Posts Tagged loan
Big Banks Easing Terms on Loans Deemed as Risks
Posted by Oksana Grebenjuk in Banks, Favourites on Июль 6th, 2011
As millions of Americans struggle in foreclosure with little hope of relief, big banks are going to borrowers who are not even in default and cutting their debt or easing the mortgage terms, sometimes with no questions asked.
Two of the nation’s biggest lenders, JPMorgan Chase and Bank of America, are quietly modifying loans for tens of thousands of borrowers who have not asked for help but whom the banks deem to be at special risk.
Rula Giosmas is one of the beneficiaries. Last year she received a letter from Chase saying it was cutting in half the amount she owed on her condominium.
Ms. Giosmas, who lives in Miami, was not in default on her $300,000 loan. She did not understand why she would receive this gift — although she wasted no time in taking it.
Banks are proactively overhauling loans for borrowers like Ms. Giosmas who have so-called pay option adjustable rate mortgages, which were popular in the wild late stages of the housing boom but which banks now view as potentially troublesome.
Before Chase shaved $150,000 off her mortgage, Ms. Giosmas owed much more on her place than it was worth. It was a fate she shared with a quarter of all homeowners with mortgages across the nation. Being underwater, as it is called, can prevent these owners from moving and taking new jobs, and places the households at greater risk of foreclosure. Read the rest of this entry »
Falling Home Prices Hit Big Banks, Fannie, Freddie
Posted by Oksana Grebenjuk in Trading Markets on Июнь 1st, 2011
Home prices began double-dipping months ago, but now that S&P/Case Shiller has chimed in, it really must be so. This report is the most widely-followed home price index, equally quoted in bank boardrooms, Treasury Department back rooms, and Congressional Committees.
The report finds home prices in Q1 of this year are now 2.9 percent below the previous quarterly bottom in Q1 of 2009, effectively giving up all the gains of the past few years, which were of course fueled by the home buyer tax credit.
«Just about everybody agrees we’re going to miss the seasonally strong period in 2011, which we should be at the very beginning of right now with May, but nobody thinks that will make any difference,» says S&P’s David Blitzer. «Everybody’s now keeping their fingers crossed for 2012 and wondering whether people just don’t want to own homes anymore.»
Keeping your fingers crossed for the housing market is just the tip of the iceberg. Prices have now fallen, on this index, more than they did during the Great Depression. «On that occasion, the peak in prices was not regained until 19 years after they first fell,» notes Paul Dales at Capital Economics. Read the rest of this entry »
Don’t Bank on It
Posted by Oksana Grebenjuk in Banks on Январь 26th, 2011
Disappointing earnings, shrinking revenues and optimism that somehow the economy is improving despite an ongoing housing hangover — this is what America’s biggest banks offered as they released year-end financial results last week.
«Last year was a necessary repair and rebuilding year,» Bank of America CEO Brian Moynihan said Friday. Yes, we know. The shards of our broken economy remain scattered on the ground and we’re gluing them back together. What else could Mr. Moynihan say as he announced a 2010 loss of $2.2 billion?
«We enter 2011…against a backdrop of an improving economy,» he said. But then he qualified: «Full economic recovery depends on housing-market stability.»
And until we can return to housing-market stability, banks can borrow for next to nothing and lend at rates once charged only by Mafia loan sharks.
Banks enjoy guarantees not to fail unless the U.S. government goes down with them. They remain more or less free from regulations that might significantly curb their reckless risk-taking. And they continue to pay their executives better than rock stars or baseball players. Read the rest of this entry »
Our Picks For Inflation Protection
Posted by Oksana Grebenjuk in Business, Favourites on Декабрь 15th, 2010
If there’s a small silver lining amid the current economic malaise, it’s that inflation has been pretty muted.
But investors ignore inflation at their own peril. Even if massive amounts of government stimulus don’t prompt inflation, there’s still the possibility of price spikes here in the United States as a result of still-red-hot economic growth in emerging markets. Widespread rising prices, in turn, could amount to erosion in the purchasing power of any assets you’ve managed to save or invest. By the time you start tapping your portfolio to meet your income needs, those dollars could be worth a lot more than they are right now.
That’s why it’s so important to ensure that your portfolio is adequately protected against inflation. Some inflation-fighting vehicles have explicit protection against rising prices, such as Treasury Inflation-Protected Securities. Others, such as stocks, protect against inflation indirectly.
Here’s an overview of the key vehicles with inflation-fighting attributes, as well as some of Morningstar’s top picks within those groups.
Inflation-Protected Bonds Read the rest of this entry »
Dealers Digest Central Bank Views And Buy Bonds
Posted by Oksana Grebenjuk in Investing on Сентябрь 1st, 2010
Friday’s initial response to the words from Ben Bernanke is being reversed on Monday. Bond yields jumped sharply as the Fed Chairman said that the FOMC stood ready to perform whatever action necessary to safeguard the economy from failing. Investors immediately looked beyond the action of further quantitative easing and took this as a sign that ultimate economic recovery would be bearish for bonds.
Eurodollar futures – Short-end Eurodollar futures are making gains again on Monday with the rise in deferred maturities almost at a double-digit pace. September treasury note futures have climbed by a half-point this morning to stand at 125-23 to yield 2.59%. The initial response to the speech at Jackson Hole in Wyoming was a fear that meaningful measures to support the U.S. economy would revive growth sufficiently so as to put the era of extremely low interest rates at risk. But as dealers ponder further this morning the renewed buying suggests that they recognize that although the Fed is prepared to act, it can’t go the distance without a confluence of other resources pulling in the same direction at once.
European bond markets — September bunds have recovered from Friday’s slump to 133.25 as weaker longs were knocked out of the market. The contract has climbed once again on Monday to 134.19 where the yield of 2.13 stands seven basis points below that at Friday’s close and compares to last Monday’s record low of 2.09%. The demand for German bunds remained firm despite the headwind of relatively bullish economic data. A European Commission report showed a rise to a two-year peak in confidence in the economic outlook. An unsourced report running in today’s Financial Times says that the ECB will extend its emergency aid to the region’s banking system through 2011. Euribor futures made minor gains on the story. Read the rest of this entry »
4 Investment Ideas That Provide Income
Posted by Oksana Grebenjuk in Investing on Июль 1st, 2010
As of this moment, the S&P/TSX Composite index is down 384.58 point or -3.27% year to date. The S&P 500 is down 67.32 or -6.04% year to date. That is your market update. When the global economic outlook appears uncertain and on the brink of another recession, equity markets reflect this reality in terms of greater than normal volatility. In markets like these, what we should be looking for are non-correlated assets and managers that have demonstrated the expertise to preserve capital during uncertain times like today.
In addition, one should also be focusing their efforts on receiving some form of income while the economic climate sorts itself. The following 4 ideas should hopefully accomplish both those goals. While we cant speak to the best/worst time to buy/sell particular securities, as that depends on one’s personal circumstances, the approach we usually take, especially with closed end funds, is to purchase them when they are trading at the steeper than normal discount to their Net Asset Value (NAV). The only other thing we would like to add is that you should do you own due diligence.
Trident Performance Corp.
This closed end fund is managed by CI Investments. Its investment objective is to provide tax-efficient risk-adjusted long term rates of return by obtaining exposure to a Global Macroeconomic Portfolio, advised by Trident Investment Management. Co-Founded in 1998, by Nandu Narayanan, Trident Investment Management seeks to exploit macroeconomic trends to generate attractive risk-adjusted rates of return with low or negative correlation to traditional ‘long’ investments. This is exactly what Mr. Narayanan did during the financial crisis, when the CI Global Opportunities Fund recorded positive performance of 109% in 2007 and 42.6% in 2008. Since inception in March 1995, the fund has averaged 19.69% as of the end of May 31, 2010. Read the rest of this entry »
What If Your Tax Refund is Wrong?
Posted by Oksana Grebenjuk in Budget, Favourites on Май 12th, 2010
Most of us get refund checks at tax time. And most of the time, those refunds are just what we had been eagerly awaiting. But occasionally, the amount on an IRS check is not what we expected. In some cases, it’s less than we figured on our 1040s. Every now and then, it’s more.
Regardless of whether the refund discrepancy goes against you or favors you, some steps can be taken to resolve the matter. That way, even if you and the tax collector aren’t necessarily satisfied with the eventual amount, you’ll at least understand the mathematical misinterpretation.
Explanation en route
First, don’t panic. There’s usually a logical explanation for why you and the Internal Revenue Service came up with different numbers.
The IRS will send you a written explanation for the unexpected amount. The only problem is that the explanation doesn’t always accompany the check. Such coordination of cash and comment is particularly difficult with directly deposited refunds, which are likely to show up unexplained in your account first.
Why your refund might be an unexpected amount: Read the rest of this entry »
Four Tips for Single, Female Homebuyers
Posted by Oksana Grebenjuk in Investing on Май 11th, 2010
Buying a home today takes a certain confidence — in the market and in your own financial strength. A lot of single, female homebuyers are taking that bold step in high heels, with no one at their side.
Nationally, single women accounted for 21 percent of all home purchases in the year ended this past June, while single men accounted for just 10 percent, according to the National Association of Realtors.
Experts say female homebuyers share characteristics and concerns that set them apart from male buyers. Following are four tips single, female buyers should keep in mind when purchasing a home.
Buy with confidence
A variety of factors — such as a greater likelihood of working at jobs that offer paltry retirement and other benefits — keep single women from achieving their financial goals, says Mariko Chang, a consultant who recently completed a report on the wealth gap for women for the Insight Center for Community Economic Development in Oakland, Calif. Read the rest of this entry »
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