a used car can allow them to benefit from a larger loan amount for a longer tenure, ”said Arora.


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How to build a debt portfolio despite interest rate volatility https://bobsbirdhouse.com/how-to-build-a-debt-portfolio-despite-interest-rate-volatility/ Sat, 25 Dec 2021 06:24:14 +0000 https://bobsbirdhouse.com/how-to-build-a-debt-portfolio-despite-interest-rate-volatility/ KIRTAN SHAH: I don’t want to go back to that very basic saying, “keep the money at the lower end of the curve”. There are three ways I will look at this situation. The first way is to keep it simple, just like you would with a fixed deposit. If you really want to deploy […]]]>

KIRTAN SHAH: I don’t want to go back to that very basic saying, “keep the money at the lower end of the curve”. There are three ways I will look at this situation.

The first way is to keep it simple, just like you would with a fixed deposit. If you really want to deploy that money for three years, try to find a fund that will have an average maturity of three years like you would with a fixed deposit. If you want to invest for three years, you try to make a fixed three-year deposit.

This will ensure that in the short term, if there is volatility at the end of the day, you are able to follow the volatility curve because you are able to invest. The easiest way to do this is to try and match your time horizon with the average maturity.

The second is a more asset allocation based approach, where (you) try to divide that fixed income investment into three compartments. First, make liquidity, second, make kernel, and third, satellite or tactic.

So let’s say you have 10% of your money or 15% of your money in liquid funds or ultra-short term funds. Much of this will allow you to take care of the liquidity you need as your risk profile grows, and create the 70% core market.

So if you are conservative, try to keep this in short term debt funds. If you are moderate, you can do banking and corporate bond PSU funds. Let’s say you are aggressive, you can do a combination of medium term funds and credit, depending on your risk profile; it’s 70% and the remaining 20% ​​are satellites or more aggressive. Having a small portion of your wallet that is slightly aggressive than your heart and liquid is good. And this is how an asset allocation is usually done.

So, depending on your risk profile, you choose which part of your portfolio you want to keep for this 20%. Let’s say if I’m conservative and kept 10% in cash, 70% in short-term debt funds, the remaining 20% ​​can probably go in a combination of 10% medium and 10% credit. It depends again but to a large extent it will diversify the portfolio.

The third is more tactical in nature. For someone who understands fixed income or thinks the advisor understands and will advise correctly, if you looked at the historical data points over the past 20 years, you would find that with every rise in interest rates, the market bar as a strategy has really worked for investors.

Keep it very simple. You have Rs 100 to invest, put Rs 50 at the lower end of the curve and put Rs 50 at the upper end of the curve.

This strategy has almost always worked in a rising interest rate environment, but you should only do it with an investment horizon of at least three years in mind, otherwise you’ll end up on the wrong side.


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Real estate CDOs are making a comeback, this time to finance commercial properties shaken by the pandemic https://bobsbirdhouse.com/real-estate-cdos-are-making-a-comeback-this-time-to-finance-commercial-properties-shaken-by-the-pandemic/ Thu, 23 Dec 2021 17:13:00 +0000 https://bobsbirdhouse.com/real-estate-cdos-are-making-a-comeback-this-time-to-finance-commercial-properties-shaken-by-the-pandemic/ Wall Street’s real estate CDO machine, shunned and largely inactive since the 2008 global financial crisis, has come back with a vengeance. According to BofA Global, a record of nearly $ 50 billion in “bridge loans” on commercial real estate properties is expected to be turned into bond deals called “CRE CLO”, according to BofA […]]]>

Wall Street’s real estate CDO machine, shunned and largely inactive since the 2008 global financial crisis, has come back with a vengeance.

According to BofA Global, a record of nearly $ 50 billion in “bridge loans” on commercial real estate properties is expected to be turned into bond deals called “CRE CLO”, according to BofA Global, a record that also marks five times the industry. increase from 2020 emission levels.

The new generation of CRE CLO, or secured loan bonds, is mainly anchored this year in commercial real estate loans disrupted by the trend of working from home, which has emptied offices and pushed city dwellers to the suburbs during the pandemic. . These are unlike the CDOs of yesteryear, when Wall Street conditioned billions of increasingly hard-to-sell subprime mortgage bonds and derivatives as “secured debt” or CDOs that became toxic.

The new bonds also give investors a way to bet that U.S. commercial real estate not only survives the COVID crisis, but that with today’s low interest rates, it can land on a more solid footing. over the next five years.

“People thought commercial real estate was the center of the storm,” Tracy Chen, head of global structural credit investment at Brandywine Global Investment Management, said in a telephone interview.

“The doomsday scenario everyone was talking about did not happen.”

Instead, the pandemic has meant a second chance for a corner of Wall Street looking to come out of a bad past.

CRE CLOs are booming

BofA Global, Commercial Mortgage Alert

“Starting with the first post-crisis CRE CLOs, the structures were updated and the optics had to be differentiated from the optics of the pre-crisis CDOs,” said Steven Kolyer, group partner. global finance from the law firm Sidley Austin.

Kolyer was involved when mortgage CDOs first emerged 20 years ago and, over the past decade, has helped incorporate reforms, including requiring CRE CLO sponsors to maintain their agreements by retaining some of the risks.

“These are different from the pre-crisis CDOs which suffered severe credit losses, mainly due to subprime mortgage assets,” he said.

“The current and different credit structure comes at an opportune time as the underlying borrowers with interests in commercial real estate seek ways to shift their properties from past uses to future uses.”

Bridge to the future

Many loans pooled into CRE CLOs this year have been variable rate and used to finance relatively stable multi-family properties, where owners want flexible financing in the COVID era, including to sell if prices continue to rise. .

Others have gone to borrowers in temporary need of funds to reallocate an office building, commercial property or hotel in order to attract new tenants.

Related: Shorter leases? Top real estate executives Durst and Jones talk about the future of the office

“Typically bridging loans were written before COVID, pending disruption in cash flow,” said Greg Handler, head of mortgages and consumer credit at Western Asset Management.

This meant setting aside funds for “a certain period of renovation, relocation or repositioning of properties,” Handler said, which “has helped alleviate the issues we’ve seen with COVID”, including keeping the share of properties low. overdue loans in CRE CLOs.

With the industry booming, Handler has been an investor, but also told MarketWatch that his team explored the possibility of building their own pipeline of transactions. So far, many of the major issuers in the industry have been REITs including Arbor Realty Trust Inc. ABR,
+1.34%
and Bridge Investment Group BRDG,
+ 2.86%,
according to the Finsight transaction tracker.

“Obviously, there’s going to be a need to rethink the future of the office,” Handler said, while also discussing the layout of hotels and other types of properties that are likely to change.

“Homeowners and owners are going to have to rethink and invest more capital,” he said.

Boom like no other

Analysts said the main risks would be sloppier underwriting as lenders compete for business, weakness in the booming multifamily sector or property projects that fail to materialize.

Low interest rate TMUBMUSD10Y,
1.494%
and muted distress have been credited with helping to raise commercial property prices by 24% on the year, according to the Green Street Commercial Property Price Index, about 15% above pre-COVID levels.

Barclays’ credit research team led by Lea Overby estimated in early December that around 67% of the year’s collateral for CRE CLOs were multi-family loans, with a smaller share coming from the office sector.

But unknowns still darken commercial real estate as the pandemic nears its two-year mark, including around how much office space is needed in major cities, what business travel will look like and others. concerns.

While the anticipated wave of real estate distress did not emerge, Brandywine’s Chen also tied “all risky assets” to central bank support, which until recently meant keeping interest rates low and the accommodative monetary policy.

“The rate is still at a historically low level, and it takes time to bring it to a dangerous level,” she said. “This should benefit the CRE CLOs.

As the Federal Reserve becomes more hawkish, Chen believes real estate “should be a place to hide” if inflation remains high next year, especially for investors exposed to properties financed at ultra-low rates. lows that climb in a rising cycle.

To verify: Will US REITs beat the S&P 500 next year?


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AM Best affirms the credit ratings of Assicurazioni Generali SpA and its main subsidiaries; Assigns Ratings to Europ Assistance SA https://bobsbirdhouse.com/am-best-affirms-the-credit-ratings-of-assicurazioni-generali-spa-and-its-main-subsidiaries-assigns-ratings-to-europ-assistance-sa/ Mon, 20 Dec 2021 09:15:05 +0000 https://bobsbirdhouse.com/am-best-affirms-the-credit-ratings-of-assicurazioni-generali-spa-and-its-main-subsidiaries-assigns-ratings-to-europ-assistance-sa/ AM Best confirmed the financial strength rating (FSR) of A (excellent) and the long-term issuer credit ratings (long-term ICR) of “a +” (excellent) of Assicurazioni Generali SpA. (General) (Italy) and its main rated subsidiaries. The outlook for these credit ratings (ratings) is stable. In addition, AM Best confirmed the long-term issue credit ratings (long-term IR) […]]]>

AM Best confirmed the financial strength rating (FSR) of A (excellent) and the long-term issuer credit ratings (long-term ICR) of “a +” (excellent) of Assicurazioni Generali SpA. (General) (Italy) and its main rated subsidiaries.

The outlook for these credit ratings (ratings) is stable. In addition, AM Best confirmed the long-term issue credit ratings (long-term IR) of debt instruments issued or guaranteed by Generali. At the same time, AM Best awarded an FSR of A (Excellent) and a long-term ICR of ‘a +’ (Excellent) to Europ Assistance SA The outlook attributed to these ratings is stable. (Please see below for a detailed list of companies and ratings.)

The ratings reflect the strength of Generali’s balance sheet, which AM Best considers strong, as well as its strong operational performance, very favorable business profile and appropriate management of business risks.

The strength of Generali’s balance sheet is based on its risk-adjusted capitalization at the highest level, as measured by Best’s capital adequacy ratio (BCAR). The group had a Solvency II SCR ratio of 233% at September 30, 2021 (YE 2020: 224%). The offsetting factors in the valuation include the group’s significant exposure to Italian sovereign bonds, amounting to € 61.0 billion, or 203% of equity, at the end of 2020. While debt is held primarily against participating life insurance contracts, the position introduces potential volatility on regulatory solvency and capitalization levels risk-adjusted.

Generali’s solid operational performance is driven by solid technical performance. Underwriting results are supported by the group’s non-life businesses, which produced average combined ratios of 92.1% over the five-year period ending in 2020, as calculated by AM Best. The group’s life underwriting results declined in 2020, driven by a legacy savings portfolio with high interest rate guarantees, but AM Best expects the group’s continued focus on products. low capitalization and low collateral improves the profitability of this line. The effects of the COVID-19 pandemic have been mixed, with the benefits of a lower claim frequency on auto lines being offset by higher volatility on the investment portfolio’s unrealized gain position. In the longer term, results should return to historical norms. During the first nine months of 2021, the group’s net profit was 2.3 billion euros, up 74% compared to the same period in 2020.

Generali’s very favorable commercial profile is based on its leading and defensible positions in its key markets. The group has a solid franchise, reinforced by its excellent market access thanks to its solid proprietary network and its multi-channel distribution strategy. The group continued to develop its asset management activities, with third party assets under management remaining stable during the COVID-19 pandemic in 117 billion euros through September 30, 2021 (end of 2020: 104 billion euros). The activity offers the group a diversified source of income.

The FSR of A (Excellent) and long-term ICRs of ‘a +’ (Excellent) were confirmed with a stable outlook for Assicurazioni Generali SpA. and its following subsidiaries:

Generali Italia SpA.

Generali Deutschland AG

COSMOS Lebensversicherungs AG

COSMOS Versicherung AG

Generali Vie SA

Generali IARD SA

Generali Ceska pojiSt’ovna like

Generali Spain, Sociedad Anonima de Seguros y Reaseguros

Generali Deutschland Versicherung AG

Generali Deutschland Krankenversicherung AG

Generali Deutschland Lebensversicherung AG

The FSR of A (Excellent) and the Long Term ICR of ‘a +’ (Excellent) were awarded with a stable outlook for the following subsidiary:

Europ Assistance SA

The long-term ICR of “bbb +” (good) was confirmed with a stable outlook for Generali France SA

The following long-term IRs have been confirmed with a stable outlook:

Assicurazioni Generali SpA.-

‘a’ (Excellent) on 1,750 million euros 5.125% Senior Unsecured Bonds, due 2024

‘a-‘ (Excellent) on € 1,250 million Senior subordinated notes at 5.5% fixed / variable rate, due

2047 (callable in 2027)

‘a-‘ (Excellent) on 850 million euros Senior subordinated notes at 5% fixed / variable rate, maturing in 2048

(callable in 2028)

‘a-‘ (Excellent) on 1,000 million euros Senior subordinated notes at 4.125% at fixed rate, maturing in 2026

‘a-‘ (Excellent) on € 1,250 million Senior subordinated notes at 7.75% fixed / variable rate, maturing in 2042

(callable in 2022) (including 467 million euros remains pending)

‘a-‘ (Excellent) on 750 million euros Senior subordinated notes with fixed / variable rate at 10.125%, maturing in 2042

(callable in 2022) (including 302 million euros remains pending)

‘a-‘ (Excellent) on 500 million euros, 3.875% senior fixed rate subordinated bonds, maturing in 2029

‘a-‘ (Excellent) on 750 million euros, 2.124% senior fixed rate subordinated bonds, maturing in 2030

‘bbb +’ (good) enabled £ 495 million 6.416% fixed / variable rate junior subordinate perpetual

debentures redeemable in 2022 (including £ 167 million remains pending)

‘bbb +’ (good) enabled £ 350 million 6.269% fixed / variable rate junior subordinate perpetual

bonds repayable in 2026

‘bbb +’ (good) enabled 1,500 million euros 4.596% fixed / variable rate more deeply subordinated perpetual

tickets (originally issued by Generali Finance BV.)

The following indicative long-term IRs on the securities available under the 15 billion euros medium term note program were confirmed as stated, with stable outlook:

Assicurazioni Generali SpA.-

“A” (Excellent) on all senior unsecured notes to be issued under the program

“A-” (Excellent) on all senior subordinated notes to be issued under the program

“Bbb +” (bon) on all subordinated bonds of a lower rank to be issued within the framework of the program

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the posting and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this post, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Reviews.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based at United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico.


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