Floating interest – Bobs Birdhouse http://bobsbirdhouse.com/ Tue, 21 Jun 2022 23:32:09 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bobsbirdhouse.com/wp-content/uploads/2021/06/cropped-icon-32x32.png Floating interest – Bobs Birdhouse http://bobsbirdhouse.com/ 32 32 Athens Holding Ltd. declare S https://bobsbirdhouse.com/athens-holding-ltd-declare-s/ Tue, 21 Jun 2022 22:23:05 +0000 https://bobsbirdhouse.com/athens-holding-ltd-declare-s/ HAMILTON, Bermuda, June 01, 2022 (GLOBE NEWSWIRE) — Athene Holding Ltd. (“Athene”) announced that it has declared the following preferred stock dividends on its non-cumulative preferred stock (represented by depositary shares, each representing 1/1,000th interest in one preferred stock), payable on June 30, 2022 to holders of record to June 15, 2022. Quarterly dividend of […]]]>

HAMILTON, Bermuda, June 01, 2022 (GLOBE NEWSWIRE) — Athene Holding Ltd. (“Athene”) announced that it has declared the following preferred stock dividends on its non-cumulative preferred stock (represented by depositary shares, each representing 1/1,000th interest in one preferred stock), payable on June 30, 2022 to holders of record to June 15, 2022.

  • Quarterly dividend of $396.875 per share on the Company’s 6.35% Fixed-Floating Rate Non-Cumulative Perpetual Preferred Shares, Series A (the “Series A Preferred Shares”); holders of Depositary Shares will receive $0.396875 per Depositary Share.
  • Quarterly dividend of $351.5625 per share on the Company’s 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Shares, Series B (the “Series B Preferred Shares”); holders of Depositary Shares will receive $0.3515625 per Depositary Share.
  • Quarterly dividend of $398.4375 per share on 6.375% Fixed Rate Reset Non-Cumulative Perpetual Preferred Shares, Series C (the “Series C Preferred Shares”); holders of Depositary Shares will receive $0.3984375 per Depositary Share.
  • Quarterly dividend of $304.6875 per share on the Company’s 4.875% Fixed Rate Non-Cumulative Perpetual Preferred Shares, Series D (the “Series D Preferred Shares”); holders of Depositary Shares will receive $0.3046875 per Depositary Share.

The Depositary Shares for the Series A Preferred Shares trade on the New York Stock Exchange (“”) under the symbol “ATHPrA”, the Depositary Shares for the Series B Preferred Shares trade under the symbol “ATHPrB”, the Depositary Shares for the Series C Preferred Shares are listed on the under the symbol “ATHPrC”, and the Depositary Shares for the Series D Preferred Shares are listed on the under the symbol “ATHPrD”.

About Athena
Athene, through its subsidiaries, is a leading financial services company specializing in retirement services with total assets of $246.1 billion as of March 31, 2022 and operations in the United States, Bermuda and in Canada. Athene specializes in helping clients achieve financial security and is a solutions provider to institutions. Founded in 2009, Athene is Driven to do more for our policyholders, our business partners and the communities in which we work and live. For more information, visit www.athene.com.

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Investors
Alex Pelzar
+1 917 472 4186
[email protected]

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Kelly Woerdehoff
+1 515 342 5144
[email protected]

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Businesses to immediately pay nearly £1bn in extra interest as Bank of England hikes rate by 0.25% – London Business News https://bobsbirdhouse.com/businesses-to-immediately-pay-nearly-1bn-in-extra-interest-as-bank-of-england-hikes-rate-by-0-25-london-business-news/ Mon, 20 Jun 2022 06:29:16 +0000 https://bobsbirdhouse.com/businesses-to-immediately-pay-nearly-1bn-in-extra-interest-as-bank-of-england-hikes-rate-by-0-25-london-business-news/ The Bank of England’s monetary policy committee confirmed on Friday that its base rate would rise a further 0.25% to 1.25%, research from international audit, tax and advisory firm Mazars shows that UK businesses face an immediate increase in interest payments of £929 million. Analysis of Bank of England data by Mazars shows that UK […]]]>

The Bank of England’s monetary policy committee confirmed on Friday that its base rate would rise a further 0.25% to 1.25%, research from international audit, tax and advisory firm Mazars shows that UK businesses face an immediate increase in interest payments of £929 million.

Analysis of Bank of England data by Mazars shows that UK businesses are currently paying £11.2bn a year in interest payments on floating rate debt which are likely to be immediately hit by a rise in interest rates. Companies that have to refinance their debt at fixed rates will later suffer from the rise in rates.

With rates up just 0.25%, annual interest payments on business loans will jump to £12.1bn almost overnight.

Further increases in the base rate would have an even more dramatic impact. If interest rates were to rise to 2%, interest payments for businesses would rise another £3.7bn to £14.9bn.

Mazars says that with increasing business insolvencies, the rising cost of borrowing should force more businesses to close.

Rebecca Dacre, partner at Mazars, said: “The number of business closures is accelerating and that is when interest rates are still historically low. With each increase in the base rate, the debt burden increases and more companies will go bankrupt. Cost pressures are relentless and businesses are running out of places to turn.

“It’s worth remembering that it’s not just consumers who are facing a cost of living crisis. Businesses are also seeing their costs rise sharply, and those that sell directly to consumers are being hit by people cutting back on their spending.

“Experts have warned that there will be an increase in the number of business insolvencies and that each increase in costs makes it more likely.”

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TPG RE Finance Trust: Can this mREIT maintain its high yield? (NYSE: TRTX) https://bobsbirdhouse.com/tpg-re-finance-trust-can-this-mreit-maintain-its-high-yield-nyse-trtx/ Sat, 18 Jun 2022 11:16:00 +0000 https://bobsbirdhouse.com/tpg-re-finance-trust-can-this-mreit-maintain-its-high-yield-nyse-trtx/ Pgiam/iStock via Getty Images About TPG RE Finance Trust Inc. TPG RE Finance Trust Inc. (NYSE: TRTX) is a commercial real estate finance company. It originates, acquires and manages commercial mortgage loans and other commercial real estate related debt securities. The company focuses mainly on floating rate first mortgage loans secured by high quality commercial […]]]>

Pgiam/iStock via Getty Images

About TPG RE Finance Trust Inc.

TPG RE Finance Trust Inc. (NYSE: TRTX) is a commercial real estate finance company. It originates, acquires and manages commercial mortgage loans and other commercial real estate related debt securities. The company focuses mainly on floating rate first mortgage loans secured by high quality commercial real estate. The company:

…invests in commercial mortgages; subordinated mortgage interest, mezzanine loans, secured real estate securities, note financing, preferred stock and various debt instruments; and loan obligations secured by commercial real estate and commercial mortgage-backed securities secured by properties primarily in the office, multi-family, life sciences, mixed-use, hospitality, industrial real estate sectors and commercial.

Capital structure

TPG RE Finance Trust is a small-cap REIT with a market capitalization of $721 million, which derives its income from mortgage interest. However, the net worth (book value of equity investments) of this REIT is $1.5 billion, more than double its market value. This means the stock is trading at a price-to-book (P/B) ratio of less than 0.5.

TPG RE Finance Trust has total debt of approximately $4 billion, so it has a debt-to-equity (D/E) ratio of 2.7. The company has the ability to increase its debt and therefore improve its loan portfolio by another 20%. TRTX also has a relatively low cost of debt with a weighted average interest rate floor of 1.05%. The company has a diversified capital base and only 27.5% of its funds are funded at market value.

Dividend and price performance

This New York-based financial trust was incorporated in 2014 and has been paying regular quarterly dividends since 2017. The dividend yield is quite high. Its current yield is close to 10% and the REIT has generated a four-year average return of close to 12% over the past four years. However, the return is high only because the price has fallen. Otherwise, the present dollar value of the quarterly dividend is only 55% of the pre-pandemic value of quarterly dividends.

It may seem that the company is not doing well, and that is why its dividend and price have fallen so low. However, being a mortgage finance REIT, the return will always be determined by the level of interest it pays on its debt and the coupon it earns on its mortgage portfolio. It earns a weighted average coupon of almost 4.6%, while the weighted average credit spread is 3.44%. Since the market value of debt is nearly 5.6 times that of the market value of equity, this credit spread becomes large enough for this REIT to consistently deliver a high return to its shareholders.

TPG RE Finance Trust’s stock traded around $20 from its July 2017 listing until the pandemic hit the US stock market in March 2020. In late March 2020, the stock bottomed out at $2.5 and then slowly recovered to reach a price of $13.5 by November 2021. However, over the past 6 months the stock has trended lower again and is trading currently around $9. This is a drop of almost 33% from the peak in November 2021.

loan portfolio

One good thing about TPG RE Finance Trust is that geographically its loan portfolio is well diversified across all major markets located in different parts of the United States. The top 25 markets account for nearly 80% of total loan commitments. The company also has “long-standing relationships with regular borrowers, developers, investors, national brokerage firms and financial institutions.”

TPG RE Finance Trust is also reducing its exposure to the office segment in all aspects, from originations, redemptions to proactive portfolio management. The company’s asset allocation in the office segment fell below 40% of its entire portfolio, from 52.3% a year earlier. The company also focused more on multi-family residential communities. The share of multi-family communities rose to 31% from 17% a year earlier.

Types of TRTX Loans

Types of TRTX Loans (Company Website)

The company has another exposure of 12% in hotels and 9% in the life sciences sector. TPG RE Finance Trust has a loan portfolio of $5.6 billion, primarily bridging loans and soft bridge loans. Of this $5.6 billion, $5.1 billion is the outstanding principal balance (UPB), thus having a very low proportion of unpaid interest, which means a better collection rate.

The entire loan portfolio is made up of variable rate loans, which has the advantage of not being affected by the series of interest rate increases. However, as the interest rate rises, this could likely affect the demand for new mortgages and restructured loans. Fortunately, over 38% of the total loan portfolio was created post-COVID-19, and the entire loan portfolio has a weighted average maturity somewhere in 2031.

TRTX loan portfolio

TRTX loan portfolio (Company Website)

Investment thesis

TPG RE Finance Trust Inc. can be considered as an investment option solely on the basis of a consistently high dividend yield. Hopefully the company will be able to sustain this high yield as it has a good credit spread, high D/E ratio and the entire loan portfolio is at variable interest rate. However, there is an extremely high risk of price loss. As a result, existing shareholders must cover their investments.

TPG RE Finance Trust four and seven month forward put options are available for an exercise date of October 21, 2022 and January 20, 2023, respectively. The lowest available strike price is $7.5, which is 16-18% lower than the current price. The $7.5 put option on these two dates is available at a very low premium ranging from $0.05 to $0.65. Existing investors may want to buy these put options at the lowest possible premium, say less than $0.25, to protect their investments and enjoy a double-digit return.

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Buyout loans sell at a discount as recession fears rise https://bobsbirdhouse.com/buyout-loans-sell-at-a-discount-as-recession-fears-rise/ Thu, 16 Jun 2022 14:17:10 +0000 https://bobsbirdhouse.com/buyout-loans-sell-at-a-discount-as-recession-fears-rise/ Placeholder while loading article actions Last week, bankers led by JPMorgan Chase & Co. applied the biggest discount seen in 2022 on a leveraged loan just to get the $1.5 billion deal off the books and into the hands of investors. . The debt was sold at a price equivalent to 89 cents for every […]]]>
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Last week, bankers led by JPMorgan Chase & Co. applied the biggest discount seen in 2022 on a leveraged loan just to get the $1.5 billion deal off the books and into the hands of investors. . The debt was sold at a price equivalent to 89 cents for every dollar borrowed to support the merger of two private equity firms, Material Handling Systems Inc. and Fortna Inc., Bloomberg News reported. This promises a handsome return for investors – but it will be disappointing, and possibly costly, for the banks involved.

This is not a bad one-time transaction. Borrowers and investors are seeing a sharp rise in interest costs and slashed prices in the market for risky and poorly rated loans. Soaring inflation and fears of potential recessions ravaging stocks, bonds, currencies and crypto are also hurting lending. This is a problem for banks that take out loans and resell them to investment funds. The average discount on loans sold over the past month is the highest in a decade with prices averaging 95.5 cents on the dollar, according to Citigroup Inc. analyst Michael Anderson.

JPMorgan, for its part, has significantly reduced its exposure to the leveraged loan market over the past year. Daniel Pinto, chief operating officer, recently told investors that the bank had reduced its share of deals done but not yet sold to 6% of the market in May, from more than 20% at the start of 2021. That share has fallen further since, according to a senior banker at the company who declined to be identified as the risk of being stuck with unwanted and unsellable debt has steadily increased.

When the market freezes or slows, banks may end up having to sell loans at low prices, which may reduce their fees or lead to outright losses, or they may have to keep them on their balance sheets, which reduces their ability to generate new revenue. new offers. At worst, they find themselves stuck lending to a company that cannot repay its debt. Banks guard against this by agreeing in advance with borrowers the option of selling loans at a discount or raising interest rates before selling, with the business bearing the costs. If a borrower disagrees, the loan is not taken out – and it happened this year.

Sales of new loans this quarter are at lower volumes even than during the start of the Covid pandemic in 2020. Two weeks to the end of June, the US market at $149 billion is on track for its most weak quarterly issuance since the first three months of 2015, according to data compiled by Bloomberg. In Europe, issuance currently stands at 5.9 billion euros ($6.1 billion), which is expected to be the worst since the first quarter of 2009.

It is above all the worries linked to the recession that make investors nervous. Leveraged loans pay a floating interest rate that increases with higher central bank rates. It’s good for investors up to a point; but when rates rise rapidly, higher debt service charges can quickly put borrowers in trouble.

For all risks, it’s not redux 2008 for leveraged loans for several reasons. During this crisis, banks around the world found themselves stuck with hundreds of billions of dollars in debt representing more than a quarter of the total market. Today, the volume of loans made and not sold is both lower value and a much smaller fraction of a much larger market.

Additionally, some investors are more willing to grab cheap deals when the market is in trouble. Citi’s Anderson notes that there is a flurry of so-called “print and sprint” transactions being made by secured loan bond managers. These debt-funded investment vehicles are created to quickly redeem existing loans that are trading at low prices, rather than spending weeks slowly buying new loans as they are created. As quick investors, they can help support prices in a jittery market.

Another difference over the past decade is the growth of private credit funds, which have become an industry of around $1.5 trillion. Some of the biggest managers, such as Blackstone Credit, Stone Point Capital or Antares Capital have become loan arrangers as well as investors, with the aim of increasing returns with additional fees and ensuring that they get a much of the loans they want. That means they’re in direct competition with investment bankers: In a recent deal for software company Kofax Inc., private lenders accounted for about half of the loan arrangers, according to Bloomberg. This might help spread the pain in a worsening downturn.

There are a lot of things that could go wrong with leveraged loans, especially if Western economies tip into recession. And some banks are always going to make bad calls to the companies they’re trying to bring to market. But for now at least, leveraged bankers appear to be facing a slowdown in earnings rather than impending balance sheet disasters.

More from Bloomberg Opinion:

• Decisive people are not better decision makers: Thérèse Raphaël

• The stock market has one more shoe to drop: John Authers

• How close are we really to the inflation of the 1970s? : Burgess, He and Winger

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

More stories like this are available at bloomberg.com/opinion

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Lument Finance Trust, Inc. (NYSE:LFT) sees sharp rise in short-term interest https://bobsbirdhouse.com/lument-finance-trust-inc-nyselft-sees-sharp-rise-in-short-term-interest/ Mon, 13 Jun 2022 07:15:20 +0000 https://bobsbirdhouse.com/lument-finance-trust-inc-nyselft-sees-sharp-rise-in-short-term-interest/ Lument Finance Trust, Inc. (NYSE: LFT – Get Rating) was the target of a significant increase in short-term interest in May. As of May 31, there was short interest totaling 101,000 shares, a 95.0% increase from the May 15 total of 51,800 shares. Based on an average daily trading volume of 129,400 shares, the day-to-cover […]]]>

Lument Finance Trust, Inc. (NYSE: LFT – Get Rating) was the target of a significant increase in short-term interest in May. As of May 31, there was short interest totaling 101,000 shares, a 95.0% increase from the May 15 total of 51,800 shares. Based on an average daily trading volume of 129,400 shares, the day-to-cover ratio is currently 0.8 days.

NYSE:LFT shares opened at $2.62 on Monday. Lument Finance Trust has a 12-month low of $2.31 and a 12-month high of $4.48. The company’s 50-day moving average price is $2.62 and its two-hundred-day moving average price is $3.08. The company has a quick ratio of 7.16, a current ratio of 7.16 and a leverage ratio of 4.56. The company has a market capitalization of $136.83 million, a P/E ratio of 10.92 and a beta of 1.19.

Lument Finance Trust (NYSE:LFT – Get Rating) last released its results on Monday, May 9. The tech company reported earnings per share (EPS) of $0.05 for the quarter, missing analyst consensus estimates of $0.09 per ($0.04). Lument Finance Trust posted a net margin of 25.54% and a return on equity of 8.24%. In the same quarter last year, the company achieved EPS of $0.11. As a group, stock analysts expect Lument Finance Trust to post 0.28 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, April 15. Investors of record on Thursday, March 31 received a dividend of $0.06. The ex-dividend date was Wednesday, March 30. This represents a dividend of $0.24 on an annualized basis and a dividend yield of 9.16%. Lument Finance Trust’s dividend payout ratio is 100.00%.

A number of brokerages have recently commented on LFT. LADENBURG THALM/SH SH downgraded Lument Finance Trust from a ‘buy’ rating to a ‘neutral’ rating in a Thursday, March 17 report. Raymond James lowered his price target on shares of Lument Finance Trust from $4.50 to $3.75 and set an “outperform” rating on the stock in a Thursday, March 17 report. One analyst rated the stock with a hold rating and four have issued a buy rating for the company’s stock. According to MarketBeat.com, Lument Finance Trust has a consensus rating of “Buy” and an average target price of $4.31.

In related news, CEO James Peter Flynn purchased 13,500 shares of Lument Finance Trust in a trade dated Monday March 21. The shares were acquired at an average cost of $2.82 per share, with a total value of $38,070.00. The purchase was disclosed in a filing with the Securities & Exchange Commission, accessible via this hyperlink. Additionally, director James Christopher Hunt acquired 15,000 shares of Lument Finance Trust in a transaction that took place on Monday, March 21. The shares were acquired at an average cost of $2.79 per share, with a total value of $41,850.00. Disclosure of this purchase can be found here. Over the past 90 days, insiders have purchased 54,500 shares of the company valued at $147,490. Insiders hold 2.00% of the shares of the company.

Several large investors have recently changed their positions in the stock. Deltec Asset Management LLC increased its stake in Lument Finance Trust by 140.7% during the 1st quarter. Deltec Asset Management LLC now owns 827,430 shares of the technology company worth $2,267,000 after purchasing an additional 483,703 shares last quarter. Advisor Group Holdings Inc. increased its position in Lument Finance Trust by 154.9% during the 1st quarter. Advisor Group Holdings Inc. now owns 368,847 shares of the technology company worth $1,011,000 after buying an additional 224,170 shares in the last quarter. BlackRock Inc. increased its position in Lument Finance Trust by 3.1% during the 4th quarter. BlackRock Inc. now owns 172,876 shares of the tech company worth $664,000 after buying an additional 5,260 shares last quarter. Geode Capital Management LLC increased its position in Lument Finance Trust by 7.0% during the 3rd quarter. Geode Capital Management LLC now owns 123,847 shares of the technology company worth $490,000 after buying 8,101 additional shares last quarter. Finally, Citigroup Inc. acquired a new stake in Lument Finance Trust during the 1st quarter for a value of approximately $331,000. Institutional investors and hedge funds hold 59.65% of the company’s shares.

Lument Finance Trust Company Profile (Get an assessment)

Lument Finance Trust, Inc, a real estate investment trust, is focused on investing, financing and managing a portfolio of commercial real estate (CRE) investments in the United States. The Company invests primarily in transitional variable rate commercial mortgages on mid-market multi-family assets; and other CRE-related investments, including mezzanine loans, preferred shares, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments .

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Pioneer Floating Rate Fund, Inc. (NYSE:PHD) Short Interest Down 66.7% in May https://bobsbirdhouse.com/pioneer-floating-rate-fund-inc-nysephd-short-interest-down-66-7-in-may/ Sat, 11 Jun 2022 14:53:16 +0000 https://bobsbirdhouse.com/pioneer-floating-rate-fund-inc-nysephd-short-interest-down-66-7-in-may/ Pioneer Floating Rate Fund, Inc. (NYSE:PHD – Get Rating) saw a significant decline in short-term interest in May. As of May 31, there was short interest totaling 6,400 shares, down 66.7% from the May 15 total of 19,200 shares. Based on an average daily volume of 57,400 shares, the short interest ratio is currently 0.1 […]]]>

Pioneer Floating Rate Fund, Inc. (NYSE:PHD – Get Rating) saw a significant decline in short-term interest in May. As of May 31, there was short interest totaling 6,400 shares, down 66.7% from the May 15 total of 19,200 shares. Based on an average daily volume of 57,400 shares, the short interest ratio is currently 0.1 day.

A number of institutional investors and hedge funds have recently increased or reduced their stakes in the stock. Bank of America Corp DE increased its holdings in Pioneer Floating Rate Fund by 7.1% in the first quarter. Bank of America Corp DE now owns 231,577 shares of the investment management firm worth $2,425,000 after acquiring 15,301 more shares last quarter. Royal Bank of Canada increased its holdings in the Pioneer Floating Rate Fund by 14.5% during the first quarter. Royal Bank of Canada now owns 94,515 shares of the investment management company worth $990,000 after acquiring 12,001 more shares last quarter. Landscape Capital Management LLC purchased a new stake in Pioneer Floating Rate Fund during the first quarter for a value of approximately $146,000. Fiera Capital Corp increased its holdings in the Pioneer Floating Rate Fund by 28.0% during the first quarter. Fiera Capital Corp now owns 45,189 shares of the investment management company worth $473,000 after acquiring 9,893 more shares last quarter. Finally, Trustcore Financial Services LLC increased its holdings in Pioneer Floating Rate Fund by 120.9% during the first quarter. Trustcore Financial Services LLC now owns 110,982 shares of the investment management company worth $1,162,000 after acquiring an additional 60,751 shares in the last quarter.

Shares of the Pioneer Floating Rate Fund traded down $0.06 in Friday trading, hitting $9.26. The stock had a trading volume of 86,761 shares, compared to an average volume of 53,304. The stock has a fifty-day moving average price of $9.77 and a two-hundred-day moving average price of 10, $81. Pioneer Floating Rate Fund has a 52-week low of $9.11 and a 52-week high of $12.21.

The company also recently announced a monthly dividend, which will be paid on Thursday, June 30. Investors of record on Thursday, June 16 will receive a dividend of $0.06 per share. This represents an annualized dividend of $0.72 and a yield of 7.78%. The ex-date of this dividend is Wednesday, June 15. This is a positive change from the Pioneer Floating Rate Fund’s previous monthly dividend of $0.06.

Pioneer Floating Rate Fund Company Profile (Get a rating)

Pioneer Floating Rate Fund, Inc is a fixed-income, fixed-income mutual fund launched and managed by Pioneer Investment Management, Inc. It invests in the United States fixed-income securities markets. The fund invests primarily in senior secured floating rate loans. He compares the performance of his portfolio to that of Barclays US

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Impact of rising interest rates: try to repay your mortgage early https://bobsbirdhouse.com/impact-of-rising-interest-rates-try-to-repay-your-mortgage-early/ Thu, 09 Jun 2022 20:15:00 +0000 https://bobsbirdhouse.com/impact-of-rising-interest-rates-try-to-repay-your-mortgage-early/ Home loans and other retail loans will become more expensive as the Reserve Bank of India raised the repo rate by 50 basis points (bps) on Wednesday, the second rise in two months, taking it to a total hike of 90 bps. Typically, loans linked to repo rates have a faster transmission of rate increases, […]]]>

Home loans and other retail loans will become more expensive as the Reserve Bank of India raised the repo rate by 50 basis points (bps) on Wednesday, the second rise in two months, taking it to a total hike of 90 bps. Typically, loans linked to repo rates have a faster transmission of rate increases, which is faster for new floating rate loans.

For existing variable rate loans linked to the repo rate, higher rates will be charged based on borrowers’ interest review dates. Until then, they would continue to pay their existing interest rates.

Impact on mortgages
A 50 basis point increase in the repo rate will raise the EMI on a Rs 30 lakh home loan with a term of 20 years by Rs 910. Similarly, for a loan of Rs 50 lakh for the same duration, the EMI will increase by Rs 1,517 and for a loan Rs 1 crore, the increase will be Rs 3,035.

With the total increase of 90 basis points in the repo rate, the EMI on a Rs 30-lakh home loan will increase by Rs 1,627, Rs 2,711 for a Rs 50-lakh loan and Rs 5,422 for a Rs 1-crore loan, all for a term of 20 years. If borrowers choose not to increase the EMI, the term of the loan can increase up to 46 months.

Auto loans will also become more expensive for new borrowers. A 50 basis point hike in the repo rate will raise the EMI for a seven-year car loan of Rs 10 lakh by Rs 347. However, those who took out a fixed interest rate loan will be spared.

Start prepaying
Any change in the benchmark external lending rate, such as a repo rate, will result in faster transmission compared to the marginal cost of the funds-based lending rate, where rates are reset quarterly. If a borrower has a variable rate loan, the EMI may be fixed for the term, but the term itself will increase as interest rates rise.

Home loan interest rates, which had bottomed out at around 6.5% in April, will now approach 7.5% in June. Adhil Shetty, CEO of BankBazaar.com, says the key is to repay the loan on time. “Use prepayment methods such as EMI increases or lump sum payments to control your interest burden,” he says.

Chaitali Dutta, founder of AZUKE Personal Finance Advisory, said borrowing for discretionary spending could drop and retail borrowing is expected to be hit with only end-user accepting home loans. “To avoid paying additional interest throughout the term of the loan, and if cash flow permits, it would be better to increase the EMI than to increase the term of the loan,” she says.

Alternative options
New and existing home loan borrowers with limited cash can opt for the home ownership savings option in which an overdraft account is opened where a borrower can park their excess and withdraw it as per their financial needs. The interest component of the loan is calculated after deduction of the surpluses parked in the account of the outstanding amount of the mortgage.

Naveen Kukreja, CEO and Co-Founder of Paisabazaar.com, says that many existing home loan borrowers may have seen a substantial improvement in their credit profile due to improved credit score, job or their income profile after receiving a home loan. “These borrowers should explore the possibility of saving on interest charges through home loan balance transfer. Their improved credit profile may make them eligible for home loans at much lower rates from other lenders” , he said.

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Betsson Considers Issuance of New Senior Unsecured Bonds and Announces Tender Offer for its Outstanding 2019/2022 Bonds https://bobsbirdhouse.com/betsson-considers-issuance-of-new-senior-unsecured-bonds-and-announces-tender-offer-for-its-outstanding-2019-2022-bonds/ Wed, 08 Jun 2022 06:31:08 +0000 https://bobsbirdhouse.com/betsson-considers-issuance-of-new-senior-unsecured-bonds-and-announces-tender-offer-for-its-outstanding-2019-2022-bonds/ Press release Betsson AB (publication) BETON CONSIDER ISSUE OF NEW SENIOR UNSECURED BONDS AND ANNOUNCES PUBLIC OFFER FOR ITS OUTSTANDING 2019/2022 BONDS 2022-06-08 DO NOT DISTRIBUTE IN OR IN OR TO ANYONE LOCATED OR RESIDENT IN UNITED STATESITS TERRITORIES AND POSSESSIONS (INCLUDING PORTO RICOTHE US VIRGIN ISLANDS, GUAM, AMERICAN SAMOAWAKE ISLAND AND THE NORTHERN MARIANA […]]]>

Press release Betsson AB (publication)

BETON CONSIDER ISSUE OF NEW SENIOR UNSECURED BONDS AND ANNOUNCES PUBLIC OFFER FOR ITS OUTSTANDING 2019/2022 BONDS

2022-06-08

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Betsson AB (post) (“Betsson“or the”Company“) has mandated Nordea as sole bookrunner to organize credit investor meetings from June 9, 2022 study the possibility of issuing new senior unsecured notes denominated in EUR (the “New bondsA capital markets operation will follow, subject to market conditions.

As part of the issue of the New Bonds, Betsson offers to holders of the Company’s outstanding floating rate senior unsecured debentures maturing on September 26, 2022 with ISIN SE0013110814 and outstanding SEK 1,000,000,000 (there “Obligations“) to tender Bonds for redemption by the Company for cash within the limit of the total nominal amount of the New Bonds issued (the “Take-over bid“) at a price of 100.50% of the nominal amount. The Bonds will be bought back under the terms and conditions of the tender documents of the June 8, 2022 (there “Information document on the call for tenders“) and the redemption of the Bonds is conditional on the success of the issue of New Bonds.

Bondholders who validly tender their Bonds will be eligible to receive priority in the allocation of the New Bonds subject to the conditions set out in the Tender Information Document. Bondholders who subscribe to New Bonds will thus be able to benefit from priority in the Tender Offer.

The Tender Information Document is available on the Company’s website via the following link: www.betssonab.com.

The Tender Offer expires upon the close of the bookbuilding process for the New Notes, unless extended, reopened, withdrawn or terminated at the sole discretion of the Company (the “Expiration date“). The Expiration Date will be announced as soon as practicable after the opening of the bookbuilding process for the New Notes. Settlement of the Tender Offer is expected to occur approximately five business days after the Expiration Date and whenever possible on the same day as the settlement of the New Bonds.

The terms and conditions of the Bonds will continue to apply to bondholders who do not participate in the Tender Offer, or whose Bonds are not accepted for redemption by the Company. However, subject to the completion of an issue of New Bonds for a minimum amount of SEK 1,000,000,000of June 26, 2022 Betsson intends to exercise its right to voluntarily redeem in full the Bonds not tendered to the Tender Offer, in accordance with the terms and conditions relating to the Bonds. The Bonds will, upon voluntary full redemption, be redeemed at a price equal to 100.00% of the nominal amount (plus accrued but unpaid interest).

The Company has appointed Nordea to act as sole bookrunner for the issue of the New Bonds and as dealer manager for the Tender Offer. Gernandt & Danielsson has been appointed as legal counsel.

Dealer Manager:

Nordea Bank Abp:
+45 6136 0379, NordeaLiabilityManagement@nordea.com

For more information, please contact:

Martin Ohman, Chief Financial Officer Betsson AB
martin.ohman@betssonab.com

This information is information that Betsson AB (publ) is required to make public in accordance with the Securities Market Act (Sw. lagen (2007:528) om värdepappersmarknaden). The information has been submitted for publication, through the contact person listed above, The 8th June 2022, 08.30 IT IS.

About Betsson AB
Betsson AB (publ) is a holding company that invests in and manages fast-growing online gaming businesses. The company is one of the most important in the field of online games in Europe and has the ambition to outpace the market, organically and through acquisitions. This should be done in a cost-effective and sustainable way, and with local adaptations. Betsson AB is listed on Nasdaq Stockholm (BETS B).

https://news.cision.com/betsson-ab/r/betsson-considers-issue-of-new-senior-unsecured-bonds-and-announces-tender-offer-for-its-outstand,c3581503

https://mb.cision.com/Main/1067/3581503/1589906.pdf

(c) Decision 2022. All rights reserved., sources Press Releases – English

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RBI Policy: How will a further repo rate hike impact your EMI loans? https://bobsbirdhouse.com/rbi-policy-how-will-a-further-repo-rate-hike-impact-your-emi-loans/ Mon, 06 Jun 2022 04:53:08 +0000 https://bobsbirdhouse.com/rbi-policy-how-will-a-further-repo-rate-hike-impact-your-emi-loans/ You should evaluate the personal loan interest rates offered by several NBFCs and banks before applying for a personal loan from a certain bank. However, while choosing to get a personal loan or a home loan, many people approach the bank where they have their main account. When you compare the interest rates of different […]]]>

You should evaluate the personal loan interest rates offered by several NBFCs and banks before applying for a personal loan from a certain bank. However, while choosing to get a personal loan or a home loan, many people approach the bank where they have their main account. When you compare the interest rates of different banks, you may find that another bank gives personal loans and home loans at a much lower rate.

The Reserve Bank of India (RBI) raised the repo rate by 40 basis points to 4.40% on May 4 from 4% previously. A basis point is one hundredth of a percentage point. The repo rate was reduced in May 2020 and remained stable until the recent hike. In addition, the cash reserve ratio (CRR) was raised by 50 basis points, which put additional upward pressure on interest rates. As the increase took effect immediately, borrowers could expect higher EMIs, while FD investors should expect higher returns on new FDs.

Meanwhile, according to a Mint analyst poll, the RBI could raise the repo rate by 50 basis points and improve the cash reserve ratio (CRR) at its meeting this week to control inflation. . The central bank’s Monetary Policy Committee (MPC) will meet June 6-8.

According to five out of 10 economists polled by Mint, MPC is expected to raise the repo rate from 4.4% to 4.9%, with the rest expecting a 35-40 basis point hike to 4.75-4.8 %. Half of those surveyed expect a 25 to 50 basis point increase in CRR, the percentage of deposits that banks must hold in reserve with the RBI.

Moreover, with retail inflation reaching 7.79% in April, the government announced several measures to contain the prices of essential goods, banning or restricting exports of wheat, sugar and iron ore. Consequently, the majority of economists expect the monetary policy committee to revise its inflation forecast upwards.

The EMI for fixed rate loans, such as car and personal loans, remains the same for the entire term of the loan. Therefore, the timing of your loan application is crucial. When you take out a low-interest loan, you can keep that rate for the life of the loan, even if the general interest rate goes up.

In contrast, for mortgage borrowers, the timing of taking out the loan is less critical as they typically borrow at variable rates. Rising rates may not have a substantial impact on interest payments and EMI payments. As a result, even if you enter at a cheaper rate now, you will have to pay a higher rate later if the lender raises their interest rates.

You don’t have to worry about the repo rate if you have an existing fixed rate loan. However, if you have floating rates on an existing loan or are planning to take out a loan – fixed or variable rate, you may have to pay a higher rate if the RBI raises the repo rate further.

Present the rates of personal loans in different banks

Bank Interest rate (pa) Processing fee
Capital Aditya Birla 14% per year -26% per year Up to 2%
Axis Bank 12% per year – 21% per year At the discretion of the bank
Bank of Baroda 10.50% per year – 12.50% per year Up to 2%
Bank of India 10.35% per year – 12.35% per year Up to 2%
Bank of Maharashtra 9.45% per year – 12.80% per year Up to 1%
central bank of india 9.85% and above Up to 1%
Citibank 9.99% per year – 16.49% per year Up to 3%
city ​​union bank 12.75% per year 1.00% subject to a minimum of Rs.250
federal bank 10.49% per year – 17.99% per year Up to 3%
Fullerton India 11.99% per year – 36% per year Up to 6%
HDFC Bank 10.5% per year – 21.00% per year Up to 2.50%
Real estate loan cash loan 19% per year – 49% per year 0%-5%
HSBC Bank 9.50% per year – 15.25% per year Up to 1%
IDBI Bank 8.15% per year – 10.90% per year Contact the bank
First IDFC Bank 10.49% per year and more Up to 3.5%
IIFL 24% per year and more 2% and more
Overseas Indian Bank 9.30% per year – 10.80% per year Up to 0.50%
IndusInd Bank 10.49% per year – 31.50% per year 3% and more
J&K Bank 10.80% per year Up to Rs.500
Bank of Karnataka 12% per year – 17% per year Maximum of Rs.8,500
Karur Vysia Bank 9.40% per year – 19.00% per year 0.30% and more
Kotak Mahindra Bank 10.25% and more Up to 2.5%
National Bank of Punjab 7.90% per year Up to 1.00%
RBL Bank 14% per year – 23% per year Up to 3.5%
Bank of South India 10.60% per year – 18.10% per year Up to 2%
National Bank of India 9.60% per year – 15.65% per year Up to 1.50%
Tata Capital 10.99% and more Up to 2.75%
TurboLoan Powered by Chola 15% – 21% (fixed) per year 3.00%
Ujjivan Small Finance Bank 11.49% per year – 16.49% per year At the discretion of the bank
Yes Bank From 10.99% per year – 16.99% per year At the discretion of the bank Up to 2.50%

Source: Bank Bazaar

Present the mortgage rates in different banks

Financial Avails 8.00% 1.00%
Aditya Birla 9.00% 1%
Axis Bank 6.90% Rs. 10,000
Bandhan Bank 6.40% -13.50% 1% (Rs.5,000)
Bank of Baroda 6.90% to 8.25% Contact the bank for more information
Bank of India 6.90%
Bank of Maharashtra 6.80% Rs. 10,000
Canara Bank 7.05% per year to 9.30% per year 0.50% of the loan amount subject to a minimum of Rs. 1,500, and a maximum of Rs. 10,000
central bank of india 6.85% Rs. 20,000
Citibank 6.75% Rs. 10,000
DBS Bank 7.30% 0.25% (10,000 rupees)
Dhanlaxmi Bank 7.85% Rs. 10,000
Housing finance dhfl 8.75% Rs.2500
federal bank 7.65% Rs. 3,000 rupees. 7,500
GIC Housing Finance 7.45% Rs. 2,500
HDFC LTD 7.00%* Rs. 3,000 rupees. 5,000 (plus tax)*
HSBC Bank 6.45% 1% (10,000 rupees)
Hudco home loan 9.45% N / A
IDBI Bank 6.75% 0.50% (2,500 rupees – 5,000 rupees)
First IDFC Bank 6.50% Rs. 5,000 rupees. 5,000
IIFL 10.50% 1.25%
Housing Finance in India 12.00% 2.00%
Indebulls 7.60% 0.50% and more
Overseas Indian Bank 7.05% 0.50% (Max Rs. 20,000)
Bank of Jammu and Kashmir 7.20% Rs.500 Rs.10,000
Bank of Karnataka 7.50% Rs.250
Karur Vysia Bank 7.20% Rs.5,000
Kotak Mahindra Bank 7.00% per annum to 7.60% per annum 0.50%
LIC Housing Finance 6.90% Rs. 10,000 -Rs. 15,000
GNP housing finance 6.99% Up to 0.50%
Bank of Punjab and Sindh 6.85% Full Waiver
National Bank of Punjab 6.50% 0.35% (Max Rs. 15,000)
Reliance real estate financing 9.75% Rs. 3,000 rupees. 6,500
Saraswat Bank Home Loan 6.70% None
Sriram housing 8.90% N / A
Bank of South India 7.85% 0.50% (Rs. 5,000 – Rs. 10,000)
Standard Chartered Bank 7.99% 1%
National Bank of India 7.05% per year -10.85% per year 0.35% and more
Sundaram Real Estate Finance 6.95% Rs.3,000 (for employees)
Commercial Bank of Tamilnad 8.25% Rs. 15,000
Tata Capital 6.90% 0.50%
UCO Bank 6.50% 0.15% (Rs. 1,500 – Rs. 15,000)
Union Bank of India 6.90%
United Bank of India 8.00% 0.59% (1,180 rupees – 11,800 rupees)
Yes Bank 8.95% 1% (10,000 rupees)

Source: Bank Bazaar

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RBI imposes penalty on Punjab and Sind Bank: 5 things customers need to know | Personal finance news https://bobsbirdhouse.com/rbi-imposes-penalty-on-punjab-and-sind-bank-5-things-customers-need-to-know-personal-finance-news/ Sat, 04 Jun 2022 07:30:04 +0000 https://bobsbirdhouse.com/rbi-imposes-penalty-on-punjab-and-sind-bank-5-things-customers-need-to-know-personal-finance-news/ New Delhi: The Reserve Bank of India (RBI) on Friday, June 3, said in a statement that it had imposed a sanction on Punjab & Sind Bank. The bank added that the fine was imposed on the public sector lender for failing to comply with certain instructions it had issued on “external reference-based lending”. “This […]]]>

New Delhi: The Reserve Bank of India (RBI) on Friday, June 3, said in a statement that it had imposed a sanction on Punjab & Sind Bank. The bank added that the fine was imposed on the public sector lender for failing to comply with certain instructions it had issued on “external reference-based lending”. “This sanction has been imposed in the exercise of the powers granted to RBI under the provisions of Section 47 A (1) (c) read together with Sections 46 (4) (i) and 51 (1) of the Act Banking Regulation Act 1949 (the Act),” the RBI said in its statement.

5 things to know about RBI penalty on Punjab and Sind Bank

1. RBI imposed a fine of Rs 27.50 lakh on Punjab and Sind Bank.

2. Punjab and Sind Bank should note that “RBI’s action is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered into by the bank with its customers”.

3. RBI added that a statutory review of Punjab & Sind Bank revealed non-compliance with instructions, among others, to the extent that the bank linked certain retail floating rate loans and floating rate loans to micro and small businesses, granted by it after October 1, 2019 to MCLR in lieu of an external benchmark.

4. RBI also issued a show cause notice to the bank. Read also: Bank FD: HDFC Bank against PNB against IDFC Bank; Check the latest interest rates

5. “After reviewing the bank’s response to the notice, the oral submissions made at the personal hearing and consideration of the additional submissions made by it, RBI has come to the conclusion that the prosecution of non-compliance…was well-founded and warranted the imposition of a monetary fine penalty…” RBI said. Read also: EPF Interest Rates at 40-Year Low! Should You Withdraw from EPF Check the pros, cons

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