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Top savings rates drop, but signing up to a platform could boost your interest

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Interest rates on the best fixed savings deals have fallen in recent weeks, after hitting highs not seen in more than a decade.

At the beginning of this month, the best one-year rates reached 4.65%. Now the best offer pays only 4.36%.

The best corrections over two years, three years and five years had moved to 5% or even more. Now, the best solution over two years returns 4.81%, the best over three years returns 4.85% and the best over five years returns 4.9%.

Now or never? Fixed-rate savings appear to have reached the end of their upward trajectory – at least for now

Experts are urging savers who may have been sitting on the fence waiting for savings rates to rise further to grab the best deals while they can.

Rachel Springall, finance expert at Moneyfacts, said: “Savers will find that providers have revised their spot interest rates over the past few weeks, with a particular focus on fixed rate bonds.”

“Since the last inflation announcement, some of the major fixed-rate bonds have seen cuts, but more adjustments may be coming.”

Springall added: “Savers may need to act quickly if they want to take advantage of the current rates on offer.”

“Savers who are willing to lock in their money for a year will find that the top rate is significantly higher than last year at 1.35%.

“Notable improvements have been made in longer-dated fixed bonds since last year.”

– Find the best fixed rate savings deals on our independent best-buy tables

How to use a savings platform and get a cash bonus

One way for savers to find the best fixed rate deals is through savings platforms.

These platforms allow savers to register and manage accounts with different banks in one place. This means they can transfer money between providers and get the best rates with less administration.

Go online: While savings platforms don't have all the accounts out there, they tend to have some of the best deals out there.

Go online: While savings platforms don’t have all the accounts out there, they tend to have some of the best deals out there.

Platforms such as Hargreaves Lansdown and Raisin UK are currently home to some of these highest rates. Both are free and currently offer cash bonuses for joining.

Investors sign up for Hargreaves Lansdown Platform, Active Savings* for the first time you can win up to £100 in bonus cash. However, they will have to be quick because the offer ends at the end of the month.

The amount of cashback savers will depend on their investment. For example, those who invest £10,000 will get £20, while those who invest £80,000 will get £100.

Hargreaves Lansdown's platform is offering tiered cashback to new members until the end of this month

Hargreaves Lansdown’s platform is offering tiered cashback to new members until the end of this month

The best the two-year patch on the Hargreaves platform earns 2.75% and its best five-year contract earns 4.9%* – in line with the best offers in the market at large.

However, by counting the bonus cash with the interest it generates, savers will effectively get an even better deal.

For example, £10,000 in the best two-year fixed rate deal paying 2.75% will effectively increase to 2.85% with the added £20 bonus.

Raisin UK, another free savings platform, is currently offering a £30 welcome bonus to This is Money readers who open a new Raisin account via this link* or any link from our website.

It offers savers the chance to increase their savings by £30 when they open an account on its marketplace with a minimum of £10,000.

His the best solution over a year returns 4.36%*, his the best solution over two years yields 4.75*, the the best salary over three years 4.85%* and the best deals over five years 4.9%* – all online with the best rates you can get in the wider market.

Someone who saves £10,000 in Raisin’s best one-year deal can effectively get an interest rate of 4.66%, once the £30 bonus is included.

Should I register on a savings platform?

Cash held on savings platforms currently accounts for less than 1% of all UK savings, according to savings website, The Savings Guru.

However, savings platforms arguably simplify the process for savers by helping them track their accounts more easily and move money faster.

They may not always offer the best rates on the market, but they allow customers to manage multiple accounts in one place.

This means that with one online account, savers can open multiple savings accounts with many different banks as and when needed, without the usual form filling and administration.

For those with large amounts of savings, another key benefit of using a savings platform is that they are able to spread the FSCS protection granted to each individual banking license.

The Financial Services Compensation Scheme (FSCS) is the UK’s deposit guarantee scheme, which provides protection of up to £85,000 per person or £170,000 in the case of joint accounts, with each bank or building society eligible with which they register.

By allowing savers to access multiple providers, savings platforms allow them to spread FSCS protection across their multiple holdings, without the need to apply for accounts individually with each bank.

For example, if they saved with six different banks which were all covered by the FSCS, they would be protected up to £85,000 in each account – notwithstanding any additional funds they might hold with the bank separately apart from the platform.

Currently, there are only a handful of savings platforms.

Raisin and Hargreaves Lansdown rivals include Slab, AJ Bell Cash Savings Centerand To safeguard.

Some links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any business relationship to affect our editorial independence.

A look at the fair value of Elektro Maribor dd (LJSE:EMAG)

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Today we are going to do a simple overview of a valuation method used to estimate the attractiveness of Elektro Maribor dd (LJSE:EMAG) as an investment opportunity by estimating cash flow company’s future and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don’t be put off by the jargon, the underlying calculations are actually quite simple.

We draw your attention to the fact that there are many ways to value a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. Anyone interested in learning a little more about intrinsic value should read the Simply Wall St.

Our analysis indicates that EMAG is potentially undervalued!

The calculation

As Elektro Maribor dd operates in the electric utility business, we have to calculate the intrinsic value slightly differently. Instead of using free cash flow, which is difficult to estimate and often not reported by industry analysts, dividend payments per share (DPS) are used. Unless a company pays the majority of its FCF as a dividend, this method will generally underestimate the value of the stock. We use Gordon’s growth model, which assumes that the dividend will grow in perpetuity at a rate that can be sustained. For a number of reasons, a very conservative growth rate is used which cannot exceed that of a company’s Gross Domestic Product (GDP). In this case, we used the 5-year average of the 10-year government bond yield (0.6%). The expected dividend per share is then discounted to its present value at a cost of equity of 5.9%. Compared to the current share price of €2.5, the company appears to be approximately fair value at a 9.4% discount to the current share price. Ratings are imprecise instruments, however, much like a telescope – move a few degrees and end up in another galaxy. Keep that in mind.

Value per share = Expected dividend per share / (Discount rate – Perpetual growth rate)

= €0.1 / (5.9% – 0.6%)

= €2.8

LJSE: discounted cash flow EMAG November 23, 2022

Important assumptions

We emphasize that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don’t have to agree with these entries, I recommend that you redo the calculations yourself and play around with them. The DCF also does not take into account the possible cyclicality of an industry, nor the future capital needs of a company, so it does not give a complete picture of a company’s potential performance. Since we consider Elektro Maribor dd as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which takes debt into account. In this calculation, we used 5.9%, which is based on a leveraged beta of 0.800. Beta is a measure of a stock’s volatility relative to the market as a whole. We derive our beta from the average industry beta of broadly comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

SWOT analysis for Elektro Maribor dd

Strength
  • Earnings growth over the past year has exceeded its 5-year average.
  • Debt is well covered by income.
Weakness
  • Earnings growth over the past year has lagged that of the electric utility industry.
  • The dividend is low compared to the top 25% dividend payers in the electric utility market.
Opportunity
  • The current stock price is below our estimate of fair value.
  • The lack of analyst coverage makes it difficult to determine EMAG’s earnings outlook.
Threatens
  • Debt is not well covered by operating cash flow.

Next steps:

Although the valuation of a business is important, it will ideally not be the only piece of analysis you will look at for a business. The DCF model is not a perfect stock valuation tool. Instead, the best use of a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, if the terminal value growth rate is adjusted slightly, it can significantly change the overall result. For Elektro Maribor dd, we have compiled three relevant aspects that you should consider:

  1. Risks: For example, we spotted 4 warning signs for Elektro Maribor dd you should be aware, and 2 of them don’t suit us too much.
  2. Other high-quality alternatives: Do you like a good all-rounder? Explore our interactive list of high-quality actions to get an idea of ​​what you might be missing!
  3. Other top analyst picks: Interested to see what the analysts think? Take a look at our interactive list of analysts’ top stock picks to find out what they think could have attractive future prospects!

PS. The Simply Wall St app performs a discounted cash flow valuation for every stock on the LJSE every day. If you want to find the calculation for other stocks, search here.

Valuation is complex, but we help make it simple.

Find out if Elektro Maribor dd is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Bank of England predicts over £30bn in annual QE losses

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LONDON, Nov 22 (Reuters) – The British government may have to pay the Bank of England more than 30 billion pounds ($36 billion) next year and also in 2024 to cover losses from its easing program quantitative (QE), according to a report released by the central bank showed on Tuesday.

The BoE started buying government bonds in 2009 and the size of the QE program peaked at £895bn in December 2021, including £20bn of corporate bonds.

Under the terms originally agreed, the UK Treasury receives all the benefits of QE – but must compensate the BoE for any losses.

Since 2009, the BoE has paid the UK government £123 billion, which is the difference between the interest the BoE received on its bond holdings and the near-zero interest it paid to banks that deposited cash with of the BoE.

Now that the BoE is increasing the interest rate it pays banks, these flows have started to reverse. Last month, the UK Treasury paid £828m to the BoE to cover QE losses.

The cost is bound to increase rapidly. Last week the UK’s Office for Budget Responsibility, the country’s fiscal watchdog, forecast the government would have to pay £133bn to the BoE until the end of March 2028, wiping out the department’s earlier profits finances.

The BoE updated its own projections on Tuesday in the form of a chart in a quarterly report on its asset purchases.

This showed projected annual net cash flows from the UK Treasury to the BoE of over £30bn in 2023 and 2024 – roughly in line with the OBR projections, which are based on exercises and use different assumptions .

By 2033, the cumulative net loss from the QE program could range from less than £50 billion to almost £200 billion, depending on how interest rates move, according to projections.

Two former BoE deputy governors have said the BoE should consider paying interest to banks only on a portion of the deposits they hold at the BoE to limit losses.

BoE Governor Andrew Bailey said the current system helps ensure that rate hikes are properly transmitted to the wider economy.

The BoE stopped reinvesting the proceeds of matured gilts from its £875bn of QE gilts in February, and this month began active gilt selling.

($1 = 0.8411 pounds)

Reporting by David Milliken; edited by Barbara Lewis

Our standards: The Thomson Reuters Trust Principles.

Forges a unique bond between China and the rest of the world

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SINGAPORE and BEIJING, November 22, 2022 /PRNewswire/ — Coinsa global cross-border payments network, today announced its partnership with Tencent Financial Technology, the fintech arm of Tencent, becomes the first payment infrastructure partner to connect to it. This collaboration will allow members of Thunes’ global network to send international payments to Weixin users, giving them quick and easy access to the Chinese market.

Weixin, with its international version known as WeChat, facilitates one of China most popular payment methods Pay Weixinwith the majority of Weixin and WeChat’s 1.3 billion users concentrated in China. Now, existing members and new members of the Thunes global network can send payments to Weixin users by Chinacreating additional income opportunities for them: from a Chinese engineer in East Africa who are looking to send money to family back home, to young professionals working in the United States who want to transfer money to their parents in China. partnership of Thunes with Tencent Financial technology will speed up and simplify payments from all over the world.

China is now considered a global leader in digital payments and payment innovation, and mobile payments are at the forefront of evolution. We are excited to bring the ability to connect our global customers to Weixin’s huge consumer base, creating tremendous opportunities for service enhancements and revenue generation for all members of our ecosystem,” said Daphne HuangSVP APAC, Thunes.

Wenhui YangGeneral director, Tencent Asia-Pacific FinTech, said, “We are always looking for better ways to serve our users, so it is only natural for us to partner with a global network like Thunes, which makes it easier and cheaper for Weixin users to receive money. worldwide. This decision reinforces the seamless payment experience, and we are working to make cross-border transfers as easy as sending a message.”

The news follows Announcement of Thunes of plans to intensify partnerships and accelerate its expansion earlier this year. This collaboration not only brings the two companies closer to the future of payment without borders, but it also opens up new possibilities for product innovation and service improvement for Thunes’ customers – Fintech players, financial institutions, neobanks and suppliers. portfolios around the world.

For more information, visit www.thunes.com

SOURCE Thunes

Personal loan interest rates continue to rise for 3 and 5 year fixed rate loans

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Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest personal loan interest rate trends from Credible Marketplace, updated weekly. (iStock)

Borrowers with a good credit application personal loans in the past seven days pre-qualified for higher rates for 3- and 5-year fixed rate loans compared to the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender between November 14 and November 20:

  • Rates on 3-year fixed-rate loans averaged 12.92%, down from 12.53% the previous seven days and from 11.72% a year ago.
  • Rates on 5-year fixed-rate loans averaged 16.12%, down from 15.94% the previous seven days and from 14.09% a year ago.

Personal loans have become a popular means of consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses like medical billstake care of a major purchase or finance home improvement projects.

Personal loan interest rates have increased over the past seven days for 3 and 5 year fixed rate loans. Rates on 5-year loans increased by 0.18 percentage points, while 3-year loans saw a larger increase of 0.39 percentage points. In addition to today’s increases, interest rates for both loan terms are higher than they were this time last year. Yet borrowers can take advantage of interest savings now with a 3- or 5-year personal loan. Both loan terms offer significantly lower interest rates than higher cost borrowing options like credit cards.

Whether a personal loan is right for you often depends on several factors, including the rate you may qualify for. Comparing several lenders and their rates could help you get the best possible personal loan for your needs.

It’s always a good idea to comparison store on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest personal loan interest rate trends from the Credible Marketplace, updated monthly.

Personal Loan Weekly Rate Trends

The table above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For the month of October 2022:

  • 3-year personal loan rates averaged 12.37%, down from 11.65% in September.
  • 5-year personal loan rates averaged 15.84%, down from 15.60% in September.

Personal loan rates vary widely depending on credit rating and length of loan. If you’re curious about what kind of personal loan rates you might qualify for, you can use an online tool like Credible to compare the options of different private lenders. Checking your rates will not affect your credit score.

All Credible Marketplace lenders offer fixed rate loans at competitive rates. Since lenders use different methods to assess borrowers, it’s a good idea to ask for personal loan rates from multiple lenders so you can compare your options.

Current personal loan rates by credit score

In October, the average prequalified rate retained by borrowers was:

  • 9.90% for borrowers with a credit score of 780 or higher choosing a 3-year loan
  • 29.90% for borrowers with a credit score below 600 who choose a 5-year loan

Depending on factors such as your credit score, the type of personal loan you are looking for, and the repayment term of the loan, the interest rate may differ.

As the chart above shows, a good credit rating can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

How to get a lower interest rate

Many factors influence the interest rate a lender can offer you for a personal loan. But there are steps you can take to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help you improve your credit score over time include:

  • Pay your bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Check your credit file to make sure there are no errors. If you find any errors, dispute them with the credit bureau.
  • Reduce your credit utilization rate. Paying off credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Apply for and open only the credit accounts you really need. Too many serious inquiries on your credit report in a short time could lower your credit score.

Choose a shorter loan term

Personal loan repayment terms can vary from one to several years. Typically, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter period.

If your financial situation allows it, applying for a shorter term could help you get a lower interest rate. Keep in mind that the shorter term doesn’t just benefit the lender – by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

Get a co-signer

You may be familiar with the concept of a co-signer if you have student loans. If your credit isn’t good enough to qualify for the best personal loan interest rates, find a co-signer with good credit could help you get a lower interest rate.

Remember that if you are unable to repay the loan, your co-signer will have to repay it. And co-signing a loan could also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders generally offer the most competitive rates and can be quicker to disburse your loan than a physical establishment.

But don’t worry, comparing rates and terms doesn’t have to be a tedious process.

Credible is easy. Simply enter the amount you wish to borrow and you can compare multiple lenders to choose the one that suits you best.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,500 positive Trustpilot reviews and a TrustScore of 4.7/5.

In South Dakota and Nebraska Deep Red, voters used ballot initiatives to reduce inequality

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This fall, in the run-up to the midterm elections, a group of Catholic nuns, Protestant ministers and other religious leaders caravanned through South Dakota on what they called a “Love Your Neighbor Tour.” .

They stopped at grocery stores, restaurants, senior centers, libraries and other community gathering places to start conversations about health insurance. They heard story after story of family members, friends and neighbors struggling to afford quality health care.

The purpose of this tour: to build support for a ballot initiative to help more South Dakotans get the care they need.

Through such initiatives, citizens can circumvent elected officials who have become disconnected from their constituents.

In this year’s elections, voters in more than 30 states committed to this form of direct democracy. These voters raised taxes on the wealthy in Massachusetts and Los Angeles, funded universal preschool and child care in New Mexico, and clamped down on medical debt in Arizona.

In South Dakota, the “Love Your Neighbor” campaign won big. By a margin of 56 to 44, voters approved a proposal to force their state government to expand Medicaid eligibility, a move that will help about 42,500 working-class people get treatment.

These people earn too much to qualify for the state’s existing Medicaid program, but too little to access private insurance through the Affordable Care Act. Since 2010, the federal government has covered 90% of the costs when states expand Medicaid, but political leaders in South Dakota and 11 other states have refused to do so.

This isn’t the first time South Dakotans have used effective strategies of people-to-people organizing and ballot initiatives for the good of their neighbors.

In 2016, a bipartisan coalition with strong support from the faith community won a stunning victory against financial predators, winning 76% support for an election measure to impose a 36% cap on loan interest rates. on salary. Previously, those rates averaged around 600% in South Dakota, trapping many low-income families in a downward spiral of debt.

In this midterm election season, Nebraska offers another inspiring example of citizen action to circumvent out-of-touch politicians.

For 13 years now, Republicans in Congress have blocked efforts to raise the federal minimum wage, leaving it stuck at $7.25 since 2009. Nebraska’s entire congressional delegation — all Republicans — have always opposed the hikes minimum wage. Rep. Adrian Smith, for example, recently attacked President Biden’s $15 federal minimum proposal as “economically harmful.”

Nebraskans see the issue differently.

Voters there approved an increase in the state minimum wage to the same level Biden has proposed — $15 an hour — by 2026. The measure, which was accepted with 58% support, will mean bigger paychecks for about 150,000 Nebraskas.

Chipper Cash to Buy Zoona to Expand Payments

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Pan-African cross-border payment app Cash shredder reportedly intends to acquire Zambian fintech Zoona Transactions International.

The deal, subject to government approval, would bring Chipper Cash new online services, a new agent network and an entry into Zambia, TechCabal reported Friday (November 18).

In a Friday Publish On LinkedIn, Chipper Cash wrote: “In exciting news, we today announced the proposed acquisition of Zoona Group, which includes all services under the Tilt Africa brand.

Chipper Cash and Zoona did not immediately respond to PYMNTS’ request for comment.

According to TechCabal’s report, Chipper Cash executives said the deal would bring together complementary products and services, allow the two companies to connect consumers and businesses across Africa, and position them as the “financial services provider choice” on the continent.

Zoona’s Tilt service has processed more than $3 billion in transactions since its launch in 2008, according to the report.

Chipper Cash offers free personal and cross-border payments to Africa and is available in Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa, Kenya, UK and US, according to The report.

“Bringing these businesses together under the Chipper umbrella will mean we can open even more borders, bring quality financial services to life in more countries and connect more people across the continent,” said Chipper Cash, vice-president president of business development. Laura Kennedy said in the report.

The report comes a year after Chipper Cash closed a $150 million Series C expansion funding cycle at a valuation of over $2 billion.

Earlier that year, the startup dabbled in social payments through a partnership with Twitter, using its Tip Jar-enabled African users to tip directly on the platform. At the time, Chipper Cash had over 4 million users and was on a mission to make transferring money as easy as texting.

How consumers pay online with stored credentials
Convenience drives some consumers to store their payment credentials with merchants, while security concerns give other customers pause. For “How We Pay Digitally: Stored Credentials Edition,” a collaboration with Amazon Web Services, PYMNTS surveyed 2,102 US consumers to analyze the consumer dilemma and reveal how merchants can overcome holdouts.

Personal loan interest rates increase slightly for 3 and 5 year fixed rate loans

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Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders, all opinions are our own.

The latest personal loan interest rate trends from Credible Marketplace, updated weekly. (Stock)

Borrowers with a good credit application personal loans in the past seven days pre-qualified for higher rates for 3- and 5-year fixed rate loans compared to the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender between November 10 and November 16:

  • Rates on 3-year fixed-rate loans averaged 12.74%, down from 12.36% the previous seven days and from 11.72% a year ago.
  • Rates on 5-year fixed rate loans averaged 16.10%, down from 15.93% the previous seven days and from 14.09% a year ago.

Personal loans have become a popular means of consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses like medical billstake care of a major purchase or finance home improvement projects.

Personal loan interest rates have increased over the past seven days for 3 and 5 year fixed rate loans. Rates on 5-year loans increased by 0.17 percentage points, while 3-year loans saw a larger increase of 0.38 percentage points. In addition to today’s increases, interest rates for both loan terms are higher than they were this time last year. Yet borrowers can take advantage of interest savings now with a 3- or 5-year personal loan. Both loan terms offer significantly lower interest rates than higher cost borrowing options like credit cards.

Whether a personal loan is right for you often depends on several factors, including the rate you may qualify for. Comparing several lenders and their rates could help you get the best possible personal loan for your needs.

It’s always a good idea to comparison store on sites like Credible to understand how much you qualify for and choose the best option for you.

Here are the latest personal loan interest rate trends from the Credible Marketplace, updated monthly.

Personal Loan Weekly Rate Trends

nov-18-credible-trends.jpg

The table above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For the month of October 2022:

  • 3-year personal loan rates averaged 12.37%, down from 11.65% in September.
  • 5-year personal loan rates averaged 15.84%, down from 15.60% in September.

Personal loan rates vary widely depending on credit rating and length of loan. If you’re curious about what kind of personal loan rates you might qualify for, you can use an online tool like Credible to compare the options of different private lenders. Checking your rates will not affect your credit score.

All Credible Marketplace lenders offer fixed rate loans at competitive rates. Since lenders use different methods to assess borrowers, it’s a good idea to ask for personal loan rates from multiple lenders so you can compare your options.

Current personal loan rates by credit score

Credible-chart-nov-18.jpg

In October, the average prequalified rate retained by borrowers was:

  • 9.90% for borrowers with a credit score of 780 or higher choosing a 3-year loan
  • 29.90% for borrowers with a credit score below 600 who choose a 5-year loan

Depending on factors such as your credit score, the type of personal loan you are looking for, and the repayment term of the loan, the interest rate may differ.

As the table above shows, a good credit rating can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.

How to get a lower interest rate

Many factors influence the interest rate a lender can offer you for a personal loan. But there are steps you can take to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps that can help you improve your credit score over time include:

  • Pay your bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Check your credit file to make sure there are no errors. If you find any errors, dispute them with the credit bureau.
  • Reduce your credit utilization rate. Paying off credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Apply for and open only the credit accounts you really need. Too many serious inquiries on your credit report in a short time could lower your credit score.

Choose a shorter loan term

Personal loan repayment terms can vary from one to several years. Typically, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter period.

If your financial situation allows it, applying for a shorter term could help you get a lower interest rate. Keep in mind that the shorter term doesn’t just benefit the lender – by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

Get a co-signer

You may be familiar with the concept of a co-signer if you have student loans. If your credit isn’t good enough to qualify for the best personal loan interest rates, find a co-signer with good credit could help you get a lower interest rate.

Remember that if you are unable to repay the loan, your co-signer will have to repay it. And co-signing a loan could also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest rates. Online lenders generally offer the most competitive rates and can be quicker to disburse your loan than a physical establishment.

But don’t worry, comparing rates and terms doesn’t have to be a tedious process.

Credible is easy. Simply enter the amount you wish to borrow and you can compare multiple lenders to choose the one that suits you best.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,500 positive Trustpilot reviews and a TrustScore of 4.7/5.

Tesco launches salary advance scheme for staff – Benefits

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Supermarket chain Tesco has introduced a benefit that will allow its 280,000 employees to access 25% of their contractual salary earlier.

The scheme, provided by Salary Finance, costs a one-off fee of £1.49 upfront and aims to help staff avoid payday loans or high-interest debt.

Tesco and Tesco Mobile staff across the UK will be able to apply online for an agreed percentage of their earned wages and receive it within 24 hours of application. They can only take one advance per pay period, with the amount automatically refunded on their next payday.

The employer has piloted the scheme with over 6,000 employees working in department stores and convenience stores in Liverpool over the past year, with the average amount of the advance being £99 and 51 per cent using it to make in the face of an unforeseen expense. Three-quarters (77%) said it had given them a more positive image of Tesco as an employer.

James Goodman, UK Human Resources Director at Tesco, said: “We know that colleagues can face unexpected bills, such as car repairs or the replacement of a washing machine, which can leave them short. To give them a hand with their financial well-being, we’ve launched Pay Advance to give them an easy and inexpensive way to access some of the money they’ve already earned. We hope this will help support colleagues, especially in the run up to Christmas.

Tesco gave its hourly-paid staff a second pay rise for 2022 in October, raising pay by almost 8% over the year, and is also offering a 10% cut on groceries, rising to 15 % each pay weekend. Between December 13 and 19, the discount will double to 20%.

The retailer also offers its workforce financial assistance and training on developing better financial habits, alternatives to high-cost borrowing, and help with building savings and planning for retirement, as well as its employee assistance and MoneyHelper for all financial questions.

Which banks passed on November’s RBA rate hike to mortgage borrowers? What’s in it for savers?

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Earlier this month, the Reserve Bank of Australia (RBA) raised the target cash rate by 0.25 percentage points to 2.85%.

As of yesterday (Wednesday, November 16), most of the major banks had passed on the increase to customers.

But while mortgage rate hikes were the same across the board, it’s a different story for savings accounts.

Here’s a breakdown of how the big banks reacted to the RBA’s November decision.

ANZ Bank

Mortgage rate: Variable interest rates on home loans increased by 0.25% per annum on Friday, November 11.

Savings rate: Plus Save account interest rates increased from 0.25% to 3.5% on Thursday, November 10.

Commonwealth Bank

Mortgage rate: Variable interest rates on home loans increased by 0.25% on 11 November.

Savings rate: Increased prices for the following products:

  • NetBank Saver: The standard variable rate increased from 0.25% to 1.35%, with the five-month introductory rate increasing from 0.5% to 3.5%.
  • GoalSaver with bonus interest rate: Increase from 0.3% to 2.7%
  • Youthsaver with bonus rate: Increase from 0.3% to 2.9%.

Macquarie Bank

Mortgage rate: The benchmark variable rates for home loans increased by 0.25% on 16 November.

Savings rate: Increased prices for the following products:

  • Savings and Current Accounts: Prevailing interest rates rose 0.25% to 3.45% on November 16
  • Savings account introductory rate over four months: Increase from 0.25% to 4.25% on November 3
  • Term deposits: Interest rates increased by 0.25% to 3% per annum for a three month term, 3.6% for a six month term, 3.65% for a nine month term and 4. 1% for a period of 12 months. due November 3.

NAB

Mortgage rate: The standard variable interest rate for home loans increased by 0.25% on 11 November.

Savings rate: Increased prices for the following products:

  • iSaver introductory rate over four months: Increase from 0.5% to 3.5%
  • Saver Reward Bonus: Increase from 0.25% to 2.75%.

Suncorp Bank

Mortgage rate: Variable interest rates on home loans increased by 0.25% on 11 November.

Savings rate: As of November 2, Suncorp’s 12-month term deposit rate was 4%.

Westpac Bank

Mortgage rate: Variable interest rates on home loans increased by 0.25% on November 15.

Savings rate: Prices have increased for the following products effective November 9:

  • Westpac Life: Total variable rate with bonus interest increased from 0.9% to 3.5%
  • Five-month Westpac eSaver introductory rate: Total variable rate increased from 0.95% to 3.5%
  • A term deposit : As of November 4, Westpac’s 12-23 month term deposit rate was 3.75% per annum.

How will this impact my mortgage repayments?

RateCiy estimates that the existing average variable homeownership rate is now 5.61%.

If you are facing mortgage stress you can contact the National Debt Helpline 1800 007 007 to speak to a financial adviser.

What is the advice for savers?

RateCity Director of Research Sally Tindall’s advice is to shop around.

“Don’t assume your bank passes on the RBA hike every month,” she said.

“Give your savings account a health check against the competition at least every two months.

“Savers should aim for a continuous rate well above the cash rate, at a minimum.

“As these fares become easier to find, customers will likely need to be proactive in obtaining them.”

Will rates go up again?

Probably, but we don’t know by how much.

In a statement after this month’s meeting, RBA Governor Phillip Lowe said the board planned to raise rates further.

“The size and timing of future interest rate increases will continue to be determined by incoming data and the Board’s assessment of the outlook for inflation and the labor market,” he said.

“The Board remains resolute in its determination to bring inflation back to target and will do what is necessary to achieve this.”

Will the RBA meet again this year?

Yes, the last meeting of the year will be on December 6th.

But the next meeting of the RBA board will not take place until February 7.

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Oppenheimer & Co. Inc. Announces 5th Annual Blockchain and Digital Asset Summit

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Virtual conference to explore the development of Web 3.0 and the creator economy, including DeFi and NFT, payments and remittances, capital markets and the regulatory landscape

NEW YORK, November 16, 2022 /PRNewswire/ — Oppenheimer & Co. Inc. (“Oppenheimer”) – a leading investment bank, wealth manager and subsidiary of Oppenheimer Holdings (NYSE: OPY) – today announced that its fifth annual Blockchain and Asset Summit digital: Web 3.0 and the economy of creators, will be held tomorrow, November 17. The virtual event will feature a group of high profile companies leading the continued development of the blockchain ecosystem, including Blockchain.com, Coinbase, Fidelity Digital Assets and Silvergate Capital Corporation. You can register here.

Timothy Horansenior analyst for cloud and communications, and Owen Lau, senior analyst for exchanges, information analytics and asset managers at Oppenheimer, said: “The potential to access the Internet in new ways based on blockchain technology is rapidly taking shape, along with significant opportunities. for the expansion of decentralized finance in the era of Web 3.0. This will influence everything from distributed wireless infrastructure to the evolution of private market funds. As an increasingly diverse array of investors seek to learn more about the adoption of digital assets, this virtual conference demonstrates how Oppenheimer is committed to bringing together innovators and thought leaders from around the world.”

The summit will feature presentations, panels and one-on-one meetings covering important trends in the blockchain and digital asset ecosystem, including applications of DeFi and NFT, payments and remittances, market infrastructure of capital, the regulatory landscape and more. Companies present will include:

  • Apollo, a listed international provider of alternative assets with over 30 years of experience serving institutional and individual investors across the risk spectrum.
  • Blockchain.comamong the world’s most popular means of purchase bitcoins, Ethereum and more with confidence. Its platform allows users to securely store, trade, exchange and buy major cryptocurrencies.
  • Coinbase, a publicly traded platform for accessing the wider cryptoeconomy. Around 103 million verified users, 14,500 institutions, and 245,000 ecosystem partners in over 100 countries trust Coinbase to invest, spend, save, earn, and use crypto.
  • Loyalty digital assetsa subsidiary of Fidelity Investments that operates as a separate business, dedicated to creating products and services that help institutions embrace digital assets and innovate in the increasingly digital world of finance.
  • Trick Technologiesa lender focused on using the proven power of Provenance Blockchain for loan origination, equity management, private fund services, banking and payments, transforming the trillion financial services industry dollars.
  • Silvergate Capital Corporation, a pioneering provider of financial infrastructure solutions and services for the digital currency industry. The company offers a real-time payment platform to an ever-growing list of digital currency companies and investors around the world.

Erica L. Moffett, Managing Director and Associate Director of Research at Oppenheimer, said, “We are delighted to welcome the pioneering group of companies, investors and speakers who are attending our fifth annual Blockchain and Digital Assets Summit. . Their insights come at a critical time for the future of Web 3.0 and the creator economy, as new use cases for these technologies emerge, established platforms continue to mature, and financial markets turn into a response. Throughout the event, Oppenheimer will facilitate and contribute to lively conversations using our own unique perspectives in this region.”

Oppenheimer & Co. Inc.
Oppenheimer & Co. Inc. (Oppenheimer), a principal subsidiary of Oppenheimer Holdings Inc. (NYSE OPY), and its affiliates provide a full range of wealth management, securities brokerage and investment banking services to high net worth individuals. individuals, families, business leaders, local authorities, companies and institutions.

Media contacts:
Joseph Kuo / Michael Dugan
Haven Tour Group LLC
424 317 4851 or 424 317 4852
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SOURCEOppenheimer & Co. Inc.

Livemore Capital returns to market with fixed rate deals

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End-of-life lender Livemore Capital has returned to the mortgage market with a range of fixed-rate-only mortgage products for borrowers aged 50 to 90 and over.

The lender products temporarily suspended at the end of Septemberwhich she said was due to the dislocation of the UK money and money markets.

The products follow a four-tier structure, which allows brokers to meet customer needs with criteria at each level.

The different tier criteria can suit clients with ‘simple requirements’ to ‘more complex credit profiles’.

There are also options available for debt consolidation, non-standard property construction and mortgage.

The range consists of retirement interest-only and term interest-only mortgage products with maximum loan-to-value (LTV) ratios of 60 and 75% respectively.

Rates start at 7.75% for 5 and 10 year fixed rate mortgages between £10,000 and £1.5m.

Leon Diamond (Photo)CEO of Livemore Capital, said it was “great to be lending again” as people aged 50 to 90 and over are “underserved by the mortgage market”.

He added: “In the current economic climate, they need us more than ever. We offer them the broadest criteria in the market, some of the highest loan amounts, and welcome all incomes to assess affordability, including pensions or rental income.

“People need options and flexibility, that’s what we’re looking for. Our products are uniquely structured into four tiers to help us take into account all sorts of circumstances, including complex credit histories or even past arrears.

Diamond went on to say that he manually underwrites all cases so that each case is “evaluated on its own merits.”

“Whether you’re 50 or 90, you know you’ll get a fair hearing with Livemore,” he said.

Worried about a recession? 5 things you can do today

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Image source: Getty Images

Recessions come and go. The best you can do is be prepared to take them out.


Key points

  • Recessions are an integral part of the business cycle. They can also be painful for the average consumer.
  • Today, reworking your family budget is a good first step.
  • Now is the time to consider other sources of income that will help you through the tough times.

Look, we’ve had a crazy few years. It’s safe to say that few of us emerged unscathed. In addition to worries about a global pandemic, we have had to contend with inflation and a beating drum of analysts saying a recession is near.

Whether analysts correctly predict a recession does not matter. What matters is that you know you’ve done everything you can to prepare. That way, when another recession hits, you’ll be prepared.

1. Rework your family budget

Few of us like the word “budget”. Yet your family budget acts like a financial GPS, reminding you which direction you need to go and when you’ve strayed off the beaten track. If you don’t have a budget, it’s easy to create one that works for you. If you have a budget, review it.

What can you cut? Even though we are years away from the next recession, it is to your advantage to reduce your expenses. The less you waste, the more you save. Here are a few things you can check out today:

  • Auto and home insurance: Don’t assume that the company you’ve worked with for years always offers the lowest rates. Call and get some quotes. Don’t sound like an advertisement here, but you could save hundreds a year.
  • Lawn service: If you’re paying for a full menu of lawn care services, decide if there are a few you can handle yourself. For example, you may still want someone to mow, but you can handle the fertilizing yourself.
  • Races: There are apps available that will help you identify nearby stores that have the best prices on the items you need. Even if you only save $25 per week, that’s $1,300 per year.

2. Focus on high-interest debt

High-interest debt (like credit cards) and horribly high-interest debt (like payday loans with annual interest rates over 400%) are the enemy when it comes to time to protect yourself and your money. This snowball calculator will help you figure out how quickly you can wipe out high-interest debt by paying them a little more each month.

3. Boost your emergency fund

With all you have to do, building an emergency fund can seem impossible. While we don’t suggest doing this overnight, see how much you have left over after paying your bills each month. Let’s say it’s $200. Is there a way to dedicate at least $100 to your emergency savings account?

The idea is to have enough money set aside to cover your monthly bills if you lose your job, get sick, or can’t work.

If you’re not sure how much you should have in an emergency fund, this calculator can help. And if you’re extremely anxious about what a recession would mean for you, you can boost that emergency fund a bit more. If you never have to delve into it, it’s a win-win.

4. Consider alternative revenue streams

Honestly, few of us have time for extra work. But what if you could spend time doing something you love and get paid for it. For example, if you play the guitar, there are plenty of people who would like to take lessons. If you paint, you’ll probably find a group of people who want to learn how to turn a blank canvas into a work of art.

The thing is, everyone has some skill, whether it’s playing chess or baking cupcakes. Look for a way to monetize something you enjoy doing.

5. Get help if needed

If you find yourself deeply in debt, your credit is depleted, and you don’t know how to rebuild, there are organizations designed to help you get back on your feet financially. For example, the National Foundation for Credit Counseling (NFCC) is a nonprofit organization that connects you with an NFCC-certified counselor who will help you create a plan to deal with your existing debt.

You can’t control when the next recession hits or how long it will last. However, you can take steps now to protect your assets in the event of a recession.

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Get Crucial’s BX500 1TB SSD for £56 after a 24% discount

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Crucial’s excellent value DRAM-less QLC SATA SSD, the BX500, is down to £56 on Amazon UK from an RRP of £74. I think that’s a decent saving on a drive that’s ideal for upgrading an older machine or as media/game storage in a new one, where money spent per gigabyte is the primary measure of a suitability reader. (If performance is the goal, then a faster NVMe SSD is the way to go.) And by that measure, this drive is nearly off the scale, costing just 5.6 pence per gigabyte.

Interest rate hike to reduce corporate bond issuance by 4-5% in current fiscal year – find out what this report says

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Corporate bond issuance is expected to remain subdued, growing 4-5% this fiscal to hit Rs 41.42 lakh crore on the rise in coupon rates, despite the drop more than doubling in the second quarter, according to a report.

Bond sales more than doubled to Rs 2.1 lakh crore in the second quarter from the first quarter, when they were at a multi-year quarterly low of Rs 1 lakh crore, as banks issued bonds worth a record Rs 53,900 crore, and NBFCs, traditionally the biggest players in the market, issuing securities worth Rs 1.1 lakh crore in the second quarter, according to an analysis by Icra Ratings.

Non-bank lenders remained the largest bond issuers with a 47% share in the first half, followed by corporates and banks at 33 and 20%, respectively, compared to 50, 40 and 10%, respectively, compared to at S1FY22. , according to the report.

Thanks to exceptional sales in the second quarter, overall bond issuance increased to Rs 3.3 lakh crore in the first half, and the agency expects sales of Rs 3.7 to 4.2 lakh crore in the second half of FY23 slightly higher than a year ago, taking the volume of outstanding bonds to Rs 41-42 lakh crore by March 2023. However, this translates into moderate annual growth of only 4-5%, net of redemptions, with additional issuance increasing by Rs 7-7.5 lakh crore, up from Rs 6.8 lakh crore in FY22.

The agency attributes the weak volume growth to the rising interest rate regime, which will force issuers to offer higher coupon rates/higher yields, which could increase investor appetite.

The agency expects yields on the 10-year G-Sec (government securities) to harden to 7.7% in the short term and to remain between 7.3 and 7.7% in the long term, which will also cause corporate bond yields to rise.

Even though domestic bond issuance more than doubled in the second quarter, external commercial borrowing (ECB) remained subdued due to rising overseas funding costs.

In the first five months of FY23, ECB approvals sought from the Reserve Bank fell 24% to $8.3 billion. Given the larger increase in policy rates by central banks and the resulting higher costs of borrowing abroad, overall borrowing costs for domestic firms have been higher than domestic financing costs and should remain so in the short term.

This is expected to keep approvals low in FY23 at USD 30-35 billion, compared to YSD 38.6 billion in FY22 and USD 35.1 billion in FY21 , according to the agency.

While the RBI’s policy tightening is likely to continue, the magnitude of the incremental hikes could be less than that seen since May 2022.

Icra plans gradual increases in key rates until December 2022, with a 25-35 basis point increase followed by a pause. Additionally, with a large government borrowing program and a gradual rate hike of 25-35 basis points, 10-year G-Sec rates are expected to tighten to 7.7% in the near term and remain between 7.3 % and 7.7% in the long term.

The agency projects net outflows from the foreign portfolio investors (REITs) segment of $8 billion to $13 billion in FY23, compared with an outflow of $16 billion in FY22. But that could fall if the US Fed signals lower than previously quoted rate hikes in the future.

Opinion: Plan for the worst-case scenario of lower expected Social Security payments by finding income elsewhere

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If your retirement date falls after 2034, the current estimate of your future Social Security benefits may not hold up.

That’s when the government fund that sends the monthly checks might run out of money to be paid in full. If Congress does not strengthen or limit Social Security, anyone age 55 or younger today could face reduced benefits.

“Two years ago, I would have said it was impossible. The adage has always been that there’s not a politician on the planet who’s going to keep their job if they talk about cutting Social Security,” says Kelly LaVigne, vice president of consumer insights at Allianz Life.

But in the current economic and political climate, it is not irrational to worry about the disappearance or compression of social security. A Northwestern Mutual 2022 Planning and Progress Study found that 43% of respondents were unconvinced that Social Security would be there for them when they needed it.

Regardless of the outcome of the 2022 midterm elections, Congress will be evenly divided and will continue to be dogged by deadlock. Changes to Social Security could come simply from legislative inaction if it lasts long enough.

During this time, the latest consumer price index figures show that inflation is slowing, but is still high enough to cause concern. That could lead to another big Social Security Cost of Living Adjustment (COLA), eroding the fund even faster. A month ago, the government said COLA would rise by 8.7% in 2023, the biggest increase in four decades.

So if you’re under 55, it’s time to take stock of what retirement with reduced Social Security looks like for you.

How to do the new calculations

Remember, you don’t have to go all the way to zero on your estimate of your future Social Security benefits.

“Young people should always be optimistic about receiving some level of Social Security benefits,” says Geoff Manville, senior director of government affairs at benefits consultant Mercer.

When Devin Carroll, a Social Security expert who founded the blog Social security information, runs his own retirement projections, he cuts the number in half. The impact this will have on you depends on how much you have saved and how much income you need to generate in retirement.

“If you take someone who is around 40 and making $100,000 now, their projected Social Security is around $3,000 a month. Then you have to look at how much you need to have in retirement money to replace that. It’s a big chunk of money,” Carroll says.

You need to consider a few additional parameters, such as whether Social Security will continue to pay spousal benefits to non-working spouses, which can be up to half the amount of the primary earner’s check. Or, perhaps, it could just be limited to higher income levels.

The full Social Security retirement age may also be pushed back beyond 67 in the future, so you may need to factor in more years of coverage for your expenses. Certain provisions of the proposed Secure 2.0 bill could also affect the funding of future retirements, such as the age at which to begin required minimum distributions (RMDs) from qualified plans.

To make approximate calculations, you can use a online retirement calculator which allows you to adjust the Social Security amount.

If you look at this 40-year-old couple earning $100,000, you can see how much of a difference it makes to them to retire at 67 and receive $6,000 a month combined in Social Security compared to half of this amount. If the couple saves 10% of their salary and they’ve already saved $50,000 so far, they’ll have $1.1 million in retirement and cover more than 60% of their current expenses, according to the AARP calculator. . With half the Social Security amount, this couple would have a shortfall of nearly $750,000, all things being equal.

In the worst case, where only one spouse works and the total family benefit is reduced to just $1,500 per month, there could be a shortfall of more than $1 million in retirement.

How to find replacement income

The solution to covering the missing money is one of those simple things that is almost impossible to do: you have to save more.

Better to know now than to be taken aback when it’s too late. You can start by increasing contributions to your 401(k).

“Taking full advantage of workplace retirement plans can help all workers, regardless of age, and build significant savings for their retirement years,” Manville says.

But it may take more than that.

“Have a traditional 401(k) and Roth, but don’t ignore unqualified accounts. These also have benefits,” says Carroll.

It says to keep in mind that you need cash to cover your living expenses before the RMDs take effect. If you keep things simple with an ETF portfolio, you can minimize the tax impact, he adds.

If you want to replace Social Security’s guaranteed income with some sort of monthly check until you die, it’s hard to match. You should consider some type of annuity product, which can be expensive and complicated.

“Social Security is one of the few assets that has the ability to pay for two lives which can also increase with cost of living adjustments to offset the effects of inflation. It’s also tax-efficient income,” says LaVigne. “There’s not much that can do that.”

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Is there an opportunity with the 50% undervaluation of Universal Health Services, Inc. (NYSE: UHS)?

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In this article, we’ll estimate the intrinsic value of Universal Health Services, Inc. (NYSE: UHS) by estimating the company’s future cash flows and discounting them to their present value. Our analysis will use the discounted cash flow (DCF) model. Patterns like these may seem beyond a layman’s comprehension, but they’re pretty easy to follow.

We generally believe that the value of a company is the present value of all the cash it will generate in the future. However, a DCF is just one of many evaluation metrics, and it is not without its flaws. Anyone interested in learning a little more about intrinsic value should read the Simply Wall St.

Our analysis indicates that UHS is potentially undervalued!

The method

We use the 2-stage growth model, which simply means that we consider two stages of business growth. In the initial period, the company may have a higher growth rate, and the second stage is generally assumed to have a stable growth rate. In the first step, we need to estimate the company’s cash flow over the next ten years. Wherever possible, we use analysts’ estimates, but where these are not available, we extrapolate the previous free cash flow (FCF) from the latest estimate or reported value. We assume that companies with decreasing free cash flow will slow their rate of contraction and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow more in early years than in later years.

A DCF is based on the idea that a dollar in the future is worth less than a dollar today, so we discount the value of these future cash flows to their estimated value in today’s dollars:

10-Year Free Cash Flow (FCF) Forecast

2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Leveraged FCF ($, millions) $418.0 million $559.0 million $666.0 million $759.2 million $838.1 million $904.0 million $959.2 million US$1.01 billion $1.05 billion $1.08 billion
Growth rate estimate Source Analyst x1 Analyst x1 East @ 19.14% Is at 13.99% Is at 10.39% Is at 7.87% Is at 6.1% Is at 4.86% Is @ 4% Is @ 3.39%
Present value (millions of dollars) discounted at 7.2% $390 $486 $540 $574 $591 US$595 $588 $575 $558 $538

(“East” = FCF growth rate estimated by Simply Wall St)
10-year discounted cash flow (PVCF) = $5.4 billion

We now need to calculate the terminal value, which represents all future cash flows after this ten-year period. The Gordon Growth formula is used to calculate the terminal value at a future annual growth rate equal to the 5-year average 10-year government bond yield of 2.0%. We discount terminal cash flows to present value at a cost of equity of 7.2%.

Terminal value (TV)= FCF2032 × (1 + g) ÷ (r – g) = $1.1 billion × (1 + 2.0%) ÷ (7.2%–2.0%) = $21 billion

Present value of terminal value (PVTV)= TV / (1 + r)ten= $21 billion ÷ (1 + 7.2%)ten= $10 billion

The total value is the sum of the cash flows for the next ten years plus the present terminal value, which gives the total equity value, which in this case is $16 billion. To get the intrinsic value per share, we divide it by the total number of shares outstanding. Compared to the current share price of US$112, the company looks quite undervalued at a 50% discount to the current share price. Ratings are imprecise instruments, however, much like a telescope – move a few degrees and end up in a different galaxy. Keep that in mind.

NYSE: UHS Discounted Cash Flow November 10, 2022

Important assumptions

Now, the most important inputs to a discounted cash flow are the discount rate and, of course, the actual cash flows. You don’t have to agree with these entries, I recommend that you redo the calculations yourself and play around with them. The DCF also does not take into account the possible cyclicality of an industry, nor the future capital needs of a company, so it does not give a complete picture of a company’s potential performance. Since we consider Universal Health Services as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which takes debt into account. In this calculation, we used 7.2%, which is based on a leveraged beta of 1.024. Beta is a measure of a stock’s volatility relative to the market as a whole. We derive our beta from the average industry beta of broadly comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

SWOT analysis for universal health services

Strength
  • Debt is well covered by earnings and cash flow.
Weakness
  • Revenues have declined over the past year.
  • The dividend is low compared to the top 25% of dividend payers in the healthcare market.
Opportunity
  • Annual revenues are expected to increase over the next 3 years.
  • Good value based on P/E ratio and estimated fair value.
Threatens
  • Annual earnings are expected to grow more slowly than the US market.

Let’s move on :

Although a business valuation is important, it is only one of many factors you need to assess for a business. DCF models are not the be-all and end-all of investment valuation. Rather, it should be seen as a guide to “what assumptions must be true for this stock to be under/overvalued?” For example, changes in the company’s cost of equity or the risk-free rate can have a significant impact on the valuation. Can we understand why the company is trading at a discount to its intrinsic value? For universal health services, there are three essential elements to consider:

  1. Risks: For example, we found 2 warning signs for universal health services that you must consider before investing here.
  2. Future earnings: How does UHS’ growth rate compare to its peers and the broader market? Dive deeper into the analyst consensus figure for the coming years by interacting with our free analyst growth forecast chart.
  3. Other high-quality alternatives: Do you like a good all-rounder? Explore our interactive list of high-quality actions to get an idea of ​​what you might be missing!

PS. Simply Wall St updates its DCF calculation for every US stock daily, so if you want to find the intrinsic value of any other stock, do a search here.

Valuation is complex, but we help make it simple.

Find out if Universal health services is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Carrefour Brasil’s profit drops nearly 60% due to high interest rates

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SAO PAULO, Nov 9 (Reuters) – Carrefour Brasil (CRFB3.SA) on Wednesday reported third-quarter adjusted net profit that fell 59% from a year earlier, hit by high interest rates on the increasing debt of the distributor following its acquisition of Grupo GROS.

The Brazilian branch of French supermarket giant Carrefour (CARR.PA) posted a quarterly profit of 256 million reais ($49.5 million) against 621 million reais in the same period last year.

The company pointed to the high interest rates on its debt, as well as the costs it incurred in its acquisition of Grupo BIG, one of Brazil’s largest food retailers, which it agreed to buy last year for a price of 7.5 billion reais.

“We’ve had the effect of the cost of acquisition, debt going up, interest rates going up as well. It has a logical effect on the level of bottom line,” chief financial officer David Murciano told reporters. journalists.

“This drop (in earnings) was already expected,” he said.

Carrefour’s net debt almost doubled from a year earlier to almost 19 billion reais, largely thanks to the acquisition, while its operating costs rose 56% to 3.57 billion. of reais.

Brazil’s benchmark interest rate is currently at 13.75% after aggressive monetary tightening aimed at curbing high inflation.

The group’s net sales, however, climbed 40% to 26.38 billion reais, taking its adjusted profit before interest, tax, depreciation and amortization (EBITDA) up 14% to 1.7 billion reais.

Carrefour Brasil announced that it opened six new hybrid wholesale stores and converted seven stores acquired from Grupo BIG during the quarter.

($1 = 5.1740 reais)

Reporting by André Romani, writing by Carolina Pulice; Editing by Sarah Morland

Our standards: The Thomson Reuters Trust Principles.

10 reasons why the digital rupee is the future of money

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The Reserve Bank of India (RBI) has announced that the first pilot of the Digital Rupee – Retail segment is expected to launch within a month in select locations. The central bank said nine banks – State Bank of India (SBI), Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC – have been identified for participation. to the pilot project.

Livemint spoke to experts about why the digital rupee is the future of money

1) Centralized

Central Bank Digital Currency (CBDC) – a new form of digital currency issued by central banks – may well be the new infrastructure we need to build more trust, resilience and efficiency.

Manoj Dalmia, Founder and Director of Proassetz Exchange, said that the money will be in virtual form just like other cryptocurrencies, but the digital rupee will not be decentralized but will be regulated by the Reserve Bank of India (RBI ). The digital rupee will be completely legal and acceptable to the Indian government.

2) Ease of use

Pranav Arora, Managing Director and Head – Applied Intelligence, Accenture in India, said each CBDC unit can be uniquely identified and traced. Second, it could be made programmable, i.e. it is possible to add several dimensions such as prescribed end uses, time limit and transferability. Finally, the CBDC is recorded on distributed ledgers powered by the blockchain, which allows all participants/banks to record transactions and balances.

Taken together, these three differentiating characteristics — identifiability, programmability, and distributed ledgers — can unlock a whole new set of economic possibilities, Pranav Arora added.

3) Worldwide Acceptance

There will be no more geographical limits with the internationalization of current and financial account transactions. “A digital rupee that can be held by non-residents and available for cross-border financial transactions seems a natural extension to enable new retail payment opportunities and new businesses,” said Pranav Arora.

4) Transparency

“The launch of the digital rupee in India should usher in more efficiency, transparency, systemic resilience and governance in our currency management system,” said Pranav Arora.

“RBI data shows that between 2018 and 2020, Indian banks lost around $50 billion to fraud. According to a CVC report, one of the main reasons for the top 100 cases of fraud is the improper end use of loaned funds. While the current system relies on post-clearance checks such as CA audit reports and inventory statements, etc., a digital currency could proactively address these issues with installed programmability and regulated traceability,” said Dalmia.

5) No bank account needed like this for UPI

Anup Nayar, CEO of In-Solutions Global Ltd, said one of the main advantages of the move is that you don’t even have to open a bank account to transact.

6) Payment via Digital Currency or Rupee will be in real time

Once the digital rupee is launched, the government can easily access all transactions within authorized networks, enable real-time account settlements and ledger maintenance, Nayar said.

7) Likely to save operational costs of ticket printing, distribution and storage

According to Anup Nayar, digitized currency will minimize costs related to printing, distribution and cash logistics management.

“Not only will the rollout reduce reliance on cash, but it will remain mobile forever unlike banknotes,” Nayar added.

“India’s propensity to cash of 17%, the ratio of money withdrawn to GDP, is higher than that of Nordic countries, such as the UK and Australia. Switching to digital payments and digital currency could reduce reliance on cash,” Manoj Dalmia said.

8) Governments can access all transactions made within authorized networks

Anup Nayar is of the opinion that the adoption of the digital rupee is also likely to play a pivotal role in allowing easy control of Direct Profit Transfers (DBT), making them relatively faster and reducing malpractices in the payment system. Increasing the efficiency of digital transactions will surely add another dimension to digital governance.

9) Cannot be physically damaged or lost

Archit Gupta, founder and CEO of Clear, said the advantage of digital currency is that it is not torn, burned or physically damaged. They also cannot be physically lost. “The lifeline of a digital currency will be indefinite compared to physical banknotes,” he added.

10) Fraud
The digital rupee can help prevent fraud. Pranav Arora said that while the current system relies on post-clearance audits to prevent fraud, the CBDC could proactively address this with built-in programmability and regulated traceability.

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Can I negotiate a fixed term deposit rate with the bank?

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Getting the highest possible interest rate is key to getting the most out of your term deposit. You can have deposits compared online or discussed your options with a financial advisor, but you may also have questions about negotiating to get a better rate.

When it comes to your savings, you may not realize that you can negotiate the interest rate on your term deposit with your bank. In fact, many banks welcome negotiation when it comes to term deposit rates, especially for deposits over $100,000.

Let’s explore how you can negotiate your fixed term deposit rate with a bank because, after all, if you don’t ask, you don’t get anything.

Steps to negotiate a higher term deposit rate

To gain the upper hand in your negotiations, it might help to identify three things:

  • What price is offered to you?
  • Does the term deposit provider offer higher rates to other customers?
  • Are competitors offering better rates?

Step 1: Does the provider offer better rates?

Spend some time researching the market to find out if your ideal provider offers more competitive rates to other customers. Use our list of companies to see the rates the provider is able to offer.

Keep in mind that these higher rates may apply to different fixed terms, so the provider may encourage you to switch to another fixed term to qualify for this rate. If the term doesn’t suit you, ask anyway if they match that rate for your ideal term.

Step 2: Are competitors offering better rates?

Use our comparison charts to filter a range of term deposits options by their interest rate. You can also enter details such as deposit amount and fixed term to fine-tune your results to suit your personal needs.

If your provider offers you a fixed term deposit rate and a competitor offers a higher one for the same fixed term, you might consider asking the provider to match you, or at least try to do so.

Step 3: Call the provider

You can now pick up the phone and call the term deposit provider. Let the representative know that you’ve seen what they’re willing to offer you as an interest rate, but you’d like a higher rate. Let the representative know:

  1. You know they offer higher rates to other customers and you would like yours to match; and or
  2. A range of competitors are ready to offer you a higher rate.

If you were willing to switch to another fixed rate term to get a higher rate from your term deposit provider, now would be a good time to mention it.

Step 4: Consider your options

If the rep still won’t budge, tell him you’re good to go and he could lose your business. Banks and term deposit providers need your business more than you need theirs, as they use your deposits to help fund things like underwriting home loans.

After all, you now have a list of providers who might offer you a higher rate on your term deposit if you are an eligible candidate. If your provider isn’t playing ball, consider switching to a more competitive option when your current term deposit (if any) comes due.

Everything is negotiable, depending on your deposit

Just like you could negotiate a lower home loan rate with your bank, you can also try to get a higher interest rate on your term deposit. However, there is one key factor that can impact your success: the size of your deposit.

If you have a deposit of $100,000 or more, your lender may be more likely to offer you a higher interest rate. Even if it means paying you more, having a large deposit on its books is also good for the bank. The higher your deposit amount, the greater your bargaining power.

That being said, even if your deposit is less than $100,000, it may be worth discussing this with your bank. You never know when a supplier might want to be generous in encouraging you to become a customer.

Negotiating with your bank could secure you a higher fixed rate, earning you extra interest on your term. You can also discover bonuses or special offers that you can acquire through your bank.

Interest Rates: Westpac Fixed Rate Mortgage Warning

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Westpac’s chief executive has warned it’s ‘inevitable’ some borrowers will take a big hit when their fixed-rate mortgages expire in the coming months, but says there hasn’t been an increase in hardship yet .

The bank released its financial results for the full year on Monday, with chief executive Peter King saying it was a year of significant economic and geopolitical change.

“We’re not seeing an increase in hardship or stressed assets yet,” he said.

“Many customers have accumulated savings over the past two years and 68% are staying ahead of their mortgage payments.

“However, it is inevitable that the impact of higher rates will be felt, including when borrowers’ low fixed rate loans are rolled over.”

Mr King said there was “increased economic uncertainty and volatility in financial markets” heading into 2023.

“Although supply chain constraints are easing, skilled labor remains hard to find,” he said.

“The biggest challenge for the authorities is to contain the psychology of high inflation that is now taking hold in the economy.

“In Australia, consumer spending is resilient, but as rates rise we expect the heat to emerge from the economy and inflationary pressures to ease.

“Small business is an area we are watching closely as consumption slows.”

Mr King noted that property prices had fallen in recent months and said this would continue into next year.

“Credit growth is expected to slow. GDP growth will slow and unemployment will rise,” he said.

“These will be necessary results if we are to reduce inflation.”

Westpac posted statutory net income of $5.69 billion, up 4%, with a fully franked final dividend of 64 cents per share.

Cash revenue was $5.28 billion, down 1%.

The RBA this month raised the cash rate target by 25 basis points to 2.85%.

Further increases are expected in the coming months as the country battles high inflation.

In the year to September, the CPI inflation rate was 7.3%, the highest in more than three decades.

Inflation is expected to peak at around 8% later this year.

Read related topics:Westpac

With interest rates at 7%, here’s how much more you’ll pay for a $500,000 home

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Image source: Getty Images

Higher interest rates can mean you’re paying much, much more for a new home.


Key points

  • Mortgage rates have more than doubled, from 3.11% to 6.92% since the start of the year.
  • A $500,000 mortgage at 6.92% would cost $420,000 more in interest over the life of the loan compared to a mortgage at 2.65%.
  • Combined with the home’s appreciation over the past two years, Graham Stephan says a 30-year mortgage was the best investment in 2021.

If you are looking for a new home, you probably know that mortgage rates are on the rise. In fact, they have more than doubled since the start of the year and are now at their highest level in nearly 15 years.

Mortgage rates have doubled

This means that if you take out a mortgage to buy a home, you can expect to pay more interest than just a few years ago. Since the beginning of the year, mortgage rates more than doubled, from 3.11% to 6.92%.

On a $500,000 loan with an interest rate of 3.11%, your monthly payment would be $2,137. But at 6.92%, your monthly payment would increase to $3,299, an increase of almost $1,200 per month, or $14,000 per year. Over the term of this loan, you will pay approximately $688,000 in total interest. That’s 2.5 times more than the total interest of $270,000 you would have paid on the loan at 3.11%, or about $420,000 more in total. The difference in rates in just 10 months is almost the cost of the house itself at $500,000!

For comparison, a $500,000 mortgage at 3.11% would have the same monthly payment as a $325,000 mortgage at 6.92%. Of course, this is just an example and your actual payout will depend on a number of factors, including the size of your advance paymentthe term of your loan and your credit score.

Due to rising mortgage rates, more and more buyers are opting for a adjustable rate mortgage (ARM) as opposed to a conventional 30-year mortgage. An ARM has a lower introductory rate (often 0.5% to 1.5% lower than a fixed rate mortgage) for a number of years. After that, it will change according to market rates. ARMs may be suitable for homebuyers who plan to sell their home before the end of the introductory rate period or who plan to refinance in several years.

Also, if interest rates go down in the future, you could take advantage of lower interest rates without having to refinance and pay additional fees. Your monthly payment may go down without you having to do anything. There are, however, some risks; if interest rates rise, your payments will be higher. It is therefore important to understand the risks of an MRA before deciding to get one.

If you think of to buy a house in the near future, it is important to consider the increased cost of interest when budgeting for your new monthly payment. And if you’re not sure how much you can afford, be sure to talk to a lender to get pre-approved for a mortgage loan before you start shopping for homes.

Our pick for the best mortgage lender of 2022

Mortgage rates are at their highest level in years and should continue to rise. It’s more important than ever to check your rates with multiple lenders to get the best possible rate while minimizing fees. Even a small difference in your rate could reduce your monthly payment by hundreds.

This is where Best Mortgage Between.

You can get pre-approved in as little as 3 minutes, without a credit check, and lock in your rate at any time. Another plus? They do not charge origination or lender fees (which can reach 2% of the loan amount for some lenders).

Read our free review

The spike in bond yields that seemed close disappeared from view

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(Bloomberg) – All bets appear to be off on how high yields can rise in the world’s biggest bond market.

Bloomberg’s Most Read

With only the two-year hitting a new multi-year high this week – on Friday after October labor market data came in stronger than expected – more bloodshed in the Treasury market looks inevitable.

Federal Reserve Chairman Jerome Powell reiterated on Wednesday, after the central bank’s sixth rate hike this year, to a range of 3.75% to 4%, that there is no end in sight as long as inflation remains high. Swap traders reacted by setting prices at a peak rate above 5%.

“The data has to be very bad to move the Fed from its current path,” said George Goncalves, head of US macro strategy at MUFG. Thus, “the risk/reward profile and bias of the bond market has turned into an additional profile of weakness.”

For now, investors remain convinced that the Fed is on a path that will eventually bring the economy to its knees. This can be seen in the difference between the yields of two-year and longer-dated Treasury bills.

The two-year yield topped the 10-year Treasury yield by 62 basis points this week, the deepest reversal since the early 1980s, when then-Fed Chairman Paul Volcker was rising tireless rates to contain hyperinflation. Curve reversals have a 12-18 month history of previous economic downturns.

The inversion has the potential to rise as much as 100 basis points if the market begins setting a terminal rate of 5.5% in response to future inflation readings, said Ira Jersey, chief rate strategist at interest at Bloomberg Intelligence.

The two-year peaked this week at nearly 4.80%, while the 10-year is yet to top 4.34% in the current cycle, and ended the week at 4.16%.

All returns are expected to exceed 5% as the Fed continues to tighten financial conditions, said Ben Emons, global macro strategist at Medley Global Advisors.

“Now it’s about the ultimate destination” for the policy rate, said Michael Gapen, head of U.S. economics at Bank of America Corp., whose forecast for the terminal level is in a range of 5% to 5.25%. “The risk is that they ultimately have to do more than we all think and it takes longer to get inflation under control.”

Money market traders remain divided on whether the upcoming Fed meeting in December will result in a fifth straight three-quarter point rate hike or a smaller move of half a point. Powell repeated this week that the pace of increases should slow down at some point, possibly as early as December. But with October and November inflation data due out in the meantime, it’s too early to tell.

October consumer prices should post a deceleration on Thursday. The 6.6% year-on-year rise in non-food and energy prices in September was the largest since 1982, and it pushed the expected peak in the Fed’s key rate above 5% for the first time.

Inflation data is set to dominate a holiday-shortened week in which there could be upward pressure on yields as Treasury debt sales resume, including new issues at 10. and 30 years old. The auction, which also includes a new 3-year note, is the first in a year not to have been reduced from the most recent comparables.

The Bloomberg US Treasury Index has lost almost 15% this year. With stocks also beaten in 2022, investors in the popular 60/40 split between stocks and high-quality bonds have lost about 20%, according to a Bloomberg index.

Hope is eternal though. TD Securities strategists recommended Friday to start buying 10-year Treasuries, expecting yields to fall as consumers deplete savings and rein in spending, while the Fed holds the rate raised.

“We are bullish on fixed income,” said Gene Tannuzzo, global head of fixed income at Columbia Threadneedle Investments. “There has been a significant reset for the asset class, especially if yields can sustain higher. Lots of tightening factored in.

What to watch

  • Economic Calendar

    • November 8: NFIB Small Business Optimism

    • Nov. 9: MBA mortgage applications; wholesale inventory

    • November 10: IPC; weekly jobless claims

    • November 11: University of Michigan sentiment and inflation expectations

  • Fed calendar:

    • November 7: Boston Fed President Susan Collins; Cleveland Fed President Loretta Mester; Thomas Barkin, Richmond Fed President

    • November 9: New York Fed President John Williams; Barkins

    • November 10: Fed Governor Christopher Waller; Dallas Fed President Lorie Logan; Master ; Kansas City Fed President Esther George

  • Auction schedule:

    • November 7: 13 and 26 week invoices

    • November 8: 3-year tickets

    • November 9: 10-year bonds; 17 week invoices

    • November 10: 30-year bonds; 4, 8 week invoices

Bloomberg Businessweek’s Most Read

©2022 Bloomberg LP

Payday Loan Services Market by Product, Application, Geography and Key Players: Wonga, TitleMax, DFC Global Corp

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A2Z Market Research presents new Payday Loan Service research covering the Micro Level of Analysis by Competitors and Key Business Segments (2022-2029). The global Payday Loan Services report explores an in-depth study on various segments such as opportunity, size, development, innovation, sales and overall growth of key players. The research is carried out on primary and secondary statistical sources and consists of qualitative and quantitative details.

Get a sample report with the latest industry trend analysis: https://a2zmarketresearch.com/sample-request

Leading companies in this report include: Wonga, TitleMax, DFC Global Corp, Cash America International, Speedy Cash, Pay Day Advance, Check `n Go, MEM Consumer Finance, Instant Cash Loans, LoanMart, Allied Cash Advance, Finova Financial, Same Day Payday, MoneyMutual, TMG Loan Processing , LendUp loans, Just military loans.

Since analytics has become an integral part of every business activity and role, the central role in today’s business decision-making process is mentioned in this report. Over the next few years, the demand for the market is expected to increase significantly globally, enabling healthy growth of the Payday Loan Services market is also detailed in the report. This report highlights that the manufacturing cost structure includes material cost, labor cost, depreciation cost, and manufacturing procedure cost. Pricing analysis and analysis of equipment vendors are also done by the analysts of the report.

This research report represents a 360-degree overview of the competitive landscape of the Payday Loan Services market. Moreover, it offers massive data related to recent trends, technological advancements, tools, and methodologies. The research report analyzes the Payday Loan Services Market in a detailed and concise manner for better understanding of the businesses.

The report, with the help of in-depth business profiles, hands-on project analysis, SWOT examination and some different information about the major organizations working in the Payday Loan Services market, presents a scientific point record per point of market competitiveness. script. The report also presents a review of the effect of recent market developments on the future development prospects of the market.

Global Payday Loan Services Market Segmentation:

Market Segmentation: By Type

Financial support from the platform
Off-platform financial support

Market Segmentation: By Application

Personal
Retirees

Geographical analysis:

The global payday loan services market is spread across North America, Europe, Asia-Pacific, Middle East & Africa, and Rest of the World.

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COVID-19 Impact Analysis

The COVID-19 pandemic has emerged in lockdown across regions, line limitations and the breakdown of transport organizations. Additionally, the financial vulnerability of the payday loan services market is much higher than past outbreaks like Extreme Severe Respiratory Disease (SARS), Avian Influenza, Swine Flu, Avian Influenza, and Ebola, inferred from the growing number of infected individuals and vulnerability to the end of the crisis. With the rapid increase in cases, the global payday loan service refresh market is influenced from several points of view.

Labor accessibility is obviously disrupting the inventory network of the global payday loan services market as the lockdown and spread of infection pushes individuals to stay indoors. The presentation of the makers and the transport of the products are associated. If the assembly movement is stopped, the transport and the store network also stop. Stacking and dumping of elements, i.e. raw materials and results (fasteners), which require a ton of labor, are also being hit hard by the pandemic. From the entrance of the assembly plant to the warehouse or distribution center to the end customers, that is, the application companies, the entire inventory network of the loan service on salary is seriously compromised because of the episode.

The research provides answers to the following key questions:

  • What is the projected market size of the Payday Loan Services market by 2029?
  • What will be the normal share of the whole industry for the coming years?
  • What is the prominent development boosting components and restraints of the Global Payday Loan Services Market across different geographies?
  • Who are the top sellers expected to lead the market for the assessment period 2022 to 2029?
  • What are the moving and occurring advancements expected to influence the advancement of the global Payday Loans Service Market?
  • What are the development techniques received by the important sellers of the market to stay on the lookout?

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This weekend’s events in the Nashua region

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NASHUA, NH – Wondering what to do in the Nashua area this weekend? Patch has you covered with the latest upcoming events taking place this week across Nashua. Check out what’s going on and what might interest you before you make any plans.

Got an event you’d like to see in the next roundup? You can add it to the calendar using this form. You can also spread the word to nearby communities by promoting your event. The cost is $2 per day per community.

Here are all of this weekend’s events in and around Nashua:


Featured event: Seacoast doll, bear and miniature show

  • When: Sunday, November 6 at 10 a.m.
  • Where: 35 Lafayette Road
  • What: Seacoast Doll Bear and Miniature ShowSunday, November 6, 202210:00am 3:00pm Lafayette Crossing Mall35 Lafayette Road Hampton, NH, 03842 USA Admission: $5.00 Children 12 and under free. Mention the show for a discounted rate at the Quality Inn Portsmouth. 603-433-333… Learn more
Featured Event: Seacoast (wendy) doll, bear and miniature show

Featured event: Sage Farm Antiques Autumn Glow November 1

  • When: Sunday, November 6 at 10 a.m.
  • Where: 5 Exeter Road
  • What: Sage Farm Antiques Autumn Glow 1st November ShowFriday, November 4 to November 6 5 Exeter Road North Hampton and NHFFriday 10-7Saturday 10-5Sunday 10-4This autumn show reminds us of Thanksgiving gatherings and holiday parties. We will have fall and Christmas items for… Read more
Featured Event: Sage Farm Antiques Autumn Glow November 1 (wendy)

Play it forward

  • When: Sunday, November 6 at 1:00 p.m.
  • Where: Budweiser Brewery Experience
  • What: Play It Forward is back and better than ever! Join us for this great event in support of the Nashua Community Music School. Featuring live music by the NCMS House Band and Nashua Legends Aces & Eights. Join us at the Anheuser-Busch Biergarten for an afternoon of live music and… Read more

Sweeney Todd

  • When: Sunday, November 6 at 2:00 p.m.
  • Where: Keefe Center for the Arts
  • What: The actor-singers perform the musical Sweeney Todd, The Demon Barber of Fleet Street, Sunday, Nov. 6 at 2 p.m. at the Keefe Center for the Arts, 117 Elm St., Nashua. Tickets on Actorsingers.org Learn more

NH Symphony Brass Ensemble

  • When: Sunday, November 6 at 4:00 p.m.
  • Where: 214 Main Street
  • What: Tuba player Takatsugu Hagiwara joins trumpeters Richard Watson and Richard Kelly to create a Symphony NH brass ensemble that will feature a selection of pop-style horns. Come and hear what the Boston Globe called “gifted” with these musicians who… Read more

Events next week

Tax Basics with 603 Legal Aid – Virtual Event

  • When: Monday, November 7 at 7:00 p.m.
  • Where: Nashua Public Library
  • What: Join us for a free tax clinic with the experts at 603 Legal Aid, featuring a presentation followed by a Q&A. Register via the Zoom link. Learn more

Create your own board game

  • When: Tuesday, November 8 at 3:30 p.m.
  • Where: Nashua Public Library
  • What: For grades 6-12. Have you ever wanted to design your own card or board game? Now is your chance! Choose from a variety of game building supplies to design, build and play your own game. Registration is required. Learn more

Know your rights! An ACLU of NH Workshop on Being Stopped by the Police

  • When: Wednesday, November 9 at 7:00 p.m.
  • Where: Nashua Public Library
  • What: Getting arrested by the police is a stressful experience that can quickly go sour. In this workshop, ACLU NH Staff Attorney Henry Klementowicz will discuss your rights and responsibilities when encountering law enforcement, what to do when your rights are violated, and offer… Read more

Peacock Players presents 9 to 5 the musical

  • When: Friday, November 11 at 7:00 p.m.
  • Where: 14 court street
  • What: 9 to 5 The Musical, with music and lyrics by Dolly Parton and book by Patricia Resnick, is based on the seminal 1980 film. Set in the late 1970s, this hilarious tale of friendship and revenge PG- 13 in the Rolodex era is outrageous, thought-provoking and even a bit romantic… Read More

Check out other awesome local events or add your own to the Nashua Patch Community Calendar.

Editor’s Note: This article was auto-generated from event information provided primarily by community members. Patch has not independently verified much of this information, always check with organizers to confirm that published events are going as planned. Click on any event in the list for more details. You can also contact [email protected] with any questions or other comments regarding this article.

Unemployment Rates Live Online: Check for State Inflation Relief, SS Payments, Student Loan Forgiveness

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Inflation knows no borders

Inflation weighed on household finances in the United States, but Americans are not alone. Rising prices have wreaked havoc on governments around the world and sent central bankers scrambling to stop it. Policymakers have instituted aggressive rate hikes to tighten monetary policy in their jurisdictions in ways not seen in decades.

The Bank of England just announced a 0.75% hike in interest rates Thursday raising the rate to 3% from 2.25%. It’s the biggest rate hike since 1989 and has warned of “very difficult” outlook for the economy, with the economy registering inflation of 10.1% in September. The economy is already in a recession that could last two years.

The European Central Bank raised rates by the same amount at the end of October to 1.5%, its highest level since 2009. The ECB has not raised rates this aggressively since the start of the euro zone in 1999. Inflation accelerated to 10.7% across the economic bloc in October.

The United States started earlier than its trading partners to try to fight runaway inflation, starting with a series of rate hikes in March of this year. While starting slowly with a 25 basis point hike, the first in two years, the Fed announced on Wednesday its fourth consecutive increase of 75 basis points.

Inflation in the United States is slowly falling since peaking at 9.1% in June, this still stands at 8.2%. So far, the United States has been able to avoid recession thanks to the economy expanding in the third quarter after two consecutive declines.

In conversation with Gautam Kaul, Senior Fund Manager (Fixed Income) IDFC AMC.

0















“The current time offers both value and volatility”





What is your outlook on Indian debt markets and the yield curve after the Reserve Bank of India’s recent rate hike to rein in runaway inflation and the falling Rupee to an all-time low? Not long time ago ?

The combined fiscal and monetary stimulus during the lockdown has led to upward inflationary pressure around the world. This forced central banks, led by the Federal Reserve, to begin an aggressive rate hike cycle. Since the combined monetary and fiscal stimulus was much higher in developed markets at 15-23% of GDP than in emerging economies like India, the surge in consumption and inflationary impulse was greater in these economies, resulting in the most aggressive cycle of rising rates seen in developed markets in the past 40 years.

The Reserve Bank of India (RBI), for its part, raised rates by nearly 200 basis points in a bid to normalize monetary policy and bring domestic inflation under control. We believe we are in the final game on domestic rate hikes. The repo rate, which is currently 5.9%, is expected to peak at 6.25% in the current cycle. Swap pricing suggests Indian bond markets are more than adequately pricing the risks of further rate hikes and so we think the 3-5 Y point on the sovereign curve offers a lot of value for investors at this time.

Is the current environment conducive to a relatively aggressive investor who would like to pursue a risky, high-return strategy?

The past two years have seen above-trend growth driven by monetary and fiscal stimulus as well as historically low interest rates. It was a good environment for risky assets. Going forward, as rates normalize and growth impulses wane, the macroeconomic environment will become increasingly challenging for high-risk assets.

Should investors in the long term Debt funds and gilt funds stick to their investments during the rate hike cycle to maximize their returns?

Investors must maintain an asset allocation to extract maximum value from the markets over long periods. This is especially true during cycle peaks, and even more so for high quality fixed income allocation.

How will upcoming rate hikes by the Federal Reserve affect Indian debt markets? Will the high volatility persist over the next few months? Also, which fund categories are expected to perform well?

Developed market central banks are aggressively raising rates. As a result, bond market volatility soared and liquidity declined. India’s monetary policy must also take into account the risks of contagion from these developments. However, we continue to believe that the RBI does not need to be “in step” with the Federal Reserve. This view was echoed in the commentary by RBI Governor Shaktikanta Das. That said, we believe the current period offers both value and volatility. Investors would do well to choose the right products and extend investment horizons to weather the current volatility.

How should a retail investor approach debt funds in the current scenario?

Investors should maintain asset allocation and stick to high quality debt funds.



























Lefsetz Letter » Blog Archive » Takeoff

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If this guy was white…

Most people have no idea what’s going on behind the discs. Despite the bluster, the silver flash, the real life of these rappers is not depicted.

They are in danger.

In an underground economy.

It’s the rock and roll of old. A cash business, but much more dangerous.

Not that I knew that much until I read Joe Coscarelli’s book, “Rap Capital: An Atlanta Story”: https://amzn.to/3Ns7PMl and spoke to him for the podcast: https ://bit.ly/3haAadK

First, we have a huge incarceration problem in America, which disproportionately targets black men. It’s amazing how many of these eventually famous rappers go in and out of prison. And if you think racism is outdated, you need to be on the Supreme Court. There are places in Georgia where rappers are on their toes due to notorious white police crackdowns on petty crimes.

As for the pay…

Everything looks simple from the outside. There are record company royalties and concerts. But it’s much more complicated than that. There’s tons of cash gigs the IRS not only misses rich CEOs but also rappers, who themselves are sometimes incredibly rich because of this economy, where you show up at a club to rap for follow and… you can do several concerts per night. That’s another amazing thing about Coscarelli’s book, how rich some of these rappers are.

Not that a career is guaranteed. It’s one thing to have a hit, it’s another to maintain it.

And it’s not just the underground economy that’s involved, but also the Fortune 500. They know that rappers have the most credibility, not to mention popularity, with the target audience, so they go into business with them. . It used to be that you had to have a certain number of visits before companies called you, but now they’re involved from the start.

And so many acts are disposable. And find themselves where they come from. Never mind the fact that many do not.

And while rockers and old swaggers are still trying to figure out the internet, it was embraced by the hip-hop community right from the start. Rappers knew that you had to give to receive, like a drug dealer. They knew it was about getting the big money, not the little one. Ergonomic Mixtapes. These recordings endeared them to an audience that bonded with them. There was a lot of money on the road, if you had fans.

And cultural.

And, culture involves a lot of posturing and violence.

And white people and the mainstream media might report it, but they don’t denounce it.

It’s taken for granted that rappers get shot. Why?

Well, we could go to the source and ask why black people don’t have more opportunities. Coscarelli writes about college graduates who end up doing manual labor. But affirmative action is taboo, because someone might gain an advantage that has been incorporated into a majority group. I mean you have to attack the problem at some point.

And let’s be clear, it’s not what you learn at Harvard or Yale, it’s the people you meet, who are part of your network. JD Vance was a hick until he went to Yale Law School, built relationships, worked with Peter Thiel, and ended up writing a twisted book he used as a platform to run for Senate from Ohio. Where is the concomitant advantage for blacks?

Believe me, the upper middle class knows all the tricks. But even the middle class has no idea, that the best educational institutions are blind to need, and if you can get in and you’re broke, you don’t have to pay a dime.

America’s information deficit, right there.

So think of all the people who profit from rapping. White-run labels, TV and streaming companies, the aforementioned Fortune 500, but none of them lift a finger to counter the violence in the culture, they don’t even bother to speak out against it.

This is racism incarnate.

As for George Floyd… All the companies that have supported black people… that was then and this is now, the end result is far from major, it’s the same as ever.

So if a white rapper had been shot, there would have been front-page stories about his family, their devastation. And there would be investigative articles in the media asking how this could happen. How this honest citizen of good family got suffocated. Yeah, they were coating the background of the deceased, were they reading an obituary where they said the person was an arrogant punk?

And all the government leaders would come together and talk about action.

Meanwhile, where are the stories about Takeoff’s family? Where is the deep dive into his past life?

AND WHERE IS THE OUTRAGE!

We can start with gun control… But it seems to go the other way. I would think twice before moving to Texas, where anyone can carry a gun without a license. Rave me about the supposed economic benefits all day long, they don’t mean much when you’re dead.

The truth is that white people and the mainstream community don’t care if another black person dies. Just one less mouth to feed. Yeah, that’s how they see it, that black people are taking it, always wanting more, the government has to stop supporting them.

While they’re at it, why don’t they take out all that money the government disproportionately gives to red states, huh?

And an advanced society watches over those at the bottom of the economic ladder. In most western countries. But welfare was stifled under the Clinton administration and the idea that black women just have babies and are supported by the government is wrong. You think someone should take your money, that you should pay less tax, but when there’s a natural disaster, you want federal help right away.

Yes, there must be a scapegoat. And blacks are number one.

Even if their schools are not up to standard. The right says that you have to choose the school, close the bad schools, only there is not enough room in the good schools for all the disadvantaged! And in truth, it is only a ruse to advance the cause of religious schools, which are not free, and if you are not a believer…

And don’t equate every rapper with Kanye. They’re not that rich and they’re not that crazy. They are just trying to survive.

So we have to take the guns off the streets. Enough of throwing our hands in the air. When your kid gets shot, you go crazy, and someone else’s kid?

And how about a denigration of violence. Why are gangs and violence portrayed as cool? A lot of kids join gangs not because they’re cool, but just to survive. And since the police are ineffective, the gangs and others take the law into their own hands. And since opportunities are scarce, kids sell drugs, for that quick cash, I mean how long are they going to live anyway?

That’s what amazed me in “Hoop Dreams”. They threw a big birthday party for the player because living to be eighteen is such a feat. Do we feel the same as white people? That just staying alive is something to celebrate?

And often they find the perpetrators and lock them up, but that’s not really a deterrent, because they don’t think they have much of a future to begin with. And honor and image are everything, as if we were living in the feudal past.

All those talent agencies and apparel companies can drop Kanye like he’s hot, but how about dropping those involved in violence. Believe me, if you take away the few opportunities, it will change the culture.

As for clubs and strippers and making it rain…

Everyone can choose how they want to live their life but we flood these great athletes with money that they have no education on how to spend and then they blow it up and end up broke and eventually dead with CTE. But gamers are disposable, just like rappers. Hell, most NFL players don’t even have guaranteed contracts! Get hurt and you’re out. We don’t care about you. Life is hard. Meanwhile, the bad actor billionaire owner continues to rape and plunder not only in business, but also in his personal life.

It’s a way to demonstrate your status, by earning money and spending it.

Now, in truth, on TikTok there are all these videos that talk about money, about the economics of buying a new car, about investing. Maybe newcomers will see them, but we don’t even teach economic skills in school, because if we did, salespeople couldn’t laugh at these customers. Dollar stores, payday loans… They’re obnoxious, but if you’re broke, sometimes you don’t have a choice.

Somehow, America has flipped, and it’s white people who are at a disadvantage. What’s a poor boy to do? Don’t play in a rock and roll band, BUT BECOME A RAPPER! It is one of the few potentially well-paying jobs for an underprivileged youth, other than drug dealing.

But we demonize these people, because we take advantage of their backs.

Come on, black people are way above their weight when it comes to culture. And, unfortunately, this culture of gun violence impacts not only them, but also white people, BECAUSE IT’S SEEN TO BE COOL!

Let me tell you, when you’re dead, nothing is cool. Finito. It’s finish. The challenge is to stay alive. Shit, the government should give a million dollars to every rapper who hits 40. Better yet, a guaranteed income for all, including blacks.

But no one wants to PAY FOR IT! I don’t understand, you want to live in Venezuela? I’ve been there, the wealthy people live in the hills in houses surrounded by concrete walls topped with barbed wire.

You think you are immune, but you are not. We live in a big society. And you are part of it, and you are vulnerable. If you don’t take care of your siblings, raise them, it will impact you negatively.

But then you have all those executives who say they’ve made their billions and don’t recognize that without customers they’d have NOTHING!

Consumers are kings. But that’s not how our society sees it. We worship the rich and criticize the poor, ignoring what goes on in their brains.

And when it comes to hip-hop, it’s all about creativity. You don’t get to the top by accident. So why can’t we recognize it, except in award shows that nobody watches anyway?

Certainly, everything fades almost instantly these days. But in the aftermath of Takeoff’s death, I haven’t seen any official elected commentary on it. I didn’t see any outcry. At best, there was a shrug.

And that’s not right.

Something has to give. And if you don’t fix the underlying problem, it will affect you.

Come on, is anyone outraged that this guy was shot?

I suppose not.

Lists of distressed properties soar as seven consecutive interest rate hikes bite

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Desperate homeowners hit by seven straight rate hikes are being forced to sell, with the number of struggling listings nationwide jumping more than 15% since May, new research shows.

Interest rates rose from a record low of 0.1% to 2.85% in November and some homeowners are struggling to cope with mortgage payments that have increased to between $760 and $1,510 per month in mean.

The Reserve Bank of Australia imposed another 0.25% increase in interest rates this week, which could increase the pressure on Australians and force them to sell in a hurry even more.

Queensland saw the largest increase in the number of properties sold in difficult conditions, rising from 2,203 in May to 2,791 in October, an increase of 26% or 588 homes, according to analysis by SQM Research.

Next up was NSW with distressed homes on the market sitting at 912 in May but rising to 1265, an increase of 38%, while in Victoria there were 99 additional distressed properties up 14.9 % to 765 houses.

Nationally, the number of distressed properties on the market rose from 5,753 in May to 6,658 in October, an overall increase of 15%.

Tasmania saw another 14 properties put on the market, while ACT and South Australia saw very minor increases.

In the Northern Territory and Western Australia, the number of distressed properties has actually fallen over the past six months.

Louis Christopher, managing director of SQM Research, said seven consecutive rate hikes were starting to “bite.”

“As rates rise, the number of distressed properties will increase as more households struggle to meet their mortgage payments,” he told the Australian Financial Review.

However, the difficulties are being felt more keenly in some capitals such as Brisbane, which has seen a bigger drop in house prices in recent months, with the number of struggling listings jumping in just four weeks to 1,000 properties. .

Otherwise, Sydney saw distressed listings rise 3.1 per cent to 564, while in Melbourne they rose 1.5 per cent to 41 and Adelaide rose 11.2 per cent to 119.

Real estate advertisements may allude to a distressed sale with terms such as “desperate seller” or “must sell” or even more explicitly such as advertising “mortgage in possession”, “bank forced sale” or “forced sale”. of property”.

Often sellers are forced to accept a lower asking price due to their circumstances, when they may face other challenges as buyers become more cautious and the number of properties on the market increases.

The number of properties on the market for more than six months is also up 3.3% in Sydney in October to 4,650 homes and 5.9% in Brisbane to 2,378 properties.

Melbourne also saw properties unsold for more than six months increase by 1.5% to 7,082 and in Perth, by 4,247 to 1.8%.

Rising interest rates and falling home prices will lock in some borrowers with limited ability to lower their borrowing costs through refinancing, but for those stuck in mortgage prison, there could still be ways to reduce loan costs, according to Canstar.

A growing number of mortgage holders have recently switched lenders to reduce their lending costs, with the Australian Bureau of Statistics reporting that a record $12.8 billion in owner-occupied loans were refinanced to a new lender in the month of August alone.

However, not everyone who wants to reduce the cost of their loan is able to refinance their loan, says Effie Zahos, editor and financial expert at Canstar.

“One way out of rising interest rates is to refinance a loan at a lower rate and reduce monthly repayments as well as interest paid over the life of the loan,” she said.

“If the price of your property has dropped and pushed your loan to appraisal ratio above the 80% mark, you may find that when you go to refinance for a lower rate, you won’t be able to without having to pay the expensive mortgage insurance from lenders.

“This is an expense no borrower wants to incur at the best of times, let alone when the cost of living is high and interest rates continue to rise.”

Borrowers who are already stuck in mortgage jail can potentially still do something to help lower their loan costs, she added.

“The easiest option is to downsize your loan. Call your lender and ask to speak to their mortgage variation specialist to see if there is a more suitable and cheaper alternative loan they can offer you,” she said.

“You may still be able to refinance with a new lender and borrow if your loan-to-value ratio has increased, but your options will be limited and you will likely have to pay lenders mortgage insurance.

“Look out for mortgage insurance discounts from lenders. Although not common, some lenders waive mortgage loan insurance for certain occupations.

“Keep in mind that property valuation results can also differ from bank to bank. It’s worth doing your research, checking on a comparison site, and talking to a broker to compare notes.

New analysis also found that homeowners who fixed their mortgage rate when it was at an all-time high saved up to $20,000 compared to those who stayed on a variable loan.

Someone who fixes for two years in July of last year would save $20,353 in interest payments compared to someone on a floating rate, RateCity’s modeling showed.

For those who got a fixed rate of 1.94%, they will pay $18,815 in interest by 2023, compared to owners with variable rates, who will pay $39,168.

RateCity’s data assumes homeowners have a $500,000 mortgage and have another 25 years to pay it off.

Read related topics:Brisbane

Want to consolidate your payday loan debt? Here’s how MyrtleBeachSC News

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If you’re struggling to cope with your payday loan debt, you may be considering consolidation. It’s a great option if you want to get out of debt quickly and easily. In this blog post, we’ll discuss the basics of consolidation and how it can help you get back on track financially. We’ll also give you tips on choosing the right consolidation company for your needs.

What is Consolidation?

Taking out a new loan to cover other outstanding loans is called consolidation. This could be helpful in minimizing monthly payments and overall debt.

When you consolidate your payday loan debt, you will only have to make one monthly payment to the consolidation company. This payment will be less than the total of your current payday loan payments. Namely, the pros at Solid Ground Financial say you can expect to save up to 50% on your consolidation loan. The way this is possible is that the consolidation company will negotiate with your lenders to lower your interest rates and monthly payments.

How it works?

Consolidation works by consolidating your multiple payday loans into one new loan. This new loan will have a lower interest rate than your existing payday loans, so you’ll save money on interest charges. The consolidation company will then repay your existing payday loans with the new loan. When you only have one loan to repay, it will be easier for you to control your payments and get out of debt quickly.

What are the benefits of grouping?

There are many benefits to consolidating your payday loan debt. These include:

  • Reduced monthly payments: When you consolidate your personal loans, you will only have to make one monthly payment to the consolidation company. This payment will be less than the total of your current payday loan payments.
  • Lower interest rates: Consolidating your payday loans will give you access to lower interest rates. This means you’ll save money on interest charges and pay off your debt faster.
  • One simple payment: When you consolidate your payday loans, you only have to make one monthly payment. This can make it easier for you to control your payments and get out of debt quickly.
  • Pay off debt quickly: Consolidating your payday loans can help you get out of debt faster. This is because you will have a lower interest rate and a simple payment.

What are the disadvantages of consolidation?

There are some potential downsides to consolidating your payday loan debt. Namely, you may still owe the full amount: consolidating your payday loans will not reduce the amount you owe. You will still be responsible for repaying the full amount of your loans. Plus, you might end up paying more interest: if you consolidate your payday loans and extend the repayment period, you might end up paying more interest. Indeed, you will pay interest on the total amount of your loans for a longer period.

How to choose the right consolidation company?

If you are considering consolidating your payday loan debt, it is important to choose the right consolidation company. There are many consolidation companies out there, so it’s important to do your research. Here are some things to look for in a consolidation company:

  • A good reputation: Look for a consolidation company with a good reputation. This can be determined by reviews from past customers or by checking with the Better Business Bureau.
  • Low Fees: Make sure the consolidation company you choose has low fees. You shouldn’t have to pay a lot of money to consolidate your payday loans.
  • Flexible repayment options: Choose a consolidation company that offers flexible repayment options. This will allow you to tailor your repayment plan to your financial situation.
  • A focus on customer service: Make sure the consolidation company you choose emphasizes customer service. This will ensure that you have a good experience working with the company.

How to consolidate your personal loan debt?

If you’re ready to consolidate, there are a few things you need to do. First, you need to gather all the information about your payday loan. This includes the amount you owe, the interest rate and the monthly payment. Next, you need to find a consolidation company. You can do this by searching online or by speaking to a financial advisor. Once you have found a consolidation company, you need to apply for a consolidation loan. Once you have been approved for the loan, the consolidation company will repay your payday loans. You will then be responsible for making a monthly payment to the consolidation company.

Still, consolidating your payday loan debt can be a great way to save money on interest, lower your monthly payments, and get out of debt fast. However, it is important to choose the right consolidation company and understand the potential downsides of consolidation. If you do your research and choose a reputable consolidation company, you can consolidate your payday loan debt and put yourself on the path to financial freedom.

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It’s Honolulu’s fraudulent hotels that are killing us

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It's Honolulu's fraudulent hotels that are killing us

We understand the bad feelings created by a proposed $50 arrival tax for visitors to Hawaii. But for us, the exorbitant costs of accommodation in Hawaii cause insults and injuries, breaking the bank. Here is our recent case related to Honolulu hotels.

Your editors regularly travel around the state for the Beat of Hawaii and will be in Honolulu working on an upcoming off-season weekend. That should be relatively easy, right? Well, read on.

While car rentals have improved in Honolulu…

We were able to get a mid-size Hertz car for $27/day plus tax using Priceline. It was a surprise, about the same as we would have paid in 2019 or even less.

And the plane ticket was great!

Airfare was also great at $39 each way, and we had a choice of Hawaiian or Southwest.

The prices for lodging in Hawaii, however, were absolutely ridiculous!

We searched for hotels using the same methods as you. Sometimes we’ll start with things like Costco Travel and booking.com, to get a sense of the landscape. It’s always a great idea. Then we look for special offers, directly on the hotel website, Kamaaina (residents) discounts, etc. But what we are seeing is what we would call lamentable.

For seasonal rental aficionados, we have also looked for them. But on a short two night stay, the cleaning fee was too high and prevented us from looking in its wake.

Checking all the hotel categories in Honolulu, none of them fared well.

We understand trying to get the lowest price. Who is not guilty of this? We often sort hotel results by lowest price, to start with. At least to get a reference point and then go from there. And while we can point out that we always get great rates outside of Hawaii, that’s just not the case here.

Outrageous hotel costs in Hawaii

Taxes and the dreaded “resort fees” add 20% to 50% to your bill.

Many hotels are now eliminating resort fees in response to the unpopularity of these “hidden fees”. Others combine parking and resort fees. Taxes on Hawaii accommodations (hotels and vacation rentals) are approximately 18%, the highest in the United States

US President Joe Biden said on Wednesday his administration would seek to crack down on “surprise fees” facing consumers. Biden cited two examples: resort fees for hotel stays and administrative fees for live events and concert tickets.

The Federal Trade Commission had started working on a rule last week to crack down on “unfair and misleading fees across all industries,” Reuters reported.

A lawsuit against Marriott alleged that the company made hundreds of millions on these largely hidden charges. Booking.com has publicly stated that it opposes resort fees, as has travel agent company ASTA which called them “out of control”.

Back to Honolulu hotels and what we found that gave rise to this article.

We scoured Honolulu and checked out a lot of hotels (remember we think there are about 5,000 hotels in Honolulu) and different room categories for a two night stay, including all taxes and all fees, as well as parking. Here are some of the choices we looked at. As mentioned above, we went no further with vacation rental options due to excessive cleaning fees for a short stay. While Kamaaina’s rates are advertised as deep discounts, the reality is that the savings we found were between 10-15%. This is because Kamaaina is considered a discount off the displayed rates, not the best available selling rates.

  1. Hotel Ala Moana. Sea view 1 bedroom. $400/night. U g. Not an all-time favorite hotel, even with its lipstick upgrade in 2020, when the hotel carried out a measly $16 million renovation to its 1,100 rooms. We would say it is usable and the location is excellent. But for $800 for two nights, we felt ripped off. And that was a Kamaaina rate. We booked it but were so happy to cancel it later. somewhat insulting.
  2. Queen Kapiolani Hotel. Room with sea view $300/night on reservation. Also, never a favorite property despite its renovation, but it is in a great location at the other end of Waikiki. The middle of Waikiki tends to be very busy, congested, and harder to navigate, especially with a car. Parking was also not included so we would have to park nearby for free or pay big. Not great.
  3. Modern Honolulu. Partial ocean view room $350 a night but parking is $25 so it came to $750 for two nights. Found again on Booking. A 15% Kamaaina discount was possible but fucked up about it.
  4. Kahala Resort. Jeff had stayed here with his family before and enjoyed the hard product (rooms) and service. The location is very relaxing and easy to get around from there. It was just hard to justify the cost. After four phone calls and multiple site visits, this is the one that came in at $1,000 for two nights, ocean view, parking included, and no resort fees. Expensive, but we perceived this to be a better value proposition. They got the reservation.
  5. Alohilani Resort (formerly Pacific Beach Hotel). Partial ocean view room at $404/night for their Kamaaina discounted rate. Parking and resort fees are included. Google reviews weren’t up to snuff, especially when it came to cleanliness and amenities. We took a pass based on both value and other concerns. However, editor Rob is staying there for one night in November on another trip, partly because it’s less than the pagoda and the Ala Moana. Maybe he will report.
  6. Hotel Pagoda. An old Kamaaina favorite, though still a bit seedy. The deluxe room with no view was $484 for two nights. Add to that a “resort” fee of $20 per night (you’re kidding) and $35 per night for parking, and you come to about $600 for two nights. Reviews aren’t great, and Oyster’s preview said: “Rooms at this 176-room budget hotel, five minutes from the beach, are spacious enough — but also noisy, tired, and a little grubby. ” Definitely not.

How are you doing with Honolulu hotels these days?

Disclosure: We receive a small commission from purchases of some of the links on Beat of Hawaii. These links cost you nothing and provide you with the revenue needed to provide you with our website. Mahalo! Privacy Policy and Disclosures.

Here’s what this week’s jobless data could mean for interest rates

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An update from Stats NZ on Wednesday will show workers are in short supply, banks say.

Bronte Metekingi/Stuff

An update from Stats NZ on Wednesday will show workers are in short supply, banks say.

Unemployment and wage data to be released on Wednesday could put more pressure on the Reserve Bank to raise interest rates in the coming months, economists say.

The Reserve Bank forecast in August that official unemployment would hold steady at 3.3% in the three months to the end of September before climbing to 4.5% by the end of next year.

But some private sector economists believe unemployment may have fallen to a new modern low, which could add pressure on the Reserve Bank to raise interest rates higher than it had. intended.

Stats NZ will release wage data at the same time as it updates its employment statistics.

READ MORE:
* MSD said to focus on job training in view of rising unemployment
* Stats NZ says it doesn’t have the money to report inflation more frequently
* Orr: how much unemployment is needed to control inflation “a global problem”

Any wage surprises could be equally influential in helping chart the course for interest rates, with economists watching for any convincing signs that inflation could lead to an emerging wage-price spiral.

ANZ expects Stats NZ to report that official unemployment was 3.1% in the three months to the end of September, which would be the lowest rate since it began collecting comparable statistics in 1986 and likely well before.

However, he said the “volatility” of unemployment data made the number difficult to predict.

THINGS

The official unemployment rate is based on a survey by Stats NZ. To count, people must have actively looked for work in the previous four weeks.

ASB and Westpac both predict that Stats NZ will report that unemployment has fallen to 3.2%, matching its rate in the first half of this year, but ASB warned that a correct choice would be “more a case of luck than good judgement”.

Westpac’s acting chief economist Michael Gordon said demand for workers remained “red hot”.

“Fiscal data suggests that job growth has even regained some momentum in recent months.”

ANZ already assumes that the Reserve Bank will raise the official exchange rate by 75 basis points to 4.25% next month.

But he said stronger-than-expected jobs and payroll data could bolster his own expectations of another 75 basis point hike in February, taking the OCR to 5%.

On the other hand, if the data were weaker than expected, the Reserve Bank likely wouldn’t take it into account “given all the other evidence that the labor market remains extremely tight,” she said. .

David White / Stuff

Social Development Minister Carmel Sepuloni said the Social Development Ministry must prepare for an anticipated rise in unemployment.

Stats NZ reports a variety of different measures of wage growth when it releases its quarterly labor market statistics.

ANZ expects it will report that productivity-adjusted labor costs in the private sector rose 3.9% from the same quarter last year, while the SBA expects which they increase by 4%.

The Adjusted Labor Cost Index (ICM) is generally regarded as Stats NZ’s best estimate of wage pressures in the economy.

Indeed, it attempts to take into account not only wage increases, but also changes in the composition and skill level of the workforce over time.

But ANZ chief economist Sharon Zollner questioned whether she might be underreporting increases in wage costs because she doesn’t take into account the phenomenon of ‘job title inflation’, according to which those promoted to higher positions may not be more productive.

ANZ expects average hourly wages in the private sector to have risen 8.2% over the year, “comfortably ahead” of the inflation rate of 7.2%.

But, at least so far, most other measures of wage growth, including the unadjusted MCI which was last measured at the annual rate of 5.1%, have consistently shown wage growth. wages below inflation.

How to buy now, pay later is driving Gen Z into debt

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Sarah Pfefferle had already saved $16,000 for her future home at the age of 18. Then she started using buy now, pay later (BNPL) products and “ruined everything”.

In just two months, the Chicago native racked up $5,000 in debt on three of the installment loan companies.

The bloated balances drained much of her savings and prompted her to seek help from a financial adviser. But the damage was done: the case of Mrs. Pfefferle credit score dropped to 580 from 720 after closing his accounts.

Ms Pfefferle, now 21, said her plan to buy a house had been delayed for at least two years. And she fears she can’t get a mortgage.

“I have little or no money saved for emergencies,” she said. “It’s a vicious circle.”

Ms. Pfefferle is not alone.

Australian company Afterpay has popularized the concept of buy now, pay later as a new take on layaway plans with an instant gratification twist. Financial products typically allow consumers to pay for their purchases in four instalments, with the promise of low or no fees, no interest and fast credit approvals.

This appealed to younger consumers with little credit history, who saw BNPL as an alternative to credit cards for the TikTok generation.

Pioneering companies including Afterpay, Klarna and Affirm launched with hip apparel retailers, struck brand deals with social media influencers and quickly became ubiquitous across apps and online payments.

They make most of their money by charging merchants a fee each time a consumer uses the product at checkout.

Short-term loans grew in popularity during the Covid-19 pandemic, thanks to consumers having extra cash on hand and limiting themselves to shopping online.

Five major BNPL companies issued 180 million loans totaling $24.2 billion in 2021, nearly 10 times more than in 2019, according to a report by the Consumer Financial Protection Bureau (CFPB) in the United States.

The promise of interest-free payments has made BNPL products particularly appealing to credit card-wary Generation Z.

However, BNPL is “only free when you follow all the rules,” said Ed Mierzwinski, senior director of the US Public Interest Research Group.

BNPL companies have been plagued by delinquency this year as inflation bites.

The CFPB found that younger borrowers are more likely to have loans in “derogatory status,” meaning they are either in default or sent to a third-party debt collector.

About 11% of borrowers paid at least one late fee in 2021, an increase from the previous year. And 18% of consumers aged 18 to 29 fell behind in their payments in 2021, according to a Federal Reserve report.

“Marketing here is relying on a younger spender, perhaps less financially sophisticated, because he hasn’t been in the financial market for that long,” Mierzwinski said.

In emailed statements, Afterpay, Klarna and Affirm all said they offered more safeguards to consumers than credit cards and stressed that they did not charge interest and did not charge late fees or did not cap them.

For Gabrielle, who asked that her surname be withheld, she didn’t feel like she was spending the money because her BNPL payments hadn’t been due for weeks. And the more she spent, the more credit she got.

More than a year later, the 19-year-old found himself with a pile of new clothes, make-up and $3,500 in debt with balances on multiple BNPL apps.

She was finally able to pay off her balances in April after asking for help on a Reddit forum, where many users said BNPL apps were fueling their shopping addiction.

For some, falling behind on BNPL payments could have lasting consequences.

Briana Gordley, 24, said she didn’t understand BNPL’s hidden pitfalls when she first encountered an Afterpay advert at clothing retailer Forever 21 in 2016.

Paying for her own college education and rejected by credit card providers, the then freshman thought the financial offer was a safe way to pay for things she couldn’t afford with her job. part time.

Accountability and responsibility should be a two-way street between consumers and businesses

Briana Gordley, consumer

Just 18 months later, the Texas native had spent $1,500 on three platforms, and three of her loans had been sent to collections. She was forced to turn to her parents for help.

And even then, it took him two years to finally set up a savings account and start paying off his student loans.

Although Ms Gordley’s late payments have not affected her credit rating, it may not be the case for borrowers in the future.

Major credit bureaus like Equifax and Experian have announced they will begin including BNPL purchases in consumer credit reports, although not all lenders report data to them yet.

Loans sent to debt collectors can also be flagged, which can hurt consumer credit scores.

Ms Gordley told the Senate Banking Committee in September that BNPL targets young borrowers who are only learning to manage their own finances, and said the products border on “predation” without strong disclosures and consumer protections.

“I understand and believe in personal responsibility and accountability for the choices I’ve made,” Ms Gordley said. “But accountability and responsibility should be a two-way street between consumers and businesses.”

Updated: October 30, 2022, 04:00

NJ Senior Freeze Property Tax Relief Deadline Nears

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obstinately high inflation bite it budgets of residents across the state, especially those seniors living on a fixed income.

In New Jersey, where property taxes taking a large chunk of the wallet from millions of families, more people than before will be eligible for relief, the state said.

Eligibility for Main Freeze, which reimburses eligible seniors and people with disabilities for property tax or mobile home park site fees, has been expanded in recent years, raising the income limit by more than 30% since 2017, said the office of the state treasurer.

And many of the property tax refunds exceed $1,000, he said.

But the deadline to apply for the 2021 benefit is October 31.

“For those living on a fixed income, this can make all the difference. We encourage all eligible residents to take advantage of this important resource,” State Treasurer Elizabeth Muoio said earlier this month. “We also encourage everyone to check the eligibility requirements, even those who were not eligible in the past, as the increase in the income limit has made many more people eligible in recent years.”

To qualify, you must have been 65 or older by December 31, 2020 or have received Federal Social Security disability benefits on or before December 31, 2020. You must also have lived in New Jersey continuously since December 31, 2010 as a landlord or a tenant.

Owners must also have owned and lived in their home since December 31, 2017 or earlier, and still owned that home on December 31, 2021. Mobile home owners must have rented a site where they placed a manufactured or mobile home for these same people. Appointment.

“If you moved from one New Jersey property to another and received reimbursement for your previous residence for the last full year you lived there, you may be eligible for an exception to reapply to the Senior Freeze program,” the state said.

Owners must also be fully paid for their 2020 property taxes before June 1, 2021 and the 2021 property taxes must be paid before June 1, 2022. For owners of mobile homes, site fee must have been paid no later than December 31 of each year.

Then there are the income limits.

Whether you are single, married or in a civil union and live in the same dwelling, you must have a total annual income of $92,969 or less in 2020 and $94,178 or less in 2021.

” With some exceptions, all income you received during the year should be considered when determining eligibility,” the state said. “This includes income that you do not have to report on your New Jersey tax return, such as Social Security benefits, unemployment benefitsdisability benefits and tax-exempt interest.

Owners of vacation or second homes, homes rented from someone else and homes with more than four units are among those not eligible for the Senior Freeze.

Applications for 2021 benefits were mailed out in February, but if you haven’t received one or have moved, you can call the Senior Freeze hotline at (800) 882-6597.

The state began issuing payments on July 15, and other payments are being made “on an ongoing basis,” the state said. You can check the status of your payment on line. You will need to provide your social security number and the zip code of your primary residence.

Please sign up now and support the local journalism YOU rely on and trust.

Karin Price Mueller can be reached at [email protected]. Follow her on Twitter at @KPMueller.

Global neobanking industry to reach $2 billion market size by 2030

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Neobanks will represent a market size of over $2 trillion globally by 2030 and grow at a compound annual rate of 53.4% ​​as digitally savvy users increasingly demand services easy-to-access financial resources, said the Boston Consulting Group.

Regulatory changes combined with the massive adoption of the internet and smart technologies will drive the growth of the sector, according to a report by the management consulting firm.

“The FinTech sector in the GCC is expected to be valued at $3.45 billion by 2026 as a direct result of a boom in digital payments and digital remittances growth rates,” said Bhavya Kumar, Managing Director and associate of BCG.

“As regulators ease barriers to entry, new businesses and established players are looking to capitalize on the demands of a young, highly connected population who want convenient, on-demand access to their finances and are acutely aware of what to expect in terms of sophisticated user experiences.

Often referred to as challenger banks, neobanks are financial service providers that operate solely online and have no physical presence.

They offer digital and mobile-first financial solutions for specific services long associated with traditional institutions such as retail banks, payment providers and international money transfer services, BCG said.

Neobanks are increasingly popular with Gen Z because they serve their needs better than traditional banks.

FinTech start-ups first emerged after the global financial crisis of 2007-2009. The ensuing upheaval in banking regulations and the rise of new technologies have enabled neobanks to disrupt the market with user-friendly services such as faster account opening times, faster peer-to-peer transfers, building up credit and payday loans.

Some traditional financial institutions have responded to the challenge of neobanks, including in the Middle East.

Banks such as Abu Dhabi Commercial Bank, Emirates NBD and Mashreq quickly launched digital operations with Hayyak, Liv and Mashreq Neo, respectively.

There are at least 333 neobanks worldwide, including start-ups and digital-only operations by incumbents, a tracker by The financial brand publication showed.

The number of neobanks has increased by more than 200% since 2015, according to BCG’s FinTech Control Tower report.

The growth of these institutions is driven by the need for on-demand, easy-to-access financial solutions sought by a young and increasingly digitally savvy population, BCG said.

“Traits that have often defined the success of neobanks include digital and mobile-centric services, exceptional user experiences, a lean and agile technology-driven culture, and building brands that users have an emotional connection with,” indicates the report.

More than half of the GCC population is under 30 years old. The region has one of the highest connectivity rates in the world, with more than 90% of its population connected to the internet, far exceeding the global average of 51.4%, according to the research.

It is expected that around two-thirds of the GCC population will have 5G connections by 2026.

This combination makes the region ripe for FinTechs and neobanks to accelerate their growth, according to the report.

________

Watch: ADIB unveils first facial recognition service for account openings in UAE

This year, Saudi Arabia licensed three digital banks and 19 fintech companies to provide microfinance, digital insurance and payment services to consumers, BCG said.

There have been regulatory advancements across the GCC, such as the FinTech Hive accelerator at the Dubai International Financial Center, as well as others in Abu Dhabi and Manama in Bahrain, the consultancy said.

“While traditional banks will maintain a strong position in the near term, particularly in terms of corporate banking and retail mortgages, neobanks will gain market share in specific product areas such as payments, loans , buy-now, pay-later, cards and digital wallets, and remittances, targeting specific customer groups such as young tech-savvy people, expatriate populations and women,” the report states. .

Updated: October 29, 2022, 04:00

FRA and BGT: Distribution Increases and Significant Discounts (NYSE: BGT)

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MicroStockHub/iStock via Getty Images

Written by Nick Ackerman, co-produced by Stanford Chemist. This article was originally published to members of the CEF/ETF Income Laboratory on October 14, 2022.

BlackRock Floating Rate Income Strategies Fund (NYSE: FRA) and BlackRock Floating Rate Income Trust (NYSE: BGT) were two of the latest changes to payouts for the BlackRock range of funds. Fortunately, these two funds were distribution relays for their shareholders. Since these are funds exposed to variable rates, this was generally expected.

In fact, as rates continue to be pushed higher by the Fed, we could likely see even more hikes going forward. At the same time, both of these funds are offered at quite attractive prices with significant discounts. These haircuts arise from the fact that there are credit risks in the assets. Since they are issued by lower quality companies, the risk of default or bankruptcy is higher during tough economic times. Consequently, investors sell the funds faster than the actual underlying performance of the portfolios.

Here’s a look at the year-to-date total share price and total net asset value return performance between these two funds. We can clearly see that total net asset value returns have held up much better relative to stock prices. So, the latest big discounts we’ve seen pop up.

Chart

Y-Charts

The rate hike is very likely to put the economy in a tough spot as the Fed works to slow the economy to fight inflation; hence why discounts opened on uncertainty about the severity of an economic downturn.

That being said, just because there is a default or bankruptcy does not mean there is no collection of some of the loans. Recoveries have actually been quite strong, according to a report from Fitch. Of course, this is for historical data only and does not guarantee future results.

The latest UNII report showed that the distribution coverage rate peaked at over 100% for FRA and BGT. That was for the end of August 2022. Then there was another 75 basis point increase from the Fed in September. With at least one, possibly two increases of more than 75 basis points at the end of this year.

This will only see even more net investment income from these funds. In turn, this will essentially mean that new distributions will or will likely be covered by the NII.

BlackRock UNII Report

BlackRock UNII Report (Black Rock)

However, it can be noted that the UNII is always negative. For distribution changes, the direction of NII seems to mean more than what UNII shows. UNII is simply undistributed net investment income. So this only tells us where the payment was, but not where the payment might go.

BlackRock Floating Rate Income Strategies Fund

  • Z-score over 1 year: -1.67
  • Discount: 11.85%
  • Distribution yield: 8.71%
  • Expense ratio: 1.17%
  • Leverage: 28.69%
  • Assets under management: $613.7 million
  • Structure: Perpetual

FRA’s investment objective is “to provide shareholders with high current income and capital preservation consistent with investments in a diversified leveraged portfolio of debt securities and floating rate instruments”.

To achieve this investment objective, “at least 80% of its assets in floating rate debt securities, including floating or variable rate debt securities which pay interest at rates which adjust each time ‘a specified interest rate changes and/or resets on predetermined dates’. As is generally the case with these types of funds, the portfolio “invests a substantial portion of its investments in floating rate debt securities consisting of lower rated secured or unsecured floating rate senior loans. to investment quality.

It hasn’t been long since we last covered FRA. However, in this volatile market, a lot can happen. We’ve seen an increase in distribution, but a lower price has also pushed up distribution yield along with that increase. Market volatility also pushed the fund into an even wider discount and what I would consider an even more attractive discount.

The boost for FRA was good for a 20.5% increase, taking the monthly payment from $0.0667 to $0.0804. This was the first increase in this fund since rates rose. These funds tend to focus on more even payment to shareholders rather than more regular adjustments. For floating rate funds, being so sensitive to changes in interest rates, they tend to see fairly regular changes, relatively speaking.

FRA distribution history

FRA distribution history (CEF Connect)

From another angle, the fund is now paying well above its historical payout level. This is due to the decline in the stock price, but with heavy hedging, I think it’s attractive.

Chart

Y-Charts

The effective duration of the fund is incredibly low at 0.33 years. This is common for these floating rate loan funds. This is partly why they are a hedge against other fixed rate debt in nature.

Despite this, we have seen the fund’s discount widen significantly. It is wider than its historical range and is bouncing near the lows we have seen from 2019 to the COVID pandemic.

Chart

Y-Charts

BlackRock Floating Rate Income Trust

  • Z-score over 1 year: -1.39
  • Discount: 12.30%
  • Distribution yield: 8.76%
  • Expense ratio: 1.18%
  • Leverage: 28.92%
  • Assets under management: $378.8 million
  • Structure: Perpetual

BGT’s investment objective is “to provide a high level of current income”. To achieve this, the fund will invest “at least 80% of its assets in floating and variable rate instruments of US and non-US issuers, including a substantial portion of its assets in global floating and variable rate securities, including including floating rate senior secured loans made to corporations and other business entities.”

For BGT, it’s been a while since I specifically covered this fund. It has many similarities to FRA as a whole. Almost the same expense ratio, even though it’s a smaller fund. The leverage used by the fund is quite high, but it is typical for these types of funds. The effective duration of the portfolio is also exactly the same at 0.33 years.

Even the payout increase for BGT was quite similar to that of FRA with an increase of 20.7%. It went from a monthly payment of $0.0647 to $0.0781. It’s also not too surprising to see such similarities, given that the cast coverage was quite similar in the last UNII report. BGT had a slightly better coverage rate of half a percent. It was also BGT’s first increase in this latest rate hike cycle.

BGT distribution history

BGT distribution history (CEFConnect)

Looking at the performance of distribution over the past decade, we can see almost a mirror image of what we saw from FRA above. Again, the higher distribution yield is a function of lower prices. Given that distribution coverage is quite strong and likely to improve, this is a positive development.

Chart

Y-Charts

The fund’s discount also shows that BGT is trading above its long-term average level. Both of these funds had rising valuations as we approached the end of 2021. Credit risks, however, completely took over and drove down haircuts to near decade lows – excluding the period of the COVID crisis.

Chart

Y-Charts

An interesting thing to note for BGT is that the fund generally trades at a narrower discount than FRA. Yet right now it has an even bigger discount as of the last close on October 13th. I hold FRA but not BGT. I had at some point in the last hiking cycle. That being said, the difference in valuation right now is not necessarily large enough to make an exchange an obvious choice.

Conclusion

FRA and BGT have recently increased their distributions. This seems like an obvious outcome as a floating rate fund in a rising rate environment. However, although the underlying portfolios are doing quite well, the credit risks of their portfolios seem to be making investors nervous. This penalized the real share price of these funds, opening up to the latest discounts. I think these are priced attractively right now. But I recognize that – at least for FRA – the market does not agree with me.

FRA performance since May update

FRA performance since May update (Looking for Alpha)

I originally went bullish on FRA in May. Again, just at the end of August. In May, the discount amounted to around 13%. It then tightened in August to around 7%. Now it is again offering a discount of almost 12%. This has at least played a role in the losses generated since the August update.

FRA performance since August update

FRA performance since August update (Looking for Alpha)

FRA has produced losses each of these times, holding up much better than the S&P 500, but it’s not an appropriate benchmark. This can help provide some context. In the long term, equities should be able to smoke investments into loans. If we take more risks, we should expect to be better rewarded. At least that’s the general idea.

Ultimately, the higher revenue generated resulting in higher fund distributions is a welcome sign that things are still working out on this front.

BOJ keeps interest rates ultra-low and defies global tightening trend

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  • BOJ maintains short- and long-term rate targets
  • No change to dovish policy guidelines
  • Board of Directors Raises Price Forecast, Predicts 2.9% Inflation for FY2022
  • Governor Kuroda is expected to brief the media at 06:30 GMT

TOKYO, Oct 28 (Reuters) – The Bank of Japan kept interest rates ultra-low on Friday and maintained its dovish stance, cementing its status as an exception among global central banks tightening monetary policy, as recession fears cloud the prospects for a strong recovery.

In new quarterly projections, the BOJ has revised up its forecast for core consumer inflation to 2.9% for the current fiscal year ending March 2023, from an estimate of 2.3. % made in July and well exceeding its target of 2%.

It also raised its inflation forecast for fiscal year 2023 to 1.6% from 1.4%, nodding to recent growing signs that companies are actively passing on rising commodity costs to households.

Despite the higher inflation outlook, the central bank maintained its policy guidance that its short-term and long-term interest rate targets will remain at “current or lower levels.”

As widely expected, the BOJ also left unchanged its target of -0.1% for short-term interest rates and its promise to guide 10-year bond yields around 0%.

“Risks to the economic outlook are on the downside, while those to the price outlook are on the upside,” the BOJ said in a report on quarterly projections.

The announcement follows the European Central Bank’s decision to raise interest rates again on Thursday, continuing its efforts to prevent rapid price growth from taking hold. The US Federal Reserve is also expected to raise rates next week.

Investor attention will focus on BOJ Governor Haruhiko Kuroda’s post-meeting briefing for clues on when a possible exit from the ultra-loose policy will take place.

Although more subdued than in other major economies, core consumer inflation in Japan hit an eight-year high of 3% in September, beating the BOJ’s 2% target for six consecutive months. .

Core consumer inflation in Tokyo, Japan’s capital, seen as a leading indicator of national numbers, hit a 33-year high of 3.4% in October, data showed on Friday, a sign of growing pressure on prices.

Kuroda stressed the need to maintain an ultra-loose policy in the view that the recent cost inflation will prove temporary.

The BOJ’s ultra-loose policy has helped trigger sharp declines in the yen that inflate the cost of importing already expensive fuel and raw materials, prompting the government to intervene in the market to support the currency.

Reporting by Leika Kihara; Editing by Sam Holmes

Our standards: The Thomson Reuters Trust Principles.

Health insurance premiums and deductibles: these are the prices for 2023

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Medicare premium and deductible costs are changing in 2023, with some plans increasing and some getting cheaper. For Medicare Part B, the cost of premiums and deductibles will be lower. For Medicare Part A, you can expect a price increase. Medicare Part D enrollees, meanwhile, could see a monthly income-related adjustment next year.

Each year, Medicare Part B premium, deductible, and coinsurance rates are determined according to guidelines set forth in the Social Security Act, the Centers for Medicare & Medicaid Services said. Due to lower-than-expected spending, which resulted in higher reserves, CMS will reduce Part B premiums and deductibles in 2023. We’ll explain more below.

Additionally, if you are receiving Social Security payments, a the increase in benefits for 2023 has been announced. “This means older people will have a chance to outpace inflation, due to the rare combination of rising benefits and falling premiums,” Press officer Karine Jean-Pierre said during a briefing at the White House.

Here’s how much prices will drop for those receiving Medicare Part B and what the new costs will be next year. Note that Medicare enrollment ends on December 7.

How much will Medicare Part B cost in 2023?

You won’t see a big reduction in the amount you’re currently paying, but it will be less than what you paid. Here’s how payments break down for Medicare Part B in 2023.

Standard monthly premium: $164.90 in 2023, a decrease of $5.20 from $170.10 in 2022.

Annual deductible: $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.

How is Medicare Part B cheaper?

The CMS recommended in May that any excess funds from the Supplemental Medical Insurance Trust Fund be passed on to those who receive Medicare Part B coverage. This is to help reduce premium and deductible costs.

This year’s Part B premium was to cover expenses for a new drug called Aduhelm, to treat Alzheimer’s disease. Because less money was spent on this drug and other Part B items, there were more reserves left in the SMI Fund Part B account, which will now be used to limit future premium increases. of part B.

5, 10 and 20 dollar bills

Medicare Part A enrollees will have to pay a little more in 2023.

James Martin/CNET

Medicare Part A enrollees get increases

While Medicare Part B sees lower premiums next year, those who receive Medicare Part A will see increases in 2023. Here’s a breakdown of what’s rising.

Hospital deductible: $1,600 in 2023, an increase of $44 from $1,556 in 2022.

Daily coinsurance from the 61st to the 90th day: $400 in 2023, an increase of $11 from $389 in 2022.

Daily Coinsurance for Lifetime Reserve Days: $800 in 2023, an increase of $22 from $778 in 2022.

Skilled Nursing Facility Coinsurance: $200 in 2023, an increase of $5.50 from $194.50 in 2022.

Monthly adjustments for Medicare Part D

If you receive Medicare Part D, you may see an adjustment to your monthly amount.

table of Medicare Part D amounts

Medicare and Medicaid Service Centers

What do Medicare Parts A and B cover?

Health insurance part A covers inpatient hospitals, skilled nursing facilities, palliative care, inpatient rehabilitation and some home health care services.

Health insurance part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A.

Medicare Part D helps cover prescription drug costs.

For more information, here when you can enroll in the Affordable Care Act plans.

A look at the intrinsic value of China Energine International (Holdings) Limited (HKG:1185)

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How far is China Energine International (Holdings) Limited (HKG:1185) from its intrinsic value? Using the most recent financial data, we will examine whether the stock price is fair by taking the expected future cash flows and discounting them to the present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. There really isn’t much to do, although it may seem quite complex.

We draw your attention to the fact that there are many ways to value a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. Anyone interested in learning a little more about intrinsic value should read the Simply Wall St.

Check opportunities and risks within Hong Kong’s renewable energy industry.

Is China Energine International (Holdings) fair valued?

We will use a two-stage DCF model which, as the name suggests, takes into account two stages of growth. The first stage is usually a period of higher growth which stabilizes towards the terminal value, captured in the second period of “sustained growth”. To begin with, we need to obtain cash flow estimates for the next ten years. Since no analyst estimates of free cash flow are available to us, we have extrapolated the previous free cash flow (FCF) from the company’s latest reported value. We assume that companies with decreasing free cash flow will slow their rate of contraction and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow more in early years than in later years.

A DCF is based on the idea that a dollar in the future is worth less than a dollar today, so we need to discount the sum of these future cash flows to arrive at an estimate of present value:

Estimated free cash flow (FCF) over 10 years

2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Leveraged FCF (HK$, Millions) HK$18.3 million HK$26.0 million HK$33.8 million HK$41.0 million HK$47.4 million HK$52.8 million HK$57.2 million HK$60.8 million HK$63.9 million HK$66.4 million
Growth rate estimate Source Is at 59.45% Is at 42.1% Is @ 29.96% Is at 21.46% Is at 15.51% East @ 11.34% Is at 8.42% Is at 6.38% Is at 4.95% Is 3.95%
Present value (HK$, millions) discounted at 5.9% HK$17.3 HK$23.2 HK$28.4 HK$32.6 HK$35.6 HK$37.4 HK$38.3 HK$38.5 HK$38.1 HK$37.4

(“East” = FCF growth rate estimated by Simply Wall St)
10-year discounted cash flow (PVCF) = HK$326 million

After calculating the present value of future cash flows over the initial 10-year period, we need to calculate the terminal value, which takes into account all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate the terminal value at a future annual growth rate equal to the 5-year average 10-year government bond yield of 1.6%. We discount terminal cash flows to present value at a cost of equity of 5.9%.

Terminal value (TV)= FCF2032 × (1 + g) ÷ (r – g) = HK$66 million × (1 + 1.6%) ÷ (5.9%–1.6%) = HK$1.6 billion Kong

Present value of terminal value (PVTV)= TV / (1 + r)ten= HK$1.6 billion÷ (1 + 5.9%)ten= HK$891 million

The total value is the sum of the cash flows for the next ten years plus the present terminal value, which gives the total equity value, which in this case is HK$1.2 billion. To get the intrinsic value per share, we divide it by the total number of shares outstanding. Compared to the current share price of HK$0.2, the company appears to be about fair value at a 12% discount to the current share price. The assumptions of any calculation have a big impact on the valuation, so it’s best to consider this as a rough estimate, not accurate down to the last penny.

SEHK: 1185 Discounted Cash Flow October 26, 2022

The hypotheses

We emphasize that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you disagree with these results, try the math yourself and play around with the assumptions. The DCF also does not take into account the possible cyclicality of an industry or the future capital needs of a company, so it does not give a complete picture of a company’s potential performance. Since we consider China Energine International (Holdings) as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which takes into account the debt. In this calculation, we used 5.9%, which is based on a leveraged beta of 0.800. Beta is a measure of a stock’s volatility relative to the market as a whole. We derive our beta from the average industry beta of broadly comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

Next steps:

Although a business valuation is important, it is only one of the many factors you need to assess for a business. The DCF model is not a perfect stock valuation tool. Instead, the best use of a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, if the terminal value growth rate is adjusted slightly, it can significantly change the overall result. For China Energine International (Holdings), we have compiled three additional things for you to assess:

  1. Risks: Be aware that China Energine International (Holdings) displays 3 warning signs in our investment analysis and 2 of them are significant…
  2. Other high-quality alternatives: Do you like a good all-rounder? Explore our interactive list of high-quality actions to get an idea of ​​what you might be missing!
  3. Other top analyst picks: Interested to see what the analysts think? Take a look at our interactive list of analysts’ top stock picks to find out what they think could have attractive future prospects!

PS. Simply Wall St updates its DCF calculation for every Hong Kong stock daily, so if you want to find the intrinsic value of any other stock, just search here.

Valuation is complex, but we help make it simple.

Find out if China Energy International (holdings) is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

How Small Business Owners Can Handle Inflation and High Interest Rates

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According to the latest Small Business Index from MetLife and the US Chamber of Commerce, small business concerns about inflation have reached a new high as they prepare more for an uncertain future. The survey found that 71% of small business owners think the worst is yet to come when it comes to inflation. With inflation keeping costs high and interest rates rising, smart business owners are wondering how to weather the storm.

Here are three things small business owners can do now to identify their best path forward.

1. Regularly review your key business indicators.

The best way to navigate difficult economic conditions is to know what’s happening in your business NOW, not what happened last quarter or last year.

Keeping your basic financial reports up to date not only gives you a better understanding of what’s changing in your business, but also keeps you prepared to negotiate extensions or new financing with potential lenders or investors.

Don’t stop at a clear set of historical financial data – compare your plan (budget and projection) to your actual performance to see where your thinking was on target and where it might have gone wrong. Clarity around the assumptions you made that didn’t work gives you a good starting point for adapting your business plan to your current situation.

You can also try to identify leading indicators that help you identify changes in the behavior of your customers or suppliers. Whether it’s the number of conversations it takes to get a “yes” from a customer or the time it takes a supplier to confirm your purchase order, do all you can to track the information that can help you “see” any changes coming with enough time to adjust course.

2. Rate every product for a profit.

One of the easiest ways to navigate high inflation, tight labor markets, and broken supply chains is to confirm that every product or service you sell generates a profit. And if not, identify what needs to happen to make this possible.

Calculate your average revenue and cost for each product, basket, project or customer (your unit economy) to know your average gross margin and net profit per unit. Then compare individual products, services, or projects to this average so you can decide how to adjust your pricing or go-to-market strategy, or which offers should be removed.

For example, one of my clients who resells goods has switched from guaranteeing fixed prices for its large customers to guaranteeing a fixed discount off the Manufacturer’s Suggested Retail Price (MSRP) so that any increase in its suppliers’ prices would be passed on to its customers and to its gross price. the margin would remain stable.

3. Determine the impact of inflationary pressure.

Every business is affected differently by inflation. A quick analysis of the following areas can therefore help you identify the potential impact:

  • Unit economy: Ask yourself which of your products or services (your economic unit) are most vulnerable to inflation? How much can you absorb costs, deliver your product/service, and satisfy your customers before you have to raise prices?
  • Financing your business: Do you have variable rate financing agreements? Will you need to secure additional financing in the next 18-24 months?
  • Your personal financial situation: Take a look at your other personal obligations that may increase with inflation, such as credit card debt or an adjustable rate mortgage. As you prepare for possible downturns, think about how your personal and professional finances work together and depend on each other.

Taking one or more of these steps not only improves your business’ resilience in tough economic conditions, but will also make you less dependent on outside capital. Knowing your numbers and your specific business challenges will help you navigate the uncertainty the economy may experience in the months ahead.

Most importantly, becoming an expert on what works (and what doesn’t) in your business helps you stay nimble and build your own confidence in every decision you make.

Growing with CO—

For more advice for small business owners, the Chamber offers the best site on the internet to help you start, run and grow the business of your dreams.

About the authors

Stephanie Sims

Founder, Financial Capability

Stephanie Sims is the founder of Finance Ability, a member of the Chamber’s Small Business Council, capital strategist, startup advisor and author of Finance your business without selling your soul.

More River Bend financial info sought by Red Deer City Council after another request for loan deferral – Red Deer Advocate

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Several Red Deer city councilors have suggested it’s high time to review the terms of repayment of a nearly 20-year-old outstanding loan for the River Bend Golf Club clubhouse expansion.

As the council gave first reading on Monday to a regulation that would push the next loan repayment to 2024 instead of the end of this year, it was troubled by the lack of payments made over the years.

This was the fourth postponement requested by the River Bend nonprofit.

In 2004, the operators received a $1.7 million loan from the city for a pavilion renovation/expansion project. But the company has only made a few refunds.

So far, council has heard that about $125,000 of the loan has been repaid, and more than $1.5 million is still outstanding.

“There’s still a good chunk of principal left,” said city chief financial officer Ray MacIntosh, who noted that for every year that loan repayments are deferred, another year will be added to the repayment schedule.

“We are still awaiting full repayment of the loan,” he added.

Several city councilors suggested it was time to delve into the River Bend Golf Course’s financial records to determine if the repayment schedule for the loan made in 2004 was fair – or even possible.

Com. Vesna Higham, the town’s representative on the River Bend board, said after talking to society members about the revenue, she doesn’t think there was ever enough capacity to repay that loan. .

The City of Red Deer owns everything in River Bend – the land, the clubhouse and all the amenities. So Higham wondered why a nonprofit board, responsible for operating the facility, had ever been asked to repay that loan? She noted that the city has never asked the YMCA to pay for the construction of the Northside Community Center, which it operates.

Com. Kraymer Barnstable thinks different repayment terms are clearly needed since the definition of insanity is doing the same thing over and over again and expecting a different outcome.

He and other advisers want to know more about River Bend’s earnings — that they want to be in the public domain, not just accessible via a Freedom of Information request.

If the deferral settlement receives final board approval on Nov. 21, Red Deer’s River Bend Golf Course could have an additional two years to make the next repayment of the 18-year loan. Meanwhile, a proposed new master plan for the future development of River Bend will be presented to councilors on November 7, which could help shape that decision.

MacIntosh told council that the timing of loan repayment isn’t ideal, but the city can pull through.

Financial constraints, due to the fluctuating use of golf courses, had been cited as one of the reasons why loan repayments had to be deferred. In 2019, the city ordered a financial and operational review of the River Bend Golf and Recreation Area, which was impacted by the pandemic.

This fall, online public comment on the future of River Bend was collected as part of the new master planning process.


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Univfy and LightStream launch program to make having a baby more accessible for the growing number of people who rely on fertility care to start a family

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A new fertility financing option combined with an artificial intelligence-powered platform and concierge guidance from IVF experts enables patients to benefit from lower, more predictable IVF costs and improved pregnancy and childbirth rates.

LOS ALTOS, CA., October 24, 2022 /PRNewswire/ — Univfy®, an AI platform company with a mission to make in vitro fertilization (IVF) accessible, today announced a new funding program that combines Univfy’s artificial intelligence with funding opportunities from LightStream, a division of Truist Bank, to help make fertility treatments more effective and affordable for the growing number of women and couples who need IVF to build their families.

The most common barriers to having a baby for 1 in 5 women unable to get pregnant after a year of trying (infertile people), LGBTQ families and women choosing to freeze their eggs are the high and unpredictable cost of treatment. and the uncertainty of the outcome. Even those who receive partial funding from their employer often find the remaining expenses unfeasible. To make matters worse, delaying fertility treatment to save money, find financing, or explore other options can make a successful pregnancy less likely.

With Univfy, people considering fertility treatment now have the resources to choose a fertility treatment plan that gives them the best chance of success and the confidence to pay for it. Patients can find a licensed fertility specialist who offers the Univfy PreIVF Report, which uses artificial intelligence to accurately predict an individual’s personalized likelihood of success with IVF and how many cycles they might need. Understanding their precise probabilities of success can help the patient and her doctor together create a treatment plan that is personalized for the patient and more likely to result in a baby.

The report will also tell patients if they are eligible for an IVF Reimbursement Program, which offers more than one cycle of IVF at a discounted price. Under the program, patients receive reimbursement from their clinic for a large portion of their payment if they are unsuccessful. Eligibility varies depending on the center they choose, but 50-80% of patients are eligible, reducing patient anxiety and allowing more people to afford multiple rounds of IVF which improves their chances of success. The unbiased and expert Univfy Fertility Concierge is available to guide women and couples in their search for fertility and financial options.

Once the patient knows her treatment plan and cost in advance, LightStream fertility funding may be available to cover treatment costs. “LightStream understands the many obstacles people can face in their fertility journey,” said Senior Vice President Kristin Shuff. “We see how the Univfy team is technically sophisticated and dedicated to patients as they deploy AI to inform patient decisions. Through our Univfy partnership, we hope to help alleviate some of the financial worries that often arise in the fertility process.”

If you have good credit, a LightStream unsecured loan for fertility finance can help make treatment costs affordable and predictable. * Through a simple online application, qualified individuals or co-applicants can receive an unsecured LightStream loan at a very competitive fixed interest rate. assess.* Funds can be used to cover treatment costs for any fertility-related procedures as well as incidental expenses for lab work, genetic testing, third-party reproduction, surrogacy costs, medication, etc. .

LightStream offers a simple, no-surprises lending process. Eligible applicants can obtain funding for up to $100,000–free of charge. Approved borrowers receive their funds directly into their personal bank accounts the same day they apply, when all considerations are met. And because LightStream never charges a fee, customers can repay any portion of their loan at any time, with no additional fees or prepayment penalties. It’s an easy and convenient way to fund fertility treatments.

“Cancer patients are rarely told to try a round of chemotherapy and then see what happens, but all too often women attempt a single cycle of IVF due to financial and feasibility considerations, which greatly limits their likelihood of ‘having a baby’, said Mylene YaoCEO and co-founder of Univfy.

“We are excited to combine our proven and popular AI-based platform that helps patients by predicting IVF treatment outcomes and cost. Opportunities to receive fertility funding through LightStream empowers more people to benefit from one of the safest and most effective fertility treatments available and have more success in having a baby.”

“Univfy pursues the mission of helping people realize their dream of having a family,” Shuff continued. “We hope this partnership will enable many more women and couples to have healthy families.”

About IVF

The demand for fertility care is increasing to meet various medical and family needs. According to a 2013 national survey by Pew Research, 51% of LGBT adults of all ages have children or would like to have children in the future.

The cost of an IVF cycle can reach $10,000 at $20,000, and only 27% of employers with 500 or more employees covered treatment in 2020, according to a 2021 Mercer survey of employers. More than half of patients need at least two to three cycles of treatment to have a baby. Yet if the first cycle of IVF fails, up to 80% of patients discontinue treatment, likely due to emotional and financial exhaustion.

With the fertility funding brought to you by Univfy and LightStream, we hope to enable many more people and couples to get the fertility care they need to start a family.

To learn more about Univfy, visit www.univfy.com.

To learn more about LightStream, visit www.lightstream.com

Univfy® uses artificial intelligence (AI) and human expertise to give women and couples the best chance of having a baby affordably. With the support of Univfy AI and Univfy Fertility Concierge, patients make more informed decisions, which translates to 2x the chance of having a baby at 1/3 lower cost per patient. Founded on the basis Stanford University technology, Univfy has published our methods in peer-reviewed clinical research journals and has established an extensive global intellectual property portfolio with issued patents in the US and around the world.

LightStream

LightStream is the nation’s leading online lender and offers financing in all 50 states. Recognized by the Better Business Bureau with its A+ rating, LightStream continues to lead the way as a trusted pioneer in the fintech market.

LightStream provides no-fee fixed rate unsecured loans to customers with good credit for virtually any purpose, including fertility financing. Through a quick and easy online process, clients can receive funds the same day an application is submitted. Click on here for important information on same-day financing, LightStream’s Rate Beat program and its $100 Loan Experience Guarantee.

For media inquiries, please contact:
heather hollandcommunication director
E : [email protected]

* LightStream loan terms, including APR, may differ depending on loan purpose, amount, term, and your credit profile. Excellent credit is required to qualify for the lowest rates. The fare is shown with the AutoPay discount. The AutoPay rebate is only available before the loan is funded. Rates without AutoPay are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and conditions are subject to change without notice.

Banking and lending products and services are provided by LightStream, a division of Truist Bank. FDIC member.

SOURCE Univfy

In a pinch? Here are the four loans you can get the fastest

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Image source: Getty Images

When you’re in a bind and need cash fast, it’s important to know what your options are. There are different types of loans that you can get relatively quickly, depending on your needs. Before getting a personal loan, it’s important to understand the different types of personal loans and find the right one for you. Here are four of the most common.

1. Credit cards

If you have good credit, you may be able to get a cash advance on your credit card. This is usually a quick and easy process, but it will come with high interest rates. So if you are able to repay the loan quickly, this could be a good option. Cash advances can be very useful in an emergency situation when you need money immediately.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

Another benefit of using a credit card for a cash advance is that you may already have money available on your line of credit that you can use. This can be useful if you don’t want to take out a new loan or use other assets as collateral. However, using a credit card for a cash advance also has some drawbacks. First, as mentioned earlier, interest rates on cash advances are usually very high. This means that if you don’t repay the loan quickly, you could end up paying a lot of interest. Also, most credit cards have limits on how much you can borrow as a loan. So if you need a large sum of money, this might not be the best option.

2. Payday Loans

Payday loans are one of the fastest ways to get cash, but they come with high interest rates and fees. They’re usually only for small amounts of money, so if you need a lot of cash quickly, they’re probably not the best option. However, if you just need a little extra money to last you until your next paycheck, a payday loan might work. Payday loans are not ideal, however. These are short-term, high-interest loans, usually due by your next payday in a single amount. Currently, 37 states regulate payday loans due to their high costs.

Payday loans are usually for $500 or less and are due on your next payday. Depending on state laws, people can get payday loans online or through a storefront lender. A typical two-week payday loan can have annual percentage rates (APR) as high as 400%. By comparison, credit card APRs can range from 12% to 30%. Payday loans should be considered an option of last resort.

3. Pawnbroker

Pawnbrokers are short-term loans secured by an object of value that people bring to a pawnbroker. As they are backed by the value of the object, they are cheaper than payday loans but are more expensive than a conventional loan. Pawnbrokers are regulated by the government. This type of loan is ideal for people who need cash quickly without a credit check.

Loan terms vary by pawnbroker. People can use valuables, such as jewelry or electronics, to get a loan based on the value of the item. No credit check is required. Those who may not qualify for a traditional loan can consider a pawnbroker. Once the loan amount is paid off, you will receive your items. If you don’t pay it back, the pawnbroker can seize the secured items.

4. Securities Lending

Title loans are another quick way to get cash. These are short-term secured personal loans secured by your car. Financial institutions put a lien on your car. If you are unable to repay the loan, they can seize your car, as it is used as collateral. Title loans generally do not consider your credit and can be approved quickly. However, a title loan is very expensive, with an APR of around 300%.

These are four of the most common types of loans that you can get relatively quickly. Consider which one best suits your needs and compare interest rates and fees before you apply. Understanding how these personal loans work can help you make a smarter decision.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Equinox Gold Stock: Current Price and Significant Wrong Price (NYSEAMERICAN:EQX)

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Antonio Solano

The following segment is taken from this fund letter.


Golden Equinox (NYSE: EQX)

As a first-order effect, gold has performed poorly in an environment of rising real rates and a strong dollar (although it is at all-time highs in other currencies). gold the adjustment of prices to real rates seems contemporary.

Historically, for every 1% increase in real 10-year rates, there is a reasonably foreseeable 10% decline in the price of USD-denominated gold, all other things being equal. If this historical relationship holds, the current rise in real rates implies a 26% decline in gold prices, matching the 22% fall from the March highs of this year. However, there is a growing gap between the sell and sentiment of the precious metal versus the value of a call option on a total loss of confidence in central banks.

Equinox Gold has been the most painful position in our portfolio, down about 50% since March. The fall in share price implies that this fast-growing gold producer has fared far worse than it has. According to our models, the current stock price indicates a long-term gold price of approximately $1,050 at a 10% discount rate. This appears as a significant pricing error.

Political risk has undoubtedly been an issue, with operations at the Los Filos mine interrupted on several occasions and permit issues at the RDM mine in Brazil. EQX is a development story and is in the high growth phase of its business lifecycle, with more construction underway at any given time than most mining companies will experience in their entire lifetime. of life.

We believe Equinox will be a strong midstream producer by the middle of this decade, doubling the size of its business over the next three years. We are comfortable holding this position through a price cycle and the ensuing volatility as the business matures.

We will be going down to Brazil to visit several Equinox mines in October, so expect a full review of the firm in Q4.


The views expressed herein by Massif Capital, LLC (Massif Capital) do not constitute investment advice and should not be relied upon in making investment decisions. The opinions of Massif Capital expressed here relate only to certain aspects of a potential investment in the securities of the companies mentioned and cannot replace a complete investment analysis. Any analysis presented here is limited in scope, is based on an incomplete set of information, and has limitations as to its accuracy. Massif Capital recommends that potential and existing investors conduct their own thorough investment research, including a detailed review of regulatory documents, public statements and company competitors. Consulting a qualified investment advisor can be prudent. The information on which this material is based has been obtained from sources believed to be reliable but has not been independently verified. Consequently, Massif Capital cannot guarantee its accuracy. Any opinion or estimate constitutes Massif Capital’s best judgment at the date of publication and may be modified without notice. Massif Capital expressly disclaims any liability that may arise from the use of this material; reliance on the information contained in this publication is at the sole discretion of the reader. Further, this posting does not constitute an offer to sell or a solicitation to buy any of the securities or services discussed herein.


Editor’s note: The summary bullet points for this article were chosen by the Seeking Alpha editors.

The interest rate on I bonds will soon fall from a record low. Act fast.

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There haven’t been many safe investments that can beat inflation except for the I bond, but even that safety net may soon not be so powerful in fighting inflation.

Indeed, the record high interest rate of 9.62% on I bonds issued through October will drop on November 1 to 6.48%, a significantly lower level but still one of the best investments in the market, according to the experts.

The rate change is based on the change in the consumer price index (CPI) from March to September. The new rate is lower than the annual inflation rate of 8.2% in September, which means that when the rate is adjusted for inflation, you have a negative interest rate.

What is Inflation? :Understand why prices are rising, what causes it and who it hurts the most.

Beat the market:I was 12 when I bought my first stock. My wallet beats my 401(k)

What is an I-link and how do they work?

It’s a 30-year Treasury bond that protects you against inflation. It pays both a fixed interest rate and a rate that changes twice a year with inflation.

Interest is compounded semi-annually, which means that every 6 months a new interest rate is applied to a new principal value equal to the previous principal plus interest earned over the last 6 months. The value of the bond increases because it pays interest and because the principal value increases.

You can buy for $10,000 from the treasury and another $5,000 using your tax refund. You can cash them out after 12 months, but if you do so in less than 5 years, you lose the last 3 months of interest.

Do you pay taxes on I bonds?

You must pay federal income tax, but no state and local taxes on the I Bonds. You can either report each year’s income or wait to report all income when you redeem the bond.

If you use the money for qualified college expenses, you may not owe income tax.

Binding time:As rates rise, the antidote to volatile equities may now be bonds. Here’s why.

Inflation hedge:Why I chose I Bonds to protect my sons’ inheritance from high inflation for 40 years

Why is the variable rate falling when inflation is still high?

The floating rate of bond I is based on the evolution of inflation over the last 6 months. In this case, the rate set on November 1 will be based on inflation from March to September.

“July and August slowed down a bit, which led to lower inflation,” said Ken Tumin, founder of bank account comparison site Depositaccounts.com.

The month-over-month CPI for July was unchanged from June and August rose 0.1%. In September, the monthly CPI accelerated again by 0.4%.

Inflation-adjusted security:Social Security benefits will jump 8.7% in 2023

Inflation beating:Two-thirds of workers save less after inflation. Here’s how to save more money.

What is the fixed rate and does it ever change?

The annual fixed rate is announced every May 1 and November 1 for all I Bonds issued over the next 6 months and remains at that rate for the life of the bond. It has been at 0% since November 1, 2019.

The Treasury could reduce the gap between the rate of inflation and the interest rate of I bonds by raising the fixed rate portion on November 1, but this is unlikely to make the actual or inflation-adjusted return positive. If the Treasury raises the fixed rate, it will likely be by a very small increment (think, tenths of a percentage point).

The last time it was above 1% was November 1, 2007.

Annuities are skyrocketing:Are annuities safe in a recession? Sales are exploding, here’s what you need to know

Inflation, apart from:Beyond inflation, these other economic factors could affect you and are worth watching

Is an I Bond always a good investment?

Yes, because other investments of similar quality, including savings accounts, treasury bills and certificates of deposit (CDs), offer even lower returns.

Online savings accounts offer just over 3% interest and CDs offer around 4% interest, “and those are the best, not the average,” Tumin said. Treasury bill yields are below 5%.

Also, remember that the current rate of 9.62% still applies to all bonds purchased through October 31. These bonds will gain 9.62% for six months, then drop to 6.48% for the next six months. That would make a one-year return of around 8.05%, which still isn’t bad.

Or “maybe the next 6 months of inflation will be below 9.62%, then the next 6 months below 6.5%,” Tumin said. “If that happens, you’ll have a real return for next year.”

Moreover, they never lose money because the real interest rate cannot drop below zero and the redemption value cannot drop.

“The Treasury will always exchange an I bond for face value if the investor has held that security for 12 months,” John Rekenthaler, Morningstar’s vice president of research, wrote in a note last month. “In fact, I bonds have the maturity date desired by the investor.”

When does inflation come down? :Are we stuck with runaway inflation? High prices leave experts wondering when we’ll see relief

Likely recession:An economist explains why the recession is probably inevitable in the United States

When is the best time to buy an I Bond?

To lock in the record 9.62% rate for six months, buy I bonds by October 31. You’ll also earn full interest for the month of October on November 1, Tumin said.

But to be on the safe side, buy a little earlier because the Treasury will take a few days to process your purchase.

“I found that you should make sure the purchase is no later than the second to last business day of the month,” he said. “For this month, be sure to buy I Bonds by Friday, October 28.”

That advice is if you already have an open account with the Treasury with a confirmed bank account, he noted. Otherwise, give yourself even more time for your purchase.

As a general rule, “for maximum return, it’s best to buy I bonds near the end of the month and redeem them at the beginning of the month,” he said.

Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at [email protected] and sign up for our free Daily Money newsletter for personal finance tips and business news Monday through Friday mornings.

What is Monero? – Advisor Forbes Australia

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At the time of writing in late October, Monero (XMR) is worth US$143.35 according to CoinMarketCap Data. Monero’s market capitalization (market cap) currently stands at $2,651,700,339. Market capitalization is the current price of a cryptocurrency multiplied by its circulating supply.

Monero has been on a downward trend over the past year. However, all cryptocurrencies at all levels have been experiencing these lows lately. This is likely due to what is known as a “crypto winter,” which is an extended period of low prices. While it’s useful to consider performance trends when investing, a coin’s characteristics are arguably more important. Let’s break down some of the defining characteristics of Monero.

Privacy

Monero’s ability to offer wallet address and transaction privacy is made possible through a small collection of keys and ring signatures. This technology is known as cryptography.

Monero users are provided with three necessary keys: a public key, a private spend key, and a private view key. When you open a wallet with Monero, these will be created automatically, further securing your account. The private view key simply allows you to view your transactions, a public key is used to receive payments, and a private spend key is used to send payments. A large string of impossible-to-guess numbers makes up each key.

A ring signature is a cryptographic digital signature and key to Monero operations. It works by hiding the entry side of a transaction, which makes it almost impossible to determine who signed the transaction and thus protects the identity of the sender. At the same time, ring signatures can easily verify the authenticity of a signature.

How is it mined?

Crypto mining is the process of receiving new coins as payment for verification of blockchain network transactions. Crypto miners are typically tasked with solving a variety of complex cryptographic puzzles and recording investor transactions on the ledger. This incentive procedure keeps cryptonets secure.

Monero is considered by many to be one of the easiest coins to mine, as it does not require the miner to have specialized hardware. Therefore, anyone with the proper know-how can earn an income from mining XMR. Monero aims to keep mining equal in the future. So if you want to learn how to mine crypto, Monero can be a good place to start.

Link to ransomware

Unfortunately, the recent ransomware attack on Optus was not the first instance of hackers demanding Monero payments for criminal behavior. A 2021 CipherTrace Report titled “Current Trends in Ransomware” revealed that at least 22 of the more than 50 ransomware groups would only accept Monero.

Privacy coins are known for their links to black market and ransomware activities. While this has little effect on the everyday investor, it is worth noting the levels of scrutiny privacy coins face. While regulatory action regarding Monero and other privacy coins is not yet significant, governments will likely attempt to use all their power to restrict criminal activity surrounding anonymous crypto.

How’s it going ?

As mentioned, Monero did not escape the crypto winter. In fact, the past year hasn’t been too successful for the price of XMR according to data from CoinMarketCap:

The chart above shows the price action in USD. This means that with the current value of around US$145.79, Australian investors can expect to pay around AU$227 for Monero. However, this bear market can be positive for new investors.

If you are looking to buy the market downside, it is imperative to ensure that you are properly educated before investing. Also keep in mind the volatility of crypto as an investment – ​​a coin’s positive track record is not indicative of its future performance.

Private student loan interest rates skyrocket for 5- and 10-year loans

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Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders, all opinions are our own.

Credible Market’s latest private student loan interest rates, updated weekly. (Stock)

During the week of October 10, 2022, average private student loan rates increased significantly for borrowers with credit scores of 720 or higher who used the Credible Marketplace to take out 10-year fixed rate loans and 5-year variable rate loans.

  • 10-year fixed rate: 7.39%, compared to 6.37% the previous week, +1.02
  • 5-year variable rate: 8.87%, compared to 7.97% the previous week, +0.90

With Credible, you can compare private student loan rates from multiple lenders without affecting your credit score.

Private student loan interest rates jumped this week for 10-year fixed-rate loans and 5-year variable-rate loans. Five-year loans increased by 0.9 percentage points, while rates for 10-year terms saw a larger increase of 1.02 percentage points. In addition to this week’s rate increases, rates for both loan terms are higher than they were this time last year.

Still, it should be noted that borrowers with good credit may find a lower rate with a private student loan than with some federal loans. For the 2022-23 school year, federal student loan rates will range from 4.99% to 7.54%. Private student loan rates for borrowers with good to excellent credit may be lower at this time.

Since federal loans come with certain benefits, like access to income-driven repayment plans, you should always exhaust federal student loan options before turning to private student loans to cover any funding shortfalls. Private lenders such as banks, credit unions, and online lenders offer private student loans. You can use private loans to pay for education and living expenses, which may not be covered by your federal student loans.

Private student loan interest rates and terms may vary depending on your financial situation, credit history and the lender you choose.

Take a look at the rates from Credible Partner Lenders for borrowers who used the Credible Marketplace to select a lender during the week of October 10:

Private student loan rates (diploma and undergraduate)

Student Loan Weekly Rate Trends

credible-student-loan-chart.jpg

Who sets federal and private interest rates?

Congress sets interest rates for federal student loans each year. These fixed interest rates depend on the type of federal loan you take out, your dependent status, and your school year.

Private student loan interest rates can be fixed or variable and depend on your credit, repayment term and other factors. Generally, the better your credit score, the lower your interest rate is likely to be.

You can compare rates from multiple student lenders using Credible.

How does student loan interest work?

An interest rate is a percentage of the loan periodically added to your balance – essentially the cost of borrowing money. Interest is a way lenders make money from loans. Your monthly payment often pays interest first, with the rest going to the amount you originally borrowed (the principal).

Getting a low interest rate could help you save money over the life of the loan and pay off your debt faster.

What is a fixed rate or variable rate loan?

Here is the difference between a fixed rate and a variable rate:

  • With a fixed rate, your monthly payment amount will remain the same for the duration of your loan.
  • With a floating rate, your payments can go up or down as interest rates change.

Comparative purchases for private student loan rates is easy when you use Credible.

Calculate your savings

Using a student loan interest calculator will help you estimate your monthly payments and the total amount you will owe over the term of your federal or private student loans.

Once you’ve entered your information, you’ll be able to see what your estimated monthly payment will be, the total you’ll pay in interest over the term of the loan, and the total amount you’ll repay.

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.

Top 10 Online Lenders for Bad Credit

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Gone are the days when payday lenders comprised very seedy stores with green dollar signs inside a strip mall.

Today, payday lenders operate online and through sophisticated mobile apps to provide financial assistance to people who urgently need money to pay for unexpected expenses, but cannot access loans through traditional channels. .

These companies have simplified payday loan processes and made it possible to access credit even when you have little or no credit. But it is not easy to find a reliable lender among so many shady companies claiming to offer instant payday loans for bad credit.

So we have compiled this list to make it easier for you. Here are the top 10 lenders for bad credit payday loans.

1. iPaydayLoans – Best overall, for quick payday loans

2. WeLoans – Ideal for payday loans with instant approval

3. CocoLoan – Ideal for payday loans without credit check

4. Problematic loans in the United States – Ideal for bad credit payday loans

5. American Installment Loans – Ideal for payday loans with fast approvals

6. Loans for bad credit in UK – Ideal for UK payday loans no credit check

seven. Quick Payday Loans – Ideal for payday loans with quick approval

8. Easy Payday Loans – Ideal for easy and convenient payday loans

9. UnityLoan – Ideal for payday loans with guaranteed approval

ten. honest loans – Ideal for payday loans with same day approval

Does this valuation of Agilyx ASA (OB:AGLX) imply that investors are paying too much?

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Does Agilyx ASA (OB:AGLX) stock price in October reflect what it is really worth? Today we are going to estimate the intrinsic value of the stock by taking the expected future cash flows and discounting them to their present value. One way to do this is to use the discounted cash flow (DCF) model. Don’t be put off by the jargon, the underlying calculations are actually quite simple.

Remember though that there are many ways to estimate the value of a business and a DCF is just one method. If you still have burning questions about this type of assessment, take a look at Simply Wall St.’s analysis template.

Check opportunities and risks within the commercial services industry NO.

The model

We will use a two-stage DCF model which, as the name suggests, takes into account two stages of growth. The first stage is usually a period of higher growth which stabilizes towards the terminal value, captured in the second period of “sustained growth”. To begin with, we need to obtain cash flow estimates for the next ten years. Wherever possible, we use analysts’ estimates, but where these are not available, we extrapolate the previous free cash flow (FCF) from the latest estimate or reported value. We assume that companies with decreasing free cash flow will slow their rate of contraction and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow more in early years than in later years.

A DCF is based on the idea that a dollar in the future is worth less than a dollar today, so we discount the value of these future cash flows to their estimated value in today’s dollars:

10-Year Free Cash Flow (FCF) Forecast

2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Leveraged FCF ($, millions) -USD 7.00m -1.50m USD US$2.00m $3.14 million $4.40 million $5.66 million $6.81 million $7.80 million $8.62 million US$9.29m
Growth rate estimate Source Analyst x2 Analyst x2 Analyst x1 Is at 57% Is at 40.24% Is at 28.51% East @ 20.3% Is at 14.55% Is at 10.53% Is at 7.71%
Present value (millions of dollars) discounted at 5.3% -$6.7 -$1.4 $1.7 $2.6 $3.4 $4.2 $4.8 $5.2 $5.4 $5.6

(“East” = FCF growth rate estimated by Simply Wall St)
10-year discounted cash flow (PVCF) = $24 million

The second stage is also known as the terminal value, it is the cash flow of the business after the first stage. For a number of reasons, a very conservative growth rate is used which cannot exceed that of a country’s GDP growth. In this case, we used the 5-year average of the 10-year government bond yield (1.1%) to estimate future growth. Similar to the 10-year “growth” period, we discount future cash flows to present value, using a cost of equity of 5.3%.

Terminal value (TV)= FCF2032 × (1 + g) ÷ (r – g) = $9.3 million × (1 + 1.1%) ÷ (5.3%–1.1%) = $228 million

Present value of terminal value (PVTV)= TV / (1 + r)ten= $228 million ÷ (1 + 5.3%)ten= $137 million

The total value, or equity value, is then the sum of the present value of future cash flows, which in this case is $161 million. The final step is to divide the equity value by the number of shares outstanding. Compared to the current share price of 25.1 kr, the company appears slightly overvalued at the time of writing. Remember though that this is only a rough estimate, and like any complex formula – trash in, trash out.

OB:AGLX Discounted Cash Flow October 19, 2022

The hypotheses

Now, the most important inputs to a discounted cash flow are the discount rate and, of course, the actual cash flows. If you disagree with these results, try the math yourself and play around with the assumptions. The DCF also does not take into account the possible cyclicality of an industry, nor the future capital needs of a company, so it does not give a complete picture of a company’s potential performance. Since we view Agilyx as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which factors in debt. In this calculation, we used 5.3%, which is based on a leveraged beta of 0.880. Beta is a measure of a stock’s volatility relative to the market as a whole. We derive our beta from the average industry beta of broadly comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

SWOT analysis for Agilyx

Strength
  • Debt is well covered by income.
Weakness
  • Expensive based on P/S ratio and estimated fair value.
  • Shareholders have been diluted over the past year.
Opportunity
  • Forecast to reduce losses next year.
  • Significant insider buying in the last 3 months.
Threatens
  • Debt is not well covered by operating cash flow.
  • Has less than 3 years of cash trail based on current free cash flow.

Look forward:

Although a business valuation is important, it is only one of many factors you need to assess for a business. The DCF model is not a perfect stock valuation tool. Instead, the best use of a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company’s cost of equity or the risk-free rate can have a significant impact on the valuation. Can we understand why the company is trading at a premium to its intrinsic value? For Agilyx, we’ve put together three relevant factors you should consider:

  1. Risks: We believe that you should evaluate the 1 warning sign for Agilyx we reported before investing in the company.
  2. Future earnings: How does AGLX’s growth rate compare to its peers and the market in general? Dive deeper into the analyst consensus figure for the coming years by interacting with our free analyst growth forecast chart.
  3. Other high-quality alternatives: Do you like a good all-rounder? Explore our interactive list of high-quality actions to get an idea of ​​what you might be missing!

PS. Simply Wall St updates its DCF calculation for every Norwegian stock daily, so if you want to find the intrinsic value of any other stock, just search here.

Valuation is complex, but we help make it simple.

Find out if Agilix is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

How high will the Bank of Canada raise interest rates?

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70% of small business owners are feeling the pinch of higher rates

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Whether you are an entrepreneur or aspiring to become one, the Financial Post would like to help you by answering your questions about small business in this uncertain economy. Today we answer a question from Dilip — When can we expect Bank of Canada rates to peak?

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Rising interest rates this year have put pressure not only on Canadian consumers, but also on business owners.

A survey by the Canadian Federation of Independent Business conducted after the Bank of Canada raised its key rate to 3.25% in September found that seven in 10 small business owners expect rate hikes of interest have a negative impact on their activities.

“While keeping inflation at reasonable levels is certainly an important policy objective, the rate hike comes at a time when 62% of small businesses are still struggling with pandemic debt, averaging 158,000 $,” CFIB chief economist Simon Gaudreault said when the poll was released earlier this month.

“Doing business in Canada is becoming too expensive. Rising costs, compounded by rising interest rates and difficulties finding staff, are putting business owners in a tough spot.

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Now, small business owners are bracing for another rate hike from the Bank next week.

The Bank has already raised the policy rate, or the central bank’s interest rate reading that informs the Canadian banking industry’s prime rates they charge consumers, by three percentage points over the course of the year for the increase to 3.25%. How far the Bank of Canada might raise that rate largely depends on the pace of inflation, which has slowed over the past two readings, from a peak of 8.1% in June to its latest reading of 7 .0% in August.

The headline inflation cooling figure is a promising sign, although core inflation remains a concern as all three of its measures have remained warm, with the average of the three hitting a record high of 5.3% in July – much more than the Bank’s two percent. cents goal. Due to this high rate of inflation, Bank of Canada Governor Tiff Macklem said his job was not yet done and reiterated the Bank’s determination to bring inflation back into balance.

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At the Jackson Hole symposium, central bankers like US Federal Reserve Chairman Jerome Powell suggested the Fed was ready to trade a few quarters of economic growth if it meant putting a damper on decades-high inflation. The Bank of Canada should adopt the same tactic.

So where will that leave Canada’s forecast policy rate when the central bank eases off the accelerator?

Many economists put the final rate, or the likely rate the Bank will max out before cutting, at 4 or 4.25%. The Bank of Canada’s October 17 Business Outlook Survey and its related Consumer Expectations Survey revealed that businesses and consumers expect near-term inflation to persist and a recession is imminent. Despite the gloom, many economists stuck to their calls for a four percent spike in interest rate hikes, arguing the results could have been much worse.

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Royce Mendes, managing director and head of macro strategy at Desjardins, said those polls gave his team little reason to expect a terminal rate above 4% at this point. Similarly, the RBC Economics team noted that a bleaker 2023 will not be enough to dissuade the Bank of Canada from raising rates to 4% by the end of the year after a 50 basis point hike. base at the end of October.

“Upside surprises next week, whether small improvements in inflation expectations or a deterioration in the real value (of the consumer price index), are likely to tip this to a larger 75 basis point increase,” RBC economists Nathan Janzen and Claire Fan said in October. 14 notes.

However, some economic teams believe that the Bank could go a little further than 4%. Bank of Nova Scotia Senior Vice President and Chief Economist Jean-Francois Perrault and Rene Lalonde, the bank’s chief forecasting officer, argued in an Oct. 17 memo that the Bank of Canada should close the year by raising its key rate to 4.25%, mainly due to fiscal support measures and the rapid fall of the Canadian dollar.

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  1. None

    Growing debt could threaten stability as rates rise, Bank of Canada’s Rogers says

  2. A Canadian dollar coin.

    FP Answers: Will the Canadian dollar go up in value?

Macklem had previously warned that a lagging loonie would make the Bank’s job harder and mean it would have to work even harder through monetary policy to ease domestic cost pressures.

Overall, economists expect rates to peak at 4% or a modest rise, although the trajectory of the central bank’s rate hike cycle depends on the next inflation data to be released. October 19. The Bank of Canada will set its next rate decision on October 26, the Bank’s penultimate rate decision before the end of 2022.

• Email: [email protected] | Twitter:

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Global Virtual Payment (POS) Terminals Market Report 2022: Growing Prevalence of Digital Payment Methods in Driving Sector – ResearchAndMarkets.com

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DUBLIN–(BUSINESS WIRE)–The “Global Virtual Payment Terminals (POS) Market Report 2022” report has been added to from ResearchAndMarkets.com offer.

The global virtual payment terminal (POS) market is expected to grow from $7.94 billion in 2021 to $10.59 billion in 2022 at a compound annual growth rate (CAGR) of 33.4%. The Virtual Payment Terminal (POS) market is expected to reach $34.71 billion in 2026 with a CAGR of 34.6%.

North America was the largest region in the Virtual Payment Terminal (POS) market in 2021. North America is expected to be the fastest growing region during the forecast period. Regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The growing prevalence of digital payment methods is driving the virtual payment terminal (POS) market. The digital revolution has increased access to and use of financial services globally, changing the way people send and receive payments, borrow money and save money.

In addition to the global spread of formal financial institutions, the COVID-19 outbreak has triggered financial inclusion and led to a significant increase in digital payments. Virtual payment terminals (POS) facilitate digital payments and manage payments by phone, mail, fax, email or in person. For example, in 2021, according to McKinsey’s 2021 Digital Payments Consumer Survey, digital payments grew by 12% over the 2020-2021 period. Thus, the increase in digital payments is expected to drive the demand for virtual payment terminals (POS) during the forecast period.

Technological advancement is a key trend gaining popularity in the virtual payment terminal (POS) market. Biometric payment system is a widely used technology for virtual payment terminals (POS). Biometric payment is a point-of-sale (POS) technology that identifies users and authorizes withdrawals from bank accounts using biometric authentication based on physical characteristics. In May 2022, Mastercard, a global payments and technology company, launched a biometric payment program.

Biometric Payment Program Participants allow customers to easily enroll in their in-store or home biometric payment services through a merchant or identity provider application. Once registered, there is no need to slow down the queue by rummaging through luggage or pockets. Customers simply check the bill, smile at the camera, or wave their palms above the reader to make a payment. The new technology gives customers the freedom to choose their preferred payment method while ensuring a fast and secure payment experience.

Reasons to buy

  • Get a truly global perspective with the most comprehensive report available on this market covering over 12 geographies.

  • Understand how the market is affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus diminishes.

  • Create regional and national strategies based on local data and analysis.

  • Identify growth segments for investment.

  • Outperform your competition using forecast data and the drivers and trends shaping the market.

  • Understand customers based on the latest market research.

  • Benchmark performance against leading competitors.

  • Use relationships between key data sets for better strategy.

  • Suitable to support your internal and external presentations with reliable high quality data and analysis

Scope

Covered markets:

1) By Solution: Software Platform; Professional services

2) By industry: Retail trade; Warehouse; Hospitality; Consumer electronics; Food and drinks; Health care; Entertainment; Other Industries

Main topics covered:

1. Summary

2. Features of Virtual Payment Terminals (POS) Market

3. Virtual Payment Terminal (POS) Market Trends and Strategies

4. Impact of COVID-19 on virtual payment terminals (POS)

5. Virtual Payment Terminal (POS) Market Size and Growth

6. Virtual Payment Terminal (POS) Market Segmentation

7. Regional and Country Analysis of Virtual Payment Terminals (POS) Market

8. Asia-Pacific Virtual Payment Terminal (POS) Market

9. China Virtual Payment Terminal (POS) Market

10. Virtual Payment Terminal (POS) Market in India

11. Japan Virtual Payment Terminal (POS) Market

12. Australia Virtual Payment Terminal (POS) Market

13. Virtual Payment Terminal (POS) Market in Indonesia

14. South Korea Virtual Payment Terminal (POS) Market

15. Western Europe Virtual Payment Terminal (POS) Market

16. UK virtual payment terminal (POS) market

17. Germany Virtual Payment Terminal (POS) Market

18. France virtual payment terminals (POS) market

19. Eastern Europe Virtual Payment Terminal (POS) Market

20. Russian virtual payment terminal (POS) market

21. North America Virtual Payment Terminals (POS) Market

22. Virtual Payment Terminal (POS) Market in United States

23. South America Virtual Payment Terminals (POS) Market

24. Brazil Virtual Payment Terminals (POS) Market

25. Middle East Virtual Payment Terminals (POS) Market

26. Africa Virtual Payment Terminals (POS) Market

27. Virtual Payment Terminal (POS) Market Competitive Landscape and Company Profiles

28. Key Mergers and Acquisitions in Virtual Payment Terminals (POS) Market

29. Virtual Payment Terminal (POS) Market Future Outlook and Potential Analysis

30. Appendix

Companies cited

  • Castle Technology

  • Diebold Nixdorf, Incorporated

  • NCR Company

  • Panasonic Company

  • PAX technology

For more information on this report, visit https://www.researchandmarkets.com/r/jcxdzk

Woman stole £100,000 from employer to fund ‘Instagram lifestyle’

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Laura Howarth stole £100,000 from her employer to fund lavish purchases. (Reach)

A financial assistant has been jailed after stealing £100,000 from her employer to fund an ‘Instagram lifestyle’.

Laura Howarth, 41, flew ‘weekly’ from British Independent Utilities in Lytham St Annes, Lancashire.

Preston Crown Court heard she bought a white SUV car, hair extensions and VIP concert tickets using the stolen money, copying the lifestyles of other glamorous women, including his wife’s boss, and posting the results of his spending spree on Instagram.

The mother-of-two earned over £900 a month and owed “a few thousand” in payday loans.

The court heard that she only stopped stealing from her bosses when she went on holiday or was on maternity leave.

Howarth, of Devona Avenue, Blackpool, has even applied for credit card limit extensions to allow him to steal up to £6,000 a month. When the thefts were discovered, in August 2018, she claimed she had shared the money with her work colleagues.

However, imprisoning him for 10 months for theft, Judge Richard Gioserano told him: “You stole a lot of money to provide yourself with a lifestyle that you could not afford – a glimpse of which you can see on your Instagram account.”

Howarth was employed by the company in 2013 and asked to take care of petty cash and expense accounts.

Stuart Neale, prosecuting, said she started flying “almost immediately”. In August of the same year, she withdrew £50 from a Royal Bank of Scotland ATM, although cash withdrawals were prohibited by the company.

She then added the money to a legitimate claim when she entered it into the Sage accounting system, so the books appeared balanced.

Read more: Bus driver dies in ‘medical episode’ at the wheel after crashing into his house

A general view of Preston Crown Court, Preston.

Laura Howarth was sentenced at Preston Crown Court to 10 months in prison. (PENNSYLVANIA)

When she realized she could get away with it, Howarth withdrew an average of £3,000 a month.

In November 2016 she spent £6,000 of company money in a month, the court heard. But in August 2018, financial controller Chris Russell was examining the company’s credit cards and discovered one – used by Howarth – had been used to withdraw cash.

Later, he found a credit card statement on his desk. An investigation was opened and Howarth was suspended from her job. That night, she sent a WhatsApp message to her employer, saying, “I’m sorry for everything.”

Russ Priestley, owner of British Independent Utilities, said: “I’ve worked over 100 hours a week, sacrificing social time and time with my family to grow this business.

“These events have made me question my choices and fundamentally make me look at people differently.”

He said he was suspicious of Howarth when he saw her driving a new Kia Sportage.

On another occasion, after spending £500 a ticket to see his favorite comedian on stage in Manchester, Priestly was shocked to see Howarth and her husband sitting in the row behind.

Anthony Parkinson, defending, said his client had always been a hard worker and had no previous convictions. The impact of his offense would be felt by his extended family, he said.

Sentencing Howarth, Judge Gioserano said: “You tried to cover up your thefts with fake accounts, and you did so for a long time.

“Not only did you cover your tracks, but you increased the card limit so you could steal more.

“You tried to blame others in the sense that you said what you took out was given to other employees – and that was a very limited pool.

“Most importantly, you accept that you stole this money not to alleviate genuine financial hardship, not to pay for treatment in a private hospital for a sick family member, but to fund a lifestyle that you could not afford it otherwise. Honest hard-working people work hard to try to afford it, and if they can’t afford it that way, they just accept it. They don’t resort to stealing to fund it. .

A Big Build or a Big Bet?

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Melbourne’s current long-term strategic land use plan, set out in Melbourne Plan 2017-2050, is based on two fundamental ideas.

These are that Melbourne would become a polycentric city based on a series of activity clusters, mainly in the middle suburbs (called National Employment and Innovation Clusters – or NEICs) and Melbourne would be organized into a set of 20-minute neighborhoods.

The Victorian Government’s Commuter Rail Loop (SRL) is part of the state’s Big Build scheme. Photo: AAP

NEICs aim to promote productivity growth through agglomeration and develop a more equitable city, including increasing employment opportunities closer to the city’s outer urban growth corridors.

The idea of ​​improving access to public transport for medium-sized urban activity centers is appealing, as a means of supporting their growth potential.

And the Victorian government’s Suburban Rail Loop (SRL), part of its Big Build scheme, is set to play that role.

But this solution is probably too big for its purpose.

Highly developed global cities that have circumferential rail services – i.e. trains running around an urban area rather than radially towards its center – generally have much higher densities than Melbourne and their circular rail loops are quite short.

Most are also located in the higher density inner parts of cities where demand is greatest, while more distant circumferential public transport usually requires transfers between services.

In 2022 Melbourne’s built-up area has a population density of 1,746 people per square kilometer and the SRL has a proposed length of 90 kilometres, from Cheltenham to Werribee.

London’s Circle Line is 27 kilometers long with a much higher population density. Photo: Getty Images

Compare that to London, whose data tells us a population density of 6,504 people per square kilometer – the city’s Circle Line is 27 kilometers long. Tokyo-Yokohama has a density of 4,584 people per square kilometer, with its Yamanote line at 34.5 kilometers, and Berlin has 2,934 people per square kilometer and the 37.5 km long Ringbahn.

In short, Melbourne’s SRL is about three times longer than these circular lines, in a city with a much lower population density and lower ridership potential.

The economy is against the operation of the SRL.

The SRL of August 2021 Business and Investment Cases for SRL’s Cheltenham to Melbourne Airport segment (SRL East plus SRL North) showed a positive outcome, with an expected benefit-cost ratio between 1.0 and 1.7.

However, there are two serious problems with this result.

First, benefit-cost analysis was undertaken with a low discount rate (four percent) to convert future benefits and costs over the lifetime of the project to present values ​​(this is needed to derive benefit ratios -costs). The usual Australian discount rate for valuing major infrastructure projects – seven per cent – would have produced much lower returns for the SRL.

A good argument can be made for using a four per cent discount rate for a long life project, such as SRL, but this is not the usual public policy approach in Australia (unlike the UK). United).

The typical Australian discount rate for valuing major infrastructure projects is 7%. Photo: Getty Images

The choice of this discount rate should be the subject of wide debate, including consideration of the implications for the valuation of alternative investment opportunities whose impacts accumulate over shorter periods.

Second, as is well documented in the media, the expected cost of the project has increased significantly. The cost was estimated at around A$50 billion for the entire project when initially announced in 2018, rising to A$35-57 billion for SRL East plus North in the Business and Investment Case.

The figure now stands again at A$125 billion for SRL East plus North, according to estimates from Victoria’s Parliamentary Budget Office.

This would bring the capital cost of the full SRL to around A$200 billion, around four times the original estimate made just a few years ago.

Unfortunately, the expected benefits do not grow as quickly as this rate of cost inflation. If valued today with a more usual discount rate, the SRL would struggle to generate even 50 Australian cents of profit per dollar of capital cost.

This should be cause for concern.

Medium-Capacity Transit (MCT) solutions, as proposed by the Rail Futures Institute, are likely to be a more cost-effective and flexible solution to meet the circumferential public transport accessibility needs of medium-sized urban clusters of Melbourne in a faster time frame.

The expected benefits of the SRL do not increase as rapidly as the rate of cost inflation. Photo: Shutterstock

This type of cluster development could then be bolstered by direct investments in the clusters’ competitive strengths – such as supporting the growth of their universities and hospitals or medical research facilities – as well as investments in place creation.

These plus MCT investments would be a more integrated way to promote polycentric growth in Melbourne than relying so much on SRL.

The savings made by not pursuing the expensive development of the SRL could also be used to promote a much faster roll-out of the Melbourne Plan’s distinctive and highly innovative idea of ​​20-Minute Neighborhoods; this concept has been taken up by many European cities as well as others in Asia, Canada, South America and recently in Singapore.

A neighborhood 20 minutes away has most of the services that most people need most of the time, including shopping, schools, health services, parks and recreation.

This form of land use reduces urban sprawl through higher density housing, strengthens community and promotes social capital, improves accessibility and provides a greener environment.

As a result, the likely results are improved health and well-being, increased social inclusion and increased economic productivity, and a reduced need to travel, which also helps reduce transport emissions.

The Victorian government is testing 20-minute quarters in Melbourne. However, these trials neglected the public transport component, relying instead on walking and cycling.

The Victorian government is testing 20-minute quarters but has neglected public transport. Photo: Getty Images

A catchment area of ​​800 meters, as used in the trials, and considered an acceptable walking distance, is unlikely to provide access to many service needs. This reliance on active transportation does not provide an equal opportunity for all, potentially excluding many older people, those who commute or carry heavier loads, people with disabilities, and people with multitasking needs – such as work, childcare and school. deposits, purchases and the list goes on.

A larger neighborhood is needed to provide essential services, supported by frequent local transit service.

Improving circumferential access to public transport to serve Melbourne’s intermediate urban hubs is an important requirement to ensure the planned development of the city’s land use. But the commuter rail loop is an expensive solution to this challenge.

This comes at the cost of other significant infrastructure and service improvements that are likely to be effective in reducing inequality and facilitating growth with lower emissions.

Mid-capacity transit options and direct investment in cluster development provide a more cost-effective route, complemented by a significantly accelerated rollout of 20-minute neighborhoods in Melbourne’s midtown and outlying urban areas at increased densities.

It would give Melbourne big advantages without such a big bet.

Banner: AAP

Americans react to Biden’s plan to forgive up to $20,000 in student loan debt

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By Emma Tucker and JiMin Lee, CNN

(CNN) – Americans across the country are sharing their mixed reactions to President Joe Biden’s decision to forgive up to $20,000 in student loan debt for millions of borrowers.

Biden announced in August that borrowers who hold loans from the Department of Education and earn less than $125,000 a year are eligible for up to $20,000 in student loan forgiveness if they receive Pell Grants, which are given to students from of low- and middle-income families. People who earn less than $125,000 a year but have not received Pell Grants are eligible for $10,000 loan forgiveness.

The reduction in student debt is accompanied by a plan to lift the freeze on federal student debt repayments, starting in January 2023.

On Friday, the Biden administration finally open the application process in a beta period, officials told CNN, allowing applicants to begin registering before the website is officially unveiled later this month.

Biden said the administration’s “targeted actions are aimed at families most in need: Working-class and middle-class people have been hit particularly hard during the pandemic, earning less than $125,000 a year. “. He pointed out that “about 90% of eligible recipients earn less than $75,000.”

But the nation is divided over Biden’s decision, flooding social media with either praise or criticism. Many see the executive order as a game changer for millions of Americans who are drowning in debt, while others say it is unfair to those who have sacrificed and worked hard to pay off their college debt.

Here’s what some Americans have to say about Biden’s plan.

Pamela Bone

Pamela Bone is a 59-year-old resident of Atlanta, Georgia. Her youngest daughter has cerebral palsy, which inspired her to become a teacher for college students with moderate intellectual disabilities.

Bone said she and her family left Seattle after her daughter was born and briefly stayed home to be there for her during several surgeries and doctor’s appointments. She also volunteered at her daughter’s school and said she was ‘amazed by all the time, care, attention and love her teachers gave her’, which helped her. pushed to go back to school to get her master’s and specialist’s degree.

“I wanted to give back to students what my daughter had received from loving individuals and I just knew that was my true calling in life,” Bone said. “Needless to say, the cost to obtain the necessary credentials was high, but also necessary, as I was now divorced and needed to take care of myself and my daughter.”

Even though teachers are underpaid, Bone said, her profession is “near and dear” to her heart.

“Cancelling this debt means I can put more aside for my daughter’s future, to ensure a comfortable and meaningful life for both of us and something that I am truly grateful to receive,” she said. declared.

Jo Ann Hardy

Jo Ann Hardy, a 66-year-old woman from Detroit, Michigan, says her family is middle-class African American. She and her husband, Jerry, paid for her daughter to get her master’s degree in 2004. All three made sacrifices and worked hard to pay for her daughter to go to college with the help of some college scholarships, says -she.

“We made it! No loans! Although we didn’t need a loan, we are thrilled that President Biden announced a plan to help relieve students who have had to take out loans,” Hardy said. “We are smart and compassionate enough to know that not all students and families can get by without help! »

The Hardys fully support efforts to alleviate some of the borrowers’ student loan debt. They said they have known students and families over the years who “have given their all and continue to make important contributions as professionals in our communities and across the United States.”

“For those who could do it without a student loan — BRAVO! For those who needed a loan — BRAVO! Hardy said.

Bryan Lonsberry

Bryan Lonsberry, 34, resides in Scottsburg, Indiana.

Lonsberry says he and his wife both held jobs throughout their schooling and made sacrifices soon after college to pay off their loans.

“Now this loan forgiveness is a slap in the face for us. We did the right thing and we fulfilled the obligation we took on,” he said. “This policy, no matter which side of the aisle you’re on, sends the wrong message. This time it’s 10,000 but next time people always want more. It’s not sustainable.”

Lonsberry says he supports getting a higher education but believes each person is responsible for their own payments.

“At the end of the day, no one seems to want to take responsibility for their actions. People need to step in and be responsible for themselves and their decisions, but now it seems like everyone just wants a handout,” a- he declared.

Elijah Watkins

Elijah Watkins, 28, is from Atlanta, Georgia.

Watkins says Biden’s student loan forgiveness plan means he can leave his mother’s house. Since the start of the coronavirus pandemic, Watkins says he has lived in a difficult environment that has forced him to choose between paying rent or repaying student loans. He chose the latter.

“That means I can start taking bigger steps as an adult for bigger purchases, like buying my first house, buying a new car, or reinvesting in my own business,” Watkins said.

“Outside of Obamacare, this is the first time a president has directly influenced my day-to-day decision-making that makes me proud to be a citizen of the United States of America,” he said.

Brian Garden

Brian Garten is a 30-year-old resident of Jacksonville, Florida.

Garten was a borrower of Pell Grants, as well as a few small grants, and held several jobs while in college. He had to take out $26,000 in student loans on top of his federal student loans, he says, and enrolled in the income-based repayment plan, never missing a payment for seven years.

Garten still has $21,000 in loans to pay off, which he says would have taken him at least 20 years.

“It has so far prevented me from reaching important milestones in my life,” he said. “I couldn’t even imagine saving money for a down payment on a house, and there’s no way I could afford to start a family.”

Garten says his student loans affect every aspect of his life and that Biden’s forgiveness plan “is going to change everything for me.”

He expects to receive the full $20,000 forgiveness and pay off the remaining balance to be completely free of college loan debt.

“I plan to buy a new car, with warranties and guaranteed reliability for the foreseeable future,” he said. “This will be my biggest purchase and something I consider an important investment in my future. This student loan forgiveness gives me hope to move forward in my life where I had none before.”

John Visser

John Visser, 56, lives in Dallas, Texas.

Visser, who describes himself as a progressive Democrat, is against Biden’s decision. He said he disagreed with “helping people in financial difficulty”.

“If they couldn’t pay it back, why did they borrow it in the first place?” he said.

Visser said his wife died 12 years ago, leaving him with a single-income household and bills he couldn’t pay on his own.

“I made tough choices, set myself a strict budget and paid off the debt as quickly as possible. Why shouldn’t a similar plan be the same for student borrowers? If they were going to university, they should be able to manage their finances,” he said.

Visser joined the United States Army in the late 1980s to earn the Army College Fund, an enlistment incentive option, and GI Bill benefits that help cover alumni’s tuition or training eligible fighters. The benefits he earned helped pay for his college while working full time, Visser says.

“It seems rather inequitable to me that part of my tax dollars now go to pay those who took an easier path to their degrees without any contribution to society,” he said.

Rachel Clark

Rachel Clark, 31, resides in Atlanta, Georgia.

Clark was the first person in his family to earn a four-year college degree. She grew up in and out of poverty, and the thought of going to college was daunting. Her mother was not told about the financial aid process and the thought of her eldest daughter leaving home “terrified her,” Clark said.

Clark filled out the Free Application for Federal Student Aid (FAFSA) only to find she had an expected family contribution of zero, she said.

During her freshman year of college, Clark took out subsidized and unsubsidized loans to pay for the rest of her tuition and college costs, such as books, supplies, and housing costs. She worked full-time during her college career to support herself, but it sometimes hurt her grades. Clark says it was a miracle that she was able to graduate with a 3.4 GPA.

“I entered the field of early childhood education almost immediately and found that my hopeful aspirations for my future career were just as bleak as my ideas about college,” he said. she declared.

Clark earned about $20 an hour as an educator for nearly a decade, and she repays her loans in installments of less than $100 a month under her income-driven repayment plan.

“Once I did the math – I will most likely DIE before paying off my student loans. With the burden of student loans on my shoulders, I can finally breathe,” she said.

Clark added that she feels “so free to know that student debt is one less weight that I will have to keep drowning under it.”

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Carry a mortgage in retirement? You might regret it

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As you approach retirement, you may have a large mortgage balance over your head. The average household in their 60s has about $243,000 in outstanding mortgage debt. Paying off these loans can be a smart move for many future retirees.

A mortgage is a fixed income asset that you have sold

Most people diversify their portfolios by allocating part of their investments to stocks and the rest to fixed income investments like bonds. A mortgage is a fixed income asset. There’s a whole market for mortgage-backed securities, which are basically just pools of mortgages.

If you have a mortgage balance, it’s like selling a mortgage short. In other words, it is a negative fixed income asset.

Image source: Getty Images.

As such, you should adjust your portfolio to account for the mortgage balance against your allocation of bonds and other fixed income assets. For example, suppose you want to maintain a 60/40 split between stocks and fixed income securities in a $1,000,000 portfolio with a mortgage balance of $200,000. You would need $480,000 of stocks and $520,000 of fixed income assets in your investment portfolio to produce a net 60/40 split. This is because the fixed income allocation is reduced by your mortgage balance of $200,000.

If you’re comfortable doing the math and balancing a mortgage against your fixed income assets, then maybe keeping a mortgage in retirement is right for you. But you also need to consider whether holding the mortgage is the best use of your money.

What is the return on paying off a mortgage loan?

2020 and 2021 have offered many people an opportune time to refinance their current loans. Many people saw their mortgage rates fall below 3% when they refinanced during this period. With today’s inflation rates, these mortgages have negative real interest rates. In other words, paying the minimum on this debt is a good idea because it increases your long-term purchasing power.

Generally speaking, investors with a long-term horizon might consider leveraging their mortgage to invest more in stocks. Stocks have higher expected returns over the long term, but generate more volatility in a portfolio. Young investors can usually handle this increased volatility, which is heightened by maintaining a large mortgage balance. In the long run, it can produce a bigger nest egg to retire on.

But retirees are looking to live off their wallets, and capital preservation becomes more important as you approach retirement and move through the early years of your investments. And because a mortgage can have a significant impact on portfolio decisions, such as how much to allocate to bonds, a retiree should compare the expected value of paying off a mortgage to buying bonds.

For a mortgage, the calculation is simple. If you take the standard deduction on your taxes, the yield is the mortgage interest rate.

Determining a return expectation for investing in bonds takes a bit of guesswork. Historically, however, Treasuries have simply tracked inflation while providing a counterweight to equities. Going forward, investors shouldn’t expect much more than inflation-matching returns from Treasuries.

The Fed plans to bring inflation down to around 2.3% by 2024. Most mortgages have an interest rate above this figure. So, by paying off the mortgage, you’ll get a guaranteed positive real return, which could outperform the treasury bills in your portfolio. (If you’re very bullish on bonds, however, you might want to leverage your mortgage to keep more money in the asset class.)

You can often get a better long-term real return by selling bonds and paying off your mortgage.

Important Real Life Considerations

Some important factors can tip the scales in favor of continuing to slowly pay down your mortgage throughout retirement.

There are likely tax consequences to selling assets from your portfolio to pay off your loan. If a significant portion of your portfolio is in a tax-advantaged retirement account, you could end up paying a hefty tax bill to pay off your mortgage all at once. Or if you have assets with a lot of unrealized capital gains, it might be more beneficial to spread the sale of those securities over several years.

The bond market is currently having one of its worst years for investors. It can be difficult to sell when your investment is down 10% to 20%, but investors should always look at expected returns going forward. If you believe the market is about to rebound strongly and outperform, you may want to hold on to your mortgage in order to hold more bonds. But if you don’t think bonds will exceed their historical real yields over the medium to long term, it makes perfect sense to pay off the mortgage.

You don’t have to pay off the mortgage all at once. Maybe your mortgage repayment plan near retirement is just allocating the portion of your retirement savings contributions that would instead go toward bonds toward your mortgage. This way, you can hold your current assets without selling, without incurring tax consequences.

Retirees who have enough deductions to itemize on their tax returns may also receive less benefit by paying off their mortgage. The interest rate should be reduced by the tax deduction on the mortgage interest payment, so be sure to factor this into your calculations.

Paying off your mortgage will simplify your retirement planning. Not only will this make it easier to manage a balanced retirement portfolio, but it will also ensure that your expenses remain constant throughout retirement. You won’t have a big chunk to lose mid-retirement once you’ve paid off the loan organically. So not only can it make mathematical sense, but it can also make planning more practical.

Kennedy Space Center Visitor Complex Offers Tribute to Brevard Discount

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Space is important to us and that’s why we strive to provide you with the best coverage of the industry and Florida launches. Journalism like this takes time and resources. Please support him with a subscription here.

The Kennedy Space Center Visitor Complex’s annual “Salute to Brevard” offer returns and offers deep discounts on daily admission and access to limited-time experiences.

The program, which offers a 75% discount on daily admission for Brevard County residents, runs October 17-30, 2022.

With proof of residency in the form of a driver’s license or utility bill, guests can purchase up to six regular admission tickets at the discounted price of $19 for adults and $14 for children from 3 to 11 years old (plus tax).

Only the ticket purchaser must be a Brevard County resident, but tickets must be purchased at the Visitor Complex on the day of entry.

Customers are asked to bring canned goods and non-perishables, formula and baby food, and personal hygiene items to donate to the Brevard County Sharing Center, but are not required to do so. do to get the reduced ticket prices.

“Salute to Brevard is one of the many ways we give back to our community here at the Kennedy Space Center Visitor Complex,” Therrin Protze, visitor complex chief operating officer, said in a statement. “We can show them our appreciation by inviting them to explore the space at a discounted rate while collecting much-needed supplies for Brevard County Sharing Centers.”

Purchasing a discounted daily admission ticket will grant all guests access to all exhibits, including Space Shuttle Atlantis, Apollo Center/Saturn V and the recently opened Skywalk: The Deep Space Launch Complex.

As an added bonus, guests can also experience the limited-time “Taste of Space: Fall Bites” food festival throughout the resort running through November 6, 2022.

For more information you can visit the visitor complex website.

Jamie Groh is a space reporter for Florida Today. You can contact her at [email protected] Follow her on Twitter at @AlteredJamie.

Gold heads for weekly decline as fears of big US interest rate hikes loom

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Gold prices rose on Friday, helped by a decline in the US dollar and Treasury yields, although growing anticipation of another oversized interest rate hike from the US Federal Reserve kept bullion on the right path for a weekly decline.

Spot gold rose 0.2% to $1,668.46 an ounce, by 0402 GMT. Prices are down 1.6% so far for the week.

US gold futures edged down 0.1% to $1,666.80.

The dollar index fell 0.2%, making bullion cheaper for overseas buyers. Meanwhile, benchmark 10-year U.S. Treasury yields were below a 14-year high hit on Thursday. [USD/] [US/]

“Gold is stuck between not seeing a pivot anytime soon, but there is light at the end of the tunnel here in the sense that the Fed could take a breather,” said Stephen Innes, managing partner at SPI Asset Management.

“In the medium term, gold is more likely to go higher than lower. We are going to see negative results in global economies, which could eventually tip the scales in favor of rate cuts.”

Data released on Thursday showed consumer prices in the United States rose more than expected in September, with rents rising the most since 1990 and the cost of food also rising, with core CPI jumping 6 .6% on an annual basis.

Traders are widely expecting a fourth consecutive 75 basis point increase at the close of the November 1-2 Fed meeting.

Although traditionally seen as a hedge against inflation and economic turmoil, interest rate hikes to control soaring prices have reduced the appeal of bullion since they earn no interest.

According to Reuters technical analyst Wang Tao, spot gold looks neutral in the range of $1,660 to $1,674 an ounce, and a leak could suggest direction.

Spot silver rose 0.6% to $18.98 an ounce and was expected to see its biggest weekly decline since August.

Platinum rose 0.5% to $900.49 and palladium rose 0.9% to $2,125.50. Both metals were heading for their first weekly decline in three.

(Reporting by Eileen Soreng and Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Providence denies ‘worrying’ debt collection practices alleged by senator

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Providence recently published a letter answering a series of questions raised by a senator about its debt collection practices.

The letter was a response to one sent by Senator Patty Murray, Democrat of Washington, to Rod Hochman, president and CEO of Providence, on September 28. Murray’s letter in a hurry to get answers about the health system debt collection practices of 52 hospitals. She wrote it just days after a New York Times report emerged detailing Providence’s efforts to aggressively charge qualified patients for free or discounted care.

The health system’s payment collection practices have come under intense scrutiny since February, when the Washington attorney general filed a lawsuit against Providence, alleging that 14 of its hospitals were “aggressively raising money from low-income Washingtonians eligible for charitable care.”

Murray asked Providence to address “disturbing” practices alleged in the report, including “high-pressure billing conversations in hospital beds when patients are vulnerable, the use of extraordinary collection actions by debt collectors and patients eligible for free or discounted care being billed for outstanding balances.

In the letter, she pointed out that patients in Providence have been left without food or warmth, seen their credit ratings plummet, and been afraid to seek other health services “all because of practices that potentially violate human rights.” state and federal laws.

Giving Providence an Oct. 12 deadline, Murray demanded that it provide data on how many patients the health system has provided care for in recent years who were eligible for free or reduced-cost care, as well than the number he sent to debt collection services.

Hochman sent his response letter on Murray’s deadline day. In his response, he said health system policy prevented him from sending patients identified as charitable care or eligible for Medicaid to collections.

Murray also requested information on the amount paid by Providence McKinsey & Co. to design “Rev-Up”, a revenue growth program. Rev-Up trained employees on how to pressure patients to pay for their care and asked them to withhold information about financial assistance, according to Murray’s letter. The steps in the program were to “request full payment, then request half payment, then offer a payment plan and, only after all other efforts have failed, acknowledge the existence of financial assistance,” a she writes.

Rev-Up “was a short-lived, limited program that no longer exists,” Hochman said. He did not disclose how much Providence paid McKinsey to design the program.

“The intent was not to target people in financial difficulty,” Hochman wrote. “It has instead focused on helping those who are commercially insured and have the means to pay, to better understand their personal expenses. We recognize that the original training materials, and even the name Rev-Up, n were not in line with our values.

He noted that Providence “significantly reduced” its reliance on consultants.

Hochman’s response also said Providence has begun issuing refunds with interest to Medicaid patients who made payments after being sent to collections due to an error the health system has now resolved.

Providence’s six-page letter denied aggressively pursuing its poorest patients for medical debt, saying its “commitment to those in need has never been stronger”.

Photo: aurielaki, Getty Images

NAB raises fixed rates on home loans, Macquarie cuts variable rates

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NAB raised interest rates on four homeowner loans: two packaged loans and two non-packaged loans.

These price increases apply:

  • Custom fixed P&I 4 years: Increase of 21 basis points to 2.29% per year (comparative rate of 3.91% per year*)
  • Custom fixed P&I 5 years: Increase of 25 basis points to 2.59% per year (comparative rate of 3.88% per year*)
  • Package of your choice P&I 4 years: Increase of 21 basis points to 2.19% per year (comparative rate of 3.76% per year*)
  • 5-Year P&I Choice Package: Increase of 25 basis points to 2.49% per year (comparative rate of 3.76% per year*)

The Choice Package’s 4-year loan is now out of the sub-2% range, after becoming one of the first loans from the Big Four banks to be cut below that threshold after the Bank’s cash rates fell reserve in November 2020.


Are you buying a house or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.

Lender


Variable More details
REFINANCING ONLY
  • A low variable rate home loan from a 100% online lender. Supported by the Commonwealth Bank.
Variable More details
Variable More details
AN EASY DIGITAL APPLICATION
  • Get ahead with up to $4,000 cash back*
  • Unlimited additional refunds
  • Easy online application, quickly find out if you are approved!
  • *When you purchase or refinance a qualifying home loan. Apply before 11/30/22. Pay before 01/31/23. Exclusions and terms and conditions apply.


Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. Certain products will be marked as promoted, featured or sponsored and may appear prominently in tables regardless of their attributes. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, repayment type, loan term and LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of October 13, 2022. See disclaimer.

Meanwhile, Macquarie has cut a few variable home loans for homeowners and investors by up to 20 basis points:

  • Variable OO P&I 60% LVR: Reduction of 15 basis points to 2.34% per annum (comparative rate of 2.34% per annum*)
  • Variable OO P&I 70% LVR: Reduction of 15 basis points to 2.39% per annum (comparative rate of 2.39% per annum*)
  • Variable Investor P&I 60% and 70% LVR: Reduction of 20 basis points to 2.49% per annum (comparative rate of 2.49% per annum*)

In a note to brokers, Macquarie also said it had raised interest rates on four- and five-year fixed mortgages.

“We hope these great new rates and our industry-leading processing times open up more opportunities and conversations with your customers,” the note reads.

Macquarie’s current valuation timeframe is one day.

These changes follow the Tic:Toc lender’s cuts in variable loans and the increase in fixed loans yesterday, with Westpac, Aussie, UBankand Town Rates have risen, too, in recent weeks.

Also this week: UBank removes LMI for deposits by 15%, Athena cuts variable rates

Photo by Susan Q Yin on Unsplash


Disclaimer

The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

When to pay for auto repairs with a personal loan (and when not to)

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Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

If you’re facing car repair costs that you can’t pay out of pocket, a car repair loan can help. Learn how they work and where to find one. (Shutterstock)

Repairing your car can be expensive, especially with today’s rising inflation.

If you are unable to pay an expensive bill, a car repair loan — which is a type of personal loan — may be an option. Here’s how auto repair loans work and how to determine if it’s right for your particular situation.

If you’re looking for a loan to cover repairs to your vehicle, Credible lets you view your prequalified personal loan rates from various lenders, all in one place.

What is a car repair loan?

An auto repair loan is a type of unsecured personal loan that you can use to cover vehicle repair costs. This can include labor costs, parts, or even the rental car you need while your car is at the store.

Auto repair loans have a few key advantages, especially over other financing options. On the one hand, they allow you to spread the cost of repairs to your car over several months or years. Since they are generally not secure, they do not require collateral — and your car, house or other assets cannot be seized if you do not make the payments. Finally, these loans tend to have lower annual percentage rates than credit cards, which often have APRs well into the double digits.

By contrast, taking out a car repair loan will essentially mean having two car loans — and two monthly payments. They’re also not very helpful if you have a low credit score, as that could mean paying a higher interest rate (or not qualifying at all).

Car repair loans are available at many banks, credit unions, and online lenders. You’ll want to shop around if you’re considering one of these loans, as rates, fees, and terms can vary from lender to lender.

How much does a car repair loan cost?

The cost of an auto repair loan – or any personal loan, for that matter – can vary widely. Your credit score, loan amount, and repayment terms will all play a role in your long-term costs. Your lender and the one-time fees they charge will also influence your borrowing costs.

Generally speaking, the higher your rate and your balance and the longer your term, the more interest you will pay. Lower rates, lower balances and shorter terms will lower your long-term interest costs.

To get an idea of ​​what an auto repair loan could cost you, use the personal loan calculator.

3 Times It Might Make Sense to Get a Car Repair Loan

A car repair loan isn’t for everyone, but here are some scenarios where it might be a good idea to get one:

  • Your repair costs are more than you can afford out of pocket, but less than the cost of a replacement vehicle. If fixing your car is clearly more affordable than replacing it – and you don’t have the money to do it – then an auto repair loan may be an option worth exploring.
  • Without the loan, you would need to put the repair costs on a high interest credit card. If you would otherwise need to cover vehicle repairs using credit cards, payday loans, or another high-APR product, an auto repair loan or personal loan might be a more affordable option.
  • You have a good credit rating. If your credit score is high, you could probably benefit from a low interest rate, making an auto repair loan an affordable way to finance your repairs.

Keep in mind that not all financial institutions offer the same rates and terms, so it’s important to shop around for your auto repair financing. Compare at least a few options before deciding which company to go with.

Visit Credible for compare personal loan rates from various lenders, without affecting your credit score.

3 Times It Might Make More Sense to Skip the Loan or Buy a New Car

There may be times when it is wiser to explore other options instead of taking out an auto repair loan:

  • Your credit rating is low. If you have bad credit and don’t have a co-signer, it might be more difficult to qualify for an auto repair loan.
  • Your car is still under warranty. In this case, your warranty provider may cover part of the repair costs.
  • The repair cost is almost as high as a newer vehicle. If the repair costs are significant, you can skip the repairs altogether and replace your vehicle with a comparable used car instead.

Can you get a car repair loan with bad credit?

Most auto repair loans are unsecured, so their terms are based on your financial profile and credit history. Although it is possible to qualify for one with bad credit, this usually means paying higher interest rates. This equates to a higher monthly payment and longer term interest charges.

Sometimes, if your credit rating is low, the lender may also ask you to offer collateral or add a co-signer to your loan application. A co-signer is someone with good credit who agrees to share responsibility for the loan with you (they will only make payments if you don’t).

How to get an auto repair loan

Getting an auto repair loan is quite simple and, with many financial institutions, can be done entirely online.

To get yours, you can:

  • Determine how much you need. Get an estimate from your auto shop that details your expected repair costs. You may want to request a slightly larger loan than this in case labor or parts are higher than expected.
  • Shortlist a few lenders. Mix up the types of institutions you’re considering, including your main bank, a credit union, and an online lender.
  • Request a loan quote with each. To prequalify with a lender, you’ll need to fill out a short form and provide some basic personal and financial information.
  • Compare your options and apply with the lender of your choice. Review the fees, rates, terms, and other details of each loan quote and choose the lender you want to work with. You will need to submit a formal application and may need to provide additional required documents, such as bank statements, payslips or tax returns.
  • Finalize your loan documents. If you are approved for the loan, you will sign a loan agreement. You should get your funds within days, although some lenders can fund loans on the same day or the next business day after your approval.

Once you have the funds for your loan, you can use the money as needed. Rent a temporary vehicle, pay your mechanic, or save some for the paint job you’ll need in the end.

Remember: you’ll need to start repaying your loan immediately, so budget accordingly. Make sure you have the funds to cover that first payment and consider setting up automatic payments to ensure your payments are never late.

If you’re ready to apply for an auto repair loan, Credible makes it quick and easy compare personal loan rates to find the one that meets your unique needs.

GUG CEF: exposing the same issues as BCAT (NYSE:GUG)

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WoodenheadWorld/E+ via Getty Images

Thesis

Guggenheim Active Allocation Fund (NYSE: GUG) is a multi-asset closed-end Guggenheim fund. The fund went public in November 2021 and had a tough first year. Down more than -28% since its inception, the CEF has changed its orientation, being now overweight fixed income. The fund started with a 50/50 equity/fixed income allocation. The vehicle is reminiscent of another multi-asset CEF, namely BlackRock Capital Allocation Trust (BCAT) that we have explored in detail here. Both funds are multi-asset CEFs with broad mandates that have floated relatively recently, and have seen their discounts to net asset value widen to historic lows.

In our first article on GUG, we discussed at length why we thought the first year was going to be a tough one for the fund, given the propensity of newly IPO CEFs to underperform. In addition to its issuance schedule, the fund has also increased its portfolio to the top of the market (end of 2021). The results were not favorable to investors. Interestingly, however, the fund is taking advantage of its broad mandate to optimize its collateral mix, having liquidated most of its equity positions in 2022. The fund now has an 86% allocation to fixed income, compared to 50 % in equities, 50% fixed income at the beginning of the year.

Both vehicles are now trading at very deep discounts to NAV, and at least in the case of GUG, the discount is justified. Having pivoted to fixed income securities, the fund failed to create a history of tangible and measurable risk factors. An investor valuing the vehicle should allocate a higher discount rate given its “black box” characteristics. GUG is now using less ROC than expected (only 38% ROC according to the September distribution) given the cash flows received from the fixed income portfolio. We remain a firm believer that new CEF vehicles should not be purchased by retail investors in their first year on the market, due to historical underperformance and issues associated with establishing a well-established trading model. defined and identifiable.

Assets

The fund started out with a balanced 50/50 equity/fixed income mix:

semi

Assets (half-yearly report)

However, CEF pivoted to fixed income in 2022, after shedding most of its equity holdings:

What to do

Portfolio concentration (fund website)

The vehicle can be seen to have shifted to high yield corporate bonds and loans (traditional instruments of a classic fixed income CEF) with other small tranches tilted towards ABS and preferred securities. Equities now represent only 12.1% of the fund.

On the one hand, the beauty of a broad mandate allows for this type of pivot, but at the same time, investors will find it difficult to allocate capital to a “black box” type vehicle. We are curious to see the evolution of the fund here and how the collateral mix will evolve throughout the economic cycle. We believe the fund needs to establish some sort of identifiable trading identity or pattern for investors to properly value it.

The current main holdings of the fund are:

What are the facts

Top Holdings (Fund Fact Sheet)

Performance

The fund has fallen significantly since its creation:

find me

Performance since inception (Seeking Alpha)

We can see that since its creation in November 2021 the fund has fallen by more than -28%. During this period, it has a similar return profile to BCAT. A more established CEF fixed income bond from Credit Suisse, namely CIK, fell only -20% due to better spread performance.

Year-to-date, the fund’s return profile has mirrored the broader market:

look for me

Year-to-date total return (seeking alpha)

Ultimately, in the fixed income/multi-asset CEF space, when adding leverage to a losing position, the result will always be a more negative return.

Premium/Rebate to NAV

During its short tenure, the fund moved to a discount to net asset value and stayed there:

Chart
Data by YCharts

We can see that the fund has a bit of a beta to risk-on/risk-off environments, but is generally stuck in the range of -7% to -18% in terms of the discount to NAV. Is it justified? We believe it. The fund has no performance history and it has already significantly modified its risk factors by its virtual exit from equities. A cautious investor does not know what the fund will look like next, so when uncertainty prevails, a discount is warranted.

When the market recovers, and if the fund manages to forge a certain identity, we should see this discount tighten given the robustness of the Guggenheim platform.

Distributions

So how does GUG fare in the distribution department?

which section is it

September Distribution (Section 19.a.)

Having pivoted to fixed income, ROC utilization is only 38%, well below what we expected. If the fund had stayed in equities, which are having a horrible year, the vehicle would have used a higher amount of ROC.

Underperformance early in a vehicle’s life is a bit of a vicious circle. Dividends are taken out of principal through the ROC and the fund essentially has a steeper slope to climb on recovery due to principal depletion.

Conclusion

GUG is a multi-asset CEF from the Guggenheim. The vehicle was IPO at the height of the market in 2021 and suffered from the fall in fixed income and equities in 2022. Down more than -28% since inception, the vehicle is still trying to find its footing. place and its identity. The CEF pivoted to an overweight bond allocation (HY bonds and loans) in 2022, and saw its discount widen to historic lows. The vehicle is reminiscent of BCAT, another multi-asset CEF from a major asset manager. Both funds have broad mandates, were fairly recently floated, and have seen their discounts to net asset value widen to historic lows. The GUG has not yet established an identity and currently uses 38% of the ROC for its distribution given its performance. We expect the discount to NAV to normalize in 2023 as the market recovers and the fund is able to show a track record.

Buying bonds I: last chance for high interest rates ahead

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All good things come to an end.

Series I savings bonds, also known as I bonds, have paid a record high interest rate in recent months, but time is running out to lock in that rate.

The composite interest rate on the new fashionable I bonds hit 9.62% in May, an all-time high for the government bond, created in 1998 to protect Americans’ savings against inflation. Financial experts often hail bonds as one of the safest and wisest investments for middle-income Americans, especially in times of high inflation: when the inflation rate rises, the interest rate on bonds I also increases.

“You can’t lose money. The composite rate can never go below 0%,” according to I Bond Manifesto, an ode to bonds I co-written by a group of Nobel Prize-winning financial planners and economists. “I bonds will never yield less in nominal terms than what you have invested in them, even if the country enters an extended period of deflation.”

I bonds have caveats, of course. They cannot be cashed within one year of purchase, except in an emergency. If it is cashed within five years, the last three months of interest are lost. The process of purchasing I bonds through the Treasury Department can also be tedious. But for many, a guaranteed payout – which is currently unmatched by any stock or savings account – is worth it.

Although the economy is far from entering a prolonged period of deflation (or, in other words, negative inflation), inflation has cooled, albeit moderately. For this reason, the new I bond rate should fall from the currently very high rate. The Treasury Department will announce the new rate on November 1.

Buy 9.62% I Bonds

The good news: if you’re looking to take advantage of the 9.62% rate, you still have a window to buy I bonds.

I Bonds that are purchased before the last business day of October will still earn six full months of interest at an annualized rate of 9.62%.

Because of the way interest accrues with I bonds, the exact date of purchase in October is less important. Those wishing to lock in the 9.62% rate for six months should do so before the end of the month.

“Interest is earned on the last day of each month and posted to your account on the first day of the following month”, I Bond Manifesto authors wrote. “So if you own your I Bonds on the last day of any month, you’ll earn that full month’s interest.”

In other words, it doesn’t matter if you bought your I bonds on October 1 or want to wait until October 31, you’ll still get a full month’s worth of interest. And after six months, the interest you earn will be added to the principal value of your bond and your rate will automatically change to the rate announced on November 1.

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What will the new I Bond rate be?

The composite rate of an I bond is made up of two rates: a “fixed rate” and a “variable rate”.

Every May and November, the Treasury Department calculates the new composite rate using inflation data from the previous six months to set the variable rate. It also announces a fixed rate, which has been frozen at zero since May 2020. These rates are then combined to form the overall composite rate for an I-bond.

Although there is no way to confirm in advance what the composite rate will be, there is a way to find out what minimum rate will be before it is announced by calculating the variable rate.

David Enna, co-author of I Bond Manifesto and founder of the financial website TIPS Watch (short for Treasury Inflation Protected Securities), has a proven track record of accurately predicting I bond rates, including the current rate of 9.62%. As Enna recently explained to Money, these aren’t crystal ball predictions.

“When last month’s inflation report – either April or October – comes out,” Enna said, “you can tell what [variable] the rate is going to take weeks before they announce it.

We are currently only one month short of inflation data: September. The Department of Labor releases the final piece of the puzzle on October 13, and this can be used to estimate the next Bond I rate before it is announced on November 1.

Based on currently available inflation data, the compound rate for I bonds will likely be around 6% assuming the fixed rate remains in place. That’s a very high rate for I bonds compared to pre-pandemic years, but we’ll get a much clearer picture when the Department of Labor releases the inflation rate for September.

More money :

The Best Money Moves for October

Borrowers looking for student loan forgiveness now have to wait longer to apply

Buying bonds could be a great investment right now

Australian fintech Airwallex raises $100m and retains $5.5bn valuation

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Oct 11 (Reuters) – Australian fintech firm Airwallex said on Tuesday it had raised $100 million in an extended funding round, maintaining its valuation of $5.5 billion.

The Melbourne-based company said it had secured more funding from existing investors, including Tencent Holdings Ltd (0700.HK), Sequoia Capital China and Lone Pine Capital.

Australian industry pension fund HostPlus and a North American pension fund also participated in the round, Airwallex said.

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With the $100 million raised in the extended Series E round, Airwallex’s total funding has grown to more than $900 million, the company said.

“The market environment remains challenging for the foreseeable future, and while we remain well capitalized, this additional avenue allows us to pursue our growth plans,” said Jack Zhang, co-founder and CEO of Airwallex.

Airwallex, which enables customers to issue and pay bills and international bills through its payment platform, said its revenue grew 184% year-on-year and its customer base grew. more than doubled.

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Reporting by Harish Sridharan and Baranjot Kaur in Bengaluru; Editing by Tom Hogue and Subhranshu Sahu

Our standards: The Thomson Reuters Trust Principles.

If you think US pensions are safe, wait

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You never know where the next crisis will come from, but last week it came from a particularly unlikely place: defined-benefit pensions. The UK government bond market (gilts) went wild as rates soared and pension funds failed to meet their margin calls. This created so much trouble that the Bank of England had to intervene. Does this mean that US pensions could create similar troubles? Don’t be shy about it, but yes and no. The good news is that US pension funds are not as exposed to rate changes because they hold fewer fixed income assets. But that’s also the bad news.

Interest rates are rising and will remain high for the first time in years. This means that anyone exposed to fixed income securities is due for disruption. US schemes are less leveraged than UK pension schemes because they cover less risk, so soaring rates are unlikely to cause immediate damage. But it also means they are more exposed to market risk, and with rising rates revealing all sorts of financial vulnerabilities, US plans could eventually find themselves in even worse shape than UK plans last week.

According to a report by the Milliman Corporate Pension Funding Study, the smallest subset of US corporate defined benefit plans invest about half of their $3.7 trillion in assets in bonds (similar to UK plans). It’s worth noting that US repos aren’t that vulnerable to margin calls because they’re doing old-fashioned liability-driven investing: holding mostly bonds instead of adding leverage. This means that when rates rise, their assets and liabilities move together, keeping their funding relatively stable.

Company plans are doing relatively well, but they are not the main source of risk. State and local government pensions, which hold more than $9 trillion in assets, and (in 2021) only 22% of those assets are fixed income, are a far bigger concern.

A fixed low-income allowance was generally considered a nothing to brag about for pensions. But public pension plans have ditched fixed income and public stocks over the past 20 years because rates have fallen so low.

Unlike UK and US company schemes, public schemes in the US value their liabilities using the expected rate of return on their assets instead of the market interest rate; a convention that blows the heads of financial economists. This way of accounting may mean less direct exposure to interest rates, but it also rewards greater risk taking, because the higher the pensions choose a higher “expected” return, the lower their liabilities appear to be.

When interest rates fell, pension plans were encouraged to turn to opaque, illiquid and risky assets, such as private equity and hedge funds, because they could claim a higher rate of return. In addition to high fees, this meant more risk. US government plans are also underfunded. In 2019, using comparable accounting methods, public pensions only have enough assets to cover 50% of their liabilities, compared to UK schemes, which entered the pandemic able to cover over 90% of their commitments.

The UK pensions case is just the first buried body to uncover higher rates. US plans are less directly exposed to a sudden and large rate increase, but over time they have an equally troubling vulnerability: they are underfunded and dependent on risky assets that pay off. Today, with the markets falling, their assets are shrinking and their expected returns are harder to justify. A higher interest rate environment is also bad for private equity and can mean fewer profitable exits. This could mean that over the next few years, pension funds will learn that the 12-15% returns they thought they were getting from their alternative investments were an illusion and that they have less money than they thought. thought.

Repo may be just the start, as the US economy has become dependent on low rates. And that means the new source of vulnerability may come from parts of the economy once considered boring and safe, like mortgages and now pensions. Central banks have painted themselves into a corner. The Bank of England tried to reduce inflation with higher rates and quantitative tightening. But they discovered that the fight against inflation and financial stability could be incompatible.

More other writers at Bloomberg Opinion:

A European crisis is coming. What kind will it be? : Tyler Cowen

Don’t let Lehman’s ghost throw Pall at Credit Suisse: Paul Davies

How to Uncover the Hidden Leverage of Pensions: Chris Hughes

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

Allison Schrager is a Bloomberg Opinion columnist covering the economy. A senior fellow at the Manhattan Institute, she is the author of “An Economist Walks Into a Brothel: And Other Unexpected Places to Understand Risk”.

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

How to apply for a payday loan with PaydayDaze today in California.

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How do PaydayDaze payday loans in California work?

Many California residents take out weekend payday loans from a direct lender to see them through to payday. A loan can also be called a cash advance or a $255 payday loan. The Direct Lender’s Small Dollar Loan is unsecured and available to customers with all credit ratings. As a result, you can avoid worrying about a co-signer or your credit score.

You can apply for a loan now without fear of a rigorous credit check. There is NO good credit score required.

How do I get out of my $255 payday loan?

In-person transactions, wire transfers, and debit card payments are all acceptable to your lender. Meeting your lender in person to make a payment should be arranged well in advance of the day the payment is due. If you decide to send money to your lender manually rather than automatically, remember that you will still be responsible for physically sending the money to them.

Automated bank withdrawals are a service that your bank can provide to you. On the due date, it will repay your lender for principal and interest. All the preparation is done in advance, so you won’t have to worry about meeting a deadline or facing the consequences if you don’t.

Without reviewing your credit history, a direct lender may give you a $255 advance the same day.

It is possible to obtain a cash advance from a lender whether or not you are currently employed. The loans are available in places like California and Texas where strict credit checks are not done.

If you are a California citizen with a stable income, you can get a $255 payday loan the same day from a California direct lender, and this is true even if your credit isn’t perfect.

What do I need to do to get accepted for a $255 payday loan with PaydayDaze if I don’t have a guarantor or co-signer and no collateral?

You can apply for a $255 loan from PaydayDaze without having to worry about your credit score. Due to the low interest rate, a credit check is not required for a $255 loan. Because the amounts you borrow are so small, the payday lenders in our network do not check your credit.

We will not inquire about your credit history or contact the three major credit reporting agencies. We will treat your request in the same way as those of customers with good credit, regardless of its level.

Will PaydayDaze allow me to apply online for a $255 payday loan over the weekend?

On weekends, you can apply for a payday loan online with PaydayDaze and receive up to $255 in your account the same day. Applying for a loan 7 days a week and receiving quick approval is possible. We will contact you by phone, text or email once we have determined whether or not to grant the loan.

It may take some time for your withdrawal request to be processed if you submit it outside normal office hours, during the weekend or during a holiday week.

Even if you were approved over the weekend, the money may not be available until Monday. If you want immediate approval and the ability to cancel, apply during the week.

Can I get a $255 online payday loan through PaydayDaze same day, even if I have bad credit?

Even if you have bad credit, PaydayDaze can help you get a loan fast from a direct lender. Even if you have a bad credit history, we can help you get a $255 payday loan if you need immediate funding.

We’ll help you find a lender in your area who is licensed to provide short-term loans and who has worked with low-credit consumers. We will provide you with a safe and final authorization after establishing a solid match. To find out if you qualify for a payday loan, complete our online loan application.

Can I receive a $255 payday loan without a credit check on the same day?

A direct lender can offer you a $255 advance the same day without checking your credit history. If you need money immediately and don’t have a job, you can always get a cash advance from a lender. No credit check loans are available in several states and localities, including California and Texas.

Where can I get an online payday loan for $255?

Each state in the United States has its own payday loan laws. It’s critical to realize that not all states will have allowed payday loans by 2022. If you’re wondering if payday loans are legal in your state or how they work in your area, you’ve come to the right place. . You can find out more by researching the applicable legislation on the Internet.

Payday loans are legal in 37 of the 50 states in the United States. Alabama, Colorado, California, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Ohio, Tennessee, and Texas are among the states on this list.

Each state has its unique set of legalization restrictions. The laws governing payday loans differ significantly between the two states. As an example of a loan restriction, the total number of payday loans that can be obtained at one time is limited. Learn what they are so you can limit your financing selections to companies that meet state requirements.

How long will it take PaydayDaze to respond to my $255 payday loan request?

One of the reasons you should contact us for your loan is that we promise it will be completed in less than 90 seconds. As this is an urgent matter, rest assured that we fully understand the need to expedite the approval and processing of your request. Once you have been approved, you will be connected with a direct lender who can explain the details of the loan to you.

After approval, you can expect your payday loan to be sent to your account the next business day, at the latest. Your chances of getting a loan increase rapidly if you apply on a weekday before 9 am.

Your payday loan’s due date is the next time you get paid. Check the repayment due date against the date of the money you want to use. Payday loans often have a maturity date between two weeks and four weeks from when the borrower’s next paycheck is due.

Where can I go online to apply for a $255 payday loan with PaydayDaze?

Apply online, get the best offer, sign the contract and receive your money within 24 hours. Payday loans with immediate deposits are available today from PaydayDaze.

The first step is to submit an application through the site.

Make your request on the PaydayDaze site. To help us choose the best lender for your needs, please provide information about your job, banking, loans, and personal life.

Then look for the most affordable loan option

You should expect a response with our best loan offer within one to two hours of submitting your loan application. The next step is to discuss the terms of the offer with your lender. You have the opportunity to negotiate certain terms of the loan and find out more about its particularities from the lender.

Finally, confirm the loan agreement.

You can finally give the green light to your loan application if and only if you are completely satisfied. Please sign your loan agreement with your online lender to initiate the final processing of your loan. It is imperative that you read your contract carefully before signing it. Also keep a duplicate for your own files.

You can repay the loan whenever you want.

Your funds will be available the next business day at the earliest. Apply for a loan with PaydayDaze now for $255 to help with your immediate financial needs.

Celine Jesza Afana

Personal Finance Writer at Paydaydaze

Celine Jesza Afana is a Financial Writer at Paydaydaze, a leading online payday loan company, providing fast, easy and secure online payday loans to its customers. Céline has extensive experience working in the financial sector, with a specialization in loan management and administration. She is also proficient in customer service, client services and various payday loan industry functions. She has worked hard in the company’s efforts to help those with not-so-easy jobs and who are financially challenged get money when they need it most.

Estimation of the intrinsic value of Emirates Telecommunications Group Company PJSC (ADX: ETISALAT)

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How far is Emirates Telecommunications Group Company PJSC (ADX:ETISALAT) from its intrinsic value? Using the most recent financial data, we will examine whether the stock price is fair by taking the company’s projected future cash flows and discounting them to the present value. We will use the Discounted Cash Flow (DCF) model for this purpose. Before you think you can’t figure it out, just read on! It’s actually a lot less complex than you might imagine.

Remember though that there are many ways to estimate the value of a business and a DCF is just one method. For those who are passionate about stock analysis, the Simply Wall St analysis template here may interest you.

Check out our latest analysis for Emirates Telecommunications Group Company PJSC

The model

We will use a two-stage DCF model which, as the name suggests, takes into account two stages of growth. The first stage is usually a period of higher growth which stabilizes towards the terminal value, captured in the second period of “sustained growth”. In the first step, we need to estimate the company’s cash flow over the next ten years. Wherever possible, we use analysts’ estimates, but where these are not available, we extrapolate the previous free cash flow (FCF) from the latest estimate or reported value. We assume that companies with decreasing free cash flow will slow their rate of contraction and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow more in early years than in later years.

A DCF is based on the idea that a dollar in the future is worth less than a dollar today, and so the sum of these future cash flows is then discounted to today’s value:

10-Year Free Cash Flow (FCF) Forecast

2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Leveraged FCF (AED, Millions) Ï.å8.64b Ï.å8.61b Ï.å9.96b Ï.å10.4b Ï.å11.0b Ï.å11.7b Ï.å12.5b Ï.å13.5b Ï.å14.5b Ï.å15.7b
Growth rate estimate Source Analyst x3 Analyst x2 Analyst x1 Analyst x1 Is at 5.4% Is at 6.44% Is at 7.17% Is at 7.69% Is at 8.04% Is at 8.3%
Present value (AED, millions) discounted at 13% د.إ7.7k د.إ6.8k د.إ7.0k د.إ6.5k د.إ6.0k د.إ5.7k د.إ5.4k د.إ5.2k د.إ5.0k د.إ4.8k

(“East” = FCF growth rate estimated by Simply Wall St)
10-year discounted cash flow (PVCF) = Ï.å60b

After calculating the present value of future cash flows over the initial 10-year period, we need to calculate the terminal value, which takes into account all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate the terminal value at a future annual growth rate equal to the 5-year average 10-year government bond yield of 8.9%. We discount terminal cash flows to present value at a cost of equity of 13%.

Terminal value (TV)= FCF2032 × (1 + g) ÷ (r – g) = Ï,å16b× (1 + 8.9%) ÷ (13%– 8.9%) = Ï,å453b

Present value of terminal value (PVTV)= TV / (1 + r)ten= Ï.å453b÷ ( 1 + 13%)ten= د.إ137b

The total value is the sum of the cash flows for the next ten years plus the present terminal value, which gives the total equity value, which in this case is د.إ197b. In the last step, we divide the equity value by the number of shares outstanding. Compared to the current share price of د.إ24.2, the company appears around fair value at the time of writing. Ratings are imprecise instruments, however, much like a telescope – move a few degrees and end up in another galaxy. Keep that in mind.

ADX: ETISALAT Cash Flow Update October 9, 2022

Important assumptions

We emphasize that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don’t have to agree with these entries, I recommend that you redo the calculations yourself and play around with them. The DCF also does not take into account the possible cyclicality of an industry, nor the future capital needs of a company, so it does not give a complete picture of a company’s potential performance. Since we consider Emirates Telecommunications Group Company PJSC as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which takes debt into account . In this calculation, we used 13%, which is based on a leveraged beta of 0.800. Beta is a measure of a stock’s volatility relative to the market as a whole. We derive our beta from the average industry beta of broadly comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

Next steps:

Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won’t be the only piece of analysis you look at for a company. It is not possible to obtain an infallible valuation with a DCF model. Instead, the best use of a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, if the terminal value growth rate is adjusted slightly, it can significantly change the overall result. For Emirates Telecommunications Group Company PJSC, there are three relevant factors that you should investigate further:

  1. Financial health: Does ETISALAT have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors such as leverage and risk.
  2. Future earnings: How does ETISALAT’s growth rate compare to its peers and the market in general? Dive deeper into the analyst consensus figure for the coming years by interacting with our free analyst growth forecast chart.
  3. Other strong companies: Low debt, high returns on equity and good past performance are essential to a strong business. Why not explore our interactive list of stocks with strong trading fundamentals to see if there are any other companies you may not have considered!

PS. Simply Wall St updates its DCF calculation for every UAE stock daily, so if you want to find the intrinsic value of any other stock, just search here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Valuation is complex, but we help make it simple.

Find out if Emirates Telecommunications Group Company PJSC is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

Why didn’t PPF and SSY interest rates rise in Q3 amid the uptrend in repo rates?

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Amid the rise in repo rates, the government raised interest rates by up to 30 basis points on a few small savings schemes for the third quarter (October to December) of the current fiscal year or FY23. 2- and 3-year Term Deposits, Old Age Savings Scheme (SCSS), Kisan Vikas Patra (KVP), Postal Monthly Income Account, etc. have seen increased interest rates. interest. Despite bond yields already being strong over the past 6 months and the fourth repo rate hike in five months, there has been no change in interest rates for the Sukanya Samriddhi Yojana (SSY) , the Public Provident Fund (PPF) and the National Fund. Savings Certificate (NSC) at T3FY23.

The benchmark 10-year yield on government bonds, commonly referred to as government securities or G-secs, is used to calculate interest rates on small savings schemes. And on a quarterly basis, the government assesses these interest rates in light of the average g-sec yields of the previous three months. On the other hand, in order to control inflation, the Reserve Bank of India (RBI) chose to raise the repo rate again, this time from 0.5% to 5.9%, during its monetary policy meeting on 30 september. This is the fourth increase in the repo rate in five months in a sequence of increases that started on May 4 this year and now stands at a total increase of 1.9%. With repo rates rising and bond yields strong, it’s important to understand why PPF and SSY interest rates haven’t risen.

Mr. Shravan Shetty, Managing Director of Primus Partners, said: “The PPF and SSY rates are linked to long-term trends, while the repo rate is at the lower end of the debt range and both are not not related. Normally, the repo rate would have changed less, but due to the pandemic and the inflationary cycle, we are seeing more changes in the repo rate to curb inflation. Today, the repo rate stands at 5.9% after the recent rise and has just reached the pre-pandemic level. PPF rates did not reflect the repo rate when it went down, so it does not need to reflect when the repo rate is up. Considering inflation, PPF and SSY rates should be raised for long-term investment to avoid value destruction so that returns are better. Traditionally, inflation should be at 4% and interest rates at 7%, so there is a marked difference. The repo rate should not drive the PPF and SSY, the decision to raise rates should be tied to the expectation of inflation above 4% as required by the RBI. Therefore, PPF rates are expected to rise since long-term inflation is expected to be above 4% for some time.”

Since the January to March quarter of 2019, small savings rates have not increased so far. In Q3FY23, the interest rate for the savings scheme for the elderly was increased from 7.4% to 7.6%, for Kisan Vikas Patra from 6.9% to 7% and for the monthly income from 6.6% to 6.7%. The government announced interest rate increases on 2-year time deposits at Swiss Post by 20 basis points, from 5.5% to 5.7%, and on 3-year time deposits at Swiss Post 30 basis points, from 5.5% to 5.8%.

The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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Zuckerberg’s unlovable metaverse shares payment policy flaws

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Meta CEO Mark Zuckerberg has received a lot of flak in the year since he announced the company’s rebranding, saying, “From now on, we’re going to be metaverse first. , not Facebook first”.

He then added, “I hope people get to know about the Meta brand and the future we represent.”

What was the big deal that arose when a virtual reality (VR) “selfie” described as having “soulless” eyes and 90s graphics was so despised it practically broke the internet on the 17th august.

See also: In Horizon Worlds, the Emperor has no legs

Yet few things were as stark as Friday’s (October 7) news as in a September note leak at the Financial Times, Vishal ShahMeta’s VP of Metaverse has admitted that Horizon Worlds’ Metaverse Lite is so plagued with bugs and stability issues that even the company’s own employees don’t want to use it – not to mention the developers that it must attract to create real content.

“If we don’t like it, how can we expect our users to like it? Shah reportedly asked, announcing a “quality lockdown” that puts building everything new on hold while he masters the basics.

It’s a problem that doesn’t end with poor graphics, legless avatars and a company that an anonymous employee of Meta Metaverse told the FT, where “a lot of people internally… never put of [virtual reality] helmet.

Pay the Piper

In April, Meta announced to much fanfare, at least in the payment and content creation spaces, that it was rolling out a payment tool that would siphon off just under half – 47.5% to be precise – of revenue that content creators report. .

Read more: Meta opens its Metaverse platform to payments and it’s not cheap

“I think creator monetization is really important because you all need to be able to support yourself and earn a good living building these amazing experiences that people can have,” Zuckerberg said on a panel. Horizon Worlds avatar at the time.

Which shows an essential lack of not only focus, but also understanding of what a metaverse is – at least in the version that Meta is banking on.

Facebook and social media giant Instagram are places users come to socialize, contributing their own content to fill the platforms with reasons for their friends to hang out — and, along the way, view ads.

A metaverse is a place where people go to be more proactively and interactively entertained with content developed by others who intend to profit from it. Whether that comes in the form of sales, fees, or eyeballs doesn’t matter.

Certainly, many people will develop metaverse content for fun – or for their friends. And by the same token, many creators and influencers make a living on Facebook and Instagram, bringing with them eyeballs for those ads.

If you build it…

But in a metaverse, people want to play entertaining games, attend concerts, view artwork, and buy virtual (and possibly real) goods and services. And watch the ads, to be fair. Or so the sales pitch goes.

In his April payout pitch, Zuckerberg said he thinks what sells in a metaverse “would end up looking a little different than what you’d expect from the physical world.” So it takes a lot of experimentation and creativity on the part of the people who build the worlds and build those experiences.

Which means they need a lot more infrastructure support than people posting photos. And Meta hasn’t shown it can do it even as well as blockchain-based startups like Decentraland and The Sandbox, let alone long-existing virtual worlds like Roblox and Second Life.

Meanwhile, Zuckerberg announced a hiring freeze, as the company’s revenue plummeted and the stock price slumped as it “continues to have its clock cleaned by TikTok”, a LightShed Partners analyst Rich Greenfield told the FT.

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New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

We are always looking for partnership opportunities with innovators and disruptors.

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https://www.pymnts.com/meta/2022/meta-nails-400-apps-aimed-at-robbing-facebook-login-details/partial/

Illinois State Rep. Tom Bennett: Illinois makes another partial payment on unemployment debt

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During the pandemic, Illinois had to borrow nearly $5 billion from the federal government to pay the large number of unemployment claims resulting from the shutdowns. Many states that got similar loans used money from the US Federal Bailout Act (ARPA) to pay off their debts. Illinois, however, spent that money on other projects, paying off only part of the debt. The budget passed last spring left $1.8 billion unpaid and started collecting interest.

Recently, the state made another partial payment on this debt, but there is still more than $1 billion in arrears. Many Illinoisans who lost their jobs in 2020 were able to return to work, which means their employers are now paying unemployment taxes on their payroll. Last week, the state transferred $450 million in unemployment tax revenue to pay off another portion of the debt Illinois owes Uncle Sam.

Unfortunately, even with this payment, we still owe $1.35 billion, and this debt continues to accrue interest that the state will also have to pay. This is just another example of the consequences of short-sighted budgeting and spending decisions in Springfield.

Doctors remind Illinois to get flu shots this fall

Every year around this time, we hear the reminders to get your flu shot before the typical flu season that runs throughout the fall and winter. This year, doctors are to be particularly vocal on flu shots due to several different factors.

Flu rates have dropped significantly over the past two years as people stayed home and avoided contact with others. There are fears there will be a rebound this year as people interact more and resistance may be lower after a few slow flu seasons. Flu season in Australia, where the flu tends to hit before it reaches the United States, would also be particularly severe this year.

Certain groups are at higher risk for flu complications, such as the elderly and infants, as well as pregnant women, children, and people with underlying health conditions. Contact your doctor or local health department for information about flu vaccine availability in your community.

Mortgage rates and other interest rates rise in response to inflation

The latest Consumer Price Index numbers show item prices in parts of Illinois have risen by an average of 8.8% in the last 12 months. Some prices, like many groceries, have increased by double digits during this period.

In response to levels of inflation not seen in nearly 40 years, the Federal Reserve raised interest rates, which also drove up mortgage rates. The median rate for a 30-year fixed rate mortgage is now around 7%. These higher mortgage rates tend to hit first-time home buyers the hardest, and these rising rates are making it much harder for middle-class Illinois households to buy a home.

Real estate sales in Illinois are down 8% since the peak in June, just when interest rates started to rise. With rates continuing to rise, this trend should continue. Unfortunately, most Illinois haven’t received the kind of wage increases that would be needed to keep up with those inflation levels.

Tribute to a Fallen Hero

On Saturday, October 1, Private First Class John L. Ferguson of the US Army Air Corps was laid to rest in Gridley Cemetery with full military honors and a procession fit for a hero who gave his last full measure of devotion to his country. He died as a prisoner of war on December 10, 1942 in the Cabanatuan POW camp in the Philippines.

In March 2018, his remains were identified and now, after 80 years, he is finally home.

On behalf of State Representative Dan Brady and myself, I presented to the family House Resolution 951 and a flag flying above our state and national capitols in honor of PFC Ferguson. God bless his family and God bless America.

How much do we owe?

As of this writing, the State of Illinois must $2,204,063,243 in unpaid invoices to government suppliers. A year ago, the backlog stood at $4.3 billion. This figure represents the amount of invoices submitted to the comptroller’s office and still awaiting payment. It does not include liabilities that can only be estimated, such as our unfunded pension liability which is subject to a wide range of factors and has been estimated at over $137 billion.

Did you know?

Abraham Lincoln, 21, was taking a supply flatboat to New Orleans when he got stuck on rocks on the Sangamon River. Unloading his cargo near a small village, he found that the town had no general store. Changing his plans, he decides to settle down and sell his wares there instead of New Orleans. It was from this little village; called New Salem; that Lincoln entered politics and won his first election, a seat in the Illinois House of Representatives. The rest is history.

More news from across the state

October is Breast Cancer Awareness Month. Learn about risk factors and warning signs

Fire Prevention Week is October 9-15

Old State Capitol gets Underground Railroad designation

Harvest season is underway, agriculture industry warns drivers to share roads

Illinois State Police warn public of phone scam

Preparing for the Next Generation: Farm Bureau to Host Farm Succession Planning Workshop

Can you use a credit card on the Cash app?

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Studio Moyo/Getty Images

Cash App is a leading mobile banking application available in the US and UK. It is a financial services platform owned by Block. Cash App provides features like money transfer, payments, direct deposits and even investing.

Find out why this credit score mistake could be costing millions of Americans

It is very easy to set up and use Cash App. To transfer money from the Cash App to your bank account, you need to connect a card to your Cash App profile. However, you can still receive money if you don’t have a card connected to your account.

Can you link a credit card to the Cash app?

Yes, Cash App allows its users to link a debit or credit card from Visa, MasterCard, American Express and Discover. Cash App also supports most prepaid cards, but users are not allowed to deposit money on them.

Currently, Cash App does not support ATM, PayPal, and business debit cards.

How can you add a credit card to the Cash app?

To connect your credit card to your Cash App profile, you need to follow these steps:

  1. Find “My Money” and tap on that tab.
  2. Under the “Cash and Bitcoin” tab, tap on the “+Add bank” option.
  3. A new pop-up screen will appear where you will be asked to fill in your bank account details.
  4. After entering the bank details, Cash App will ask you to enter your credit or debit card information.

It is important to note that you may experience problems linking your credit card if you have entered incorrect information. Cash App will not allow you to add your credit card to your profile if the credentials do not match your card information.

To successfully link your credit card to your Cash application profile, you must correctly provide the following information:

Once you have entered all these details, you need to enter your PIN or Touch ID to complete the process and add your card to your Cash App profile.

Can you send money through the Cash app from a credit card?

Since Cash App supports the use of credit cards, you can use these cards to make payments to your contacts. However, Cash App charges a 3% fee every time you pay by credit card. This is why it may be better to use a debit card to make payments.

Before using a credit card, you should be aware of the different types of fees charged by Cash App.

Is using a credit card on the Cash app considered a cash advance?

A cash advance can be thought of as a loan that a user can take out based on the credit limit available on a credit card. Although credit card cash advances are the most common, they can also come in the form of payday loans or merchant cash advances.

Often when you use a credit card to transfer money from apps like Cash App, your credit card provider may consider the same thing a cash advance. Usually, the interest rate on a cash advance is very high and begins to accrue the moment the advance is made. This is why you should check with your service provider before sending money via your credit card on the Cash app.

You can check the respective service provider’s website or contact the customer service representatives to learn more about the cash advance rules. Alternatively, you can verify by transferring a small amount and have it appear as a cash advance on your statement.

Your credit card statement may show that the cash transfer via Cash App is a cash advance. In such a case, it is best to avoid using a credit card on the Cash app to transfer money.

Why can’t you link your credit card on the Cash app?

You will often find that you are unable to link your credit card to your Cash App profile. Here are some of the reasons why this can happen.

  • You have entered incorrect card details including card number, expiration date or CVV.
  • The card you are trying to link is not supported by Cash App.
  • There is an existing network problem on the Cash App server.
  • The version of Cash App you are using is outdated.

Even after checking these reasons if you are still facing problems then you can contact Cash App customer support representatives.

Why was your credit card payment on the Cash app declined?

Cash App periodically declines credit card payments for the following reasons:

  • The credit card by which you made the payment is not in your name.
  • The recipient is unverified or untrustworthy.
  • The recipient’s details are incorrect.
  • You haven’t used Cash App for a long time.

If your payment has not been made, Cash App will return the amount to your credit card or Cash App balance immediately or within 1-3 business days depending on your service provider.

Final grip

Cash App is very useful and you can enhance its usefulness by linking your credit card to it. Make sure you understand the rules for using Cash App to ensure that you can avoid unnecessary charges or any other issues.

Editorial note: This content is not provided by any entity covered by this article. Any opinions, analyses, criticisms, evaluations, or recommendations expressed in this article are those of the author alone and have not been reviewed, endorsed, or otherwise endorsed by any entity named in this article.

Israel’s central bank chief sees rates peaking at ‘3% and above’ while avoiding recession

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  • Israel has hiked rates five times since April to 2.75%
  • Tariffs are “essentially restrictive”
  • Early hikes avoid higher rates in the future-Yaron
  • Inflation becomes a demand problem-Yaron

JERUSALEM, Oct 6 (Reuters) – Israel’s aggressive cycle of interest rate hikes aimed at reducing inflation was “well advanced”, Bank of Israel Governor Amir Yaron said. price pressures starting to ease and inflation hopefully returning to its target range. Next year.

Israel will likely avoid a recession, Yaron said, and growth will be stronger than the United States and Europe. Analysts increasingly believe that the eurozone economy will contract this winter.

The central bank has raised its benchmark interest rate (ILINR=ECI) five times since April to a high of 2.75% from a decade high of 0.1% – the last two moves at the end of August and last Monday being 75 basis points. Read more

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After hitting a 14-year high of 5.2% in July, Israel’s inflation rate fell to 4.6% in August, but remained well above an official annual target of 1% at 3% and almost half the levels of the United States and Europe.

The rate “is in a fundamentally restrictive range and it will probably need to go above 3%, or what I call three more, in order to bring inflation back towards the center of the target,” Yaron said in an interview with Reuters. . .

Bank of Israel economists forecast inflation of 4.6% in 2022 and rising to 2.5% in 2023. Yaron said most of the reduction will occur in the second half of the second quarter and until in the summer. “It takes a while for these things to kick in, but we think this is the right magnitude (of rates) for the Israeli economy right now,” he said.

Central bank economists expect the key rate to reach 3.5% within a year.

Yaron said that while “early” interest rate hikes are “painful” for mortgage holders and others, it will avoid greater pain down the road, adding, “It will actually help avoid the need for higher interest rates”.

INFLATION DEMAND

Where the interest rate stops rising depends on a host of factors, including Israeli and global inflation, economic growth and real interest rates, he said. Yaron said he was looking for positive interest rates across the bond yield curve, but for now inflation-adjusted short-term rates remain negative.

“That’s why we think we need to see three more…How events unfold will determine how fast or slow or how high we could go from here,” he said, noting that not all inflation was due to external factors.

Once rates peak, they’ll likely stay there as long as policymakers believe inflation is anchored to its target as well as other economic factors, Yaron said.

While the Israeli economy is expected to grow by 6% in 2022 after surpassing 8% last year, growth is expected to slow to 3% in 2023, mainly due to external forces.

“For almost all unemployed (people) there is a vacancy, so it gives us comfort to do this (policy) early loading,” he said, noting that public sector wages will likely rise after the election. from November 1. “Israel’s economy has very high growth and a very tight labor market.

“What we’re seeing is inflation seeping into a wider and wider set of CPI components…more and more into the demand-side components.”

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Reporting by Steven Scheer; Editing by Toby Chopra

Our standards: The Thomson Reuters Trust Principles.

Loans in case of difficulty: what is it?

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Common Types of Financial Hardship Loans

Although hardship loans come in a variety of forms, each can be used to cover unavoidable expenses. But remember that not all options will suit your situation. Consider the pros and cons of each to choose the best one for you.

Unsecured Personal Hardship Loans

An unsecured financial hardship loan is a type of personal loan that does not require collateral. Instead, lenders will determine how much you can borrow by evaluating your credit score and financial situation. If you have poor credit, you may find it difficult to qualify for a difficult unsecured personal loan, as most lenders have strict requirements.

Advantages

Using an unsecured personal loan during a difficult time can have several advantages. The first is that you don’t need a valuable item to use as collateral. You also won’t have to worry about the lender repossessing any collateral if you fail to repay the loan.

The inconvenients

Like any type of financing, unsecured loans also have some disadvantages. Since you don’t need collateral to secure the loan, your lender will take on more risk. And the more risk the lender is exposed to, the higher your interest rate and annual percentage rate (APR). This option could therefore be more expensive than the alternatives.

Secured Personal Hardship Loans

Unlike an unsecured personal loan, a secured loan requires some form of collateral. As a result, most lenders will have less stringent qualification guidelines, which will likely make it easier for borrowers with low credit ratings to get approved.

Advantages

The main advantages of a secured personal loan are its lower interest rates, longer terms and larger loan amounts. These benefits are possible because secured loans help mitigate some of the lender’s risk, as mentioned earlier.

The inconvenients

On the other hand, using collateral means that the lender can claim your property as their own and sell it to recover their losses if you cannot make the payments. Simply put, a secured financial hardship loan can expose you to more risk than an unsecured loan.

Home Equity Loans

You may have heard of home equity loans used to fund a home improvement project, but did you know you can also use them for emergencies? If you own your home and have significant equity, you can convert some of it into cash if you’re in dire straits.

Advantages

Home equity loans offer fixed interest rates that are generally lower than personal loans. Home equity loans also use longer loan terms, which means paying off the loan could be easier. The more time you have to repay what you have borrowed, the lower the monthly payments will be.

The inconvenients

This type of loan could unfortunately mean a lot of debt. A second payment can be difficult to manage if you’re already struggling to pay your mortgage. Also, home equity loans use your home as collateral. So if you default, you could lose your home to foreclosure.

401(k) Hardship Withdrawal

Depending on your situation, you may be able to take out a short-term loan from your 401(k) retirement plan. Most employers offer this option for specific purposes, such as:

  • Repair a primary residence
  • Avoid seizure or eviction
  • Reimbursement of eligible medical bills
  • Financing a university degree
  • Support for funeral expenses

Before choosing this option, discuss your situation with your plan administrator to ensure that you meet the eligibility criteria.

Advantages

Borrowing from your retirement account could help you avoid taking out high-interest loans or racking up credit card debt. Plus, you don’t need to meet any lender’s requirements or have your credit history checked to access the funds.

The inconvenients

You may be required to pay a penalty or taxes if you withdraw from your 401(k). This option could also hurt your future retirement plans if you don’t repay what you’ve withdrawn quickly enough.

Alternative payday loans

Payday loans are notorious for their predatory lending practices and can cause a vicious cycle of debt. Fortunately, many credit unions and online lenders offer alternative payday loans (sometimes called PALs). These loans come with short terms, typically one year or less, and low borrowing limits.

Advantages

You can use a PAL to quickly cover a last-minute bill without applying for a loan from a payday lender. Also, this type of hardship loan might be more affordable than an unsecured personal loan.

The inconvenients

The short amount of time you have to repay the borrowed amount means that your monthly loan payments could be higher than expected. APRs for PALs can also be extremely high, especially compared to home equity loans or secured personal loans.

Peer-to-peer lending

Over the past decade, peer-to-peer lending platforms have grown in popularity due to their accessibility. A peer-to-peer (P2P) loan is similar to borrowing money from a family member or friend, except the people lending you money can be anyone using the platform.

Advantages

P2P loans generally use low interest rates to ensure affordability. Borrowers with little or no credit can also use this option as the requirements are more flexible than with a traditional personal loan. Finally, some P2P lenders may require investors to meet specific criteria before they can lend money to borrowers, which helps promote user safety.

The inconvenients

Just because you have access to a P2P lending platform doesn’t mean you’ll be able to get enough funds to cover the cost of an emergency. And, if you default on a peer-to-peer loan, you could hurt your credit score, just like with a traditional installment loan. It should also be noted that some platforms may charge high service fees for any loan you take out.

Who are they and what do they do? – InsuranceNewsNet

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The Federal Reserve is “the nation’s bank of banks.” Wysiati of Getty Images Signature; Cloth

Who is the Federal Reserve?

The Federal Reserve is the central bank of United States. Also known as “The Fed“, he is in charge of the monetary policies of the country. He also designs fiscal policies with the aim of achieving a healthy economy with low prices and maximum employment.

What are the 3 entities that make up the Federal Reserve?

The Board of Governors oversees the Federal Reserve – including setting target interest rates known as discount rates. It also controls the required reserves. Governors are appointed by the WE President and confirmed by the US Senate. The President acts as Chief Executive Officer and reports to the US Congress about WE economy. The 12 Federal Reserve Banks are the operational arm of the Federal Reserve. They act as fiscal agents of the WE government and serve as “bank to the nation’s banks” by lending money, printing and circulating currency, processing millions of checks and other deposits, and redeeming government securities. Federal Free Market Committee (FOMC) manages open market operations by buying and selling securities. It meets eight times a year. The FOMC is composed of the Board of Governorsthe president of the Reserve Bank of New York and the presidents of 4 of the remaining 11 Reserve Banks, who serve rotating one-year terms.

What does the Federal Reserve do?

The Federal Reserve has three main functions.

It conducts the nation’s monetary policyIt ensures the stability of our financial marketsIt regulates financial institutions

The Federal Reserve operates under the mandate of Congress to “effectively promote the objectives of maximum employment, stable prices and moderate long-term interest rates”, according to the Richmond Regional Bank.

Who is the current president of Federal Reserve?

Jerome Powell became chairman of the Fed on February 5, 2018. His term runs until May 2026.

What does the FOMC do?

It is the work of FOMC to monitor the WE the economy and adjust interest rates accordingly. After the 2008 financial crisis, the FOMC took on additional responsibilities, including quantitative easing, which was a large-scale buyout of WE Treasuries designed to increase liquidity, keep long-term interest rates low and promote economic recovery. Throughout the COVID-19 pandemic, FOMC has repeatedly said that it will begin to “reduce”, or reduce, these buybacks in order to stem inflation. This practice is also known as quantitative tightening.

How does the Federal Reserve set monetary policy?

The Fed requires deposit-taking institutions, such as banks, savings banks, and credit unions, to keep a certain amount of cash deposits they have on hand as reserves. These required reserves are also called federal funds.

When an institution’s reserves exceed what it needs, it can lend a portion of its federal funds to other financial institutions, so they too can meet reserve requirements. The interest rate at which they make these loans is known as the federal funds rate.

The Fed calculates a bank’s reserve requirements as a ratio based on its liabilities. The federal funds rate is based on the simple supply and demand of these federal funds. The rate fluctuates, and so, at its eight annual meetings, the FOMC sets a target rate.

Changes in the federal funds rate, whether positive or negative, have a significant impact on all aspects of financial markets. It affects short-term and long-term interest rates as well as exchange rates. It also has an impact on broader economic variables, such as employment. For example, a lower federal funds rate makes borrowing more attractive to businesses so they can hire more workers, open new offices, increase production or production processes, etc.

Federal funds rate vs discount rate

It may sound confusing, but the fed funds rate is not the same as the discount rate. The discount rate is the interest rate the Fed charges banks that borrow directly from it, and the method of accessing these funds is called the discount window. The discount rate is usually set at a higher interest rate than the federal funds rate because the Fed wants to encourage banks to lend and borrow from each other.

How is the Federal Reserve structured?

The Federal Reserve Board is composed of seven governors, including its president. He is based in washington d.c.. The 12 federal banks are organized by economic zone. They monitor data and disaggregated economic conditions in the following regions:

AtlantaBostonChicagoClevelandDallasKansas CityMinneapolisNew YorkPhiladelphiaRichmondSan FranciscoSt. Louis

When is the next Fed meeting? Fed Meeting Schedule 2021-2022

The FOMC meets 8 times a year and additionally as needed. It publishes its political declarations on the same day as its meetings. The minutes of the meetings are then published 3 weeks later.

Dates of the next FOMC 2022 meetings:

20–21 September 20221–2 November 202213–14 December 2022

Frequently Asked Questions (FAQ):

Did you know that Federal Reserve operates independently of the federal government? Read on for more fascinating Fed FAQs.

Why was the Fed created?

A bank panic in 1907 caused a run on banking resources. Until then, various financial crises literally caused customers to run to the bank to withdraw their deposits, which devastated the banking sector. In 1913, Congress created the Federal Reserve Act, which established the Federal Reserve system as we know it. President Woodrow Wilson signed the law on December 23, 1913.

Who is in charge of Federal Reserve?

The Federal Reserve is not a federal entity. While the Federal Reserve was created by Congressthe Board of Governors is an independent agency and the 12 Federal Reserve Banks are run as private corporations.

How does the Federal Reserve increase the money supply?

When the Fed lowers a bank’s reserve requirements, it effectively creates more liquidity in financial markets, thereby increasing the money supply. His Treasury security buybacks also increase reserves, putting more cash back into circulation.

What is the maximum employment rate? And what is the desired rate of inflation?

The Federal Reserve Bank of San Francisco defines “maximum employment” as an unemployment rate of 4% or less. A constant average inflation rate of 2% is the target rate that the Fed strives to maintain.

How does the Fed affect the stock market?

Institutions and individuals generally see a drop in interest rates as a cause for celebration, and stock prices tend to rise accordingly. Lower interest rates generally stimulate economic growth and pump more money into consumers’ pockets, which, in turn, can fuel additional spending and, therefore, growth.

What is a Federal Reserve Note? Is it backed by gold?

A Federal Reserve note is a currency issued by the Fed that is backed by gold. These banknotes are generally worth their face value, although some historic banknotes, such as those from 1928, are worth more.

Are Federal Reserve employees federal employees?

The Federal Reserve is independent of the federal government. The employees of the Federal Reserve are not federal government employees; they continue to work even in the event of a government shutdown.

Dollar Bank Raises Savings Interest Rates

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PITTSBURGH, Pa., October 3, 2022 /PRNewswire/ — Dollar Bank today announced that it has raised the rate of our Any savings account to 2.00% Annual Percentage Yield (APY), while increasing rates on all deposit accounts.

“We believe our customers should be able to get additional value from a community bank with offices where they live and work,” said Jim McQuade, President and CEO of Dollar Bank. “Our mission is to provide exceptional value to our customers and the local communities we serve, enhancing their financial success.”

dollar bank All savings Account has historically provided rates higher than the national average savings account and by increasing the rate to 2.00% APY, a return greater than 11 times that average (as reported by the FDIC). The Any savings account aims to give all customers the opportunity to benefit from a higher interest rate, up to $20,000, not just higher balances. We have also raised our Premier Savings Account 1.25% (APY) for balances greater than $20,000.

Dollar Bank also raised deposit rates on checking accounts and certificates of deposit. Professional customers can benefit from increased rates on our Business Relationship Savings Account who now earn 1.50% up to $50,000.

“Our mutual structure gives us the opportunity to be different and customer-focused. We had this singular goal in mind when we moved forward with the rate increases on all of our deposit products. With our savings rates in rise, now is a rewarding time for our saving customers.” McQuade said.

Existing customers will immediately see rates increase on their accounts, while potential new customers can take advantage of new rate increases by visiting Dollar.Bank/savings or a local branch.

About Dollar Bank

Dollar Bank has assets of over $11.5 billion. Today, Dollar Bank operates over 90 locations across Pennsylvania, Ohio, Virginiaand Maryland with more than 1,400 employees. For more than 167 years, Dollar Bank has been the largest mutual bank in United States, committed to providing the highest quality of banking services to individuals and businesses. Dedicated to helping the communities it serves, Dollar Bank supports quality of life initiatives, financial literacy programs, and organizations dedicated to helping individuals and families in need. Dollar Bank (www.dollar.bank) has its headquarters at Pittsburgh, Pennsylvania.

CONTACT: Frank BuonomoVice President, Public Affairs
412.261.8105
[email protected]

SOURCE Dollar Bank

Axia unit optimistic about future growth

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the herald

business journalist

Axia Corporation Limited’s furniture business, TV Sales & Home, expects to maintain its current growth trajectory in fiscal 2023 and beyond through the investments it has made in manufacturing capacity, which which will expand the product offering.

In July last year, TV Sales & Home increased its stake in Resttapedic to 60% from 49% for $860,000.

The increase in shareholding has enabled Resttapedic to invest in a 10,000-bed production plant, which is under construction in Sunway City, Harare.

According to Chairman Luke Ngwerume, significant progress has been made in the construction of the new bedding factory, which is expected to open in January or February 2023.

In the year to June 30, 2022, Resttapedic experienced intermittent raw material supply shortages attributed to delays in auction payments, which negatively impacted the import supply chain, resulting in lower volumes in the fourth quarter.

The bedding business, however, saw revenue growth of 33% and marginal volume growth over the prior year. The completion of the 10,000-bed installation in Sunway City should, however, increase the production capacity of the group, which is trying to meet demand.

Another area of ​​focus for the group is the expansion of Legend Lounge – the suite manufacturing business, which is expected to see a wider product range depending on customer needs and tastes.

“Expanding Legend Lounge’s manufacturing capacity remains a key focus with continued investment in new product development as well as redesigning the entire lounge suite line to enhance the guest experience,” said Mr. Ngwerume, adding revenue and volume performance for Legend Lounge, increased by 212% and 231% respectively compared to the comparative period.

The group is also studying the expansion of the retail store network. Already, the company has expanded its store network by opening a new store in Bulawayo during the year until June 30, 2022.

“Plans are underway to improve the retail store network, including the opening of new stores in the coming fiscal year, coupled with outlook upgrades to existing stores to improve the customer experience. .

“Two new stores were opened in Harare during July and August 2022. Volumes are expected to recover in the new fiscal year following the addition of a new appliance and housewares retail business at the end of the year under review,” said Mr. Ngwerume.

Overall, TV Sales & Home recorded revenue growth of 38% year-on-year, while volume performance increased 8% year-on-year.

According to the group, the year-on-year volume growth benefited from a consistent and broad product offering as well as successful market activation promotions deployed during the year.

Fourth quarter volume performance, however, was 8% lower than the comparative period, as June volumes and sales were below expectations due to inconsistent commodity pricing in response to exchange rate volatility which exerted pressure on prices.

Mr Ngwerume said, “The hiatus caused by the authorities’ crackdown on exchange rates has led to a proliferation of informal trade and gray imports.”

Receipts on the accounts receivable book have remained strong even though growth has continued to slow in recent months given the prevailing high interest rates.

Mr. Ngwerume said that management will continuously assess the company’s credit model to provide affordable credit offers to customers, in local and foreign currencies.

Should I give up my fixed rate mortgage for a longer term?

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I have one year left on my two-year fixed rate mortgage. I am currently paying 1.16% on £300,000.

Should I abandon my agreement and enter into a new one in case rates go up further? AK, Lincolnshire

Ruth Jackson-Kirby responds: What a week it’s been for mortgages. More than 1,000 were taken off the market – the highest number ever in a single week. Rates on those that remain have jumped as lenders grapple with an uncertain outlook for interest rates.

Turmoil: What a week it’s been for mortgages as more than 1,000 have been taken off the market

When you fixed your mortgage, there were transactions below 1%. Today, some two-year fixed rates are over 5%, which means thousands of pounds of extra interest every year.

You’re not alone wondering what to do. You’re in the lucky position of being locked into a low rate, but when you come to remortgage, you’ll likely find your payments increase dramatically.

The question is whether to bring that day forward a year in the hope that rates will continue to rise, making it cheaper to lock in a new mortgage now.

First, you need to consider the prepayment charge (ERC), which is charged by most lenders if you leave an agreement early. These are usually charged as a percentage of the outstanding balance and are usually between 3 and 5%.

However, some ERCs fall over the mortgage. For example, over a five-year period, ERCs could drop by one percentage point each year, from 5% to 1%.

David Hollingworth, associate director at mortgage broker L&C, says: ‘It is important to check what the ERC will be to help understand the penalty for breaking the deal. It also makes sense to check if it needs to drop in the short term, as that could see it drop by a percentage point, which in your case could save you £3,000.

Ultimately, you have to decide what you think will happen to interest rates over the next few months.

If you think they’ll keep rising, you may decide it’s worth striking a deal now rather than waiting a year to find that rates are still significantly higher.

However, making that call baffles even mortgage experts and economists. Financial markets currently expect the Bank of England to raise the base rate – on which the cost of all debt is based – to 4% this year and possibly even 6% by summer. . Mortgage rates are likely to be at least a percentage point or two above that.

However, market expectations are evolving enormously and could therefore easily change in the coming weeks.

“Whether it makes sense to correct now is a question that can only be answered with the luxury of hindsight,” says Hollingworth. “We just don’t know what might happen with rate movement going forward. If the current rapid pace of change tells us anything, it’s that things can turn around in a very short time.

If you stick with your current contract, you could use the money that would have gone to the ERC to overpay your mortgage. Most allow you to overpay up to 10% without incurring a fee.

Overpayments while your interest rate is low will have more of an impact because more of the money will go to offsetting the principal you owe and less to interest payments.

Then, when you remortgage, you will have to borrow less.

You can usually shop for a new mortgage long before your current contract ends, as most offers are valid for up to six months. This could protect you from certain interest rate increases and you would not have to pay a prepayment penalty.

Also, if interest rates drop in the following months, you can seek another offer and drop the offer without penalty.

If you switch early, keep in mind that your monthly payments will increase significantly – although not as much as they would if you waited another year to switch.

You are currently paying £1,153 a month on your mortgage and you have 24 years left.

If you switched to one of the best two-year solutions now, you could get 3.5% from Reliance Bank, bringing your repayments to £1,542 a month. Over the next 12 months it would cost you an additional £4,664 plus an arrangement fee of £995.

If you upgraded to one of the best five-year fixes at 3.67%, repayments would increase to £1,568 per month and cost an additional £4,980 over the next 12 months. It’s with Danske Bank and there are no arrangement fees.

Fix for ten years with Lloyds at 3.88% and you’d pay an additional £5,394 over 12 months, with no arrangement fees.

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Novonix stock price falls on fears of rising interest rates

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Image source: Getty Images

The Novonix Ltd (ASX: NVX) The stock price struggled on Friday amid losses seen in the ASX tech sector. Shares of the company closed down 2.49% on Friday.

Shares of the metals and battery technology company ended the day at $1.76 apiece. Earlier today, they hit an intraday high of $1.79. and a minimum of $1.71.

Today’s price action means its shares hit a fresh 52-week low, topping the previous 52-week low of $1.77 it hit on Wednesday.

The S&P/ASX 200 All-Tech Index (ASX:XTX) also struggled today, ending with a loss of 3.09%. It was also a difficult day for the market as a whole, with the S&P/ASX 200 Index (ASX:XJO) closing down 1.23%.

There was no news from the company today to make sense of the sale of its stock price. However, some developments have taken place for the company in the recent past. Let’s cover the highlights.

What’s going on with Novonix?

Novonix has had negative media coverage over the past 10 days, which may have contributed to its share price drop.

The biggest news came on September 20 when Novonix auditor PriceWaterhouseCoopers (PWC) noted “material uncertainty” with the company going live. as reported by my crazy colleague Zach.

Reasons given for the uncertainty were the fact that Novonix recorded a loss of $71 million in its annual report for fiscal 22, as well as a cash outflow of $40 million, Zach said.

More recently, Novonix may also be feeling the pinch of lower-than-expected U.S. jobless numbers on Sept. 29, raising fears that the Fed may proceed with further rate hikes to rein in inflation.

Investors may assume that the higher interest rates rise, the more likely the Fed is to miss the soft landing it predicted, steering them away from riskier investments.

Novonix stock price overview

Novonix’s share price is down 80% since the start of the year. During this time, the S&P/ASX 200 Index (ASX: XJO) is down 13% over the same period.

The market capitalization of the company is approximately $878.45 million.

Illinois Comptroller Susana Mendoza calls for changes to payment methods for families of deceased first responders

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MARION, Ill. (KFVS) – Illinois Comptroller Susana Mendoza is asking the state legislature to change how it pays the families of deceased first responders.

The way the current law is written, money for benefits could run out before the end of the year, requiring the state legislature to approve additional appropriations.

Mendoza is urging lawmakers to pass a bill in the Legislative Assembly to approve more funding.

“No family should have to wait a minute longer than it takes to process their application and get it to my office for payment. Now I immediately knew this was a problem that needed to be fixed and I am happy to be able to lead the charge with these wonderful members of the legislature who are going to carry the bill on behalf of all these families and sadly the future families who will actually have to receive benefits,” Mendoza said.

She added: ‘Returning to the police memorial this spring, I was approached by the family of late officer Brian Pierce. Tammy and Brian Pierce, who are here with us today, have asked for my help in verifying the compensation paid to the families of first responders who have died in the line of duty. These are the benefits that families receive from widows, orphans, the next beneficiaries in line.

Mendoza says they are working to double the time in which family members can file a claim from one to two years.

The changes will be discussed during the November veto session.

“House Bill 5785 and Senate Bill 4229 which would allow these vouchers to come to my office so that I could pay them immediately without delay. It becomes what we call a continuous credit under the bill. So the legislature will never again have to call a special session or an additional appropriation to deal with this situation,” Mendoza said.

$520,659 for Family and Small Business Loans: St. Helens Credit Union to Share Funding | New

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Three Oregon credit unions, including InRoads in St. Helens, will receive a total of $520,659 in federal dollars to support small loans to families and businesses.






InRoads Credit Union can be reached at 503-397-2376 for more information on federal loan funds for families and small businesses.




According to US Senators Jeff Merkley and Ron Wyden, the funding comes from the Community Development Financial Institutions Fund (CDFI Fund) of the United States Department of Treasury under the FY22 program of the Small Dollar Loan (SDL) program.

“Whether it’s a mortgage, a car loan, or a line of credit to start a business, access to credit is crucial to the financial well-being of Oregonians,” Merkley said. “This funding provided to credit unions in St. Helens and Portland will help provide crucial services and support to Oregonians and provide an important alternative to expensive payday loans. I will continue to work hard to ensure that all Americans have access to vital financial services and resources. »

“The essential and manageable financial option that credit unions provide in Oregon communities takes on even greater importance when families and small businesses walk an economic tightrope,” Wyden said. “I am pleased that these credit unions have won this federal investment that helps them generate opportunity in their communities so Oregonians do not turn to exploitative financial services, and I will continue to fight for credit unions across our state are getting similar resources. ”

Through the SDL Program, the CDFI Fund offers loan loss reserve (LLR) premiums to enable CDFIs to establish a loan loss reserve fund to cover the costs of establishing or maintaining a loan loss reserve. a small loan program; and technical assistance (TA) grants to support technology, staffing, and other eligible activities to enable a CDFI to establish and maintain a small loan program.

The laureats :

  • $150,403 to InRoads Credit Union in St. Helens
  • $156,759 to Ironworkers USA Federal Credit Union in Portland
  • $213,497 at Point West Credit Union in Portland

Rising Costs Complicate the Future of California’s On-Site Rooftop Solar Battery

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Energy regulators in California are about to release a new proposal for offsetting rooftop solar power.
Source: moodboard/Image source via Getty Images

California’s bold ambition to completely decarbonize what is effectively the world’s fifth-largest economy by mid-century has become a defining mission for the state.

But concerns are spreading over how to keep California’s clean energy transition on track amid soaring electricity rates, as evidenced by the heated debate over reforming California’s rooftop solar program. decades-old condition known as net energy metering. This is part of a larger discussion about the future of distributed power in the semi-deregulated market.

“Our position is that California … has done a lot of good and led the way in a whole bunch of areas and is a world leader, but we’re really at a crossroads right now,” Matt Baker, director of California Public Advocates Office of the Utilities Commission, said at a recent solar industry convention in Anaheim, California. “And unfortunately … [the policy] don’t help us now. We have passed it.”

California regulators are expected to release a revised net metering proposal soon after shelving a heavily criticized version in February that would have cut payments for solar exports to the grid, imposed hundreds of dollars in new annual fees on customers and scrapped a previous grandfather agreement. (R20-08-020)

The Public Advocates Office of the California Public Utilities Commission, or CPUC, along with utilities and some environmentalists, supported the proposal. Many environmental groups and most solar companies called it draconian. An independent economist who previously represented utilities in net metering battles across the United States called the proposal “extremely sweeping” in an interview with S&P Global Commodity Insights.

As state regulators seek to strike a better balance between costs and benefits, some are calling for more moderate adjustments.

In a September letter to CPUC Chairwoman Alice Reynolds, 16 California congressmen warned against using expanded tax incentives for small-scale solar and battery power in the Cutback Act. of inflation as a “perverse justification for imposing discriminatory charges on these assets”. Instead, they demanded “reasonable reforms”.

Solar and storage companies are poised to adapt, adjusting their business models and focusing on growing opportunities outside of California.

“If they make it anti-consumer here in California, we’ll move our operations elsewhere,” Sunnova Energy International Inc. President and CEO John Berger said in an interview. The executive believes reform will ‘always end up on the side of public services’ but said Governor Gavin Newsom, who faces re-election in November, risks a ‘huge negative repercussion’ if the decision goes too far .

SNL picture

“Crisis Point”

For Baker, whom Newsom named the state’s top taxpayer advocate in February, the need to move forward with aggressive reform comes down to affordability and fairness.

“We are in a period of relatively extreme price inflation: over the past 10 years, prices, according to the utilities, have increased by 50%.[%] nearly 80%,” the state’s top taxpayer advocate said during a panel discussion at the RE+ symposium and trade show. “We are beyond using tariffs as a means to advance many of these policies. We just can’t take it anymore.”

The Public Advocates Office calculates that net metering is responsible for about 15% of the average residential rate for customers of the three major utilities owned by state investors who do not have on-site solar panels, of which 25% for San Diego Gas & Electric Co. customers, Baker said.

Sempra’s utility subsidiary, Pacific Gas and Electric Co., an operating subsidiary of PG&E Corp. and Edison International’s Southern California Edison Co., booked the annualized “change in costs” at $4 billion in June, according to a regulatory filing.

Because wealthier households are more likely to have rooftop solar, California’s net-metering system, which currently provides payments for solar energy exports at the full retail rate, makes an “effective electricity tax” in the state “significantly more regressive”, according to a university. of the California-Berkeley paper published September 22.

The report, co-authored by Professor Severin Borenstein, a member of the board of directors of the California network operator ISO, defines the effective electricity tax as the growing gap between retail electricity prices and the cost to the utility of providing additional electricity to customers. . The report considers relying on the state budget rather than taxpayers to offset rooftop solar — an approach Baker also supports.

But net metering is only part of the cost conundrum rocking California’s power system, the report notes.

“There is a fundamental tension between how California pays for electricity and its stated goals of decarbonization while promoting equity and ensuring energy is affordable for all,” the report said. UC Berkeley. Escalating costs, caused by climate change and grid upgrades to support the state’s broader ambition to replace fossil fuel use in buildings and vehicles with electricity, “bring the state at a point of crisis,” he said.

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Business model migration

As net payments for solar power generation are expected to drop significantly in the coming years, solar power and energy storage companies are innovating new uses for their technologies.

Earlier in September, Sunnova applied to the CPUC for permission to operate as a new “micro-utility” operator. solar-powered and battery-powered planned communities. Microgrids would be designed to operate independently of or connected to the primary power grid.

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Sunnova CEO John Berger (second from left) wants to operate microgrids that can disconnect from California utilities.
Source: Sunnova Energy International Inc.

“I’m sick of getting lip service when I want my electric bill lower and my reliability higher. And if you think you’re going to get this out of a monopoly, think again” , Berger said. “That’s why we have the Federal Trade Commission. That’s why we break up monopolies.”

California’s investor-owned utilities face some competition for retail power, including from about 12,000 MW of metered solar in homes and businesses. Additionally, Community Choice Aggregators, or CCAs, owned by the local government, now purchase power for more than 11 million residents, or about a quarter of the state’s population.

But utilities still supply physical power to CCA customers, handle billing and provide other services, and there remain legal hurdles for proposals like Sunnova’s.

“It’s crazy. I can’t cross a power line, no matter how small, across the property line because it’s a monopoly right for [investor-owned utilities]”, Berger said.

“There’s some merit to this model,” Enphase Energy Inc. founder and chief product officer Raghu Belur said of Sunnova’s proposal. The power electronics supplier of solar panels, energy storage systems and electric vehicle chargers considered a similar concept. But Enphase is more focused on working with grid operators to deliver grid services, including through software-controlled clusters of distributed energy assets, sometimes called virtual power plants.

Whatever form net metering reform in California takes, “technology will find a way,” Belur said. “There is value in the investments that have been made over the past 125 years. There is tremendous value in the network effect…but if things go well, owners can choose [to go off-grid].”

Companies such as Sunnova, Enphase, Tesla Inc., Shell PLC subsidiary Sonnen Inc., and Sunrun Inc. are working on various virtual power plant projects to provide grid services that could help displace small-scale solar power in California beyond the net energy measurement. These clusters of software-controlled solar-plus-storage systems showed their capabilities during a recent record-breaking heat wave, when tens of thousands of customers helped keep California’s lights on.

And this economic model is only beginning to emerge.

“We’re not concerned about net metering,” Sunrun vice president of public policy Walker Wright said. The California Solar and Storage Association and the Solar Energy Industries Association have already proposed 20% annual reductions in solar export rates over five years in 2021, Wright noted. “We don’t want to discuss the value of an electron exported at three o’clock in the afternoon on a Tuesday in July. We actually want to keep that electron in the battery and we want to export it as much as possible when it’s valuable to the network.”

Imposition of new discriminatory fees on customers with solar and battery systems could hinder this, however, Wright warned.

“You can’t have a conversation about cost change here and ignore all the good things these customer aggregations can do for taxpayers,” Wright said.

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.

REITs Got Crushed: Examining the Bear Thesis

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DNY59

I have long thought about the impact of rising rates on various parts of the market and in particular on REITs. My conclusion has always been that REITs are no more sensitive to rising rates than the broader market.

On Monday, 9/26/22, the ten-year Treasury yield rose to around 3.9%, sending REITs down around 3% intraday. The other major indexes were only down about 1% at the same time in the middle of the trading day.

The market says I’m wrong.

I don’t listen to market price to draw conclusions about fundamentals. I firmly believe that fundamentals determine market price and not the other way around. However, when the market delivers such a unanimous verdict that contradicts the fundamentals, it’s worth taking the time to re-measure and see if I was wrong. In this effort, I will examine the prevailing theories on why REITs might go for a chin in a rising interest rate environment.

I made an honest attempt to look at each theory with an open mind. We’ll cover each theory in detail and show how we arrived at our conclusions.

Theory #1: REITs are heavily leveraged, which will become more expensive as rates rise

Theory #2: REIT debt will get more expensive, driving down earnings

Theory #3: REITs are owned by those seeking income and therefore losing some of that customer base as other fixed income assets become more viable

Each of these theories is discussed among finance professionals and frequently discussed in the financial media. I personally witnessed all 3 chats on CNBC, which is widely regarded as a respectable source of financial news. Thus, I will give due respect to the potential merits of these arguments, including those with which I disagree.

Theory #1: REITs Have High Leverage – Invalid Due to Factual Error

REITs have debt, but the term high debt would indicate that their leverage is high relative to something else, which would presumably be the broader market.

This is factually incorrect.

There are 11 GICS sectors. 5 of them have higher debt to equity than real estate, and the other 5 have less debt to equity than real estate.

Graphical user interface Description automatically generated

S&P Global Market Intelligence

REITs are roughly in the middle of the pack in terms of absolute levels of leverage.

Looking at debt charges versus earnings, REITs are also at a fairly normal level. Data from Yardeni shows that S&P’s interest expense was about 22% of net income in 2017. It was significantly higher in previous years when interest rates were higher.

Chart, line chart Description automatically generated

Yardeni

I couldn’t find the same stat for the REIT index, but looking at individual REITs, it’s roughly consistent.

Largest REIT, American Tower (AMT) recorded $277 million in interest expense in 2Q22 and $1.649 billion in FFO (earnings), equating to approximately 16.8% interest expense as a percentage of earnings . AMT’s debt to equity ratio is 28%, which is slightly lower than the REIT average, so one would expect the average REIT debt burden to be slightly higher than AMT’s. .

WP Carey (WPC) has an average level of leverage and in 2Q22 had interest expense of 18.2% as a share of FFO.

Small cap REITs are probably going to be a bit higher, just like the Russell 2000 would be a bit higher.

Given the similar magnitude of debt and debt-related expenses, this should not cause REITs to underperform in a rising rate environment.

What about the nature of the debt?

Theory #2: Rising Debt Costs Will Hurt REITs – Disagree, as Offset by Higher Revenues

Sometimes I feel like the market sees debt as the sword of Damocles, ready to crash at any moment or, in this case, raise interest charges.

The problem with debt is that it is incurred to buy assets or generate business. Looking at debt in isolation, rising rates are of course a bad thing because debt is getting expensive, but the most realistic attribute to look at is the comparison between income streams and expense streams.

So yes, REIT debt will become more expensive, but the assets associated with that debt will also generate more income. You see, the higher the interest rates, the harder it is for potential tenants to buy a property. Now that mortgage rates are in the 6%+ range, homes are less affordable, keeping more people in the rental market. So apartments can charge more rent.

The same is true in other sectors. Tenants don’t want to buy their own malls, data centers, towers, etc., so they lease. Rental rates are positively correlated with interest rates and in this case the correlation is causal in nature.

As higher rental income offsets higher interest charges, the question becomes one of duration in a bond sense. For those unfamiliar, duration is essentially a measure of how far into the future a bond’s weighted average remaining cash flow will be.

Extrapolating this to the company level, a company with an asset duration longer than the liability duration will be penalized by rising rates, while a company with an asset duration shorter than the duration of liabilities will generally be helped by rising rates.

In this regard, REITs and the S&P have done a good job of ending their debt and locking it in at fixed rates.

As of August 2022, the weighted average term to maturity of REIT debt was 87 months and nearly 90% of REIT debt is fixed rate.

This gives quite a large window for the income side of the equation to come into play. Real estate itself is a very long-term asset, with well-maintained buildings lasting centuries in some cases and at least 40 years. for just about every type of real estate. domain. This long asset life is often confused with REITs having long-lived assets.

The term of a REIT’s income is not the life of the asset, but rather the current term of the lease. Over the next 7 years, before REIT debt has a chance to increase, REITs will be able to reset the majority of their earnings at the now significantly higher market rate.

REITs are a low duration asset with longer duration debt. This is good for a rising rate environment in terms of bottom line.

Theory #3: Capital Flows Will Hurt REITs – Largely True and Probably the Reason REITs Have Fallen So Much

There are significant differences between the REIT and S&P investor bases.

For starters, 80% of S&P is held by institutions, while REITs are closer to 60%.

Note that in both cases, institutional ownership counts ETFs even if the ultimate owners of those ETFs are at least partially retail investors. So the number for both is significantly lower, but even after adjusting REITs still have significantly more retail investors.

Retail investors are the most educated they have ever been in the market, but they still don’t quite have the level of knowledge and experience that institutional investors have. As such, they are more likely to buy or sell for non-fundamental reasons. This could potentially explain why REITs have more volatility both upside and downside, despite REITs’ underlying cash flows being slightly more stable than the S&P.

Another big difference in the investor base is that a large portion of REIT investors are income investors. Given that REITs have a significantly higher dividend yield at 3.77% compared to the S&P at 1.69%, this makes sense as an income vehicle.

However, it also means that REITs compete more directly with bonds for the portion of investors who primarily seek investment income. So, as bonds become more attractive due to rising rates, this could lead to capital flows from REITs into bonds.

I suspect it already is.

Investors of course have a variety of risk tolerance levels. When interest rates were close to zero, even some of the most risk averse were likely forced out of their comfort zones as Treasuries provided negative real returns. Many likely ended up in REITs as a substitute for higher-yielding bonds, given the predictable nature of cash flows.

In 2022, as rates soared, this trend likely reversed. On 9/22/22, approximately $60 million exited the Vanguard Real Estate ETF (VNQ)

Chart, waterfall chart Description automatically generated

ETF.com

Data for 9/26/22 is not yet available, but I suspect it’s even worse.

I have summarized the 3 main theories as to why REITs are suffering in this environment in a chart.

The theory

Right wrong

Reasoning

REITs are highly leveraged

Fake

REIT debt levels are in line with the broader market

Rising rates will hurt REIT earnings

Fake

Interest charges will be offset by higher rental income, which comes into effect sooner than debts decrease their fixed rates

Capital flows out of REITs due to bond-like composition

True

This makes rational sense, and there is preliminary data showing ETF REIT outflows.

how i play it

Fully acknowledging that fund flows could drive another downside, I think it’s worth emphasizing that fund flows are not a fundamental factor.

In other words, the market may continue to sell REITs if rates continue to rise, but rising rates don’t actually hurt the earning power of REITs. As such, fundamental strength could cause REITs to rebound strongly from the artificially depressed level. I’m not smart enough to time the bottom, so I won’t try.

Prices are well below fundamentals and the outlook for rental rates remains solid, so I remain fully invested in REITs.

Amazon is launching a second Prime Day sale in October – here are 4 things you need to know

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Amazon is doubling down on its annual Prime Day by adding a second Prime members-only sale to its calendar called the Prime Early Access Sale. This is the first time we’ve seen two Prime sales in the same year and this just-announced event is coming very soon – in October, to be exact.

The early fall timeline puts this round of deals ahead of the year-end holiday sales that kick off in earnest as Black Friday approaches. Because supply chains and shipping times have struggled in recent years, locking down your gift list before the holiday rush might not be the worst idea.

With all that in mind, here are four things to know about the upcoming Amazon Prime Early Access sale.

Subscribe to our daily newsletter

When is Amazon’s second Prime Day sale?

Amazon will hold its second Prime Day sale of the year on October 11-12, starting at 12:00 p.m. PDT on the 11th.

Who can buy Amazon’s Prime Day fall deals?

As with the original summer Prime Day, this fall release of Amazon’s Prime Day discounts will only be available to those with an Amazon Prime membership. The normal price for a one-year Prime subscription is normally $139 per year, but there are other options if you don’t want to pay that big sum.

First, you can get a 30-day free Prime trial if you haven’t been a Prime customer in the past 12 months.

If you want Prime during shopping season, you can get three months at a discounted price of $7.49 per month instead of the normal price of $14.99 per month. Prime monthly membership discounts are also available for students and those on certain types of government assistance.

This specific October Prime Day sale will only be available in Austria, Canada, China, France, Germany, Italy, Luxembourg, Netherlands, Poland, Portugal, Spain, Sweden , Turkey, United Kingdom and United States.

Related: How to get 10% back on your Amazon purchases

What will be on sale on Amazon’s 2nd Prime Day?

Only time will tell which of Amazon’s seemingly endless items are on sale, but we expect a variety of items in many popular categories.

Specifically, Amazon has shared that there will be deals from Peloton and New Balance, as well as the lowest prices of the year from brands such as Philips Sonicare. The e-commerce juggernaut also said there would be “hundreds of thousands of deals” in categories including electronics, fashion, Amazon devices, home and more.

Amazon plans to release a list of the top 100 most popular selling products on October 11, which could help focus on the most popular deals.

TPG will scour the list for the best Prime Day fall sales that might help travelers — just like we did for Prime Day summer. (We’re looking at you, Apple AirTags.)

How to Get the Best Deals on Amazon’s 2nd Prime Day

Once you’ve found the item(s) you want, here are some tips for getting the best Amazon Prime Day deals possible.

At the end of the line

We’re excited to see how Amazon is running a fall release of Prime Day that could help consumers jump on holiday shopping at discounted prices. Stay tuned as the sale kicks off October 11 for more coverage.

Gold stabilizes near 2.5-year low on interest rate fears

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Gold prices edged higher from a 2.5-year low on Monday as the dollar retreated slightly from its two-decade high, offering some support for bullion amid jitters over rising interest rates. American interest.

Spot gold rose 0.1% to $1,645.00 an ounce at 1400 GMT, after falling to its lowest price since April 2020 at $1,626.41.

US gold futures fell 0.2% to $1,652.90.

“Gold isn’t the only game in town when it comes to security. The money is also going into US Treasuries,” said Bob Haberkorn, senior market strategist at RJO Futures.

The outlook for gold hinges on the Federal Reserve, Haberkorn said, adding that “it’s kind of a storm you have to face right now if you’re an investor in gold.”

Rising interest rates in the United States dampen the appeal of zero-yield bullion, while strengthening the dollar and bond yields.

Gold has lost more than $400, or more than 20%, since breaking above the key $2,000 an ounce level in March as major central banks raised interest rates.

However, while the prospect of further rate hikes dampens sentiment towards gold in the present, some analysts say bullion remains supported by recession risks and geopolitical tensions.

“We have a strong dollar and rising US Treasury yields, which would generally drive gold down. However, generally speaking, gold isn’t doing too badly in the scheme of things,” he said. said Ross Norman, an independent analyst.

Offering some support to gold, the dollar index retreated after again hitting its highest level since 2002.

In the physical market, China’s net gold imports via Hong Kong jumped nearly 40% to a more than four-year high in August, data showed on Monday.

Elsewhere, spot silver rose 0.5% to $18.94 an ounce, after hitting its lowest price in more than two weeks earlier in the session.

Platinum jumped 1.1% to $863.09 and palladium added 0.2% to $2,070.30.

(Reporting by Arundhati Sarkar and Brijesh Patel in Bengaluru; Editing by Paul Simao)

Post Courier PNGDL pays 500,000K dividend

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PNG Directories Limited made its first-ever dividend payment of K500,000 to Telikom Limited last week.

Managing Director Jessie Pendene said the company’s improved profitability was due to cost-cutting initiatives and eliminating financial leaks while maintaining a stable revenue position.

Mr Pendene said the main cost savings have been in management fees and rental payments.

“The value of the net dividend paid to Telikom Limited was K500,000 and this is the first ever time that PNG Directories Limited (PNGDL) has paid a dividend to Telikom Limited,” he said.

“Telikom Limited became a 100% shareholder of PNGDL after its partner O’Briens Limited of Australia sold its shares towards the end of 2020.

“The company’s financial performance was deteriorating over the years and O’Briens sold his stake to Telikom Limited at a price of just one kina (per share).”

He said PNGDL is confident of remaining profitable in the future as it is now focusing its efforts on diversifying its revenue sources and will not be entirely dependent on its printing business.

“In addition to its plans to have online directories, it has also ventured into online platforms as well as payment platforms with commercial banks,” CEO Pendene said.

PNG Directories Limited is Papua New Guinea’s leading publisher of directory classified products (PNG Yellow Pages).

Why it pays to use a personal loan to pay off credit card debt

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Image source: Getty Images

It’s a matter of making your debt more affordable.


Key points

  • Credit cards are known to charge a lot of interest.
  • Personal loan interest rates can be much more affordable, especially if you have good credit.

Many people end up in credit card debt for one reason or another. For some, it’s about meeting emergency expenses. For others, it’s about losing track of spending.

Regardless of why you incurred credit card debt, your goal should be the same: to get rid of that debt as quickly as possible to minimize the amount of interest you accrue on it. But one tactic you might want to use to pay off your credit cards is to take out a personal loan and use the proceeds from that loan to wipe out your balance. Here’s why it’s a smart move to make, even if it means swapping one type of debt for another.

A personal loan could cost you less

A personal loan lets you borrow money for any reason, just like you can use a credit card to charge for a host of expenses, from groceries to car repairs to medical bills. For example, you can use proceeds from a personal loan to pay off a credit card balance.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

But one of the advantages of a personal loan over credit cards is that these loans tend to charge much less interest. And it could make your debt much cheaper to pay off.

Say you owe money on a credit card at 18% interest. You may qualify for a personal loan at 8% interest. And the lower your interest rate, the less money you spend.

Also, if you have a very high credit rating, you might be able to get a very affordable rate on a personal loan. Additionally, personal loans come with fixed interest rates, while credit cards tend to come with variable interest rates. This means the rate you lock in when you sign your personal loan is guaranteed to stay the same until your debt is paid off.

With a credit card, variable interest could cause you to pay more and more interest as your debt is carried over. The result? A harder time paying off your debt and more wasted money.

How to qualify for a personal loan

Personal loans are unsecured, meaning they are not tied to any specific asset that you have put up as collateral. As such, you will generally need decent credit to qualify for a personal loan.

Now there are personal lenders working with low credit applicants. But if this is the situation you find yourself in, you will need to see what interest rates are available to you. With bad credit, the borrowing rate you get on a personal loan may not be much better than what you pay on your credit cards. In some cases, it might even be less favorable.

That said, if you’re able to get a personal loan rate comparable to what your credit cards are currently charging, it might be beneficial to lock in that loan, because that way your interest rate will be at least fixed. . With a credit card, you run the risk of your interest rate going up.

All told, paying off your credit cards with a personal loan could be a smart bet. It pays to shop around and see what personal loan rates you qualify for.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

Andrew Barnes: 14 years after the GFC, have we learned anything?

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In The Big Short, Christian Bale portrayed investor and doctor Michael Burry, one of the first to discover the US housing market bubble. Paramount Photo/Pictures

OPINION:

One of my favorite films is The Big Short, which chronicles the events leading up to the global financial crisis of 2008.

The film shows how the big financial institutions played with the system and took

Calculation of the fair value of Fresnillo plc (LON:FRES)

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Today we are going to walk through one way to estimate the intrinsic value of Fresnillo plc (LON:FRES) by taking expected future cash flows and discounting them to the present value. One way to do this is to use the discounted cash flow (DCF) model. Believe it or not, it’s not too hard to follow, as you’ll see in our example!

We draw your attention to the fact that there are many ways to value a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are passionate about stock analysis, the Simply Wall St analysis template here may interest you.

See our latest analysis for Fresnillo

The method

We will use a two-stage DCF model which, as the name suggests, takes into account two stages of growth. The first stage is usually a period of higher growth which stabilizes towards the terminal value, captured in the second period of “sustained growth”. To start, we need to estimate the cash flows for the next ten years. Wherever possible, we use analysts’ estimates, but where these are not available, we extrapolate the previous free cash flow (FCF) from the latest estimate or reported value. We assume that companies with decreasing free cash flow will slow their rate of contraction and companies with increasing free cash flow will see their growth rate slow during this period. We do this to reflect the fact that growth tends to slow more in early years than in later years.

Generally, we assume that a dollar today is worth more than a dollar in the future, and so the sum of these future cash flows is then discounted to today’s value:

Estimated free cash flow (FCF) over 10 years

2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Leveraged FCF ($, millions) $406.4 million $429.3 million $445.7 million $458.8 million $469.6 million $478.6 million $486.4 million $493.2 million $499.5 million $505.3 million
Growth rate estimate Source Analyst x6 Analyst x4 Is at 3.81% Is 2.95% Is at 2.34% Is at 1.92% Is at 1.62% Is at 1.41% Is at 1.27% Is at 1.17%
Present value (in millions of dollars) discounted at 7.7% $377 $370 $357 $341 $324 $307 $290 $273 $257 $241

(“East” = FCF growth rate estimated by Simply Wall St)
10-year discounted cash flow (PVCF) = $3.1 billion

After calculating the present value of future cash flows over the initial 10-year period, we need to calculate the terminal value, which takes into account all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate the terminal value at a future annual growth rate equal to the 5-year average 10-year government bond yield of 0.9%. We discount terminal cash flows to present value at a cost of equity of 7.7%.

Terminal value (TV)= FCF2032 × (1 + g) ÷ (r – g) = US$505 million × (1 + 0.9%) ÷ (7.7%–0.9%) = US$7.6 billion

Present value of terminal value (PVTV)= TV / (1 + r)ten= $7.6 billion ÷ (1 + 7.7%)ten= $3.6 billion

The total value is the sum of the cash flows for the next ten years plus the present terminal value, which gives the total equity value, which in this case is $6.7 billion. In the last step, we divide the equity value by the number of shares outstanding. Compared to the current share price of £6.9 in the UK, the company appears to be about fair value at a 17% discount to the current share price. Remember though that this is only a rough estimate, and like any complex formula – trash in, trash out.

LSE: discounted cash flow from FRES 24 September 2022

Important assumptions

We emphasize that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you disagree with these results, try the math yourself and play around with the assumptions. The DCF also does not take into account the possible cyclicality of an industry, nor the future capital needs of a company, so it does not give a complete picture of a company’s potential performance. Since we consider Fresnillo as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which factors in debt. In this calculation, we used 7.7%, which is based on a leveraged beta of 1.160. Beta is a measure of a stock’s volatility relative to the market as a whole. We derive our beta from the average industry beta of broadly comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable company.

Look forward:

Although a business valuation is important, it is only one of many factors you need to assess for a business. The DCF model is not a perfect stock valuation tool. Rather, it should be seen as a guide to “what assumptions must be true for this stock to be under/overvalued?” For example, changes in the company’s cost of equity or the risk-free rate can have a significant impact on the valuation. For Fresnillo, we’ve compiled three essentials you should dig deeper into:

  1. Risks: Take risks, for example – Fresnillo has 2 warning signs we think you should know.
  2. Future earnings: How does FRES’ growth rate compare to its peers and the market in general? Dive deeper into the analyst consensus figure for the coming years by interacting with our free analyst growth forecast chart.
  3. Other high-quality alternatives: Do you like a good all-rounder? Explore our interactive list of high-quality actions to get an idea of ​​what you might be missing!

PS. The Simply Wall St app performs an updated cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks, search here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Valuation is complex, but we help make it simple.

Find out if Fresnillo is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

Global stocks and oil prices fall on concerns over interest rates and the possibility of a recession

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Stocks fell around the world on Friday on growing signs of a weakening global economy as central banks ramp up the pressure even further with further interest rate hikes.

The Dow Jones Industrial Average fell 1.6%, closing at its lowest level since the end of 2020. The S&P 500 fell 1.7%, close to its 2022 low set in mid-June, while the Nasdaq slipped 1.8%.

The sell-off capped another tough week on Wall Street, leaving the major indexes with their fifth weekly loss in six weeks.

Energy prices closed sharply lower as traders worried about a possible recession. Treasury yields, which affect rates on mortgages and other types of loans, have held at multi-year highs.

European stocks fell just as sharply or more after preliminary data suggested business activity suffered its worst monthly contraction since the start of 2021. A new plan announced in London to cut taxes added to the pressure , which pushed UK yields higher as it could eventually force its central bank to raise rates even more sharply.

The Federal Reserve and other central banks around the world aggressively raised interest rates this week in hopes of curbing high inflation, with further big increases promised for the future. But such measures are also dampening their economies, threatening recessions as growth slows around the world. In addition to Friday’s discouraging data on European business activity, a separate report suggests that US activity is also continuing to contract, although not as badly as in previous months.

“Financial markets are now fully absorbing the stern message from the Fed that there will be no backing down in the fight against inflation,” Douglas Porter, chief economist at BMO Capital Markets, wrote in a research report. .

U.S. crude oil prices fell 5.7% to their lowest levels since the start of this year on fears that a weaker global economy will consume less fuel. Cryptocurrency prices have also fallen sharply as higher interest rates tend to hit investments that seem the most expensive or riskiest the hardest.

Even gold has fallen in the global rout, as bonds offering higher yields make interest-free investments less attractive. Meanwhile, the US dollar has appreciated strongly against other currencies. This can hurt the profits of American companies with extensive overseas operations, as well as put financial strain on much of the developing world.

The S&P 500 fell 64.76 points to 3,693.23, its fourth consecutive decline. The Dow Jones, which at one point was down more than 800 points, lost 486.27 points to close at 29,590.41. The Nasdaq fell 198.88 points to 10,867.93.

Smaller company stocks fared even worse. The Russell 2000 fell 42.72 points, or 2.5%, to close at 1,679.59.

More than 85% of S&P 500 stocks closed in the red, with technology companies, retailers and banks among the largest weightings in the benchmark.

The Federal Reserve on Wednesday raised its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%. It was almost nil at the start of the year. The Fed also released a forecast suggesting that its benchmark rate could be 4.4% by the end of the year, one point higher than expected in June.

Treasury yields have hit multi-year highs as interest rates rise. The 2-year Treasury yield, which tends to track Federal Reserve action expectations, rose to 4.20% from 4.12% late Thursday. It is trading at its highest level since 2007. The 10-year Treasury yield, which influences mortgage rates, slipped to 3.69% from 3.71%.

Goldman Sachs strategists say a majority of their clients now see a “hard landing” that drags the economy down sharply as inevitable. For them, the question is only about the timing, depth and duration of a potential recession.

Higher interest rates are hurting all types of investments, but equities could hold steady as long as corporate earnings rise sharply. The problem is that many analysts are starting to lower their forecasts for future earnings due to higher rates and worries about a possible recession.

“Increasingly, the psychology of the market has shifted from worries about inflation to worries that, at a minimum, corporate earnings will decline as economic growth slows demand,” said Quincy Krosby, global strategist. head for LPL Financial.

In the United States, the job market remained remarkably strong, and many analysts believe the economy grew in the summer quarter after shrinking in the first six months of the year. But the encouraging signs also suggest that the Fed may need to raise rates further to get the cooling needed to bring inflation down.

Some key sectors of the economy are already weakening. Mortgage rates hit 14-year highs, causing existing home sales to plummet 20% in the past year. But other areas that do better when rates are low are also suffering.

In Europe, meanwhile, the already fragile economy is dealing with the effects of war on its eastern front following Russia’s invasion of Ukraine. The European Central Bank is raising its key rate to fight inflation even as the region’s economy is already set to plunge into recession. And in Asia, the Chinese economy is grappling with still-strict measures meant to limit COVID infections that are also hurting businesses.

While Friday’s economic reports were disheartening, few on Wall Street saw them as enough to convince the Fed and other central banks to ease their stance on raising rates. So they only heightened fears that rates will continue to rise in the face of already slowing economies.

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Economics writer Christopher Rugaber and business writers Joe McDonald and Matt Ott contributed to this report.

Demand for chips increases as cars become the ultimate mobile payment device

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The connected economy has taken to the road, transforming what happens and transforming all kinds of vehicles into mobile commerce terminals.

At the center of it all is the technology that underpins this transformation – as well as the partnerships between FIs, suppliers and OEMs in an effort to disrupt everything from payment at the pump to parking.

U.S. chipmaker Qualcomm said on Thursday its automotive business “pipeline” had reached $30 billion, up more than $10 billion since announcing its third-quarter results in late July, as reported by Reuters. A robust chip pipeline, it should be noted, indicates that the demand is there for automakers to build – as quickly as possible – the vehicles of the future.

For Qualcomm, the demand relates in part to the company’s Snapdragon Digital Chassis product which is, in turn, used in the production supply chain – by OEMs and suppliers – to improve vehicle connectivity. This connectivity enables everything from infotainment provided to passengers while they are in the vehicles to autonomous driving and automatic parking.

Partnerships between chipmakers and automakers abound. In Qualcomm’s case, it’s extending its existing partnership with Mercedes Benz, where the latter will use the Snapdragon Cockpit for its in-car infotainment system from next year.

The partnerships also extend beyond equipment and technology suppliers. The path to forging the connected economy on wheels involves all kinds of stakeholders.

JPMorgan has reached an agreement with German automaker Volkswagen to buy nearly 75% of its financial services unit, highlighting the appeal (and, we would say, the necessity) of in-vehicle payment technology.

Also Read: JPMorgan Acquires 75% of Volkswagen Payments Unit

Cars become devices

JPMorgan CEO of Merchant Services Max Neukirchen told Karen Webster that the car “became a device”, connecting us to a range of activities, including payments. And we’re moving beyond the fragmentation of apps that have separate functions – to pay tolls, pay parking meters, etc.

As is the case with the deal with VW, he told Webster the advanced technology would cement OEMs’ direct connection to their end users, but without having to do the heavy lifting of technology to enable payments and transactions. commercial aspects by themselves.

Read more: Beyond paying for gas and tolls, JP Morgan’s Max Neukirchen envisions a ‘delicious’ connected economy on wheels

Disruptions are also evident with other partnerships, which are using technology to turn vehicles into point-of-sale (POS) terminals. In July, Sunoco announced that it would link with fleet payment solutions platform Car IQ, which will enable secure fuel payments without a physical credit card. The initiative is deployed at nearly 5,000 Sunoco locations across the United States. In terms of mechanics, drivers using Car IQ Pay at Sunoco stations simply enter the pump number, fill up with fuel and drive away.

As the connected economy evolves, open innovation – and open collaboration – will secure and accelerate the future of mobility, said Kevin Mull, director of mobility solutions at Bosch in a recent conversation with PYMNTS CEO Karen Webster. In this context, the boundaries between equipment manufacturers and suppliers are blurring.

We are not so far from a future where the parking experience itself is automated, connected and completely contactless. Imagine the seamlessness when a driver arrives at a parking lot, parks in a designated drop zone, exits the vehicle, and presses “park” on a smartphone app. The self-driving car starts and finds its own parking spot while the consumer drives away. (Uber, in this case, could apparently be heading for some disintermediation, especially when it comes to getting to the airport.)

Read also: Large fleets, open innovation and payments will determine the future of mobility

As Webster herself noted in a recent column, there is cross-pollination in the work that will drive us to (literally) pilot these mobile endpoints – and connect commerce in the meantime. There is a positive ripple effect that has a deep reach. PYMNTS data showed that a 10% increase in the use of digital tools in transportation and mobility use cases drives activity in other use cases such as streaming and gaming and even ordering groceries.

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

We are always looking for partnership opportunities with innovators and disruptors.

Learn more

https://www.pymnts.com/digital-payments/2022/payments-platform-facepay-debuts-guaranteed-text-to-pay-for-auto-repair-shops/partial/

Rapid Fed rate hikes ‘significantly increase’ recession risk, top money manager says

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The Federal Reserve has tackled its battle against inflation in 2022, with Chairman Jerome Powell saying price stability is now “unconditional” even if the path to get there is not “painless” for Americans .

The central bank raised interest rate five times this year, marking the fastest pace of rate increases since the 1980s.

It’s a hawkish turn that came after a series of criticisms from Wall Street and top economists, who repeatedly argued that Fed officials were wrong to claim inflation was “transitional” in 2021.

Economists like former Treasury Secretary Larry Summers and the president of Queens’ College at the University of Cambridge, Mohamed El-Erian, believe the Fed burst an asset bubble and exacerbated inflation when it extended supportive policies designed to ensure a strong long-term economic recovery. after pandemic restrictions ended last year.

Now, however, a new chorus of critics is beginning to emerge from Wall Street. The one that warns, not against the risk of excessive inflation and an overly accommodating monetary policy, but rather against the risk of recession in a context of excessive tightening of financial conditions.

“We continue to believe the Fed is making yet another policy error,” said Jay Hatfield, CEO of Infrastructure Capital Management. Fortunearguing that central bank interest rate hikes are now too aggressive.

Hatfield said the Fed is “lagging the curve” – ​​raising rates even as inflation slows – because it focuses on lagging indicators like the jobless rate, inflation expectations and inflation. consumer price index (CPI).

He argues that central bank officials should instead use “leading indicators” like money supply, exchange rates and energy prices, noting that Fed policies have already led to “a collapse” in commodity prices since June, soaring mortgage rates and a major drop in the stock market.

On top of that, the Fed has already cut money supply by 15% this year as it continues to shrink its balance sheet, which has ballooned to nearly $9 trillion during the pandemic, Hatfield said. It’s the fastest decline in the US money supply since the Great Depression.

The Fed has used a policy called quantitative easing – which involves buying mortgage-backed securities and government bonds to increase the money supply, thereby boosting lending and investment – to help stimulate the economy. after the pandemic. But now it has reversed the script, opting to shrink its balance sheet and reduce the money supply through quantitative tightening in its fight against inflation.

“The impacts of the 15% decline in base money are very likely to cause inflation to fall steadily over the next year,” Hatfield said. “Therefore, the current rapid increase in the federal funds rate is unnecessary and significantly increases the risk of a recession in the United States, despite the tailwinds of the end of the pandemic.”

Rick Reider, BlackRock’s chief investment officer at Global Fixed Income, said Fortune that he also thinks the main risk to the economy now is an overly aggressive Fed.

“The risk to the economy today is of the Fed tightening policy too much from here, without allowing the time needed for a very large, broad and flexible economy to adjust to these new levels of interest rate and money flowing through the system,” he said.

However, Reider added that he thinks the Fed could return to a more dovish stance over the next few months that rewards stocks and other risky assets, alluding to what market watchers commonly call a “pivot” of the Fed.

“The Fed should be closer after today to being receptive to signs of inflection points. We think they are and are looking for places to pause and watch their aggressive policy work their way to through the system. There’s a good chance they’ll see these signs in the next few months,” he said.

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