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A local mortgage broker explains interest rates


Mortgage rates have fallen in recent weeks

– I get a lot of calls from people who are confused when they hear this on the news: “The Fed is raising rates.” What does this statement actually mean?

The rate they charge is the federal funds rate. The federal funds rate is the interest rate that major banks charge each other to borrow funds overnight to meet their liquidity needs.

Will Barnabas

Will Barnabas

This has an impact on the cost of credit in the rest of the economy. This pull-through is not necessarily immediate, but the objective is to increase the cost of credit as a whole.

Mortgage rates are directly affected by the returns paid on mortgage-backed securities. These are asset-backed securities, made up of a pool of mortgage loans. When demand for these securities drops, the yield (yield) they pay must increase to attract investors. This return is created by interest, so rates go up.

I wanted to clarify these things because while the Federal Reserve has continued to raise the fed funds rate, mortgage rates have come down over the past few weeks.

The rise in mortgage rates from historic lows has sidelined many buyers. However, the recent high spike was on June 23.

Many recent homebuyers would probably be surprised that rates have come down almost a full percentage point, which makes a huge difference in monthly payments.

I know the recent housing and interest rate inflation has turned a lot of people off. I hear this from people every day. My intention here is to say that things have improved recently.

Sellers are becoming more accommodating, which can give the buyer some flexibility to use strategies that make things more affordable. The extreme competitive environment that left so many discouraged has eased a lot.

Basically, if your dream is to buy a home on the Central Coast, don’t give up. Prepare, plan and strategize. Things are looking up.

Will Barnabas
Central Coast Loans
SNM no. This is 343314

Will the federal student loan pause be extended?


The COVID-era pause on federal student loan payments expires in just three weeks. But with no word from President Joe Biden or the Department of Education on whether the pause will be extended again, borrowers are in a “state of uncertainty” and unable to plan for their financial future.

It seems likely the president will extend the payment pause beyond August 31, given that loan servicers have not been told to prepare for the system to restart after a two-and-a-half-year hiatus. But policy experts and consumer advocates say waiting so long to announce another extension puts undue stress on borrowers.

“The longer the administration takes to announce the extension, the more anxious and uncertain borrowers become,” says Alpha Taylor, an attorney at the National Consumer Law Center, noting that U.S. Secretary of Education Miguel Cardona said during a Senate hearing that borrowers would be informed “fairly in advance” of the resumption of payments.

The payment pause was put in place by President Donald Trump at the start of the coronavirus pandemic, and was extended by Trump and Biden. So far, the only time borrowers have had less notice of the extended break was during the passage between the Trump and Biden administrations.

“Borrowers want to know their fate, and they shouldn’t have to wait so long for the department to do the right thing,” Taylor says. “They shouldn’t have to guess their budget.”

Taylor adds that there are still a number of logistics the department needs to understand and details that need to be shared with borrowers before repayments resume. This includes Operation Fresh Start, which will allow millions of borrowers whose loans were previously in default to repay in good standing. Given that we are already in mid-August, it seems unlikely that this can be accomplished before September 1, he says.

Loan servicers also need enough time to restart billing and payment collection.

“It’s not just that borrowers need time, the department itself needs time to get this system running smoothly after being down for two years,” Taylor says.

As borrowers wait for a decision, Taylor advises them to make sure their personal information is up to date with their loan manager. And since millions of borrowers have had their loans transferred to new repairers during the payment breakthey also need to log into their loan accounts and verify who they will be making payments to in the future.

The Ministry of Education did not respond Fortune‘s question about student loan payment pause status for this article.

Cancellation decision to come “before August 31”

Taylor hopes that when an announcement is made on the future of the payment pause, Biden will also address another timely student loan issue: whether his administration will forgive any debt.

Biden has said during his presidential campaign that he favors $10,000 in student loan forgiveness for federal borrowers. Since taking office, however, he has repeatedly postponed making a decision on debt cancellation.

The answer may come soon. Earlier this week, White House press secretary Karine Jean-Pierre said “no decision has yet been made on this” the president would make an announcement before the end of the month.

“We will just continue to evaluate our cancellation options,” she said. told reporters. But “the president has made it clear that he will have something before August 31”.

Taylor says after months of delays, it can’t happen soon enough.

“President Biden made this promise after his election that he was going to cancel student debt,” Taylor says. “We shouldn’t have to chase him to keep him on his promise.”

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The Fed’s damage to the housing market can last for years

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With interest rates now hovering around 5%, existing home sales are down more than 14% from a year ago. Some potential buyers sit on the sidelines until rates or prices or both drop, while sellers hope the market recovers for a higher price.

But don’t count on rates falling to these pandemic lows. They were the result of extraordinary market manipulation by the Fed. And unless this becomes a regular feature of monetary policy, rates will not go back to where they were.

The real estate market has soared. House prices, as measured by the Case-Schiller index, increased by 30% between March 2020 and December 2021, a stronger increase than the period before the end of the housing bubble in 2008. This is partly explained by the fact that many people moved during the pandemic, but also because the 30-year mortgage rate was only 2.65% in the spring of 2021.

The impact of Fed interference can be felt for years. In the spring of 2020, the Fed was desperate to avoid economic collapse, so it reverted to its 2008 playbook. It cut rates to zero and brought back quantitative easing, buying long-term government bonds and mortgage-backed securities (MBS). Most residential mortgages are securitized by Fannie Mae or Freddie Mac, and resold in what is called an MBS agency.

In 2020, the mortgage-backed securities market was in trouble, and the Fed was even more aggressive than it was in 2008. It effectively became the only ultimate buyer of these securities: its MBS holdings of agency grew by $1.3 trillion between 2020 and 2022. , while the agency mortgage-backed securities market grew by $1.5 trillion. The Federal Reserve now holds more than 40% of total agency MBS outstanding, or nearly half of the market.

These actions were one of the main reasons that rates fell so low. Your mortgage rate is based on the 10-year bond rate, plus a premium for the additional risk involved. The size of this risk premium is largely determined in the MBS market, depending on the liquidity and interest rate risk that the investor assumes. The chart below shows the Bloomberg US MBS Index minus the 10-year bond yield.

The spread soared at the start of the pandemic, but then, as the Fed continued to buy it, it fell to near zero and the housing market raged. The gap started to widen again in June once the end of QE was in sight, and it widened further when the Fed started to reduce its purchases in the fall of 2021 before stopping in early 2022. is now higher than it was before the pandemic. .

Buying mortgage-backed securities might have made sense in the spring of 2020, but the reason the Fed didn’t start to cut for 18 months, even as the housing market was clearly overheated , has never been explained. Whether quantitative easing actually helps the economy remains a divisive issue among economists. Fed economists insist it helps, while academic economists are more skeptical. But there is evidence that when the Fed buys mortgage-backed securities, it drives down MBS spreads and the mortgage rate.

Even if the Fed has ended QE, its role in fueling the sticky housing market could last for the next decade. The Fed wants to reduce the size of its MBS portfolio. So far, it plans to do this by not reinvesting all securities as mortgages are paid off.

But higher rates mean fewer people will refinance or move, so the mortgage portfolio won’t shrink as fast as the Fed anticipates. There are rumors that the Fed is selling some of its mortgage-backed securities. If so, Charles Schwab expects the MBS spread to increase even further, and chances are your mortgage rates will increase as well.

There will also be a hangover from very low rates in 2020 and 2021. Like many people, I bought a house in the spring of 2021. Now, between rising rates and a slower housing market, I’m not not sure I can ever afford to move. The housing market could be slower and less liquid for a long time.

The MBS market may also be less liquid. Their buyers normally assume that a lot of mortgages won’t last 30 years because people move or refinance. But given that so many people got artificially cheap mortgages before rates rose, their behavior and the duration of mortgage-backed securities will be far less predictable. It will be a riskier asset that commands a larger spread.

The Fed has come under a lot of criticism lately for coming too late to raise rates in response to inflation. But another policy mistake could be that he continued to buy so many mortgage-backed securities later in 2020 and through most of 2021, when the housing market was on fire and rates continued to fall. .

A 2.6% fixed rate on a 30-year risky asset never made much sense. This suggests that something is wrong with the market, either through manipulation or mispricing of risk. The Fed has created major distortions in a market where many Americans hold most of their wealth, and the impact can be felt for decades.

More writers at Bloomberg Opinion:

• Unemployment going in the wrong direction for the Fed: Jonathan Levin

• ‘Jobful Vibecession’ will keep workers on the payroll: Conor Sen

• The Beast of Inflation won’t sit still for long: Allison Schrager

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

Should you ever get a payday loan?


When you’re low on cash between paychecks or have an unexpected financial emergency, a payday loan can be a tempting option to help you make ends meet or access cash quickly. However, these short-term loans, which are usually due on the day of your next payday, are extremely risky. They come with very high interest rates and other charges. The interest rate on payday loans in the United States ranges from 154% to 664%.

Equally troubling, payday loans are often marketed to those who can least afford them, i.e. people who earn less than $40,000 a year. Although this type of loan is marketed as a short-term loan, payday loans can create a cycle of debt that is difficult to break free from.

What is a personal loan?

A payday loan is usually a short-term loan, lasting two to four weeks, that does not require collateral to be obtained. These loans are generally supposed to be repaid in one installment with your next paycheck when you receive Social Security income or a pension payment.

In most cases, payday loans are granted for relatively small amounts, often $500 or less, with the average borrower getting a payday loan of around $375. In some cases, payday loans can be made for larger amounts.

To obtain a payday loan, borrowers are asked to write a personal check for the amount of debt plus finance charges. If the loan is not repaid on time, the lender will deposit the check to recover their funds. Some lenders may request authorization to electronically deduct the funds from your bank account instead of requiring you to provide a personal check.

Payday loans generally do not involve credit checks, and your ability to repay debt while continuing to pay your daily expenses is generally not considered part of the application process.

Who usually takes out a personal loan?

Payday loans are most often sought out by those with ongoing cash flow issues, as opposed to borrowers who find themselves facing a financial emergency. A payday loan study found that 69% of borrowers first used a payday loan to cover recurring expenses such as utility bills, rent, mortgages, student loan payments or credit card bills. Only 16% of borrowers use payday loans for unexpected expenses.

These loans are also widely used by people living in neighborhoods and communities that are underserved by traditional banks or who do not have a bank account with a major financial institution. Payday lenders operate stores in 32 states, although a handful of states recently passed reforms requiring payday lenders to switch from a model in which borrowers must repay the loan in full with their next paycheck. pays to a fairer and less risky installment repayment structure.

What are the risks of personal loans?

Due to the many risks associated with payday loans, they are often viewed as predatory.

For starters, payday loans often come with astronomical interest rates. Those who take out such loans have to pay between $10 and $30 for every $100 borrowed. A typical payday loan with a two-week repayment term and a fee of $15 per $100 equates to an APR of almost 400%.

Many payday lenders also offer rollovers or renewals, which allow you to simply pay the cost of borrowing the money on the loan’s due date and extend the balance owing for a longer period. It can be a slippery slope that has borrowers quickly getting in over their heads with fees and interest piling up. According to recent data from Pew Charitable Trusts, the average borrower finds themselves in debt for five months to fully pay off what was supposed to be a one-time payday loan. In the process, borrowers pay hundreds of dollars more in fees than originally advertised for the loan.

Are payday loans really worth it?

With their high interest rates and fees, a payday loan is rarely a good idea. The fees alone cost Americans $4 billion a year. Because the costs associated with these loans are so high, borrowers often struggle to repay them and take on more debt, so it’s a good idea to carefully consider your options before taking out a payday loan.

However, if you are in dire need or need cash quickly and are confident you can repay the loan with your next paycheck, a payday loan may be a good idea. These loans may also be worth considering if you have no other financial options or if you have no credit and would not qualify for a traditional loan.

Alternatives to payday loans

Before taking on the significant financial risks associated with a payday loan, consider other alternatives that may be less expensive. Some of the options to consider include:

  • Borrowing money from family or friends: Payday loans should be a last resort. If you have family or friends willing to help you, it may be better to borrow money from your relatives than from a predatory lender.
  • Home Equity Loan: Tapping into the equity in your home will give you a much more competitive interest rate than a payday loan. Home equity loans are a popular way to access cash to consolidate debt or pay for other large or unexpected expenses. However, to access the equity in your home, you will need to meet certain requirements, including having a good credit rating, a stable income, and a debt-to-equity ratio of 43% or less.
  • Payday advance : Some employers may offer the possibility of taking a salary advance. This implies that the employer grants you a short-term loan which you will repay on your future salaries. Typically, the employer sets guidelines for how and when the money is to be repaid.
  • Personal loan: For those with good credit, a personal loan can be a safer and more cost-effective borrowing option. Plus, if you need money fast, some online lenders can provide personal loan funds in as little as a day or two.
  • Sell ​​unwanted items: There are various online platforms that allow you to turn all kinds of unwanted items into cash quickly. Some of the better known options include eBay, Facebook Marketplace, Craigslist and OfferUp. If it’s unwanted or used clothes that you want to convert into cash, there are also online resale platforms that specialize in this niche, including ThredUp, Poshmark, and TheRealReal. Many of these marketplaces deposit proceeds from sales directly into your bank account, while others, like OfferUp, allow you to sell locally and receive money directly from buyers.
  • Lateral stampede: Thanks to the proliferation of apps and websites like Thumbtack, TaskRabbit, Rover, Uber, and Lyft, it’s possible to do a few odd jobs in your spare time to quickly build up a side stream of income. TaskRabbit, for example, allows tasks to do everything from assembling furniture for extra cash to home delivery, gardening, and mounting TVs. Rover is a pet sitting and walking network where animal lovers can offer services.

At the end of the line

With high interest rates and tight repayment terms, payday loans are rarely the best choice when you need cash. Often, these types of loans trap borrowers in an inescapable cycle of debt.

Before resorting to a personal loan, consider the many alternatives. Borrowing money from family or friends, opening a home loan, or taking out a personal loan are far less risky options. And if you’re not in a rush for the money, there are even more options, including selling items you no longer want or taking on a side job to earn the extra cash you need.

Note 2. Going concern and management plans

The Company had a net loss of $12.4 million during the six months ended June 30,
2022 and has an accumulated deficit of $225.8 million at June 30, 2022 resulting
from having incurred losses since its inception. The Company had $24.1 million
of cash and cash equivalents on hand at June 30, 2022 and used $11.0 million of
cash in its operating activities during the six months ended June 30, 2022. The
Company has financed its operations principally through issuances of equity
securities. In March 2022, the Company completed a public offering of 40,000,000
shares of its common stock and, for certain investors, in lieu of common stock,
pre-funded warrants to purchase 20,000,000 shares of common stock at an exercise
price of $0.01 per share, and raised $13.8 million in net proceeds after
deducting the underwriting discount and other estimated offering costs. Each
share of common stock or pre-funded warrant was sold together with one
immediately exercisable common warrant to purchase one share of common stock.

The accompanying condensed consolidated financial statements have been prepared
under the assumption the Company will continue to operate as a going concern,
which contemplates the realization of assets and the settlement of liabilities
in the normal course of business. The condensed consolidated financial
statements do not include any adjustments to reflect the possible future effects
on the recoverability and classification of assets or the amounts of liabilities
that may result from uncertainty related to the Company's ability to continue as
a going concern.

The Company expects to continue incurring losses for the foreseeable future and
will be required to raise additional capital to complete its clinical trials,
pursue product development initiatives, obtain regulatory approval and penetrate
markets for the sale of its products. Management believes that the Company will
continue to have access to capital resources through possible public or private
equity offerings, debt financings, corporate collaborations or other means, but
the Company's access to such capital resources is uncertain and is not assured.
If the Company is unable to secure additional capital, it may be required to
curtail its clinical trials and development of new products and take additional
measures to reduce expenses in order to conserve its cash in amounts sufficient
to sustain operations and meet its obligations. These measures could cause
significant delays in the Company's efforts to complete its clinical trials and
commercialize its products, which are critical to the realization of its
business plan and the future operations of the Company.

Management believes that the Company does not have sufficient capital resources
to sustain operations through at least the next twelve months from the date of
this filing. Additionally, in view of the Company's expectation to incur
significant losses for the foreseeable future it will be required to raise
additional capital resources in order to fund its operations, although the
availability of, and the Company's access to such resources is not assured.
Accordingly, management believes that there is substantial doubt regarding the
Company's ability to continue operating as a going concern through at least the
next twelve months from the date of this filing.


Note 3. Basis of presentation and summary of main accounting methods

Significant Accounting Policies

There were no significant changes in the main accounting policies during the six months ended June 30, 2022 to the significant accounting policies described in Note 3 of the “Notes to Consolidated Financial Statements” in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2021.

presentation basis

The accompanying unaudited condensed consolidated financial statements of the
Company have been prepared on a going concern basis in accordance with
accounting principles generally accepted in the United States of America (GAAP)
for interim financial reporting and as required by
Regulation S-X, Rule 10-01. Accordingly, they do not include all of the
information and footnotes required by GAAP for complete financial statements. In
the opinion of management, all adjustments (including those which are normal and
recurring) considered necessary for a fair presentation of the interim financial
information have been included. When preparing financial statements in
conformity with GAAP, the Company must make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues, expenses and
related disclosures at the date of the financial statements. Actual results
could differ from those estimates. Additionally, operating results for the three
and six months ended June 30, 2022, are not necessarily indicative of the
results that may be expected for any other interim period or for the fiscal year
ending December 31, 2022. For further information, refer to the financial
statements and footnotes included in the Company's annual financial statements
for the fiscal year ended December 31, 2021, which are included in the Company's
annual report on Form 10-K filed with the SEC on March 31, 2022.

Use of estimates

The preparation of condensed consolidated financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent assets and
liabilities, and reported amounts of expenses in the financial statements and
accompanying notes. Actual results could differ from those estimates. Key
estimates included in the financial statements include the valuation of deferred
income tax assets, the valuation of financial instruments, stock-based
compensation, accrued costs for services rendered in connection with third-party
contractor clinical trial activities, and the valuation of contingent
liabilities for the purchase price of assets obtained through acquisition.

Recent accounting standards

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standards bodies that are adopted by the Company on the effective date specified.

During the three and six months ended June 30, 2022, there have been no recently
adopted accounting standards and no new, or existing recently issued, accounting
pronouncements that are of significance, or potential significance, that impact
the Company's condensed consolidated interim financial statements.

Note 4. Fair value of financial instruments

The carrying value of the Company’s cash, cash equivalents and accounts payable approximates fair value due to the short-term nature of these items.

Fair value is defined as the exchange price that would be received for an asset
or an exit price paid to transfer a liability in the principal or most
advantageous market for the asset or liability in an orderly transaction between
market participants on the measurement date. Valuation techniques used to
measure fair value must maximize the use of observable inputs and minimize the
use of unobservable inputs.

The fair value hierarchy defines a three-level measurement hierarchy for disclosing fair value measurements as follows:

• Level I: unadjusted quoted prices in active markets for identical assets

or passive;

• Tier II – Inputs other than quoted prices included in Tier I that are

observable and unadjusted quoted prices in markets that are not active, or

other inputs that are observable or that can be supported by observable data

       market data for substantially the full term of the related assets or
       liabilities; and

• Level III – Unobservable inputs supported by little or no market

activity for the corresponding assets or liabilities.

The categorization of a financial instrument in the valuation hierarchy is based on the lowest level of entry that is significant for the measurement of fair value.


The following table sets forth the Company's financial instruments that were
measured at fair value on a recurring basis by level within the fair value
hierarchy (in thousands).

                                                          Fair Value Measurements at June 30, 2022
                                               Total             Level 1            Level 2             Level 3


2018 PIPE warrant liability                $           2       $          -       $          -       $           2
Essentialis purchase price contingency
liability                                          9,305                  -                  -               9,305
Total common stock warrant and
  consideration liability                  $       9,307       $          -       $          -       $       9,307

                                                        Fair Value

Measures to December 31, 2021

                                               Total             Level 1            Level 2             Level 3


2018 PIPE warrant liability                $          31       $          -       $          -       $          31
Essentialis purchase price contingency
liability                                          9,547                  -                  -               9,547
Total common stock warrant and
  consideration liability                  $       9,578       $          -       $          -       $       9,578

The Company's estimated fair value of the 2018 PIPE Warrants was calculated
using a Black-Scholes pricing model. The Black-Scholes pricing model requires
the input of highly subjective assumptions including the expected stock price
volatility, the expected term, the expected dividend yield and the risk-free
interest rate.

Based on the terms of the Company's completed merger with Essentialis on March
7, 2017, the Company was obligated to make cash earnout payments of up to a
maximum of $30.0 million to the former Essentialis stockholders. On December 28,
2021, in connection with the dissolution of two of the former Essentialis
stockholders, the two former stockholders entered into an agreement with the
Company which assigned the right, title and interest to all their future earnout
payments to the Company. As a result of the assignment, as of December 31, 2021,
and going forward, the maximum cash earnout payments are $21.2 million. The fair
value of the Essentialis purchase price contingent liability is estimated using
scenario-based methods based upon the Company's analysis of the likelihood of
obtaining specified approvals from the U.S. Food and Drug Administration (FDA)
as well as the likelihood and anticipated timing of reaching cumulative
revenue milestones. The Level 3 estimates are based, in part, on subjective
assumptions. In determining the likelihood of obtaining FDA approval, the
analysis relied on published research relating to clinical development success
rates. Based on management's assessment, a 72% probability of achieving each
milestone was determined to be reasonable as of each of June 30, 2022 and
December 31, 2021. During the periods presented, the Company has not changed the
manner in which it values its Essentialis purchase price contingent liability.

The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period. There were no transfers between levels within the hierarchy during the periods presented.

The following table sets forth a summary of the changes in the fair value of the
Company's Level 3 liabilities for the six months ended June 30, 2022 and 2021
(dollars in thousands).

                                                 2018 PIPE Warrants             Purchase Price
                                            Number of                             Contingent
                                             Warrants          Liability           Liability
Balance at January 1, 2022                       513,617     $           31     $         9,547
Change in value of 2018 PIPE Warrants                  -                (29 )                 -
Change in value of contingent liability                -                  -                (242 )
Balance at June 30, 2022                         513,617     $            2     $         9,305

                                                 2018 PIPE Warrants             Purchase Price
                                            Number of                             Contingent
                                             Warrants          Liability           Liability
Balance at January 1, 2021                       513,617     $          539     $        10,278
Change in value of 2018 PIPE Warrants                  -               (257 )                 -
Change in value of contingent liability                -                  -               2,047
Balance at June 30, 2021                         513,617     $          282     $        12,325


Note 5. Liabilities related to warrants

The Company has issued multiple warrant series, of which the 2018 PIPE Warrants
were determined to be liabilities pursuant to the guidance established by ASC
815 Derivatives and Hedging.

Warrants issued in connection with the units as part of the PIPE 2018 placement

The 2018 PIPE Warrants were issued on December 19, 2018 in the 2018 PIPE
Offering, pursuant to a Warrant Agreement with each of the investors in the 2018
PIPE Offering, and entitle the holders to purchase 513,617 shares of the
Company's common stock at an exercise price equal to $2.00 per share, subject to
adjustment as discussed below, at any time commencing upon issuance of the 2018
PIPE Warrants and terminating on December 21, 2023.

The exercise price and number of shares of common stock issuable upon exercise
of the 2018 PIPE Warrants may be adjusted in certain circumstances, including
the event of a stock split, stock dividend, extraordinary dividend, or
recapitalization, reorganization, merger or consolidation. However, the exercise
price of the 2018 PIPE Warrants will not be reduced below $2.00.

In the event of a change of control of the Company, the holders of unexercised
warrants may present their unexercised warrants to the Company, or its
successor, to be purchased by the Company, or its successor, in an amount equal
to the per share value determined by the Black Scholes methodology.

Since the Company may be obligated to settle the 2018 PIPE Warrants in cash, the
Company classified the 2018 PIPE Warrants as long-term liabilities at their fair
value and will re-measure the warrants at each balance sheet date until they are
exercised or expire. Any change in the fair value is recognized as other income
(expense) in the Company's condensed consolidated statements of operations and
comprehensive loss.

As of June 30, 2022, the fair value of the 2018 PIPE Warrants was estimated at
approximately $2,000. The approximate $2,000 and $56,000 million decrease in the
fair value of the liability for the 2018 PIPE Warrants during the three months
ended June 30, 2022 and 2021, respectively, was recorded as other income in the
condensed consolidated statements of operations and comprehensive loss.

The Company has calculated the fair value of the PIPE 2018 warrants using a Black-Scholes valuation model. The following text summarizes certain key assumptions used to estimate fair value.

                            June 30,       December 31,
                              2022             2021
Volatility                         95 %               95 %
Contractual term (years)          1.5                2.0
Expected dividend yield             - %                - %
Risk-free rate                   2.90 %             0.72 %

The Black-Scholes valuation model requires the use of highly subjective assumptions to estimate the fair value of stock-based awards. These assumptions include the following estimates.

• Volatility: The Company calculates the estimated volatility rate based on its

historical volatility over the expected life of the Warrants.

• Contractual term: The expected life of the warrants, which is based on the

contractual term of the warrants.

• Expected dividend yield: the Company has never declared or paid any money

dividends and does not currently intend to pay cash dividends

a foreseeable future. Therefore, the Company used an expected dividend

yield of zero.

• Risk-free rate: The risk-free interest rate is based on the WE Treasury

       rate for similar periods as the expected life of the warrants.

Note 6. Commitments and contingencies

Facility leases

The Company's operating lease for its headquarters facility office space in
Redwood City, California, terminated in May 2021. In April 2021, the Company
executed a non-cancellable operating lease agreement for the same 6,368 square
feet of space, which began in June 2021 and expires in May 2023. The lease that
expired in May 2021 also provided the Company with the right to use office
furniture in the space and allowed the purchase of this furniture at the end of
the lease term for $1, which it did. The Company has accounted for both leases
of office space as operating leases. The office furniture included in the lease
that expired in May 2021 was accounted for as a finance lease based on its
relative standalone price as compared to the office space.


The current lease was recognized at inception with a right-of-use asset equal to
$0.6 million and a liability for $0.5 million. The short-term liability was
equal to $0.3 million as of both June 30, 2022 and December 31, 2021, and the
long-term liability was equal to $0 and $0.2 million, as of June 30, 2022 and
December 31, 2021, respectively. The weighted average discount rate was 9% over
a remaining term of 11 months. The discount rate was determined based on
estimates of the Company's incremental borrowing rate, as the discount rate
implicit in the lease cannot be readily determined.

The following is a table by year of the future maturities of the Company’s operating lease obligations at June 30, 2022 (in thousands):

2022 (remainder of the year) $   175
2023                             179
Total lease payments             354
Less interest                    (17 )
Total                        $   337

Components of rental charges for the quarters and half-years closed June 30, 2022 and 2021 were as follows (in thousands):

                                       Three Months Ended          Six Months Ended
                                            June 30,                   June 30,
                                      2022             2021        2022          2021
Operating lease cost:
Operating lease cost                $      81         $   78     $    162       $  154
Variable lease cost                         -              3            -            6
Short-term lease cost                       7              5           12           12
Total operating lease cost          $      88         $   86     $    174       $  172

Finance lease cost:
Amortization of right-of-use assets $       -         $    2     $      -       $    4
Interest on lease liabilities               -              -            -            -
Total finance lease cost            $       -         $    2     $      -       $    4


In the normal course of business, the Company enters into contracts and
agreements that contain a variety of representations and warranties and provide
for general indemnifications. The Company's exposure under these agreements is
unknown because it involves claims that may be made against the Company in the
future but have not yet been made. The Company accrues a liability for such
matters when it is probable that future expenditures will be made, and such
expenditures can be reasonably estimated.

Note 7. Equity

Guaranteed public offer

On March 31, 2022, the Company sold 40,000,000 shares of its common stock at a
public offering price of $0.25, and for certain investors, in lieu of common
stock, pre-funded warrants (the 2022 pre-funded warrants) to
purchase 20,000,000 shares of its common stock at a public offering price of
$0.24 per pre-funded warrant, which represents the per share public offering
price for the common stock less the $0.01 per share exercise price for each 2022
pre-funded warrant. The 2022 pre-funded warrants are immediately exercisable and
may be exercised at any time until all of the 2022 pre-funded warrants are
exercised in full. Each share of common stock or 2022 pre-funded warrant was
sold together with one, immediately exercisable, common warrant (the 2022 common
warrants) with a five-year term to purchase one share of common stock at an
exercise price of $0.30 per share. The net proceeds of the offering were
$13.8 million, after deducting the underwriting discount and other estimated
offering expenses. The Company is not required


under any circumstance to settle any of the 2022 pre-funded warrants or the 2022
common warrants for cash, and therefore classified both types of warrants as
permanent equity.

At the Market Offering

In July 2021, the Company entered into a Controlled Equity Offering Sales
Agreement under which the Company may sell shares of its common stock having an
aggregate offering price of up to $25.0 million from time to time in any method
permitted by law deemed to be an "at the market" Rule 415 under the Securities
Act of 1933, as amended. As of June 30, 2022, we have not sold any securities
pursuant to the at the market program.

Other Common Stock Warrants

As of June 30, 2022, the Company had 102,070 common stock warrants outstanding
from the 2010/2012 convertible notes, with an exercise price of $24.35 and a
term of 10 years expiring in November 2024. The Company also had 16,500 common
stock warrants issued to the underwriter in the Company's IPO, with an exercise
price of $35.70 and a term of 10 years, expiring in November 2024.

Equity incentive plans

2014 plan

The Company maintains the 2014 Equity Incentive Plan (the 2014 Plan). Under the
2014 Plan the Company may grant stock options, stock appreciation rights,
restricted stock, restricted stock units, performance units or performance
shares to employees, directors, advisors, and consultants. Options granted under
the 2014 Plan may be incentive stock options (ISOs) or nonqualified stock
options (NSOs). ISOs may be granted only to Company employees, including
officers and directors.

The Board has the authority to determine to whom stock options will be granted,
the number of options, the term, and the exercise price. Options are to be
granted at an exercise price not less than fair value. For individuals holding
more than 10% of the voting rights of all classes of stock, the exercise price
of an option will not be less than 110% of fair value. The vesting period for
service-based stock options is normally monthly over a period of 4 years from
the vesting date. Performance-based grants have vesting contingent upon the
achievement of certain performance criteria related to the Company's
commercialization of its therapeutics. The contractual term of an option is no
longer than five years for ISOs for which the grantee owns greater than 10% of
the voting power of all classes of stock and no longer than ten years for all
other options. The terms and conditions governing restricted stock units is at
the sole discretion of the Board. As of June 30, 2022, a total of 2,593,295
shares are available for future grant under the 2014 Plan.

Incentive scheme

The Company maintains the 2020 Inducement Equity Incentive Plan (the Inducement
Plan). The Inducement Plan provides for the grant of equity-based awards,
including non-statutory stock options, restricted stock units, restricted stock,
stock appreciation rights, performance shares and performance units, and its
terms are substantially similar to the 2014 Plan.

In accordance with Rule 5635(c)(4) and Rule 5635(c)(3) of the Nasdaq Listing
Rules, awards under the Inducement Plan may only be made to individuals not
previously employees or non-employee directors of the Company (or following such
individuals' bona fide period of non-employment with the Company), as an
inducement material to the individuals' entry into employment with the Company,
or, to the extent permitted by Rule 5635(c)(3) of the Nasdaq Listing Rules, in
connection with a merger or acquisition. As of June 30, 2022, a total of
1,285,000 shares are available for future grant under the Inducement Plan.

Stock-based compensation expense

The Company recognizes stock-based compensation expense related to options and
restricted stock units granted to employees, directors and consultants. The
compensation expense is allocated on a departmental basis, based on the
classification of the award holder. No income tax benefits have been recognized
in the condensed consolidated statements of operations and comprehensive loss
for stock-based compensation arrangements during any of the periods presented

Stock-based compensation expense has been recorded in the condensed consolidated statements of earnings and comprehensive income as follows (in thousands).

                                      Three Months Ended June 30,            Six Months Ended June 30,
                                      2022                  2021              2022               2021
Research and development          $         151         $         223     $        311       $        412
General and administrative                  420                   634              904              1,540
Total                             $         571         $         857     $      1,215       $      1,952

Stock Options The Company granted options to purchase 266,125 and 219,310 shares
of the Company's common stock during the three months ended June 30, 2022 and
2021, respectively, and granted options to purchase 1,893,875 and 3,387,810 of
the Company's common stock during the six months ended June 30, 2022 and 2021,
respectively. Of the total options granted during the three and six months ended
June 30, 2021, 708,750 were performance-based options. The fair value of each
award granted was estimated on the date of grant using the Black-Scholes option
pricing model with the following assumptions.

                                Three Months Ended June 30,                Six Months Ended June 30,
                                  2022                  2021                2022                    2021
Expected life (years)          5.5-6.0               5.5-6.0            5.5-6.0                 5.5-6.0
Risk-free interest rate         3.0%                0.9%-1.0%          1.7%-3.0%               0.6%-1.0%
Volatility                     90%-93%              91%-102%            88%-93%                91%-108%
Dividend rate                    - %                   - %                - %                     - %

The Black-Scholes option-pricing model requires the use of highly subjective
assumptions to estimate the fair value of stock-based awards. These assumptions
include the following estimates:

• Expected life: The expected life of stock options represents the period of

when the options should be outstanding. Due to the lack of

the exercise history, the expected life of the

service-based stock options were determined using the “simplified method

       method", based on the average of the contractual term of the options and
       the weighted-average vesting period. The expected life for the
       performance-based options was determined based on consideration of the
       contractual term of the stock options, an estimate of the date the

performance criteria would be met and expectations for employee behavior.

• Risk-free interest rate: the risk-free interest rate is based on the returns

of WE Treasury securities with maturities similar to the expected life

stock options.

• Volatility: The estimated volatility rate is based on the volatilities of the

ordinary shares of the Company for a historical period equal to the expected value

life of stock options.

• Dividend rate: the Company has never declared or paid cash dividends

       and does not presently plan to pay cash dividends in the foreseeable
       future. Consequently, the Company used an expected dividend yield of zero.

The following table summarizes stock option transactions for the six months ended June 30, 2022 issued under the 2014 Plan and the Incentive Plan:

                                                             Weighted-         Average
                                                              Average         Remaining         Aggregate
                                            Number of        Exercise        Contractual        Intrinsic
                                             Options         Price per          Term              Value
                                           Outstanding         Share         (in years)        thousands)
Balance at January 1, 2022                    6,125,549     $      3.09              7.94
Options granted                               1,893,875     $      0.32
Options exercised                                     -
Options canceled/forfeited                      (61,000 )   $      1.24
Balance at June 30, 2022                      7,958,424     $      2.44              7.94     $           -
Options vested at June 30, 2022               3,586,074     $      3.60              6.74     $           -
Options vested and expected to vest at
June 30, 2022                                 7,614,049     $      2.45              7.93     $           -

The weighted-average grant date fair value of options granted was $0.23 and
$1.73 per share for the six months ended June 30, 2022 and 2021, respectively.
At June 30, 2022 total unrecognized employee stock-based compensation related to
stock options that are likely to vest was $4.0 million, which is expected to be
recognized over the weighted-average remaining vesting period of 2.7 years.


Restricted stock units

There were zero and 21,810 restricted stock units granted by the Company during
the three months ended June 30, 2022 and 2021, respectively, and 134,507 and
61,273 restricted stock units granted during the six months ended June 30, 2022
and 2021, respectively, to employees and directors. The restricted stock units
granted to directors were 100% vested on the grant date and represent
compensation for past board services. The restricted stock units granted to
employees typically vest annually over a period of four years. The restricted
stock units were valued based on the Company's common stock price on the grant

The following table summarizes restricted stock unit transactions for the six months ended June 30, 2022 as issued under the 2014 Plan:

                                                               Number of           Average
                                                               Restricted      Grant-Date Fair
                                                              Stock Units      Value per Share
Outstanding at January 1, 2022                                     435,750     $           3.85
Restricted stock units granted                                     134,507                 0.36
Restricted stock units vested                                     (279,757 )               0.37
Restricted stock units canceled/forfeited                           (4,500 )               3.85
Outstanding at June 30, 2022                                       286,000     $           3.85

The weighted-average grant-date fair value of all restricted stock units granted
during the six months ended June 30, 2022 and 2021 was $0.36 and $1.96,
respectively. The fair value of all restricted stock units vested during the six
months ended June 30, 2022 and 2021 was $0.1 million and approximately $0.6
million, respectively. At June 30, 2022, total unrecognized employee stock-based
compensation related to restricted stock units was $0.9 million, which is
expected to be recognized over the weighted-average remaining vesting period of
1.6 years.

2014 Employee Stock Purchase Plan

The Company's board of directors and stockholders have adopted the 2014 Employee
Stock Purchase Plan (ESPP). The ESPP has become effective, and the board of
directors will implement commencement of offers thereunder in its discretion. A
total of 27,967 shares of the Company's common stock has been made available for
sale under the ESPP. In addition, the ESPP provides for annual increases in the
number of shares available for issuance under the plan on the first day of each
year beginning in the year following the initial date that the board of
directors authorizes commencement, equal to the least of:

• 1.0% of the outstanding common shares of the Company on the first

       day of such year;

  • 55,936 shares; or

  • such amount as determined by the board of directors.

From June 30, 2022no purchases were made by employees under this plan.

Note 8. Net loss per share

Basic net loss per share is computed by dividing net loss by the
weighted-average number of common stock actually outstanding during the period.
Diluted net loss per share is computed by dividing net loss by the
weighted-average number of common stock outstanding and dilutive potential
common stock that would be issued upon the exercise or vesting of common stock
awards and exercise of common stock warrants. The Company applies the two-class
method to calculate basic and diluted net loss per share as its warrants issued
in March 2022 are participating securities. However, the two-class method does
not impact the net loss per share of common stock as the warrants issued in
March 2022 do not participate in losses. For the three and six months ended June
30, 2022 and 2021, the effect of issuing potential common stock is anti-dilutive
due to the net losses in those periods and therefore the number of shares used
to compute basic and diluted net loss per share are the same in each of those


The following potentially dilutive securities outstanding have been excluded
from the computations of diluted weighted-average shares outstanding for the
periods presented because such securities have an antidilutive impact due to
losses reported (in common stock equivalent shares).
                                                                 As of June 




Warrants issued on the 2010/2012 convertible bond

  holders to purchase common stock                             102,070      


Options to purchase common stock                             7,958,424      


Outstanding restricted stock units                             286,000      


Warrants issued to the underwriter to purchase common shares 16,500

2018 PIPE warrants                                             513,617          513,617
2022 common warrants                                        60,000,000                -
2022 pre-funded warrants                                    20,000,000                -
Total                                                       88,876,611        7,293,486

Note 9. Subsequent Events

The Company has evaluated its subsequent events from June 30, 2022 through the
date these condensed consolidated financial statements were issued and has
determined that there are no subsequent events requiring disclosure in these
condensed consolidated financial statements.


Item 2. Discussion and analysis by management of the financial situation and results


The interim consolidated financial statements included in this Quarterly Report
on Form 10-Q and this Management's Discussion and Analysis of Financial
Condition and Results of Operations should be read in conjunction with the
financial statements and notes thereto for the year ended December 31, 2021, and
the related Management's Discussion and Analysis of Financial Condition and
Results of Operations, contained in the Company's Form 10-K for the year ended
December 31, 2021. In addition to historical information, this discussion and
analysis contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended (the Securities Act), and Section 21E
of the Securities Exchange Act of 1934, as amended (the Exchange Act). These
forward-looking statements are subject to risks and uncertainties, including
those set forth in Part II - Other Information, Item 1A. Risk Factors below and
elsewhere in this report that could cause actual results to differ materially
from historical results or anticipated results.


We are focused on the development and commercialization of novel therapeutics
for the treatment of rare diseases. Our lead candidate is Diazoxide Choline
Extended Release tablets (DCCR), a once-daily oral tablet for the treatment
of Prader-Willi Syndrome (PWS). DCCR has orphan designation for the treatment of
PWS in the United States (U.S.) as well as in the European Union (E.U.). DCCR
has been evaluated in a Phase 3 study (C601 or DESTINY PWS), a 3-month
randomized, double-blind placebo-controlled study, which completed enrollment in
January 2020, with 127 patients at 29 sites in the U.S. and U.K. Patients who
complete treatment in DESTINY PWS are eligible to receive DCCR in C602, an
open-label extension study. Top line results from DESTINY PWS were announced in
June 2020. Although the trial did not meet its primary endpoint of change from
baseline in hyperphagia, significant improvements were observed in two of three
key secondary endpoints.

In February 2021, we announced analysis limited to data collected before the
onset of the COVID-19 pandemic. The analysis of the data through March 1, 2020
showed statistical significance in the primary, all key secondary and several
other efficacy endpoints. In September 2021, we announced top line results from
C602 showing statistically significant reduction in hyperphagia and all other
PWS behavioral parameters and statistically significant improvements compared to
natural history of PWS from the PATH for PWS Study (PfPWS) over a one year
treatment period. The PfPWS study is an ongoing study sponsored by the
Foundation for Prader-Willi Research (FPWR) to advance the understanding of the
natural history in individuals with PWS. We submitted the data in the fourth
quarter 2021, and in January 2022 we announced we had received official meeting
minutes from a Type C meeting with the U.S. Food and Drug Administration (FDA).
The purpose of the meeting was to discuss the adequacy of the submitted data and
possible ways to generate additional controlled clinical data.

Earlier this year, we submitted a proposal to add a randomized withdrawal period
to Study C602 in order to obtain additional controlled data requested by the FDA
to support a New Drug Application (NDA) submission for DCCR. This randomized
withdrawal phase would consist only of participants currently enrolled in Study
C602 and not include any new patients. Subsequent to this submission, the FDA
acknowledged that data from the proposed randomized withdrawal phase of Study
C602 would have the potential to address its concerns regarding the adequacy of
the overall efficacy data supportive of an NDA.

The spread of the COVID-19 virus and the outbreak of war between Russia and
Ukraine caused supply chain problems, inflationary pressures and significant volatility in financial markets. However, we have not experienced any significant financial impact directly related to the COVID-19 pandemic or
Russia invasion of Ukraine.

As of June 30, 2022, we had an accumulated deficit of $225.8 million,
primarily as a result of research and development and general and administrative
expenses. We may never be successful in commercializing our novel
therapeutic-lead candidate DCCR. Accordingly, we expect to incur
significant losses from operations for the foreseeable future, and there can be
no assurance that we will ever generate significant revenue or profits. As
of June 30, 2022, we had cash and cash equivalents of $24.1 million. In March
2022, we completed a public offering of 40,000,000 shares of our common stock
and, for certain investors, in lieu of common stock, pre-funded warrants to
purchase 20,000,000 shares of our common stock at an exercise price of $0.01 per
share, and raised $13.8 million in net proceeds after deducting the underwriting
discount and other estimated offering expenses. Each share of common stock or
pre-funded warrant was sold together with one immediately exercisable common
warrant to purchase one share of common stock.

Critical Accounting Policies and Significant Judgments and Estimates

Our management's discussion and analysis of financial condition and results of
operations are based upon our unaudited condensed consolidated financial
statements, which have been prepared in accordance with GAAP. The preparation of
these consolidated financial statements requires us to make estimates and
judgments that affect the reported amounts of assets, liabilities, revenues and
expenses. On an on-going basis, we evaluate our critical accounting policies and
estimates. We base our estimates on historical experience and on various other
assumptions that we believe to be reasonable in the circumstances, the results
of which form the basis for making judgments about the carrying values of assets
and liabilities that are not readily apparent from other sources.


Actual results may differ from these estimates under different assumptions and
conditions. Our significant accounting policies are more fully described in Note
3 of our most recent Form 10-K.

Operating results

Comparison of the three months ended June 30, 2022 and 2021

                                               Three Months Ended June 30,               Increase (decrease)
                                               2022                 2021              Amount            Percentage
                                                     (in thousands)
Operating expenses
Research and development                   $       3,696       $         5,587     $      (1,891 )               34 %
General and administrative                 $       2,467       $         2,464                 3                  0 %
Change in fair value of contingent
consideration                              $         616       $         3,034            (2,418 )               80 %
Total operating expenses                           6,779                11,085            (4,306 )               39 %
Operating loss                                    (6,779 )             (11,085 )           4,306                 39 %
Other income
Change in fair value of warrants
liabilities                                $           2       $            56               (54 )               96 %
Interest income                            $          52       $            41                11                 27 %
Total other income                                    54                    97               (43 )               44 %
Net loss                                   $      (6,725 )     $       (10,988 )   $       4,263                 39 %


To date, we have not derived any revenue from the commercial development and sale of new therapeutic products.

Research and development costs

Research and development expense of $3.7 million for the three months ended June
30, 2022 decreased by $1.9 million from the three months ended June 30, 2021.
The cadence of our research and development expenditures will fluctuate
depending upon the state of our clinical programs and the timing of CMC and
other projects necessary to support the submission of an NDA.

General and administrative costs

General and administrative expenses of $2.5 million for the three months ended
June 30, 2022 corresponded to the three months ended June 30, 2021.

Change in fair value of contingent consideration

We are obligated to make cash payments of up to a maximum of $21.2 million to
the former Essentialis stockholders upon the achievement of certain future
commercial milestones associated with the sales of DCCR in accordance with the
terms of our merger agreement with Essentialis. The fair value of the liability
for the contingent consideration payable by us achieving two commercial sales
milestones of $100 million and $200 million in revenue, respectively, in future
years was estimated to be $9.3 million as of June 30, 2022, a $0.6 million
increase from the estimate as of March 31, 2022. During the three months ended
June 30, 2021, the estimate increased $3.0 million from the $9.3 million
estimated at March 31, 2021.


Other income

We had other income of approximately $54,000 in the three months ended June 30,
2022, compared to $97,000 during the three months ended June 30, 2021. The
decrease was primarily due to a smaller decrease in the fair value of our
outstanding warrants during the three months ended June 30, 2022 compared to the
three months ended June 30, 2021.

Operating results

Comparison of the six months ended June 30, 2022 and 2021

                                             Six Months Ended June 30,              Increase (decrease)
                                               2022               2021           Amount           Percentage
                                                   (in thousands)
Operating expenses
Research and development                   $       7,684           12,751     $     (5,067 )               40 %
General and administrative                         5,110            5,443             (333 )                6 %
Change in fair value of contingent
consideration                                       (242 )          2,047           (2,289 )              112 %
Total operating expenses                          12,552           20,241           (7,689 )               38 %
Operating loss                                   (12,552 )        (20,241 )          7,689                 38 %
Other income
Change in fair value of warrants
liabilities                                           29              257             (228 )               89 %
Interest income                                       74               42               32                 76 %
Total other income                                   103              299             (196 )               66 %
Net loss                                   $     (12,449 )     $  (19,942 )   $      7,493                 38 %


To date, we have not derived any revenue from the commercial development and sale of new therapeutic products.

Research and development costs

Research and development expense of $7.7 million for the six months ended June
30, 2022 decreased by $5.1 million from the six months ended June 30, 2021. The
cadence of our research and development expenditures will fluctuate depending
upon the state of our clinical programs and the timing of CMC and other projects
necessary to support the submission of an NDA.

General and administrative costs

General and administrative expenses of $5.1 million for the six months ended June 30, 2022 decreases $0.3 million of the semester ended June 30, 2021primarily due to a decrease in stock-based compensation expense.

Change in fair value of contingent consideration

We are obligated to make cash payments of up to a maximum of $21.2 million to
the former Essentialis stockholders upon the achievement of certain future
commercial milestones associated with the sales of DCCR in accordance with the
terms of our merger agreement with Essentialis. The fair value of the liability
for the contingent consideration payable by us achieving two commercial sales
milestones of $100 million and $200 million in revenue, respectively, in future
years was estimated to be $9.3 million as of June 30, 2022, a $0.2 million
decrease from the estimate as of December 31, 2021. During the six months ended
June 30, 2021, the estimate increased $2.0 million from the $10.3 million
estimated at December 31, 2020.

Other income

We had other income of approximately $0.1 million in the six months ended June
30, 2022, compared to $0.3 million during the six months ended June 30, 2021.
The decrease of $0.2 million was primarily due to a smaller decrease in the fair
value of our outstanding warrants during the six months ended June 30, 2022
compared to the six months ended June 30, 2021. This decrease was slightly


offset by an increase in interest income during the six months ended June 30,
2022 as compared to the same period of the previous year as a result of cash and
cash equivalents earning higher interest rates.

Cash and capital resources

We had a net loss of $12.5 million during the six months ended June 30, 2022 and
an accumulated deficit of $225.8 million at June 30, 2022 as a result of having
incurred losses since our inception. We had $24.1 million in cash and cash
equivalents and $17.6 million of working capital at June 30, 2022, and used
$11.0 million of cash in operating activities during the six months ended June
30, 2022. As of June 30, 2022, we had lease obligations totaling $0.3 million to
be paid through 2023, consisting of an operating lease for office space in
Redwood City, California.

We have financed our operations principally through issuances of equity
securities. In March 2022, we completed a public offering of shares of our
common stock and pre-funded warrants and raised $13.8 million in net proceeds
after deducting the underwriting discount and other estimated offering expenses.
Each share of common stock or pre-funded warrant was sold together with one
immediately exercisable common warrant to purchase one share of common stock. We
have an "at-the-market" (ATM) offering for up to $25.0 million, but as of June
30, 2022, we have not sold any securities pursuant to the ATM.

We expect to continue incurring losses for the foreseeable future and will be
required to raise additional capital to complete our clinical trials, pursue
product development initiatives and penetrate markets for the sale of our
products. We believe that we will continue to have access to capital resources
through possible public or private equity offerings, debt financings, corporate
collaborations or other means, but the access to such capital resources is
uncertain and is not assured. If we are unable to secure additional capital, we
may be required to curtail our clinical trials and development of new products
and take additional measures to reduce costs in order to conserve our cash in
amounts sufficient to sustain operations and meet our obligations. These
measures could cause significant delays in our efforts to complete clinical
trials and commercialize our products, which is critical to the realization of
our business plan and our future operations. These matters raise substantial
doubt about our ability to continue as a going concern within one year from the
date of filing this quarterly report.

The accompanying condensed consolidated financial statements have been prepared
under the assumption we will continue to operate as a going concern, which
contemplates the realization of assets and the settlement of liabilities in the
normal course of business. The condensed consolidated financial statements do
not include any adjustments to reflect the possible future effects on the
recoverability and classification of assets or the amounts of liabilities that
may result from uncertainty related to our ability to continue as a going

Cash flow

The following table presents the main sources and uses of cash and cash equivalents for each of the periods presented below:

                                                         Six Months Ended June 30,
                                                           2022               2021
                                                               (in thousands)
Net cash used in operating activities                  $     (10,982 )     $  (15,501 )
Net cash used in investing activities                             (7 )             (4 )
Net cash provided by (used in) financing activities           13,750        

(123 ) Net increase (decrease) in cash and cash equivalents $2,761 ($15,628)

Cash flows used in operating activities

During the six months ended June 30, 2022, operating activities used net cash of
$11.0 million, which was primarily due to the net loss of $12.5 million adjusted
for non-cash income of $0.3 million related to the change in fair value of
common stock warrants and contingent consideration, non-cash expense of $1.0
million for depreciation and amortization, $1.2 million for stock-based
compensation, and approximately $0.1 million for non-cash lease expense.
Additionally, the usage of cash during the six months ended June 30, 2022 was
reduced by $0.6 million due to changes in operating assets and liabilities.

During the six months ended June 30, 2021, operating activities used net cash of
$15.5 million, which was primarily due to the net loss of $19.9 million adjusted
for non-cash loss of $1.8 million related to the change in fair value of common
stock warrants and contingent consideration, non-cash expense of $1.0 million
for depreciation and amortization, and $2.0 million for stock-based


compensation. In addition, the use of cash during the six months ended June 30, 2021 has been reduced by $0.4 million due to changes in operating assets and liabilities.

Cash used in investing activities

In the six months ended June 30, 2022 and 2021, little cash was used for the purchase of property, plant and equipment.

Cash provided by (used in) financing activities

During the six months ended June 30, 2022, we received $13.8 million of net cash
proceeds from the sale of 40,000,000 shares of our common stock, and for certain
investors, in lieu of common stock, pre-funded warrants to
purchase 20,000,000 shares of common stock. Each share of common stock or
pre-funded warrant was sold together with one, immediately exercisable common
warrant with an exercise price of $0.30 per share. As of June 30, 2022, all
offering costs have been paid by us. The net proceeds amount was slightly offset
by payments for the taxes from net share-settled vesting of restricted stock.

In the six months ended June 30, 2021we used species of $0.1 million to pay taxes on the net acquisition of restricted shares settled in shares.

Off-balance sheet arrangements

We have no off-balance sheet arrangements.

© Edgar Online, source Previews

The world’s central banks are tightening monetary policy “in sync”, and we are entering uncharted waters


Throughout history, central banks have often moved in similar directions.

But the current sharpness and near-uniform global crunch is arguably unprecedented in recent decades.

U.S. hikes offset RBA increases

The simultaneous rate hikes explain why the Australian dollar remains relatively weak at around US70¢, despite rising local interest rates and record terms of trade (export prices relative to import prices ).

RBA rate hikes are being offset by larger rate hikes in the US, limiting capital flows to Australia in search of interest rate returns.

For a commodity-exporting and trade-exposed economy, the exchange rate is usually one of the main channels for transmitting monetary policy in the economy.

But the relatively weak Australian dollar means higher imported inflation and increased foreign demand for our products, contributing to domestic price pressures.

Therefore, the RBA cannot be too far behind other central banks in raising rates.

JPMorgan economists calculate that central banks in developed markets have raised policy rates by nearly 2 percentage points from the 2021 low on a GDP-weighted average measure, and are set to raise rates in the coming months.

Emerging markets – excluding China, Russia and Turkey – gained an average of 3.5 percentage points.

Not only are short-term interest rates rising, but central banks are also embarking on so-called quantitative tightening by passively allowing securities off their balance sheets or actively selling bonds.

The world has never experienced a significant global quantitative easing before. Previously, when the Fed temporarily reduced its holdings of securities in 2017 and 2018, Europe and Japan expanded their balance sheets.

Central bank balance sheets in developed markets have peaked at nearly $30 trillion thanks to their purchases of bonds and other securities during the pandemic. JPMorgan economist Ben Jarman said the stock of global central bank balance sheets is only peaking and will gradually decline, while the flow of new bond purchases is declining sharply.

Uncertainty abounds

The scale and depth of the concerted tightening is an additional source of risk and uncertainty for central bankers, investors, businesses and households around the world.

No one knows how the simultaneous rate hikes will ripple, especially for highly indebted emerging market economies that face capital outflows and exchange rate depreciations as the U.S. Fed raises interest rates.

Usually, central banks have time to pause to assess the impact of the first rate hikes, domestically and internationally, knowing that monetary policy usually takes around 12 to 18 months to have its maximum impact. But high inflation means they’ve lost that waiting option.

For the financial markets, synchronicity is a risk that has been smoldering for several years.

A veteran international bond trader said, “The pandemic has resulted in countries going through the same economic cycle and coming out of recession at the same time.

“All with significant public debt financing needs. All with cost pressures. All with expensive risky assets and high household debt. And all on the rise at the same time.

He compares it to past downturns and recoveries when there was more variance in economies and markets to offset the ups and downs in different countries.

For example, during the Asian financial crisis of 1997-98, other developed economies generally performed well.

During the 2008 GFC that plunged the United States and Europe into deep recessions and market turmoil, Asia hung on and a stimulus-fueled China held off sharply. drawn, increasing demand for Australian iron ore and coal.

“This time it’s a highly correlated recovery,” says the Observer. “Will every central bank get it right? I doubt. And they want some inflation to help pay down the public debt.

It is not surprising that central banks are evolving at the same pace.

The pandemic has been a global shock, with similar health and economic responses including lockdowns and massive stimulus payments. Policymakers underestimated the enormous power of fiscal stimulus and failed to anticipate supply constraints.

Central banks have a very narrow path to contain inflation without hurting employment too much.

Much of the inflation was initially due to supply-side shocks, which are lasting longer than expected, including transportation and logistics disruptions resulting from restrictions imposed by China, soaring energy prices and labor shortages.

The United States and Britain have lost millions of workers, perhaps due to early retirements or fears of catching the virus.

Australia missed two years of immigration, leaving a smaller pool of workers available.

Let’s hope the synchronized transatlantic economic downturn doesn’t trickle down to Australia.

Consequently, the level of supply in the economy will be permanently at a level below its pre-pandemic trajectory, even if the growth of the workforce and supply chain capacity returns to more normal rates.

Therefore, central banks cannot simply “ride through” all supply shocks. There is less supply to meet demand fueled by the stimulus, establishing a new equilibrium that interest rates must respond to.

Supply will be permanently tight relative to the pre-pandemic trajectory, so central banks need to tighten policy to cool demand from overheated consumers.

Arguably, central banks could have acted sooner, but that would not have solved the current high inflation crisis.

But an earlier tightening would have brought interest rates closer to where they should be and made it easier to reduce inflation over the next few years.

Admittedly, it is now more difficult for central banks to manage inflation.

Central banks during the post-Cold War “Great Moderation” had some chance of achieving low and stable inflation, thanks to China’s industrialization that lowered manufacturing costs and added hundreds of millions of workers to the global labor pool, globalization, free trade flows and the technological revolution.

Arguably, monetary policy has received too much praise, while other important factors have increased the economy’s supply capacity.

Today, central banks are facing the toxic combination of explosive demand and reduced supply, including the relocation of some critical manufacturing sectors, the energy crisis, geopolitical tensions that undermine trade and technology sharing. , and workforce dropouts.

Shallow recessions in the US and Europe are economists’ baseline forecasts.

Let’s hope the synchronized transatlantic economic downturn doesn’t trickle down to Australia.

Premier League club bosses to discuss reform of English Football League financial structure | Soccer News


Premier League club bosses will meet on Wednesday to discuss fundamental reform of the English Football League’s financial structure – but it is widely determined that some form of parachute payment for relegated clubs will remain.

The proposals are titled ‘A New Deal for Football’ after extensive discussions across the football pyramid since the start of the coronavirus pandemic have so far failed to result in an agreement.

Sky Sports News has been told that while many Championship clubs want to do away with parachute payments altogether, they are almost certain to be retained by the Premier League as there is a strong desire to maintain a financial lifeline for those dropping out of the premiere division.

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FREE TO WATCH: Highlights from Manchester City’s win over West Ham in the Premier League

The installment payments are one of several key financial issues being debated, alongside plans to filter more money to the lower leagues – particularly Leagues One and Two.

Only once a vote has taken place on the final proposals will the Premier League then have a mandate to give the EFL. No such vote is scheduled for Wednesday.

With pressure from the UK government for more money to be shared in football, Premier League clubs are now keen to reach an agreement on the matter quickly.

The government is due to publish a white paper later this summer on the issue of football funding. At the heart of this is the idea of ​​an independent regulator – something the Premier League has always opposed.

Following last autumn’s Fan Led Review authored by Tracey Crouch, Sports Minister Nigel Huddlestone said in April: “It is clear that radical change is needed to protect the future of our national sport.

“Premier League and Championship clubs now routinely exceed UEFA guidelines not to spend more than 70% of club income on wages, resulting in weak balance sheets in the industry that would be unacceptable in any other area. .”

EFL chairman Rick Parry has been a long-time supporter of scrapping parachute payments. A recent survey conducted by fair game showed that Sheffield United, West Brom, Fulham and Bournemouth received £39m last season in “solidarity” payments, compared to £4.8m for most other Championship clubs.

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Ismaila Sarr played a key role in Watford’s 1-1 draw with West Brom, having a moment to remember and a moment to forget

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North American relies on its best-selling NAC BenefitSolutions® Fixed Index Annuity


Product updates keep pace with today’s financial pressures

WEST OF THE MONKS, Iowa, August 9, 2022 /PRNewswire/ — More than three in four Americans are concerned about safeguarding their current savings and finding ways to secure lifetime income for their future. Today, 76% of Americans say it’s important to them to protect their nest egg and retirement account, and 77% agree they’re worried about outliving their income in retirement.1

To address these growing concerns, North American Life and Health Insurance Company® updated one of its most successful products to include key benefits to meet today’s tough financial realities. NAC BenefitSolutions® 10 is a fixed index annuity (FIA) with, for an additional cost, a benefit rider.2 Together, the FIA ​​and driver combination can provide security with a basic benefit that cannot drop below a floor of 125% of the premium paid. In addition, this basic benefit increases in years 5 and 103 ensuring that policyholders have a solid base of assets to use for a lifetime of guaranteed payouts or in the event of death.

“This is an incredible update to a product that has been well received in our industry since its launch in 2015,” said Bryce Bike, director of distribution for North America. “In short, this means that on day one of a policyowner’s contract, the benefit base is already 25% higher. For example, assuming a premium of $100,000the benefit base would begin at $125,000.”

The enhanced BenefitSolutions FIA also responds to changing financial concerns of a client and can better manage market volatility with its index options and credit methods. Through the benefit rider, NAC BenefitSolutions guarantees lifetime income payments to the policy owner and also includes a retirement home multiplier and a death benefit paid to the beneficiary.3

“Retirement planning is about planning for your financial security. Today, we have new solutions in place to meet the challenges head-on,” Biklen said. “Managing periods of low interest rates, targeting growth opportunities with index options from strong financial brands and weathering market downturns are priorities for finance professionals and their clients.”

North America first introduced BenefitSolutions to the market in 2015 and during that time FIA ​​has generated over $1.4 billion bonus4 – dollars designed to help clients protect and grow their retirement nest egg.

“North American is a leader in providing financial solutions that reduce risk and address one of the biggest concerns of retirees today: outliving their money,” Biklen said. “That’s what a fixed index annuity is designed for, and there’s a reason BenefitSolutions has performed so well over the past seven years.”

About North American Life and Health Insurance Company

North American Life and Health Insurance Company® is a member of Sammons® Financial Group, Inc. Since 1886, North American has established a tradition of providing quality insurance products to consumers throughout the United States. We offer a comprehensive portfolio of term, universal and indexed universal life insurance products. North American also offers a wide variety of traditional fixed-index and fixed-index annuities and consistently ranks among the top fixed-index annuity insurers in the United States. For more information, please visit here.


1. Pensions, retirement and the pandemic, page 7 – Assessing America’s Readiness study conducted by IALC

2. This amount applies only to the Benefit Basis, which is a value used solely to determine the Lifetime Payout Amounts (LPA) and/or Death Benefit features of the Rider. The Benefit Basis is not the same as the Contract Accumulation Value and cannot be used for partial withdrawals, full surrender or as the Contract Base Death Benefit.

3. The benefits rider includes a 1.20% endorsement fee basis of the benefit, deducted as a partial surrender of the accumulation value. Other death benefit options are available. Lifetime income refers to the guaranteed payment of Lifetime Payment Amounts (LPA) as defined in the Benefits Addendum included in this Agreement. It does not refer to interest credited to the contract. Advise clients to consult their own tax advisor regarding the tax treatment of APLs, which will vary according to individual circumstances. The Nursing Home Multiplier may be paid in up to five annual installments as long as the client continues to meet the requirements on each payment date. See product brochure for details and limitations. Rider death benefit includes an option for 5 annual benefit-based payments with a one-year waiting period (2 years in some states). Rider death benefit options vary by state. The additional death benefit and other features are explained in the brochure and product disclosure. For product materials, check for variations in your state.

4. Source: North American Company Data, 2015-June 2022

CNA Benefit Solutions® 10 is issued on Form NA1006A/ICC14-NA1006A (Contract) or the appropriate state variant. Product features, endorsements and index options may not be available in all states or suitable for all consumers.

Fixed index annuities are not a direct investment in the stock market. These are long-term insurance products with guarantees backed by the issuing company. They offer the possibility of crediting interest partly on the performance of specific indices, without the risk of loss of premium due to market declines or fluctuations. Although fixed index annuities do not guarantee any premium loss due to market declines, deductions from your accumulation value for additional optional benefit riders or strategy fees associated with allocations to credit enhanced methods could exceed the interest credited to the accumulation value, which would result in a loss of premium. . They may not be suitable for all customers. The interest credits of a fixed index annuity will not reflect the actual performance of the relevant index.

Sammons Financial® is the trading name of Sammons® Member companies of Financial Group, Inc., including North American Company for Life and Health Insurance®. Annuities and life insurance are issued by the North American Company for Life and Health Insurance, and product warranties are its sole responsibility.

SOURCE North American Life and Health Insurance Company

The Premium Debate: Subscriber Feedback Buy Now, Pay Later, and Buy Liquor


New worries about our hospital buildings, how to buy now, pay later could fuel dependency and cold and fog hit the country in the latest headlines of the New Zealand Herald. Video / NZ Herald


Kiwis spent an estimated $1.7 billion last year on buy-it-now, pay-later services, but there are fears that payment services are fueling addiction by allowing alcohol purchases. Concerns are also growing that people

Market News Today – US Jobs Boom Rekindles Interest Rate Fears


INVESTORS are struggling to decide if the glass is half full or half empty this week. Sometimes good news for the economy can be bad news for the markets.

Booming job market

Last week’s US jobs data provided a big positive shock to the economy and a negative shock to the stock market. The 528,000 new jobs created in the US economy in July were more than double the forecast and significantly higher than the roughly 400,000 created the previous month.

While this is obviously good news for American workers and suggests that the US economy is further from recession than feared, investors took it badly. That’s because the hot labor market is giving the Federal Reserve all the ammunition it needs to justify another giant rate hike at its next meeting in September. After increases of 0.75 percentage points in June and July, the same is expected next month.

The magnitude of the shock played out in the bond market where the yield on a two-year Treasury bill – usually the bond maturity most closely tied to interest rate expectations – jumped by 0.21 percentage points to 3.25%. It’s a big step in the usually quiet world of fixed income.

What does this mean for stocks?

The sharp rise in bond yields had a negative impact on stock prices, with the S&P 500 and especially the Nasdaq retreating at the end of the week. It was yet another positive week for the market, but the July rebound now appears to have run its course.

Mary Daly, head of the San Francisco Federal Reserve, said she believed the US central bank was “far from” finished in its fight to bring inflation under control. Investors had clung to straws that the Fed wouldn’t have to tighten policy as much as they feared. That optimism now seems premature, as the peak of the interest rate cycle is now set at 3.64% next spring, significantly higher than expected just a week ago.

What about those inflation fears?

Investors won’t have to wait long to see how the strength in the job market affects inflation numbers. On Wednesday this week, US Consumer Price Index (CPI) data should confirm that core, or core, inflation is now even higher than the headline rate. This is because the worst is now behind us in terms of rising energy and food prices, but the impact is rippling through the rest of the economy.

Meanwhile here, the Bank of England is worried about both inflation (13% at its worst next year) and growth, having revised down its forecast for the economy last week as it unveiled the largest rate hike (0.5 percentage point to 1.75%) in nearly 30 years. UK investors breathe a sigh of relief that the UK stock market is focusing more on global themes than the domestic economic backdrop.

Layer 2 scaling will make crypto payments “make sense” again – KBW 2022


Ethereum co-founder Vitalik Buterin argued that crypto payments will “make sense” again as transaction costs will soon drop to fractions of a cent due to Layer 2 rollups.

The Cointelegraph team currently on the ground at Korea Blockchain Week (KBW) quoted Buterin as saying that the final hurdle to reducing transactions to fractions of cents at scale is blockchain data compression.

He pointed out that “solid work is underway” with roll-ups right now, like Optimism’s layer 2 scaling solution for Ethereum, which has worked to reduce size and cost. data in blockchain transactions by introducing zero-byte compression.

“So today with roll ups the transaction fee is usually between $0.25, sometimes $0.10, and going forward with roll ups with all the efficiency improvements that I have spoken. Transaction costs could drop to $0.05 or even as low as $0.02. So much cheaper, so much more affordable and a complete game changer.

Although it functions primarily as a store of speculative value, Buterin pointed out that the main use case for Bitcoin (BTC) presented in his 2008 white paper was to provide a “peer-to-peer electronic payment system” cheaper than traditional payment methods.

However, while this was true until 2013 according to Buterin, this is no longer the case in 2018 when adoption increased and blockchain transactions became too expensive.

“It’s a vision that’s been, I think, kind of forgotten and I think one of the reasons it’s been forgotten is basically because it’s been taken out of the market,” he said. .

In the opinion of the Ethereum co-founder, BTC and other assets will soon be able to provide this use case again, as scaling solutions – such as the Lightning Network in the case of BTC – gradually reduce costs to fractions of a penny.

Crypto payment use cases

Buterin outlined a few different areas where cheap crypto trades will be particularly important. First, he pointed to “low-income countries or places where the existing financial system is not very efficient”, as this will give citizens access to a vital payment structure on the internet, which is already adopted despite the cost of international remittances.

Related: 60 million NFTs could be minted in a single transaction: StarkWare founder

Second, he noted that in the context of Ethereum, cheap crypto transactions will also help accelerate the adoption of non-financial applications such as domain name system (DNS) servers, proof of presence protocols human resources and Web3 account management services.

“You actually have to send a transaction to create a DNS name, you actually have to send the transaction to recover your account, you actually have to send a transaction to meet some of these adaptations. If doing each of these operations costs about $11, then people don’t get into it.

“Scalability isn’t just something boring where you just need scalability, like the cost numbers, I think it actually enables and unlocks whole new classes of apps,” said he added.

Missed Gains: FIGS, Inc. Missed EPS by 17% and Analysts Revise Their Forecasts


FIGS, Inc. (NYSE:FIGS) missed earnings with its latest first-quarter results, disappointing overly optimistic forecasters. FIGS missed out on profit this time around, with revenue of US$110 million, 6.2% lower than analysts had modeled. Statutory earnings per share (EPS) of US$0.05 also came in below expectations of 17%. Following the result, analysts have updated their earnings model, and it would be good to know if they think there has been a strong change in the company’s outlook, or if business is as it is. habit. So we’ve collected the latest post-earnings statutory consensus estimates to see what might be in store for next year.

NYSE: FIGS Earnings and Revenue Growth August 6, 2022

Following the latest results, the eleven analysts covering FIGS now forecast revenue of US$513.4 million in 2022. If achieved, it would reflect a notable 11% improvement in sales over the past 12 months. Statutory earnings per share are expected to fall 33% to US$0.14 over the same period. Prior to this earnings report, analysts were expecting revenue of US$513.4 million and earnings per share (EPS) of US$0.14 in 2022. So it looks like there was a slight dip in the general feeling after the recent results – there has been no major change. to earnings estimates, but analysts have slightly lowered their earnings per share forecasts.

The consensus price target held steady at US$14.59, with analysts apparently voting that their lower expected earnings shouldn’t drive the stock price lower for the foreseeable future. Fixing on a single price target, however, can be unwise because the consensus target is actually the average of the analysts’ price targets. As a result, some investors like to look at the range of estimates to see if there are any differing opinions on the company’s valuation. There are a few variations of perception on FIGS, with the most bullish analyst pricing it at $22.00 and the most bearish at $7.00 per share. With such a wide range of price targets, analysts are almost certainly betting on wildly divergent outcomes in the underlying business. With that in mind, we wouldn’t place too much reliance on the consensus price target, as it’s just an average and analysts clearly have deeply differing views on the company.

Looking now at the bigger picture, one way to understand these forecasts is to see how they compare to both past performance and industry growth estimates. It’s pretty clear that FIGS revenue growth is expected to slow significantly, with revenue through the end of 2022 expected to show 15% growth on an annualized basis. This is compared to an historic growth rate of 31% over the past year. By comparison, other companies in this sector covered by analysts are expected to grow their revenue by 7.8% per year. So it’s pretty clear that while FIGS revenue growth is expected to slow, it is still expected to grow faster than the industry itself.

The essential

The biggest concern is that analysts have cut their earnings per share estimates, suggesting headwinds may be in store for the FIGS. Fortunately, there have been no major changes to the revenue forecast, with the business still expected to grow faster than the industry as a whole. The consensus price target held steady at US$14.59 as the latest estimates were not enough to impact their price targets.

With that in mind, we still believe the longer-term trajectory of the company is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for FIGS out to 2024, and you can view them for free on our platform here.

You should always take note of the risks, for example – FIGS a 2 warning signs (and 1 which is a little obnoxious) that we think you should know about.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

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.

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

Here’s how high interest rates are affecting demand for condos in Canada


Rising interest rates and other headwinds in the construction industry have caused builders in some Canadian markets to shelve condominium projects, while others say condominium demand will continue , as supply remains tight.

Real estate advisory firm Urbanation released a report this week showing that builders in the Greater Toronto Area (GTA) are dramatically reducing the number of condominium units they plan to launch this year.

Based on developer contributions earlier in the year, Urbanation projected that 35,000 condo units would be available for pre-sale through 2022. In its second quarter report, it said that while some 16,000 units actually had went on sale in the first half of the year, it now expects another 10,000 units to launch before 2023.

Urbanation expects approximately 10,000 planned units to be delayed or canceled.

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Although the GTA is currently at an all-time high of around 123,654 condo units currently in presale or under construction, Urbanization President Shaun Hildebrand told Global News that the slowdown in launches reflects declining buyer confidence. in “the future of the housing market”.

Click to play the video:

How will rising interest rates affect homeowners?

How will rising interest rates affect homeowners? – June 29, 2022

High costs making some projects less viable

The bleak outlook is not limited to Toronto. The Canadian Home Builders’ Association (CHBA) said in its latest Housing Market Index (HMI) that there was a sharp decline in developer confidence during the first half of 2022.

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The HMI measures the confidence of Canadian homebuilders on a 100-point scale. While the index posted all-time highs near 90 for single-family and multi-family home construction in the first quarter of 2022, the second-quarter report released in mid-July showed steep declines to 65.7 for homes. individual and even lower at 59.9. multifamily, which includes condos.

The ACCH pointed to labor shortages and rising interest rates to undermine confidence, but noted that the Bank of Canada’s latest 100 basis point increase has yet to be taken. taken into account in the data.

Read more:

Canada needs new homes built, but the construction industry is heading towards a retreating wall

Besides interest rates, other costs are rising rapidly for home builders, whether due to rising material prices or rising development costs.

Hildebrand says that as a result, condo builders are unable to lower their pre-sale prices to meet what buyers can afford and instead put units on the shelf that they don’t believe will be able to sell in the near future.

Investors, who make up the majority of pre-construction condo buyers, are especially discouraged in high interest rate environments, Hildebrand notes.

“With the slowdown in sales we’ve seen and the more general buyer hesitation in the market, it’s difficult for condo projects to get going and pass on the cost increases they’re experiencing,” he says.

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Click to play the video:

Home buyers should sacrifice more

Homebuyers Should Sacrifice More – July 20, 2022

Adverse conditions are also slowing construction activity in Canada’s most expensive housing market.

“Basically, yes, there has been a marked downturn,” says Ron Rapp, president of the Homebuilders Association Vancouver.

Ongoing supply chain issues and other inflationary pressures are driving up material costs, Rapp notes.

Builders often have tight windows and deadlines to secure financing and approvals and get ground breaking; if they lack confidence in the costs and viability of a project, they are more likely to wait and innovate later when market conditions clear up, he says.

“Hopefully these supply chain challenges will start to lessen over the next few moments as things come back online. But right now it’s causing significant issues for the construction community and the development community. says Rapp.

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Demand slows, but not gone, in major cities

Not all observers are gloomy about the pre-construction condominium market.

Marc Lefort is Associate Vice-President at McGill Real Estate, which specializes in the Montreal pre-construction condo market. He says he’s seen a slowdown in demand this summer, but attributes it to a “post-COVID holiday” as potential buyers focus on travel rather than house hunting.

“We’re feeling a slowdown this summer, but based on our analysis, it’s not really the interest rate (the hikes),” he told Global News, adding that he expects demand resumes after Labor Day.

Lefort says the developers McGill Real Estate works with have faced the same labor and cost pressures as builders outside of Quebec, but says the company hasn’t seen any condos canceled or delayed. , with “several projects” expected to launch in the fall.

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He believes the strong demand for new construction stems from the continued shortage of supply in the Canadian housing market. And while rising interest rates may dampen purchasing power, as rental rates rise alongside it, renters find no compelling reason to wait on the sidelines, he argues.

Montreal could be an exception, Lefort notes, as the city hasn’t experienced the same price pressures as Toronto or Vancouver in recent years.

“I know affordable is a big word, but we’re still less than most major cities in North America. »

Read more:

Home sales in Montreal down 18% compared to last July: Association immobilière du Québec

While Hildebrand says Toronto has a good flow of housing units under construction today, the downturns ahead could mean the market is caught off guard when demand picks up.

“It certainly creates problems in the supply pipeline. So when demand eventually recovers, as we expect, supply will not increase to the same extent as it normally would,” he says.

Rapp says that while rising interest rates have “softened the frenzy that was prevalent before,” robust immigration and interprovincial migration have kept pressure on Vancouver’s existing supply issues.

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Failure to maintain a steady flow of new housing into the pipeline could then “exacerbate” the affordability issues already plaguing the city.

Rapp says builders are looking for policy measures that can encourage faster approval and addition of new homes, even during the downturn in the market, to ensure the city’s housing inventory is not even more late.

“There has to be some sort of balance found there. We don’t know exactly how this will play out just yet.

Click to play video: ''Vancouver Special' could see a revival''

‘Vancouver Special’ could get a revival

‘Vancouver Special’ could see a revival – July 19, 2022

© 2022 Global News, a division of Corus Entertainment Inc.

On Pine Labs’ Journey to Become a Complete Solutions Partner for Merchants


In Turning today we take a look at how far Noida has come pine labsa merchant-focused fintech company, has grown into the full-service merchant banking and lending company it is today.

When founded in 1998 by Lokvir Kapoor, Pine Labs focused primarily on smart card payment and loyalty solutions for the retail petroleum industry. Eleven years later, in 2009, he entered the world of consumer payments, offering solutions to merchants and connecting them with banks and financial service providers. In 2012, the company launched payment solutions for large format organized retailers.

Kush Mehra, Chief Commercial Officer and President of Pine Labs, says Your story“We were never discouraged by the poor infrastructure issues that existed then and made the most of the emergence of organized retail in India, with the launch of payment solutions aimed at organized retail from large format.”

Troubleshoot operational issues

After entering the consumer payments space in 2009, the company focused on enabling fast connections and better performance. Next, he created a real-time online dashboard, where all transactions and settlements could be viewed by logging into the bank’s portal. This saved resources and time and reduced manual errors.

“That was the first phase: solving all the operational problems, the technological problems, creating more efficiency,” says Kush.

Lokvir Kapoor, Founder, Pine Labs

Business Partner Payment Solution Provider

With the basic level of infrastructure in place, Pine Labs was ready for more. Building on the lessons learned during the first phase, the company moved on to the next phase.

“Our mindset changed from a payment solutions provider to a business partner, and that was the second part of Pine Labs, when we started to pivot,” Kush explains.

Meet the needs of merchants

The turning point for Pine Labs came around 2012, when organized retail was still an underpenetrated industry. Merchants and retailers faced a host of challenges. Pine Labs saw an opportunity to create a platform that solved its problems with technology, payments, and data.

“We identified all the issues such as operational, technology and financial issues, and offered all the solutions on one platform,” Kush explains.

In 2012, the company launched its first unified point-of-sale (PoS) platform using cloud technology to drive retail revenue and reduce costs. The payment platform’s first customers were Future Group and Shopper’s Stop.

Pine Labs has partnered with banks and payment aggregators to ensure the PoS terminal can process all forms of digital payments to enhance the merchant-customer experience.

Since then, the company has expanded its offerings beyond merchant payments. It offers BNPL (buy now, pay later), invoice management, gifting solutions, and e-commerce solutions. Today, Pine Labs is a comprehensive platform that provides merchants with solutions for payment, risk assessment, multi-channel analytics, lending and insurance, branded offers, cashback and integrated billing.

In 2021, the company launched a payment gateway, Plural, to help new-age direct-to-consumer brands accept digital and credit-linked payments.

“Our platform has evolved to accommodate everything: banking, connected banking, loans, working capital, workflows such as employee pay and vendor payments, online rural gateways, BNPL and prepaid gift cards,” Kush says.

Acquisitions and financing

In 2021, the merchant-focused fintech took its first steps into consumer offerings with the acquisition of Fave, a Singapore-based loyalty payment startup, and expanded into the Southeast Asian market. East.

In June 2022, Pine Labs acquired Bengaluru-based API (application programming interface) infrastructure startup Setu. This is the company’s third acquisition this year. The company had acquired a majority stake in payment solutions provider Mosambee in April 2022 and in Mumbai-based online payments startup Qfix in February.

“Over the past couple of years, we’ve started integrating and acquiring…or making very strategic acquisitions, as we call them…companies that have very strong platforms to solve certain types of use cases and problems. says Kush.

In 2021, the Sequoia-Capital-backed company raised $600m from U.S. asset management firm Fidelity, Blackrock and others, followed by a $100m fundraise from the company. American Invesco Developing Markets Fund.

“We will become the one and only platform for all types of requirements a business needs to be successful,” Kush says.

The company plans to go public in the United States in the near future.



Forward-looking statements

Certain information contained herein includes forward looking statements, which
are made pursuant to the safe harbor provisions of the Private Securities
Liquidation Reform Act of 1995 (the "Act"). Forward looking statements in this
report, or which management may make orally or in written form from time to
time, reflect management's good faith belief when those statements are made, and
are based on information currently available to management. Caution should be
exercised in interpreting and relying on such forward looking statements, the
realization of which may be impacted by known and unknown risks and
uncertainties, events that may occur subsequent to the forward looking
statements, and other factors which may be beyond the Partnership's control and
which can materially affect the Partnership's actual results, performance or
achievements for 2022 and beyond. Should one or more of the risks or
uncertainties mentioned below materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those anticipated,
estimated or projected. We expressly disclaim any responsibility to update our
forward looking statements, whether as a result of new information, future
events or otherwise. Accordingly, investors should use caution in relying on
past forward looking statements, which are based on results and trends at the
time they are made, to anticipate future results or trends.

Over the last several months, the Partnership took advantage of the low interest
rate environment and refinanced fifteen properties, increased their loan
balances, and raised approximately $130,000,000. With interest rates rising, and


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threat of an economic slowdown, the Partnership increased the debt level and
built cash reserves to acquire additional properties when opportunities become
available. Currently, $90,000,000 of these reserves are invested in short-term
US Treasuries maturing over 6 months.

Since the Partnership's long-term goals include the acquisition of additional
properties, a portion of the proceeds from the refinancing and sale of
properties is reserved for this purpose. If available acquisitions do not meet
the Partnership's investment criteria, the Partnership may purchase additional
depositary receipts. The Partnership will consider refinancing existing
properties if the Partnership's cash reserves are insufficient to repay existing
mortgages or if the Partnership needs additional funds for future acquisitions.

More than two years has passed since we became aware of the outbreak of COVID-
19, The World Health Organization declared a global pandemic on March 11, 2020.
On March 10, 2020 the governor of Massachusetts declared a state of emergency
and ordered all non-essential businesses closed. Additionally, March of 2020 saw
the closure of local colleges and universities for the balance of the academic
year. Colleges in the City of Boston and the surrounding communities conducted
classes in the 2020/2021 academic year remotely, or using a hybrid model of
remote and limited in class learning. These educational models caused a large
decrease in the student population and resulted in significant vacancies in the
Partnership's apartment portfolio.

With the introduction and roll out of Covid vaccines in the spring of 2021, the
economy was opening back up. The Governor of Massachusetts rescinded the State's
Covid-19 restrictions on May 29, 2021 and terminated the State of Emergency on
June 15, 2021. The local colleges and universities returned to campus in
September 2021 and the rental market improved significantly as students returned
to the area.

On February 24, 2022, Russia began an invasion into Ukraine. In response,
nations from around the world have placed sanctions on Russia in an attempt to
cripple its economy. There is no way to predict how this conflict and the
Russian sanctions will affect both the global and local economies.  If there is
a downturn in the economy and significant inflation to the cost of energy, goods
and service, there may be material adverse effects to our business, results of
operations, cash flows, and financial condition.

The vacancy rate for the Partnership's residential properties as of August 1,
2022 was 2.0% as compared with a vacancy rate of 3.3% as of August 1, 2021. The
vacancy rate for the Joint Venture properties as of August 1, 2022 was 0.9%, as
compared to 2.8% for the same period last year. The current vacancy rates are in
line with those experienced prior to the Pandemic.

Residential tenants typically have 12 month lease terms. The majority of these leases will expire during the second and third quarters of the year. Rental activity has been strong as we transitioned from spring to summer and all indications are that we will have low vacancy rates for the rest of the year.

During the second quarter of 2022, rents increased by an average of 5.9% for renewals and increased by an average of 15.0% for new leases. For the remainder of 2022, management expects a strong rental market with continued rental growth.

For the second quarter of 2022, consolidated revenue increased by 9.7%, operating expenses increased by 9.4% and earnings before other income (expenses) increased by 10.1%, compared to the second quarter. quarter 2021.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000
revolving line of credit. The term of the line was for three years with a
floating interest rate equal to a base rate of the greater of (a) the Prime Rate
(b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the
LIBOR Rate for a period of one month plus 1% per annum, plus the applicable
margin of 2.5%. The agreement originally expired on July 31, 2017, and was
extended until October 31, 2020. The costs associated with the line of credit
extension were approximately $128,000. Prior to the line's expiration in 2020,
the Partnership exercised its option for a one-year extension until October 31,
2021. The Partnership paid an extension fee of approximately $37,500 in
association with the extension

On October 29, 2021, the Partnership closed on the modification of its existing
line of credit. The agreement extends the credit line for three years until
October 29, 2024. The commitment amount is for $25 million but is restricted to
$17 million during the modification period. The modification period covers the
current period and phases out by December 31, 2022. During this period, the loan
covenants are modified from a minimum consolidated debt service ratio of 1.60 to
a ratio of 1.35 until September 30, 2022; from a minimum tangible net worth
requirement of $200 million


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to a net worth of $175 million until September 30, 2022; from a maximum
consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022
and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30,
2022 and a yield of 9.0% until December 31, 2022. Once the financial performance
of the Partnership meets the original covenant tests for the trailing 12-month
period, the commitment amount will return to $25 million. The portfolio's debt
yield fell below the minimum of 8.5% to 7.7%. As of June 30, 2022, the
Partnership did not comply with the debt yield financial covenant. As such, the
Partnership is unable to draw down any amount from the line of credit until the
Partnership meets the required financial covenants.

Since the launch of the share buyback program in 2007 until June 30, 2022, the limited partnership purchased 1,471,962 certificates of deposit. In the six months ended June 30, 2022the limited partnership purchased a total of 37,773 certificates of deposit.

At August 1, 2022, the Harold Brown related entities and Ronald Brown
collectively own approximately 31.5% of the Depositary Receipts representing the
Partnership Class A Units (including Depositary Receipts held by trusts for the
benefit of such persons' family members). Harold Brown related entities also
control 75% of the Partnership's Class B Units, and 75% of the capital stock of
NewReal, Inc. ("NewReal"), the Partnership's sole general partner. Ronald Brown
also owns 25% of the Partnership's Class B Units and 25% of NewReal's capital
stock. In addition, Ronald Brown is the President and director of NewReal and
Jameson Brown is NewReal's Treasurer and a director. The 75% of the issued and
outstanding Class B units of the Partnership are owned by HBC Holdings LLC, an
entity of which Jameson Brown is the manager. The outstanding stock of The
Hamilton Company, Inc. is controlled by Jameson Brown and Harley Brown. The 75%
of the issued and outstanding capital stock of NewReal, is owned by the Harold
Brown 2013 Revocable Trust (the "2013 Trust"), an entity of which Sally Michaels
and David Reier are the trustees.

In addition to the Management Fee, the Partnership Agreement further provides
for the employment of outside professionals to provide services to the
Partnership and allows NewReal to charge the Partnership for the cost of
employing professionals to assist with the administration of the Partnership's
properties. Additionally, from time to time, the Partnership pays Hamilton for
repairs and maintenance services, legal services, construction services and
accounting services. The costs charged by Hamilton for these services are at the
same hourly rate charged to all entities managed by Hamilton, and management
believes such rates are competitive in the marketplace.

Residential tenants sign a one year lease. During the six months ended June 30,
2022, tenant renewals were approximately 69% with an average rental increase of
approximately 5.6%, new leases accounted for approximately 31% with rental rate
increases of approximately 13.7%. During the six months ended June 30, 2022,
leasing commissions were approximately $156,000 compared to approximately
$308,000 for the six months ended June 30, 2021, a decrease of approximately
$152,000 (49.4%). Tenant concessions were approximately $24,000 for the six
months ended June 30, 2022, compared to approximately $15,000 for the six months
ended June 30, 2021, an increase of approximately $9,000 (60.0%). Tenant
improvements were approximately $1,089,000 for the six months ended June 30,
2022, compared to approximately $746,000 for the six months ended June 30, 2021,
an increase of approximately $343,000 (46.0%).

Hamilton accounted for approximately 2.8% of the repair and maintenance expenses
paid for by the Partnership during the six months ended June 30, 2022 and 2.5 %
during the six months ended June 30, 2021. Of the funds paid to Hamilton for
this purpose, the great majority was to cover the cost of services provided by
the Hamilton maintenance department, including plumbing, electrical, carpentry
services, and snow removal for those properties close to Hamilton's
headquarters. Several of the larger Partnership properties have their own
maintenance staff. Those properties that do not have their own maintenance staff
and are located more than a reasonable distance from Hamilton's headquarters in
Allston, Massachusetts are generally serviced by local, independent companies.

Hamilton's legal department handles most of the Partnership's eviction and
collection matters. Additionally, it prepares most long-term commercial lease
agreements and represents the Partnership in selected purchase and sale
transactions. Overall, Hamilton provided approximately $107,000 (81.6%) and
approximately $59,000 (67.5%) of the legal services paid for by the Partnership
during the six months ended June 30, 2022 and 2021 respectively.

In addition, as described in Note 3 to the consolidated financial statements, the Hamilton Company receives similar fees from Investment Properties.

The Partnership requires that three bids be obtained for construction contracts
in excess of $15,000. Hamilton may be one of the three bidders on a particular
project and may be awarded the contract if its bid and its ability to



successfully complete the project are deemed appropriate. For contracts that are
not awarded to Hamilton, Hamilton charges the Partnership a construction
supervision fee equal to 5% of the contract amount. Hamilton's architectural
department also provides services to the Partnership on an as-needed basis.
During the six months ended June 30, 2022, Hamilton provided the Partnership
approximately $42,000 in construction and architectural services, compared to
approximately $302,000 for the six months ended June 30, 2021.

Hamilton's accounting staff perform bookkeeping and accounting functions for the
Partnership. During the six months ended June 30, 2022 and 2021, Hamilton
charged the Partnership $62,500 for bookkeeping and accounting services. For
more information on related party transactions, see Note 3 to the Consolidated
Financial Statements.


The preparation of the consolidated financial statements, in accordance with
accounting principles generally accepted in the United States of America,
requires the Partnership to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses and related
disclosures of contingent assets and liabilities. The Partnership regularly and
continually evaluates its estimates, including those related to acquiring,
developing and assessing the carrying values of its real estate properties and
its investments in and advances to joint ventures. The Partnership bases its
estimates on historical experience, current market conditions, and on various
other assumptions that are believed to be reasonable under the circumstances.
However, because future events and their effects cannot be determined with
certainty, the determination of estimates requires the exercise of judgment. The
Partnership's critical accounting policies are those which require assumptions
to be made about such matters that are highly uncertain. Different estimates
could have a material effect on the Partnership's financial results. Judgments
and uncertainties affecting the application of these policies and estimates may
result in materially different amounts being reported under different conditions
and circumstances. See Note 1 to the Consolidated Financial Statements,
Principles of Consolidation.

Revenue Recognition: Rental income from residential and commercial properties is
recognized over the term of the related lease. For residential tenants, amounts
60 days in arrears are charged against income. The commercial tenants are
evaluated on a case by case basis. Certain leases of the commercial properties
provide for increasing stepped minimum rents, which are accounted for on a
straight-line basis over the term of the lease. Revenue from commercial leases
also include reimbursements and recoveries received from tenants for certain
costs as provided in the lease agreement. The costs generally include real
estate taxes, utilities, insurance, common area maintenance and recoverable
costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially
recorded based on the present value (using a discount rate which reflects the
risks associated with the leases acquired) of the differences between (i) the
contractual amounts to be paid pursuant to each in-place lease and
(ii) management's estimate of fair market lease rates for each corresponding
in-place lease, measured over a period equal to the remaining term of the lease
for above-market leases and the initial term plus the term of any below-market
fixed-rate renewal options for below-market leases. The capitalized above-market
lease amounts are accounted for as a reduction of base rental revenue over the
remaining term of the respective leases, and the capitalized below-market lease
values are amortized as an increase to base rental revenue over the remaining
initial terms plus the terms of any below-market fixed-rate renewal options of
the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that
include common area maintenance services) with related lease components (lease
revenues). If both the timing and pattern of transfer are the same for the
non-lease component and related lease component, the lease component is the
predominant component. The Partnership elected an allowed practical expedient.
For (i) operating lease arrangements involving real estate that include common
area maintenance services and (ii) all real estate arrangements that include
real estate taxes and insurance costs, we present these amounts within lease
revenues in our consolidated statements of income. We record amounts reimbursed
by the lessee in the period in which the applicable expenses are incurred.

Rental Property Held for Sale: When assets are identified by management as held
for sale, the Partnership discontinues depreciating the assets and estimates the
sales price, net of selling costs, of such assets. The Partnership generally
considers assets to be held for sale when the transaction has received
appropriate corporate authority, and there are no significant contingencies
relating to the sale. If, in management's opinion, the estimated net sales
price, net of


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selling costs, assets that have been identified as held for sale is less than the carrying amount of the assets, a valuation allowance is made.

If circumstances arise that previously were considered unlikely and, as a
result, the Partnership decides not to sell a property previously classified as
held for sale, the property is reclassified as held and used. A property that is
reclassified is measured and recorded individually at the lower of (a) its
carrying value before the property was classified as held for sale, adjusted for
any depreciation (amortization) expense that would have been recognized had the
property been continuously classified as held and used, or (b) the fair value at
the date of the subsequent decision not to sell.

Rental Properties: Rental properties are stated at cost less accumulated
depreciation. Maintenance and repairs are charged to expense as incurred;
improvements and additions are capitalized. When assets are retired or otherwise
disposed of, the cost of the asset and related accumulated depreciation is
eliminated from the accounts, and any gain or loss on such disposition is
included in income. Fully depreciated assets are removed from the accounts.
Rental properties are depreciated by both straight-line and accelerated methods
over their estimated useful lives. Upon acquisition of rental property, the
Partnership estimates the fair value of acquired tangible assets, consisting of
land, building and improvements, and identified intangible assets and
liabilities assumed, generally consisting of the fair value of (i) above and
below market leases, (ii) in-place leases and (iii) tenant relationships. The
Partnership allocated the purchase price to the assets acquired and liabilities
assumed based on their fair values. The Partnership records goodwill or a gain
on bargain purchase (if any) if the net assets acquired/liabilities assumed
exceed the purchase consideration of a transaction. In estimating the fair value
of the tangible and intangible assets acquired, the Partnership considers
information obtained about each property as a result of its due diligence and
marketing and leasing activities, and utilizes various valuation methods, such
as estimated cash flow projections utilizing appropriate discount and
capitalization rates, estimates of replacement costs net of depreciation, and
available market information. The fair value of the tangible assets of an
acquired property considers the value of the property as if it were vacant.

Intangible assets acquired include amounts for in-place lease values above and
below market leases and tenant relationship values, which are based on
management's evaluation of the specific characteristics of each tenant's lease
and the Partnership's overall relationship with the respective tenant. Factors
to be considered by management in its analysis of in-place lease values include
an estimate of carrying costs during hypothetical expected lease-up periods
considering current market conditions, and costs to execute similar leases at
market rates during the expected lease-up periods, depending on local market
conditions. In estimating costs to execute similar leases, management considers
leasing commissions, legal and other related expenses. Characteristics
considered by management in valuing tenant relationships include the nature and
extent of the Partnership's existing business relationships with the tenant,
growth prospects for developing new business with the tenant, the tenant's
credit quality and expectations of lease renewals. The value of in-place leases
are amortized to expense over the remaining initial terms of the respective
leases. The value of tenant relationship intangibles are amortized to expense
over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a
rental property may be impaired, an analysis of the value is prepared. The
estimated future undiscounted cash flows are compared to the asset's carrying
value to determine if a write-down to fair value is required.

Impairment: On an annual basis management assesses whether there are any
indicators that the value of the Partnership's rental properties may be
impaired. A property's value is impaired only if management's estimate of the
aggregate future cash flows (undiscounted and without interest charges) to be
generated by the property is less than the carrying value of the property. To
the extent impairment has occurred, the loss shall be measured as the excess of
the carrying amount of the property over the fair value of the property. The
Partnership's estimates of aggregate future cash flows expected to be generated
by each property are based on a number of assumptions that are subject to
economic and market uncertainties including, among others, demand for space,
competition for tenants, changes in market rental rates, and costs to operate
each property. As these factors are difficult to predict and are subject to
future events that may alter management's assumptions, the future cash flows
estimated by management in its impairment analyses may not be achieved.

Investments in Joint Ventures: The Partnership accounts for its 40%-50%
ownership in the Investment Properties under the equity method of accounting, as
it exercises significant influence over, but does not control these entities.
These investments are recorded initially at cost, as Investments in Joint
Ventures, and subsequently adjusted for the Partnership's share in earnings,
cash contributions and distributions. Under the equity method of accounting, our
net equity is reflected on the consolidated balance sheets, and our share of net
income or loss from the Partnership is included on the consolidated statements
of income. Generally, the Partnership would discontinue applying the equity



method when the investment (and any advances) is reduced to zero and would not
provide for additional losses unless the Partnership has guaranteed obligations
of the venture or is otherwise committed to providing further financial support
for the investee. If the venture subsequently generates income, the Partnership
only recognizes its share of such income to the extent it exceeds its share of
previously unrecognized losses. We intend to fund our share of the investments'
future operating deficits should the need arise. However, we have no legal
obligation to pay for any of the liabilities of such investments nor do we have
any legal obligation to fund operating deficits.

The authoritative guidance on consolidation provides guidance on the
identification of entities for which control is achieved through means other
than voting rights ("variable interest entities" or "VIEs") and the
determination of which business enterprise, if any, should consolidate the VIE
(the "primary beneficiary"). Generally, the consideration of whether an entity
is a VIE applies when either (1) the equity investors (if any) lack one or more
of the essential characteristics of a controlling financial interest, (2) the
equity investment at risk is insufficient to finance that equity's activities
without additional subordinated financial support or (3) the equity investors
have voting rights that are not proportionate to their economic interests and
the activities of the entity involve or are conducted on behalf of an investor
with a disproportionately small voting interest. The primary beneficiary is
defined by the entity having both of the following characteristics: (1) the
power to direct the activities that, when taken together, most significantly
impact the variable interest entity's performance; and (2) the obligation to
absorb losses and rights to receive the returns from VIE that would be
significant to the VIE.

With respect to investments in and advances to the Investment Properties, the
Partnership looks to the underlying properties to assess performance and the
recoverability of carrying amounts for those investments in a manner similar to
direct investments in real estate properties. An impairment charge is recorded
if management's estimate of the aggregate future cash flows (undiscounted and
without interest charges) to be generated by the property is less than the
carrying value of the property.

Legal Proceedings: The Partnership is subject to various legal proceedings and
claims that arise, from time to time, in the ordinary course of business. These
matters are frequently covered by insurance. If it is determined that a loss is
likely to occur, the estimated amount of the loss is recorded in the financial
statements. Both the amount of the loss and the point at which its occurrence is
considered likely can be difficult to determine.


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Three months completed June 30, 2022 and June 30, 2021

The Partnership and its Subsidiary Partnerships earned income before interest
expense, income from investments in unconsolidated joint ventures, other expense
of approximately $4,611,000 during the three months ended June 30, 2022,
compared to approximately $4,187,000 for the three months ended June 30, 2021,
an increase of approximately $424,000 (10.1%).

The rental activity is summarized as follows:

                              Occupancy Date
                     August 1, 2022    August 1, 2021
Units                         2,911             2,911
Vacancies                        58                97
Vacancy rate                    2.0 %             3.3 %
Total square feet           108,043           108,043
Vacancy                      20,274            12,890
Vacancy rate                   18.8 %            11.9 %

                                          Rental Income (in thousands)
                                          Three Months Ended June 30,
                                      2022                            2021
                             Total         Continuing        Total         Continuing
                           Operations      Operations      Operations      Operations
Total rents               $     16,826    $     16,826    $     15,333    $     15,333
Residential percentage              94 %            95 %            94 %            94 %
Commercial percentage                6 %             5 %             6 %             6 %
Contingent rentals        $        263    $        263    $        290    $        290


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Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021:

                                               Three Months Ended June 30,        Dollar       Percent
                                                  2022             2021           Change        Change
Rental income                                $   16,825,737    $  15,333,216    $ 1,492,521        9.7%
Laundry and sundry income                           106,191         

114,128 (7,937) (7.0%)

                                                 16,931,928       15,447,344      1,484,584        9.6%
Administrative                                      623,877          559,818         64,059       11.4%
Depreciation and amortization                     4,076,597        3,943,664        132,933        3.4%
Management fee                                      672,370          616,348         56,022        9.1%
Operating                                         1,522,250        1,407,646        114,604        8.1%
Renting                                             150,943          221,275       (70,332)     (31.8%)
Repairs and maintenance                           2,974,734        2,334,403        640,331       27.4%
Taxes and insurance                               2,300,235        2,176,958        123,277        5.7%
                                                 12,321,006       11,260,112      1,060,894        9.4%
Income Before Other Income (Expense)              4,610,922        4,187,232        423,690       10.1%
Other Income (Expense)
Interest income                                          32               25              7       28.0%
Interest expense                                (3,623,714)      (3,378,942)      (244,772)        7.2%
Income from investments in unconsolidated
joint ventures                                       90,283        (238,424)        328,707    (137.9%)
Other Income (Expense)                            (834,538)                -      (834,538)      100.0%
                                                (4,367,937)      (3,617,341)      (750,596)       20.7%
Net Income                                   $      242,985    $    

569,891 $(326,906) (57.4%)

Rental income for the three months ended June 30, 2022 was approximately
$16,826,000, compared to approximately $15,333,000 for the three months ended
June 30, 2021, an increase of approximately $1,493,000 (9.7%). The Partnership
properties with the largest increases in rental income include 62 Boylston, 1144
Commonwealth, Westgate Apartments, Hamilton Green, and Mill Street Gardens with
increases of $619,000, $184,000, $123,000, $89,000 and $82,000 respectively.
Included in rental income is contingent rentals collected on commercial
properties. Contingent rentals include such charges as bill backs of common area
maintenance charges, real estate taxes, and utility charges.

Operating expenses for the three months ended June 30, 2022 were approximately
$12,321,000 compared to approximately $11,260,000 for the three months ended
June 30, 2021, an increase of approximately $1,061,000 (9.4%), The factors
contributing to the increase are an increase in repairs and maintenance of
approximately $640,000 (27.4%), primarily due to an increase in the renovation
of apartments, an increase in depreciation and amortization of approximately
$133,000 (3.4%), and an increase in taxes and insurance of approximately
$123,000 (5.7%).

Interest expense for the three months ended June 30, 2022 was approximately
$3,624,000 compared to approximately $3,379,000 for the three months ended
June 30, 2021, an increase of approximately $245,000 (7.2 %). The increase is
due to the refinancing of properties, increasing the amount of the debt, which
increased the interest expense for the period.

At June 30, 2022, the Partnership has between a 40% and 50% ownership interests
in seven different Investment Properties. See a description of these properties
included in the section titled Investment Properties as well as Note 14 to the
Consolidated Financial Statements for a detail of the financial information of
each Investment Property.

As described in Note 14 to the Consolidated Financial Statements, the
Partnership's share of the net income from the Investment Properties was
approximately $90,000 for the three months ended June 30, 2022, compared to a
net loss of approximately $238,000 for the three months ended June 30, 2021, an
increase in income of approximately $329,000 (137.9%). This increase is
primarily due to an increase in rental revenue to approximately $2,471,000 from
$2,142,000, an increase of approximately $329,000 (15.4 %) for the three months
ended June 30, 2022 compared to the three months ended June 30, 2021. Included
in the income for the three months ended June 30, 2022 is depreciation and
amortization expense of approximately $656,000.



On November 30, 2021, the Partnership entered into a Master Credit Facility
Agreement (the "Facility Agreement") with KeyBank National Association
("KeyBank") dated as of November 30, 2021, with an initial advance in the amount
of $156,000,000. Interest only on the debt at a fixed interest rate of 2.97% is
payable on a monthly basis through December 31, 2031.

On June 16, 2022, the Partnership entered into an amendment to the Facility
Agreement. The additional advance under the Amended Agreement is in the amount
of $80,284,000, at a fixed interest rate of 4.33%. The Partnership's obligations
under the Facility Agreement are secured by mortgages on certain properties
pursuant to certain Mortgage, Assignment of Leases and Rents, and Security
Agreement and Fixture Filings.

The Partnership used the proceeds to repay approximately $37,065,000 of existing debt secured by four properties, as well as approximately $854,000 in prepayment penalties, which are included in other expenses. The remaining balance of approximately $42,384,000 will be used for general partnership purposes.

Due to the changes mentioned above, the net profit for the three months ended June 30, 2022 was approximately $243,000 compared to a net result of approximately $570,000 for the three months ended June 30, 2021a drop in revenue of approximately $327,000 (57.4%).

Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021:

The Partnership and its Subsidiary Partnerships earned income before interest
expense, income from investments in unconsolidated joint ventures, and other
expense of approximately $8,388,000 during the six months ended June 30, 2022,
compared to approximately $7,582,000 for the six months ended June 30, 2021, an
increase of approximately $806,000 (10.6%).

                                               Six Months Ended June 30,         Dollar       Percent
                                                 2022             2021           Change        Change
Rental income                                $  33,285,743    $  30,313,332    $ 2,972,411        9.8%
Laundry and sundry income                          226,593          222,801          3,792        1.7%
                                                33,512,336       30,536,133      2,976,203        9.7%
Administrative                                   1,331,663        1,212,004        119,659        9.9%
Depreciation and amortization                    8,097,365        7,849,582        247,783        3.2%
Management fee                                   1,345,454        1,221,739        123,715       10.1%
Operating                                        4,198,458        3,453,614        744,844       21.6%
Renting                                            320,332          483,241      (162,909)     (33.7)%
Repairs and maintenance                          5,254,385        4,304,490        949,895       22.1%
Taxes and insurance                              4,576,808        4,429,092        147,716        3.3%
                                                25,124,465       22,953,762      2,170,703        9.5%
Income Before Other Income ( Expense)            8,387,871        7,582,371
       805,500       10.6%
Other Income (Expense)
Interest income                                         61               46             15       32.6%
Interest (expense)                             (7,078,349)      (6,743,111)      (335,238)        5.0%
Income from investments in unconsolidated
joint ventures                                     110,351        (563,595)        673,946    (119.6%)
Other (Expense) Income                           (834,533)                -      (834,533)      100.0%
                                               (7,802,470)      (7,306,660)      (495,810)        6.8%
Net Income                                   $     585,401    $     275,711    $   309,690      112.3%

Rental income for the six months ended June 30, 2022 was approximately
$33,285,000, compared to approximately $30,313,000 for the six months ended June
30, 2021, an increase of approximately $2,972,000 (9.8%). Included in rental
income is contingent rentals collected on commercial properties. The Partnership
properties with the largest increases in rental income include 62 Boylston, 1144
Commonwealth, Westgate Apartments, Hamilton Green, and Mill Street Gardens, with
increases of $1,069,000, $281,000, $182,000, $160,000 and $154,000 respectively.


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Rental income includes contingent rents received from commercial properties. Contingent rents include charges such as common area maintenance chargebacks, property taxes, and utility fees.

Operating expenses for the six months ended June 30, 2022 were approximately
$25,124,000 compared to approximately $22,954,000 for the six months ended June
30, 2021, an increase of approximately $2,170,000 (9.5%), primarily due to an
increase in the refurbishment of apartments, and an increase in snow removal
expense during the winter. The factors contributing to this net increase are an
increase in repairs and maintenance expenses of approximately $950,000 (22.1%),
an increase in operating expense of approximately $745,000 (21.6%), and an
increase in depreciation and amortization of approximately $248,000 (3.2%).

Interest expense for the six months ended June 30, 2022 was approximately
$7,078,000 compared to approximately $6,743,000 for the six months ended June
30, 2021, an increase of approximately $335,000 (5.0%). The increase is due to
the refinancing of properties, increasing the amount of debt, which increased
the interest expense for the period.

At June 30, 2022, the Partnership has between a 40% and 50% ownership interests
in seven different Investment Properties. See a description of these properties
included in the section titled Investment Properties as well as Note 14 to the
Consolidated Financial Statements for a detail of the financial information of
each Investment Property.

As described in Note 14 to the Consolidated Financial Statements, the
Partnership's share of the net income from the Investment Properties was
approximately $110,000 for the six months ended June 30, 2022, compared to a net
loss of approximately $564,000 for the six months ended June 30, 2021, an
increase in income of approximately $674,000 (119.6%). This increase is
primarily due to an increase in rental revenue of approximately $ 4,901,000 for
the six months ended June 30, 2022 from approximately $4,215,000 for the six
months ended June 30, 2021, an increase of approximately $686,000 (16.3 %).
Included in the income for the six months ended June 30, 2022 is depreciation
and amortization expense of approximately $1,309,000.

On November 30, 2021, the Partnership entered into a Master Credit Facility
Agreement (the "Facility Agreement") with KeyBank National Association
("KeyBank") dated as of November 30, 2021, with an initial advance in the amount
of $156,000,000. Interest only on the debt at a fixed interest rate of 2.97% is
payable on a monthly basis through December 31, 2031.

On June 16, 2022, the Partnership entered into an amendment to the Facility
Agreement. The additional advance under the Amended Agreement is in the amount
of $80,284,000, at a fixed interest rate of 4.33%. The Partnership's obligations
under the Facility Agreement are secured by mortgages on certain properties
pursuant to certain Mortgage, Assignment of Leases and Rents, and Security
Agreement and Fixture Filings.

The Partnership used the proceeds to repay approximately $37,065,000 of existing debt secured by four properties, as well as approximately $854,000 in prepayment penalties, which are included in other expenses. The remaining balance of approximately $42,384,000 will be used for general partnership purposes.

As a result of the changes discussed above, net income for the six months ended
June 30, 2022 was approximately $585,000 compared to income of approximately
$276,000 for the six months ended June 30, 2021, an increase in net income of
approximately $309,000 (112.3%).




The Partnership's principal source of cash during the first six months of 2022
and 2021 was the proceeds from the refinancing of 4 properties for approximately
$41,000,000 and the collection of rents. The majority of cash and cash
equivalents of $132,631,027 at June 30, 2022 and $96,083,508 at December 31,
2021 were held in interest bearing accounts at creditworthy financial

The increase in cash of $36,547,519 for the six months ended June 30, 2022 is
summarized as follows:

                                                               Six Months Ended June 30,
                                                                 2022             2021
Cash provided by operating activities                        $   7,452,286    $   9,168,975
Cash (used in) investing activities                              (978,339) 


Cash provided by (used in) financing activities                 40,739,128 


Repurchase of Depositary Receipts, Class B and General
Partner Units                                                  (3,688,961)                -
Distributions paid                                             (6,976,595) 


Net increase in cash and cash equivalents                    $  36,547,519 


The change in cash provided by operating activities is due to various factors,
including a change in depreciation expense, a change in income and distribution
from joint ventures, and other factors. The decrease in cash used in investing
activities is primarily due to improvements to rental properties. The change in
cash used in financing activities is due to the refinancing of 4 properties, the
pay down of mortgages, the repurchase of depositary receipts, and distributions

During 2022, the Partnership and its Subsidiary Partnerships have completed
improvements to certain of the Properties at a total cost of approximately
$2,113,000. These improvements were funded from cash reserves. Cash reserves
have been adequate to fully fund improvements. The most significant improvements
were made at Westside Colonial, Hamilton Green, Hamilton Oaks, Old English
Village, 62 Boylston, and Redwood Hills at a cost of approximately $250,000,
$243,000, $187,000, $184,000, $180,000 and $180,000 respectively.

In the six months ended June 30, 2022the Partnership received distributions of approximately $1,208,000 investment properties. For the six months ended June 30, 2021the Partnership received $419,000 in distributions from investment properties. These net distributions include the amount of Dexter Park of about $840,000 and
$80,000 for the six months ended June 30, 2022 and 2021, respectively.

In January 2022, the Partnership approved a quarterly distribution of $9.60 per
Unit ($0.32 per Receipt), which was paid on March 31, 2022. In addition to the
quarterly distribution, there was a special distribution of $38.40 per Class A
unit ($1.28 per Receipt) payable on March 31, 2022. In April 2022, the
Partnership approved a quarterly distribution of $9.60 per Unit ($0.32 per
Receipt), which was paid on June 30, 2022.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000
revolving line of credit. The term of the line was for three years with a
floating interest rate equal to a base rate of the greater of (a) the Prime Rate
(b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the
LIBOR Rate for a period of one month plus 1% per annum, plus the applicable
margin of 2.5%. The agreement originally expired on July 31, 2017 and was
extended until October 31, 2020. The costs associated with the line of credit
extension in 2017 were approximately $128,000. Prior to the line's expiration in
2020, the Partnership exercised its option for a one-year extension until
October 31, 2021. The Partnership paid an extension fee of approximately $37,500
in association with the extension. The Partnership agreed to terms with the
lender on October 29, 2021, to extend the line of credit until October 29, 2024.
On December 3,

2021, the Partnership paid the line.

The Partnership anticipates that cash from operations will be sufficient to fund
its current operations, pay distributions, make required debt payments and
finance current improvements to its properties. The Partnership may also sell or
refinance properties. The Partnership's net income and cash flow may fluctuate
dramatically from year to year as a result of the sale or refinancing of
properties, property improvements, increases or decreases in rental income or
expenses, or the loss of significant tenants.



Off-Balance Sheet Arrangements – Joint Venture Indebtedness

As of June 30, 2022, the Partnership had a 40%-50% ownership interest in seven
Joint Ventures, five of which have mortgage indebtedness. We do not have control
of these partnerships and therefore we account for them using the equity method
of consolidation. At June 30, 2022, our proportionate share of the non-recourse
debt related to these investments was approximately $70,863,000. See Note 14 to
the Consolidated Financial Statements.


  Table of Contents

Contractual Obligations

From June 30, 2022we are subject to contractual payment obligations as described in the table below.

                                                 Payments due by period

                                     2023           2024           2025           2026          2027        Thereafter         Total

Contractual Obligations

Long -term debt
Mortgage debt                    $ 8,478,560      2,719,180      3,082,194 

21,870,220 6,500,886,372 559,664 $415,210,704
Total contractual obligations $8,478,560 $2,719,180 $3,082,194

$21,870,220 $6,500,886 $372,559,664 $415,210,704

*Excluding unamortized deferred financing costs

We have various standing or renewable service contracts with vendors related to
our property management. In addition, we have certain other contracts we enter
into in the ordinary course of business that may extend beyond one year. These
contracts are not included as part of our contractual obligations because they
include terms that provide for cancellation with insignificant or no
cancellation penalties.

See notes 5 and 14 to the consolidated financial statements for a description of mortgage notes payable. The Partnerships have no other material contractual obligations to disclose.

Factors That May Affect Future Results

Along with risks detailed in Item 1A of the Partnership's Form 10-K for the
fiscal year ended December 31, 2021 filed with the Securities and Exchange
Commission on March 11, 2022 and from time to time in the Partnership's other
filings with the Securities and Exchange Commission, some factors that could
cause the Partnership's actual results, performance or achievements to differ
materially from those expressed or implied by forward looking statements include
but are not limited to the following:

The Company is dependent on the real estate markets where its properties are

? located mainly in Eastern Massachusettsand these markets may be adversely

   affected by local economic market conditions, which are beyond the
   Partnership's control.

The Partnership is subject to general economic risks affecting the reality

? the real estate industry, such as the dependence on the financial situation of tenants, the need

enter into new leases or renew leases on terms favorable to tenants in order to

generate rental income and our ability to collect rent from our tenants.

The Partnership is also affected by changing economic conditions, which

more or less attractive alternative housing options for

? tenants, such as interest rates on single family home mortgages and

availability and purchase price of single-family homes in the Greater Boston

Metropolitan area.

The Partnership is subject to significant expenses associated with each

? investments, such as debt service payments, property taxes, insurance and

maintenance costs, which are generally not reduced when circumstances cause a

reduction in property income.

The Partnership is subject to increases in heating and utility costs which may

? occur due to economic and market conditions and fluctuations

seasonal weather conditions.

? Civil unrest, earthquakes and other natural disasters can cause

uninsured or underinsured losses.

? Actual or imminent terrorist attacks may impair our ability to

generate revenue and the value of our properties.


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? Financing or refinancing of Partnership properties may not be available for the

necessary or desirable, or may not be available on favorable terms.

The Partnership’s properties face competition from similar properties in the same

? market. This competition may affect the Partnership’s ability to attract and

retain tenants and can reduce the rents that can be charged.

Given the nature of the real estate business, the Partnership is subject to

potential environmental liabilities. These include environmental contamination

in the soil of the limited partnership or neighboring real estate, whether caused by

? the limited partnership, the former owners of the property in question or the neighbors of the

property in question, and the presence of hazardous materials in the

buildings, such as asbestos, lead, mold and radon. Management is unaware

of any significant environmental liability at the present time.

Insurance coverage for and relating to commercial properties is increasingly

expensive and difficult to obtain. In addition, insurers have excluded

certain specific elements of the standard insurance policies, which resulted in

? increased risk to the Partnership. These include insurance coverage

for acts of terrorism and war, and coverage for mold and other

conditions. Coverage for these items is either unavailable or prohibitive


? Market interest rates could adversely affect market prices for Class A

Limited partnership units and certificates of deposit as well as performance and cash flow.

Changes in income tax laws and regulations may affect taxable income

? Partnership owners. These changes may affect the after-tax value of

future distributions.

The Partnership may not identify, acquire, build or develop other

Properties; may develop or acquire properties that do not produce a desired result or

? the expected return on invested capital; may be unable to sell poorly performing products or

otherwise undesirable properties quickly; or fail to effectively integrate

acquisitions of buildings or portfolios of buildings.

? Risk related to the use of debt to finance acquisitions and developments.

? Competition for acquisitions can cause property prices to rise.

Any weaknesses identified in the Partnership’s internal controls as part of the

? the ongoing evaluation could have a negative effect on the


? Ongoing compliance with the Sarbanes-Oxley Act of 2002 may require

personnel or system changes.

The foregoing factors should not be construed as exhaustive or as an admission
regarding the adequacy of disclosures made by the Partnership prior to the date
hereof or the effectiveness of said Act. The Partnership expressly disclaims any
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise.

© Edgar Online, source Previews

RadCred launches contactless lending platform for bad loans


GLENDALE, Calif., Aug. 05, 2022 (GLOBE NEWSWIRE) — RadCred, a lending intermediary, is launching its contactless lending platform for problem loans. Since its inception, RadCred has become one of the top choices for people applying for short-term loans due to its fast and hassle-free services.

RadCred functions as a conduit or link between potential borrowers and leading lenders in the industry. People with credit scores below 575 or with a limited credit history are also eligible to avail RadCred payday loans for bad credit.

Choosing a lender is a hard line to hoe. It’s very tangled with multiple formalities and checkpoints that become cumbersome. With RadCred, borrowers can use their bad loans to cover various expenses, such as debt consolidation, auto loans, medical bills, and home repairs. Plus, they offer the cheapest mortgage rates in this space and can use them to meet short-term financial needs while boosting credit rating.

RadCred was founded with the idea of ​​forming a bridge between potential lenders and borrowers to facilitate the transaction of loans easily. The financial experts on the team have put together a simple and easy process to connect both parties and provide a secure transaction. RadCred is a top choice among Americans due to the presence of lenders that offer lower interest rates than traditional lenders. Choosing to be matched with the local lender makes it less onerous for the customer to pay the amount borrowed.

RadCred has built its reputation locally and globally and relies on millions of Americans to pay emergency funds, medical bills, student loans, and more. The company’s customer base is growing rapidly due to the fast services that provide money transfer within 24 hours. The loan application process is simple. A small form confirming some essential details has to be filled in and within seconds potential lenders can be chosen as per convenience.

Cybercrime, including data breaches, is now the top financial crime. Increasing dependence on digitalization, nearly 55% of the population relies on online tools for their credit needs. Therefore, security plays an important role in online platforms as data breach is possible, but RadCred ensures that its users remain free from any potential threat. Additionally, RadCred recently announced its security upgrade by integrating 2048-bit RSA protection on the website. This will ensure that valuable data of users applying for personal loans is safeguarded.

Speaking about the company’s recent development, the CXO added, “Our customers have trusted us with all their personal data and credentials and we are trying to meet their expectations. With the help of diligent cybersecurity analysts , we have built a security-enhanced contactless lending platform for bad loans.The company looks forward to assisting its customers with our 24/7 customer service.We are here to help our customers with any moment.”

About RadCred

RadCred is an online platform trusted by millions of Americans that connects lenders and borrowers under one roof for a hassle-free transaction. RadCred, however, is not directly involved in the loan process.

Since every four in 10 Americans need more than $400 in an emergency, it becomes all the more difficult for people to engage in traditional loan seeking facilities as this does not guarantee an instant transfer of money to their account. RadCred ensures you can pay for emergency services, vacations, medical bills, student loans, and more by allowing borrowed money to be transferred within 24 hours.

With the ease of local lenders present on RadCred, it becomes all the easier to apply for the loan and pay a lower interest rate compared to other lending platforms in the market. However, matching with a local lender is not always guaranteed. However, there are specific requirements needed to be matched with a local lender, but one can apply through the method recommended by the company.

Contact details:
[email protected]

Worried about your finances as interest rates rise? Here’s what to do.


Last week, the Federal Reserve raised interest rates for the fourth time this year, hoping to slow economic growth and reduce inflation. But what do these rate hikes mean for the average consumer — especially women and minorities — who have been hardest hit during the pandemic?

Over the past two and a half years, women have left the workforce in droves and their jobs have still not fully recovered. According to the Bureau of Labor Statistics, women lacked nearly 400,000 jobs in June compared to February 2020.

A quarter of mothers said they had reduced hours or not worked at all due to interruptions in childcare during the pandemic, leading to significant financial losses, according to the Federal Reserve.

Professor Paula Cole, an economist at the University of Denver who focuses on gender and inequality, told Know Your Value that the financial gap already present between men and women could impact women’s ability ride out those rate hikes and borrow money.

“Women tend to end up with higher interest rates when they borrow money because they’re not as financially stable due to these wealth and income disparities,” he said. she declared. “And so already they are facing slightly higher interest rates than their male counterparts, regardless of income level.”

Although there has been generational progress in closing the gender wage gap across the country, this growth has stalled amid the rising cost of living, the ongoing pandemic and economic consequences. conflicts at large, according to the World Economic Forum.

Additionally, if the economy doesn’t slow in response to rate hikes — especially the job market — Cole said it could have a disproportionately negative impact on women.

“Again, because of the wealth gap between incomes, it’s just harder for women to prepare for being laid off, because they’re less likely to have savings in the first place,” he said. -she explains. “'[This is] because of the type of work they do, the gender wage gap, the care responsibilities they have at home for children and the elderly.

With the potential for at least one more interest rate hike looming in September, here are some key tips to help blunt the heat of rising prices in the fall:

Now is the time to know – and pay – what you owe.

With the cost of borrowing only to rise as inflation remains at a 40-year high, credit expert Sara Rathner of NerdWallets says it’s imperative that women rule their budgets .

“This can help you, first, identify expenses that you can quite easily cut from your budget without really noticing and free up your cash flow… [to] help you understand, how to choose to spend money? she said Know your worth. “Sometimes it can be swapping one habit for another and that can make a big difference over time.”

NBC News senior business analyst and MSNBC host Stephanie Ruhle recommended prioritizing debt first — including paying off credit cards in full, not just interest payments. “You want to try to take control of your finances and know what you owe,” she said. “Write everything down and try to start cutting it down.”

Rathner said this is especially important for women, who tend to have lower credit scores than men, according to a Federal Reserve study. “It could be as simple as making sure you pay every bill on time every month, including rent, utilities, credit card payments and other loan payments,” she said.

Take advantage of the hot job market.

Ruhle added that now is the time to re-enter the workforce — or move on — while the labor market is still hot. This way, women can reap its benefits before higher interest rates potentially slow business growth.

“While everything is going well – getting a new job, asking for more money, asking your boss for more – just do it,” she said. “It’s a good time to be the worker, not necessarily the employer,”

Explore other options.

In a time when there is so much economic uncertainty, it can sometimes be difficult to know what financial action – if any – to take next. The good news is that you have other options.

Rathner and Bankrate.com analyst Sarah Foster recommended looking into a balance transfer card with zero percent interest, depending on your situation. “Obviously you need to compare the transfer fees for that balance, but if you have a large enough balance, that might help,” Foster explained.

Use higher interest rates to your advantage.

Yes, there is a silver lining amid soaring interest rates: savings accounts are becoming more valuable! When rates rise, these types of accounts benefit, especially high yield ones.

“If you have a checking savings account, find out what interest rate it pays, what annual percentage yield (APY) you’re getting out of that account, and see if there’s anything wrong with it. better because it’s so quick and easy to apply for a new bank account,” Rathner said. “It can make a really big difference in how much money you earn through interest each year.”

Be proactive, not reactive.

While this time can be stressful and anxiety-provoking, Rathner said it’s not wise to make big financial or financial decisions in an emotional frame of mind.

“It is important not to hear this news and assume the sky is falling on us. Because if you operate on that assumption and you’re anxious all the time, it’s actually going to have quite a negative effect on your decision-making,” she said.

Likewise, Ruhle advised female consumers to be proactive, not reactive in these difficult economic times.

treating masks like umbrellas can help us cope with future pandemics


Fortunately, the UK now appears to have passed the peak of the recent heat wave and the last wave COVID. But there will be more of both – and in the future, we might think about how we protect ourselves from COVID the same way we protect ourselves from bad weather.

An umbrella is a useful analogy. If we look out the window or check the weather forecast and see rain, we’ll probably take an umbrella with us. Likewise, if COVID cases start to rise or a new wave is predicted, we might consider picking up a face mask, for example.

When cases increase, we can make small changes to our behavior. Jaromir Chalabala/Shutterstock

But just as we don’t need to carry an umbrella with us when the weather is nice, we don’t need to wear masks all the time. Of course, some people may choose to wear masks more consistently in certain settings, while others may forego wearing them altogether. This is the nature of the current phase of the pandemic that we find ourselves in, much of which is based on personal choice and responsibility.

Thanks in large part to the impact of vaccines, we no longer need the kind of rules-based risk management approach we saw earlier in the pandemic. But the overall analogy can guide our behavior and our choices in various areas of our response in the future. Beyond masks, these include testing, ventilation and social distancing.

The idea is that we can take or step up precautions when we need them most (when COVID cases are on the rise), before easing them, if we want, when infection rates and risks are weaker.

What might this look like in practice?

Let’s say we start to see COVID cases increase again in the fall. It’s a distinct possibility.

It then becomes even more important to pass a test if we have any symptoms that could be related to COVID. This will help inform our decision to minimize contact with others and to what extent.

Isolation is no longer a legal requirement, and I believe it should remain so. However, if possible, staying home while we feel unwell is a sensible and considerate thing to do, especially when COVID rates are high.

Distancing must also remain a choice. But during a surge of infections, people may wish to maintain more distance between themselves and others in stores, or may choose to avoid crowded places.

Go back on masks, when cases start to increase, the risk of contracting and transmitting COVID also increases, so masks become a more useful and reasonable precaution. They can be particularly useful in certain circumstances – for example, if someone is feeling unwell but cannot self-isolate, when visiting vulnerable people or in crowded indoor spaces.

Opening the windows even a little can increase the fresh air inside and also help reduce the likelihood to transmit the virus.

Finally, the number of people in the UK who have had a COVID booster vaccine is considerably lower than the number who received their first and second doses. We know that immunity to vaccines wanes and boosters restore vaccine effectiveness. So if we’re starting to see an increase in cases, or if we’re looking at future wavesit would make sense for people who are behind on their vaccines to get up to speed.

Testing becomes more important during a wave of COVID. Dragana Gordic/Shutterstock

Shared responsibility

It’s been a year since England “freedom day”, when most legal COVID measures were removed. But the pandemic is far from over. In addition to the high number of daily infections, long COVID is very common, and the pressure on the NHS is always unsustainable.

In a recent article from British medical journalProfessor Susan Michie and I reflected on some of the lessons we have learned over the past year.

Among these, the pandemic has shown us that behavior is not solely due to an individual’s choice or motivation. People’s actions are also shaped by opportunities and support they are given – or not given. For example, while some people may want to stay home if they have symptoms, they may not if neither their employer nor the government is providing financial support.

People should be encouraged and supported as much as possible to stay home when sick, especially when cases are high. Amid a winter surge of COVID, Australia has restored its pandemic leave disaster payments to allow people with COVID and without appropriate sick pay to stay home and not lose out financially.

In addition, governments could ensure that free at-home testing is available during times when infections are likely to increase or start to increase.

And it is important that, to mitigate the impacts of future waves, vaccination coverage is as high as possible. Public health campaigns should target both unvaccinated and partially vaccinated people, while encouraging people (especially the most vulnerable) to accept booster offers.

We also need more action to ensure adequate ventilation. In the United States, billions of dollars are made available for improved air quality in schools and other public buildings.

I have argued before that the British government was putting too much responsibility in the hands of the public. Like climate change, pandemics are global issues, and addressing them requires a collective effort.

Simon Nicholas Williamslecturer in psychology, Swansea University

This article is republished from The conversation under Creative Commons license. Read it original article.

Read also | AIs could predict dementia, humans can make sure it’s done ethically

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HAMILTON BEACH BRANDS HOLDING CO Management’s Discussion and Analysis of Financial Condition and Results of Operations (in thousands of dollars, except where otherwise noted and per share data) (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of
Operations contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based upon
management's current expectations and are subject to various uncertainties and
changes in circumstances. Important factors that could cause actual results to
differ materially from those described in these forward-looking statements are
set forth below under the heading "Forward-Looking Statements."

HBB is the only reportable segment of the Company and intercompany balances and transactions have been eliminated.


————————————————– ——————————



For a summary of the Company's critical accounting policies, refer to "Part II -
Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations - Critical Accounting Policies and Estimates" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2021 as there have
been no material changes from those disclosed in the Annual Report.


The Company’s business is seasonal, and the majority of revenue and operating profit typically occurs in the second half of the year, when sales of small electrical appliances and kitchenware historically increase significantly for the season. fall holiday sales.

Second quarter of 2022 versus second quarter of 2021

                                                                                             THREE MONTHS ENDED
                                                                                                  JUNE 30
                                                                                                                                       Increase / (Decrease)
                                            2022              % of Revenue              2021              % of Revenue            $ Change              % Change
Revenue                                 $ 147,527                    100.0  %       $ 154,655                    100.0  %       $   (7,128)                  (4.6) %
Cost of sales                             115,549                     78.3  %         126,272                     81.6  %          (10,723)                  (8.5) %
Gross profit                               31,978                     21.7  %          28,383                     18.4  %            3,595                   12.7  %
Selling, general and administrative
expenses                                   26,503                     18.0  %          27,447                     17.7  %             (944)                  (3.4) %
Amortization of intangible assets              50                        -  %              50                        -  %                -                      -  %
Operating profit (loss)                     5,425                      3.7  %             886                      0.6  %            4,539                  512.3  %
Interest expense, net                         867                      0.6  %             698                      0.5  %              169                   24.2  %
Other expense (income), net                  (252)                    (0.2) %            (224)                    (0.1) %              (28)                  12.5  %
Income (loss) before income taxes           4,810                      3.3  %             412                      0.3  %            4,398                1,067.5  %
Income tax expense (benefit)                 (279)                    (0.2) %             326                      0.2  %             (605)                (185.6) %
Net income (loss)                       $   5,089                      3.4  %       $      86                      0.1  %       $    5,003                5,817.4  %

Effective income tax rate       (5.8) %            79.1  %

The following table identifies the components of the change in revenue:

2021                          $ 154,655
Increase (decrease) from:
Unit volume and product mix     (18,756)
Average sales price              12,164
Foreign currency                   (536)
2022                          $ 147,527

Revenue - Revenue decreased $7.1 million, or 4.6%, due primarily to lower sales
volume in the US, Latin American and Mexican Consumer markets compared to prior
year. Additionally, there was a decrease in revenue compared to the prior year
due to the Company's decision to move to a licensing model from a
company-managed model for its consumer business in Brazil and China, as reported
in early 2021. Partially offsetting these decreases were revenue increases in
the Canadian and Global Commercial markets. The Company continues to implement
price increases which have partially offset the overall volume decline.

Gross profit - As a percentage of revenue, gross profit margin increased from
18.4% in the prior year to 21.7% in the current year primarily due to the impact
of a full quarter of price increases which offset the higher product and
transportation costs. Additionally, there was a reduction in carrier storage
charges as compared to the second quarter of 2021.

————————————————– ——————————


Selling, general and administrative expenses - Selling, general and
administrative expenses decreased $0.9 million due primarily to incremental
expenses incurred during the relocation to the Company's new distribution center
in the second quarter of 2021 that did not recur. Additionally, outside services
decreased, and overall employee-related costs were lower, driven by a decrease
in incentive compensation as a result of a decrease in the Company's stock

Interest expense - Interest expense, net increased $0.2 million due to rising
interest rates, as well as increased average borrowings outstanding under HBB's
revolving credit facility.

Income tax expense (benefit) - The effective tax rate on income was (5.8)% and
79.1% for the three months ended June 30, 2022 and 2021, respectively. The
effective tax rate was higher for the three months ended June 30, 2021 due to
the inclusion of interest and penalties on unrecognized tax benefits as a
discrete expense item. The interest and penalties on unrecognized tax benefits
were reversed during the second quarter of 2022 due to a change in the Company's
position on an unresolved Mexico tax matter, favorably impacting the effective
tax rate for the three months ended June 30, 2022.

Comparison of the first six months of 2022 with the first six months of 2021

                                                                                              SIX MONTHS ENDED
                                                                                                  JUNE 30
                                            2022              % of Revenue              2021              % of Revenue            $ Change             % Change
Revenue                                 $ 293,878                    100.0  %       $ 303,904                    100.0  %       $ (10,026)                   (3.3) %
Cost of sales                             233,670                     79.5  %         243,828                     80.2  %         (10,158)                   (4.2) %
Gross profit                               60,208                     20.5  %          60,076                     19.8  %             132                     0.2  %
Selling, general and administrative
expenses                                   41,936                     14.3  %          53,826                     17.7  %         (11,890)                  (22.1) %
Amortization of intangible assets             100                        -  %             100                        -  %               -                       -  %
Operating profit                           18,172                      6.2  %           6,150                      2.0  %          12,022                   195.5  %
Interest expense, net                       1,600                      0.5  %           1,418                      0.5  %             182                    12.8  %
Other expense (income), net                 1,214                      0.4  %             (53)                       -  %           1,267                (2,390.6) %
Income (loss) before income taxes          15,358                      5.2  %           4,785                      1.6  %          10,573                   221.0  %
Income tax expense (benefit)                3,096                      1.1  %           1,823                      0.6  %           1,273                    69.8  %
Net income (loss)                       $  12,262                      4.2  %       $   2,962                      1.0  %       $   9,300                   314.0  %

Effective income tax rate       20.2  %            38.1  %

The following table identifies the components of the change in revenue:

                      2021                          $ 303,904
                      Increase (decrease) from:
                      Unit volume and product mix     (31,023)
                      Average sales price              21,559
                      Foreign currency                   (562)
                      2022                          $ 293,878

Revenue - Revenue decreased by $10.0 million or 3.3% over the prior year due
primarily to lower sales volume in the US and Canadian Consumer markets compared
to prior year. Additionally, revenue decreased compared to the prior year due to
the Company's decision to move to a licensing model from a company-managed model
for its consumer business in Brazil and China. Revenue in the Global Commercial
market grew more than 50% as compared to prior year due to the continued rebound
of customer demand from pandemic-driven softness. Additionally, the Company has
successfully implemented price increases which have partially offset the volume

Gross profit - Gross profit margin increased to 20.5% from 19.8% due to price
increases that fully offset the higher product and transportation costs during
the second quarter. Additionally, for the six months ended June 30, 2022, there
was a reduction in carrier storage charges as compared to the same period in

  Table of Contents
Selling, general and administrative expenses - Selling, general and
administrative expenses decreased $11.9 million due primarily to the $10.0
million insurance recovery recognized during the first quarter. Compared to
prior year, outside services decreased, and overall employee-related costs were
lower, driven by a decrease in incentive compensation as a result of a decrease
in the Company's stock price. Additionally, incremental expenses incurred during
the relocation to the Company's new distribution center in the second quarter of
2021 did not recur.

Interest expense – Net interest expense increased $0.2 million due to the increase in average outstanding borrowings under HBB’s revolving credit facility.

Other expense (income), net - Other expense (income), net includes currency
losses of $1.8 million in the current year compared to currency losses of $0.4
million in the prior year. The currency losses arise from the remeasurement of
liabilities related to inventory purchases by foreign subsidiaries denominated
in US dollars. This increase is driven by the liquidation of the Brazilian
subsidiary, which resulted in $2.1 million of accumulated other comprehensive
losses being released into other expense (income), net during the first quarter
of 2022.

Income tax expense (benefit) - The effective tax rate was 20.2% compared to
38.1% in the prior year. The effective tax rate was higher for the six months
ended June 30, 2021 due to the inclusion of interest and penalties on
unrecognized tax benefits as a discrete expense item. The interest and penalties
on unrecognized tax benefits were reversed during the second quarter of 2022 due
to a change in the Company's position on an unresolved Mexico tax matter,
favorably impacting the effective tax rate for the six months ended June 30,
2022, partially offset by a valuation allowance on certain foreign deferred tax
assets related to the Brazil liquidation.



Hamilton Beach Brands Holding Company cash flows are provided by dividends paid
or distributions made by its subsidiaries. The only material assets held by it
are the investments in consolidated subsidiaries. As a result, certain statutory
limitations or regulatory or financing agreements could affect the levels of
distributions allowed to be made by its subsidiaries. Hamilton Beach Brands
Holding Company has not guaranteed any of the obligations of its subsidiaries.

HBB's principal sources of cash to fund liquidity needs are: (i) cash generated
from operations and (ii) borrowings available under the revolving credit
facility, as defined below. HBB's primary use of funds consists of working
capital requirements, operating expenses, capital expenditures, cash dividends,
and payments of principal and interest on debt.

HBB maintains a $150.0 million senior secured floating-rate revolving credit
facility (the "HBB Facility") that expires on June 30, 2025. HBB believes funds
available from cash on hand, the HBB Facility and operating cash flows will
provide sufficient liquidity to meet its operating needs and commitments arising
during the next twelve months.

The following table presents certain cash flow information:

                                                                SIX MONTHS ENDED
                                                                     JUNE 30
                                                               2022           2021

Net cash provided by (used for) operating activities ($25,456) $8,425

Net cash provided by (used for) investing activities ($661) ($7,616)

Net cash provided by (used for) financing activities $25,727 $(2,166)

Operating activities - Net cash used for operating activities was $25.5 million
compared to cash provided by operating activities of $8.4 million in the prior
year primarily due to net working capital which was a use of cash of $36.1
million in 2022 compared to providing cash of $14.6 million in 2021. In 2022,
trade receivables provided net cash of $19.8 million compared to $45.2 million
in the prior year due to the timing of collections and decreased sales in 2022
compared to 2021. Net cash used for inventory and accounts payable combined was
$55.9 million in 2022 compared to $30.6 million in 2021. Inventory has increased
compared to the quarter-ended June 30, 2021 and the year-ended December 31, 2021
driven by longer lead times as a result of supply chain and transportation

————————————————– ——————————


Investing Activities – Net cash used in investing activities decreased in 2022 compared to 2021 due to non-recurring capital expenditures for the Company’s new leased distribution center in 2021.

Financing activities - Net cash provided by financing activities was $25.7
million in 2022 compared to a use of cash of $2.2 million in 2021.  The change
is due to an increase in HBB's net borrowing activity on the revolving credit
facility to fund net working capital.

Capital resources

The Company expects to continue to borrow against the HBB Facility and make
voluntary repayments within the next twelve months. The obligations under the
HBB Facility are secured by substantially all of HBB's assets. At June 30, 2022,
the borrowing base under the HBB Facility was $149.1 million and borrowings
outstanding were $127.0 million. At June 30, 2022, the excess availability under
the HBB Facility was $22.1 million.

The maximum availability under the HBB Facility is governed by a borrowing base
derived from advance rates against eligible trade receivables, inventory and
trademarks of the borrowers, as defined in the HBB Facility. Borrowings bear
interest at a floating rate, which can be a base rate, LIBOR or bankers'
acceptance rate, as defined in the HBB Facility, plus an applicable margin. The
applicable margins, effective June 30, 2022, for base rate loans and LIBOR loans
denominated in US dollars were 0.0% and 1.75%, respectively. The applicable
margins, effective June 30, 2022, for base rate loans and bankers' acceptance
loans denominated in Canadian dollars were 0.0% and 1.75%, respectively. The HBB
Facility also requires a fee of 0.25% per annum on the unused commitment. The
margins and unused commitment fee under the HBB Facility are subject to
quarterly adjustment based on average excess availability. The weighted average
interest rate applicable to the HBB Facility for the six months ended June 30,
2022 was 2.59% including the floating rate margin and the effect of the interest
rate swap agreements described below.

To reduce the exposure to changes in the market rate of interest, HBB has
entered into interest rate swap agreements for a portion of the HBB Facility.
Terms of the interest rate swap agreements require HBB to receive a variable
interest rate and pay a fixed interest rate. HBB has interest rate swaps with
notional values totaling $50.0 million at June 30, 2022 at an average fixed
interest rate of 0.95%. HBB also entered into delayed-start interest rate swaps.
These swaps have notional values totaling $50.0 million as of June 30, 2022,
with an average fixed interest rate of 1.67%.

The HBB Facility includes restrictive covenants, which, among other things,
limit the payment of dividends to Hamilton Beach Holding, subject to achieving
availability thresholds. Dividends to Hamilton Beach Holding are not to exceed
$7.0 million during any calendar year to the extent that for the thirty days
prior to the dividend payment date, and after giving effect to the dividend
payment, HBB maintains excess availability of at least $18.0 million. Dividends
to Hamilton Beach Holding are discretionary to the extent that for the thirty
days prior to the dividend payment date, and after giving effect to the dividend
payment, HBB maintains excess availability of at least $30.0 million. The HBB
Facility also requires HBB to achieve a minimum fixed charge coverage ratio in
certain circumstances, as defined in the HBB Facility. At June 30, 2022, HBB was
in compliance with all financial covenants in the HBB Facility.

In December 2015, the Company entered into an agreement with a financial institution to sell certain US trade receivables without recourse. The Company uses this arrangement as part of the working capital financing. See Note 2 to the unaudited consolidated financial statements.

HBB believes funds available from cash on hand, the HBB Facility and operating
cash flows will provide sufficient liquidity to meet its operating needs and
commitments arising during the next twelve months.

Contractual obligations, contingent liabilities and commitments

For a summary of the Company's contractual obligations, contingent liabilities
and commitments, refer to "Part II - Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations - Contractual
Obligations, Contingent Liabilities and Commitments" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2021 as there have been no
material changes from those disclosed in the Annual Report.

  Table of Contents
Off Balance Sheet Arrangements

For a summary of the Company's off balance sheet arrangements, refer to "Part II
- Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations - Off Balance Sheet Arrangements" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2021 as there have been no
material changes from those disclosed in the Annual Report.


The statements contained in this Form 10-Q that are not historical facts are
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
forward looking statements are made subject to certain risks and uncertainties,
which could cause actual results to differ materially from those presented.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Such risks and uncertainties
include, without limitation: (1) the Company's ability to source and ship
products to meet anticipated demand, (2) the Company's ability to successfully
manage ongoing constraints throughout the global transportation supply chain,
(3) the unpredictable nature of the COVID-19 pandemic and its potential impact
on the Company's business; (4) the direct and indirect impacts of the
increasingly volatile global economic conditions as a result of the conflict in
Ukraine; (5) changes in the sales prices, product mix or levels of consumer
purchases of small electric and specialty housewares appliances, (6) changes in
consumer retail and credit markets, including the increasing volume of
transactions made through third-party internet sellers, (7) bankruptcy of or
loss of major retail customers or suppliers, (8) changes in costs, including
transportation costs, of sourced products, (9) delays in delivery of sourced
products, (10) changes in or unavailability of quality or cost effective
suppliers, (11) exchange rate fluctuations, changes in the import tariffs and
monetary policies and other changes in the regulatory climate in the countries
in which the Company operates or buys and/or sells products, (12) the impact of
tariffs on customer purchasing patterns, (13) product liability, regulatory
actions or other litigation, warranty claims or returns of products, (14)
customer acceptance of, changes in costs of, or delays in the development of new
products, (15) increased competition, including consolidation within the
industry, (16) shifts in consumer shopping patterns, gasoline prices, weather
conditions, the level of consumer confidence and disposable income as a result
of economic conditions, unemployment rates or other events or conditions that
may adversely affect the level of customer purchases of HBB products, (17)
changes mandated by federal, state and other regulation, including tax, health,
safety or environmental legislation, and (18) other risk factors, including
those described in the Company's filings with the Securities and Exchange
Commission, including, but not limited to, the Annual Report on Form 10-K for
the year ended December 31, 2021. Furthermore, the situation surrounding
COVID-19, including the mutation of variants, continues to remain fluid globally
and the Company continues to manage ongoing challenges associated with the
pandemic as they relate to demand, supply and operations. The potential for a
material impact on the Company's results of operations, financial condition,
liquidity, and stock price remains a risk. The Company cannot reasonably
estimate with any degree of certainty any future impact of COVID-19. The extent
of any impact will depend on the scope of any new virus mutations and outbreaks,
the nature of government public health guidelines and the public's adherence to
those guidelines, the success of business and economic recovery as the pandemic
recedes, the easing of pandemic-driven supply chain disruptions, unemployment
levels, and the extent to which new lockdowns may be needed or are required in
particular countries including China.

© Edgar Online, source Previews

Why Early Access to Salaries is Crucial to Achieving Employee Financial Well-Being


Employee satisfaction is inextricably linked to workplace productivity and long-term business performance. The financial well-being of Indian employees has been widely discussed, but there are hardly any studies on the subject. The majority of employees are still paid on a monthly basis, which leaves them financially unguarded. It is also difficult for them to meet their immediate needs. There is largely a requirement for innovation in how employees are compensated over the years.

Early access to wages is the need of the hour and a fundamental foundation of employee financial well-being. The intention is to bring them to a point where their obligations are met and where they can make choices. Living paycheck to paycheck exposes employees to financial risks such as payday loans and short-term credit facilities, creating a debt spiral. Employee motivation and retention drops dramatically due to poor financial health. The financial strains and emotional stress caused by a lack of funds can lead to hijacking, seeking opportunities, and a noticeable lack of work motivation. None of this bodes well for productivity.

Timing is everything

But what if an employee could get their compensation sooner? It would certainly relieve some of their financial stress. EWA, being a relatively new and unique concept for the Indian market, clearly differentiates itself from consumer loan, payday advance and payday loans. It is a fintech product that allows employees to access a portion of their “worked” but unpaid wages before payday without affecting the payroll process. One of the leading EWA players in the industry deploys multi-pronged go-to-market strategies with no hidden costs. It offers unique and hassle-free refund options that allows the user to skip the cumbersome EMI process and thus simplifies the whole process.

Employees are enthusiastic about the EWA concept. According to recent reports, more than 70% of respondents see EWA as a deciding factor in their next career change. EWA helps retain employees and attract new talent. It helps people better align their income and expenses while reducing their reliance on high interest credit plans. Unlike payday loans (advanced salary) or payday loans, EWA does not require the employee to borrow. EWA also provides clients with additional liquidity to manage unforeseen or urgent needs, as well as to enable investment planning and financial well-being. Earned Wage Access frees employees and businesses from the traditional payroll cycle.

A win-win innovation

EWA has the ability to increase employee morale and productivity. It creates an environment of trust in the workplace. Employees who believe they are in control of their finances are less likely to worry about their finances, are more motivated to come to work, and are significantly more productive.

In a global economy, we must look beyond industrial age conventions and assembly line methods that bear little relation to the way business – and life – is done today. We need to broaden the scope of financial well-being beyond insurance and social security benefits. It’s a hobby for modern companies to include access to earned wages as part of their employee value proposition. EWA is a revolutionary approach to improving payroll, a tremendous opportunity to be future-ready, and a versatile solution to promote employee retention and lifestyles in the post-pandemic era.

(The author is Mr. Akbar Khan, CEO of Rain and the opinions expressed in this article are his own)

RBI to raise key rates in August but no consensus on size


The Reserve Bank of India will raise its benchmark rate on Friday, economists polled by Reuters said, but there was no consensus on the scale of the move given the lack of any clear guidance from the central bank.

As inflation hits its highest level in nearly a decade and the rupee trades at a record low, the RBI, which only started raising rates in May, is expected to step up subsequent hikes to catch up. its global peers.

Forecasts from 63 economists polled between July 25 and August 1 ranged from a 25 basis point hike to 50 basis points when the RBI meets on August 5.

More than 40% of economists, 26 out of 63, expected the RBI to make a sharp hike of 50 basis points, taking the repo rate to 5.40%. More than a quarter of respondents, 20 out of 63, forecast a lower increase of 35 basis points. About 22%, 14 of 63, said 25 basis points while the other three said 40 basis points.

“The RBI should bring some clarity of thought, but when there are so many uncertainties, it is better not to have expectations and not be able to meet them,” said Kunal Kundu, Indian economist at Societe Generale, which predicted a rise of 50 basis points.

A slim majority of economists, 35 out of 63, saw the repo rate already hit 5.75% or more by the end of the year, up 10 basis points from a July poll, while the median expectation is at least 6% in the second quarter of next year. .

The RBI has raised rates twice so far this cycle, first catching markets off guard with a 40 basis point hike at an unscheduled meeting, followed by 50 basis points in June.

Kaushik Das, chief economist at Deutsche Bank, said the bank hoped the RBI would agree on the merits of the frontloading rate hikes.

“The RBI can still reduce the pace of rate hikes from September onwards if inflation and growth momentum slow, but we believe it is a risky strategy at this stage to be an outlier by offering hikes rates below 50 basis points.”

The outlook for next year was even less clear, with end-2023 forecasts ranging from 4.75% to 6.75%.

With the RBI relatively lagging behind in the global tightening cycle, India experienced large capital outflows, which helped push the rupiah down to historic lows near 80 to the US dollar.

With the dollar expected to remain strong in the short to medium term, the RBI has few options to defend the rupee without burning foreign exchange reserves.

Just over half of respondents, 20 out of 38, who answered an additional question, said the exchange rate plays a bigger role than normal in the RBI’s interest rate deliberations.

“The RBI’s anticipated rate hikes will be complementary to their intervention in the foreign exchange market to manage the rupee’s exchange rate,” said Sanjay Mathur, chief economist for Southeast Asia and India. at ANZ.

Collecting social security benefits: when is the best time to start?


If your goal is to retire early, you may be wondering how soon you can start receiving your Social security benefits. While the choice is primarily yours, there are several factors to consider when making the decision, including how your benefits are calculated by the Social Security Administration.

There are pros and cons to retiring early or waiting several more years. The best place to start your decision is to look at your current financial situation, including any other money you’ve saved over the years through your 401(k), IRA or other retirement investments to determine what is best for you.

We spoke with an expert and took advice from the Social Security Administration on how to determine the best time to collect your benefits. If you plan to retire soon, note that Social Security payments are should increase by 10% in January.

How are Social Security benefits calculated?

The Social Security Administration uses your average monthly salary up to 35 years of professional experience to calculate your “primary insurance amount” or the benefit you would receive at full retirement age. This calculation includes income up to amount of the “taxable maximum”i.e. $147,000 for 2022.

After determining the number of years worked, Social Security chooses the years with the highest incomes, taking inflation into account, takes the sum of those earnings and then divides it by the total number of months worked in those years. The resulting average is then rounded down to the next lower dollar amount.

Your income is then indexed so that future benefits are reflected in current living standards to help offset inflation. This number of “average indexed monthly earnings” is then used to calculate your monthly benefit. The maximum social security benefit for someone at full retirement age in 2022 is $3,345.

If you are a joint Where ex-spouse from someone who paid into Social Security through taxes, you may be able to claim some of their benefits. You can choose to receive this share or a payment based on your own work history, whichever is greater.

The Social Security Administration provides calculators to estimate your future benefits. Create a My Social Security account online is a great way to see your current benefits or expected payments when you plan to retire.

piggy bank with money

When is the best time to collect your Social Security benefits?

Sarah Tew/CNET

When should I start receiving Social Security benefits?

You can start receiving your Social Security benefits no earlier than age 62, although you will receive a lower amount than you expected. If you wait until full retirement age (67 or older for people born in 1960 or later), you can collect more money, but over fewer years. However, everyone’s situation is different. The The Social Security Administration says “There is no one ‘best age’ for everyone and ultimately it is your choice.”

Katherine Tierney, Senior Retirement Strategist for Client Needs Research at a Financial Services Company Edward Jonessuggests asking yourself these questions: When did you want to retire and when can you afford to retire?

When you can afford to retire depends on the lifestyle you want, as well as where you’ll live in retirement, Tierney said. It also depends on how much you’ve saved for retirement and how much you’ve contributed to your 401(k). You should also consider whether you will have other forms of retirement income, such as a part-time job or a pension. Your health and life expectancy are also other factors to consider.

Should you wait until you’re older to get a bigger payment? Or take early retirement with a smaller payment?

Deciding whether to retire early and claim your benefits sooner or wait a few more years might be a matter of concern if you are approaching retirement age.

“Social Security can act as insurance against living longer than expected, and it provides some protection against inflation since your benefit is adjusted for increases in the cost of living,” Tierney said. “The longer you or your spouse expect to live, the longer it may make sense to wait to claim your Social Security benefit.”

But just because you decide to wait to claim your benefits doesn’t mean you have to delay your retirement, she explained. However, you need to make sure you have income from your 401(k) or other investments so that you can pay your living expenses if you are late in applying for your benefit.

However, if you rely solely on Social Security benefits to pay your expenses in retirement, waiting until you retire and claiming your benefits at a later date might be a better choice. You will receive more money each month and you will have more time to save for your retirement.

In addition, if you choose to retire early, your benefits will be reduced for each month before full retirement age. For example, if you were born in 1960 or later and you retire at age 62 with a retirement benefit of $1,000 per month, your payment would be reduced to $700 (or a 30% reduction).

On the plus side, that’s still $700 that you wouldn’t otherwise receive during that time if you weren’t receiving your Social Security benefits. So you could benefit from collecting payments over a longer period of time.

examining money with a magnifying glass

Is it possible to run out of money after early retirement?

Sarah Tew/CNET

If you retire early, could you run out of money?

Although you do not miss Social Security benefits (although there is a threat the entire Social Security money pool may begin to dwindle), you could deplete your 401(k) or other retirement savings. However, you can help avoid this by being conservative with your withdrawal rate if you retire early, Tierney said.

She recommends regularly monitoring your expenses and 401(k) withdrawal rate so you don’t outlive your assets. Forgoing an annual increase in spending or reducing spending – especially when the market is down or inflation is highas we are now – can help you avoid depleting your retirement savings.

For more information, here is the Social Security Payment Schedule and how to see your benefits online.

Rocket Mortgage Launches New Home Equity Loan, Giving Homeowners Another Option to Combat Rising Prices and Consumer Debt


– A new loan option could be the perfect way to manage inflation and rising debt levels –

DETROIT, August 1, 2022 /PRNewswire/ — rocket mortgagethe nation’s largest mortgage lender and part of Rocket companies (NYSE: RKT), today launched a home equity loan to give Americans another way to pay off debt that has risen with inflation.

Americans are grappling with high credit card bills, driven by a combination of rising prices and record credit card rates resulting from the Federal Reserve’s aggressive federal funds rate hikes. This combination encourages consumers to look for options to make their monthly payments more manageable.

“Our goal is to consistently create financial products that help our customers achieve their goals,” said Bob Walters, CEO of Rocket Mortgage. “In today’s market, short-term interest rates have risen sharply, making it much more difficult to pay off credit card debt. With our new home equity loan, customers can improve their lives by having a payment they can more comfortably afford.”

In total, Americans have nearly $28 trillion of home equity, according to the Federal Reserve. At the same time, the country’s total household debt stood at $15.84 trillion from the 1st quarter of 2022 – $1.7 trillion higher than at the end of 2019, before the COVID-19 pandemic – according to a report by the Federal Reserve Bank of New York. The report also showed that credit card balances in the first quarter were $71 billion higher than that of 2021.

Owners can access $45,000 at $350,000 of their home equity in fixed rate loans with 10 or 20 year terms – while maintaining at least 10% of their home equity. This new product integrates perfectly with the Rocket platform, offering a financial solution whatever the need. Consumers looking for small loan amounts can get $2,000 at $45,000 of the sister company Rocket Loans.

“The talented members of Rocket’s technology, product strategy and capital markets team quickly came together to develop this important mortgage product, demonstrating the power of Rocket Companies’ technology platform,” Walters said.

Owners can login with Rocket Mortgage Home Loan Experts at 800-704-9733 to learn more about this product.

About Rocket Mortgage

DetroitRocket Mortgage, the nation’s largest mortgage lender and a member of Rocket Companies (NYSE: RKT), enables the American dream of homeownership and financial freedom through its obsession with a cutting-edge digital customer experience. industry. In late 2015, it introduced the first fully digital, fully online mortgage experience. Rocket Mortgage Closed $351 billion mortgage volume in all 50 states in 2021.

Rocket Mortgage has moved its headquarters downtown Detroit in 2010. The company generates loan production from web centers located in Detroit, Cleveland and Phoenix.

Rocket Companies, the parent company of Rocket Mortgage, ranked #7 on Fortune’s “100 Best Companies to Work For” list in 2022 and has ranked in the top third of the list for 19 consecutive years.

For more information and company news, visit RocketMortgage.com/PressRoom.

Rocket SOURCE Mortgage

See how mortgage rates change over time


Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

Much has been said about a slowdown in the housing market in recent months. Rising interest rates — coupled with high house prices and dwindling consumer confidence amid a looming recession — have potential homeowners guessing about that next big purchase.

While these are all valid factors, consumers who are concerned about high interest rates could benefit from putting their rate into broader context. Rates have certainly increased since the pandemic days over the past two years, but historically they are still relatively low. Mortgage rates reached 18% in the 1980s, which is much higher than today’s rates.

Just take a look at this chart from the St. Louis Federal Reserve to see how today’s mortgage rates compare to those in the past. The chart shows the popular 30-year fixed-rate mortgage from 1971 to the present, identifying when there was also a recession, which generally correlates with rate spikes.

Average 30-year fixed rate mortgage in the United States

St. Louis Federal Reserve

Given recent Q2 GDP or Gross Domestic Product data suggesting a technical “recession,” it will be interesting to see how mortgage rates react. We can look at this chart over the weeks to see how rates change and compare it to other recessionary periods in previous years. For example, the 2008 recession saw a 30-year mortgage peak of 6.63%. The current 30-year rate, at the time of this writing, is 5.30%, but we’ll see how recession fears will impact that.

While the best mortgage rate is really the lowest you can get, you can get better context as to how low or high your rate is when you look at the St. Louis Federal Reserve chart.

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Mortgage lenders who help you get a lower rate

Much of your mortgage rate will depend on personal factors such as where you live, your credit score, and how much you plan to put down, as well as the type, term, and amount of mortgage. That said, some mortgage lenders have been known to help buyers get as low a rate as possible.

For example, SoFi offers a 0.25% cashback when you set a 30-year rate for a conventional loan, while another special offer gives customers up to $9,500 in cash back when they purchase a home through the SoFi Real Estate Center, which is powered by HomeStory. SoFi members can also get $500 off their mortgages.


  • Annual Percentage Rate (APR)

    Apply online for personalized rates; fixed and adjustable rate mortgages included

  • Types of loans

    Conventional loans, jumbo loans, HELOC

  • Terms

  • Credit needed

  • Minimum deposit

Working with a lender that offers shorter loan terms, such as 15-year loans, can also help you get a lower rate, as these are usually based on your level of risk. If you pay off your loan faster – which usually requires a higher monthly principal payment since the term is shortened – you may be rewarded with a lower interest rate, as your declining balance shows you are at less risk when it’s about defaulting on your loan.

Rocket Mortgage offers loan repayment terms as low as eight years. Keep in mind, though, that applying for a mortgage with a low credit rating, which Rocket Mortgage allows, most likely means you’ll get an interest rate above the lender’s APR range, regardless of the term. of the loan you choose.

Rocket Mortgage

  • Annual Percentage Rate (APR)

    Ask online for personalized rates

  • Types of loans

    Conventional Loans, FHA Loans, VA Loans, and Jumbo Loans

  • Terms

    8 to 29 years old, including 15 years old and 30 years old

  • Credit needed

    Generally requires a credit score of 620, but will consider applicants with a credit score of 580 as long as other eligibility criteria are met

  • Minimum deposit

    3.5% if you go ahead with an FHA loan

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

Era of Soaring House Prices Comes to an End as Central Banks Hike Rates | Larry Elliot


IIt’s finish. An era of steadily rising house prices spurred on by cheap money is coming to an end. Central banks have created a colossal housing boom and they will soon have to deal with the consequences of the bursting of the bubble.

In China, this is already the case. Banks in the world’s second-largest economy have been ordered to bail out property developers so they can complete unfinished projects. Mortgage boycotts are on the rise because people are, unsurprisingly, unhappy paying mortgages for properties they can’t occupy.

Sales of new properties have plummeted and new housing starts have nearly halved from pre-pandemic levels, posing spelling problems for heavily indebted property companies, the banks they borrowed from and the economy at large. The real estate sector accounts for about 20% of China’s gross domestic product. Rising real estate prices are already a thing of the past.

The US economy contracted for a second consecutive quarter in the three months to June and one of the factors was the rapid slowdown in the housing market. In the two years since the start of the coronavirus pandemic in the spring of 2020, US house prices have soared, rising 20% ​​on the year to May. But the market is cooling rapidly, with the average price of new homes falling sharply in June.

The housing market is cooling in the United States. Photograph: Mike Blake/Reuters

Britain seems to be bucking the trend. According to figures from Halifax, the nation’s largest mortgage lender, house prices are rising at an annual rate of 13% – the highest in nearly two decades. Here too, the picture changes.

Last week, the Office for National Statistics released data on housing affordability, based on the ratio of house prices to average incomes. In Scotland and Wales, the ratio was 5.5 and 6.0 respectively, below the highs reached at the time of the 2007-09 global financial crisis. In England, the ratio was 8.7, the highest since the series began in 1999.

In England, there were regional variations. In Newcastle upon Tyne, the cost of an average house was 12 times the annual income of someone in the bottom 10% income bracket. In London it was 40 times, and it’s almost certainly higher now. The ONS figures cover the period up to March 2021 and since then property prices have significantly outpaced wages.

There comes a time when housing simply becomes too expensive for potential buyers, but an extended period of ultra-low interest rates means it has taken time to get to that reality check point. Central banks have made the unaffordable affordable by keeping monthly mortgage payments low.

This is true all over the world, which is why from New York to Vancouver, from Zurich to Sydney, from Stockholm to Paris, the trend in real estate prices has continued to rise.

So far, at least. Western central banks are aggressively raising interest rates, making mortgages more expensive. Even before the US Federal Reserve announced a second successive 0.75 point increase in official borrowing costs last week, a new borrower taking out a 30-year fixed mortgage was paying around 5.5% , double that of the previous year. This increase explains why fewer Americans are buying new homes and why prices are falling.

In the UK, the Bank of England cut interest rates to 0.1% at the start of the pandemic and left them at that level for nearly two years. This allowed buyers to take out fixed-term mortgages at extremely competitive rates, which hit a low of 1.4% last fall. But since December last year, the Bank has tightened its policy and these mortgages will increase when the fixed terms run out. Average mortgage rates are now 2.9%.

Central banks say the highest inflation in decades means they have no choice but to tighten policy – but they are doing so at a time when major economies are falling or heading into recession . The toxic mix for house prices is rising interest rates, collapsing growth and rising unemployment. Of these, only the last is missing, but if the winter is as bleak as policy makers predict, it’s only a matter of time before the queues get longer.

Last week, the International Monetary Fund released forecasts for the global economy that were decidedly bleak. Noting that the three main engines of growth – the United States, China and the euro zone – were at a standstill, the fund said that the risks were tilted strongly on the downside.

According to the IMF, there have only been five years in the past half-century when the global economy has grown below 2%: 1974, 1981, 1982, 2009 and 2020. A complete halt in shipments of Russian gas to Europe, stubbornly high inflation or a debt crisis were among the factors that could cause 2023 to join this list. A global real estate crash would guarantee that is the case.

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That’s not to say there aren’t good reasons to want a purge of excesses from the real estate market. Soaring property prices discriminate against the young and the poor, lead to a misallocation of capital into unproductive assets, and add to demographic pressures by discouraging couples from having children.

However, central banks are trying to fine-tune a soft landing in which the downturn is short and shallow, and the rise in unemployment is enough to ease upward pressure on wages but remains modest. A housing price crash is not part of the plan as it would ensure a hard landing.

There is no appetite for a repeat of 2007, when the subprime mortgage crisis in the United States triggered the near collapse of the global banking system and led to the last major recession before the one caused by the pandemic. . This is why the Chinese government is trying to prop up real estate developers and why Western central banks may stop raising interest rates sooner than expected by financial markets. We have been here before.

Chinese digital loan sharks spread their wings in India: report


New Delhi: Chinese syndicates and criminal gangs conduct scam operations illegally in India. Several cases of such digital loan sharks have been detected in the recent past and it is suspected that the scale of such illegal activities has increased over time.

Recently, a case of so-called “Chinese loan application” has come to light in the Dwarka region of Delhi.

The racket was led by Chinese managers in the guise of a local BPO consulting firm, Fly High Global Services and Technology. The modus operandi started with the simple advertisement of the online loan app “On Stream” in social media to attract customers who wanted to avail hassle-free loans within minutes.

It mainly targeted local youths who have suffered the most from the recent pandemic and are in dire need of money to meet urgent family expenses. Once downloaded, the app requested permissions to access victims’ contacts, which were then used by the company to blackmail its customers.

Chinese racketeering charged exorbitant interest and victims were threatened, abused and even blackmailed. They sent derogatory messages to the victim’s contacts on his behalf. The callers also used the photographs of the Aadhaar and PAN card victims to blackmail them to extort money from them.

Over the past four months, the gang allegedly extorted around $12 million, 30% of which was commission from the local Indian business. Local police, who raided the three-storey building in Dwarka and arrested the kingpin, were surprised to find around 150 employees working at the business as well as around 300 SIM cards in the name of another local business.

Chinese entities have entered the Indian credit market and are exploiting Indian borrowers by taking advantage of loopholes in the legal system. Since the pandemic-induced lockdown, dozens of Chinese-owned micro-lending apps have started operating in India under very dodgy conditions.

They attract customers under duress. Borrowers were charged exorbitant processing fees and interest rates, pushing many lower-middle-class people into debt traps and even forcing them to commit suicide.

Claiming to be playing fair, Chinese instant loan apps Momo, CashBus, Timely Cash, Y Cash, Kissht, Robo Cash, Fast Rupee, Cash Mama and Loan Time also offered payday loans to Indians, targeting borrowers at the bottom of the ladder. economic strata. Many of these apps boast over a million installs.

Indian investigative agencies have informed that various fintech companies in collusion with Indian Non-Banking Financial Companies (NBFCs) have engaged in predatory lending, in violation of Reserve Bank of India guidelines. Fintech companies backed by China had a memorandum of understanding with NBFCs to provide instant personal loans for terms ranging from seven to 30 days, bypassing the regulatory system.

Since fintech firms were unlikely to get a new NBFC license from RBI to lend, they devised the MoU route with the already defunct Indian NBFCs to engage in lending business. in large scale.

India’s tax authorities have revealed that decisions regarding the setting of interest rates/platform fees etc. were taken by fintech companies and that they operated on the instructions of managers in China and Hong Kong.

Many such cases have been reported in India over the past 8-10 months. Observers have pointed out that undetected cases could be even higher. There is growing evidence that these are well coordinated regionally and linked to other nodes of illicit activity.

Chinese scammers exploit loopholes in the legal system of host countries, often snagging unemployed youth and financially challenged lower layers of society, who become easy prey for these gangs.

These cases are also common in Southeast Asia. Media across the region say hundreds of Malays, Filipinos and Indonesians have also been lured into Cambodia by organized crime groups based in and around Sihanoukville.

The city is known for lawlessness, casinos and Chinese criminal gangs. Investigators have found that most kingpins operate from China, but employ people from neighboring countries to carry out their broader transnational criminal activities.


Is America in a recession?



By Gargi Pal Chaudhuri


This year, the Federal Reserve raised interest rates for the first time since 2018.

But what do these rate hikes mean for investors and the wider market? Let’s talk about it.

Factors such as labor shortages, rising wages and supply chain issues have pushed inflation to its highest level in 40 years. People have felt it in the price of everything from a dozen eggs to a gallon of gasoline. Raising interest rates is one of the ways the Federal Reserve uses to fight inflation.

Basically, these rate increases make borrowing more expensive, whether for a home, car or business loan.

Making loans more expensive may encourage individuals and businesses to be more selective in their spending and investments.

This can help lower prices and fight inflation, but it can also mean slower economic growth, which can contribute to market volatility.

While the Federal Reserve manages this balancing act, investors may consider their own rebalancing.

Investors might consider devoting a portion of their portfolios to quality companies, those with stable cash flows and higher profit margins that can absorb or pass on higher prices.

To prepare for a potential downturn in the economy, investors could also consider minimum volatility ETFs such as iShares MSCI USA Min Vol Factor ETF (USMV).

More importantly, remember that market dips and peaks are part of normal long-term cycles. And these small incremental steps may be one possible solution to help investors — and the market itself — get back to normal over the long term.

Key points to remember

  • The US economy has slowed for two consecutive quarters, does that mean we are already in a recession?
  • Our recession monitor flashes pink in two of its five categories. This is concerning, but not necessarily indicative of an impending recession.
  • Recession risks increase as US economic data softens. Slowing periods of growth could favor fixed income, value stocks and minimum volatility strategies.

The economy shrank 0.9% in the second quarter from a year earlier, the second straight decline in quarterly U.S. GDP. So, are we in a recession?

We think the answer is “not yet”. Our own recession platform (see below) shows 2 out of 5 indicators flashing pink; but not all 5. Still, the risks of a recession have increased as US economic data darkens.

BlackRock Recession Monitor: signs of weakness, but no recession (yet)

Chart showing BlackRock's recession monitor, which is currently flashing

Chart showing BlackRock’s Recession Monitor, which is currently flashing “pink” on two of its five categories, suggesting recession risks are growing but not imminent. (BlackRock, Bloomberg. As of July 20, 2022. Measurements, rationale and levels of concern are determined by iShares Investment Strategy research and analysis. Level of concern is generally determined using historical recession levels, on average. For illustrative purposes only.)

In line with the advanced Q2 GDP report, our recession monitor flashes pink for business health, but shows strong consumption and still fairly easy credit conditions. Economic indicators such as real income, spending and the labor market certainly do not yet show the widespread decline historically associated with a recession.

That said, second-quarter GDP fell 0.9%, well below expectations for a modest rise, after falling 1.6% in the first quarter. The drivers of the second quarter decline were:1

  1. A slump in inventory investment as retailers sit on unsold goods. (Earlier this week, the world’s largest retailer said it was slashing prices for discretionary goods as inventories rise.)2
  2. A decline in residential investment given the decline in housing construction
  3. A drop in investment in the non-residential structure, showing that the office segments continue to struggle with expansion plans – particularly in a stalled growth environment.

The Federal Reserve acknowledged the slowdown on Wednesday — “real indicators of spending and output softened,” according to the FOMC policy statement — even as it issued another rate hike of 75 basis points.

What is a recession anyway?

Although “two consecutive negative quarters” is commonly used, ultimately there is no better definition of a recession. There are different ways to measure economic activity and the rules-based approach of “consecutive negative quarters” may lack nuance. The National Bureau of Economic Research (NBER) is the official arbiter of US recessions; the NBER uses a qualitative, more subjective approach.

We are currently in such an atypical cycle that we are more inclined to favor a qualitative approach to a call for recession, whether that of the NBER or our own recession monitor. This is especially relevant today because early GDP cuts are often revised, something Fed Chairman Jay Powell pointed out at a press conference after the Fed’s rate hike.

In this environment, we believe it is important to remain invested in the markets, but recognize that volatility may remain higher, as detailed in the 2022 Mid-Year iShares Investor Guide.

Ultimately, we believe the Federal Reserve – which raised the target federal funds rate from 0-0.25% in early 2022 to 2.25-2.5% now – will need to slow its pace of rising interest rates. rate if economic activity continues to stagnate. The market currently expects rates to rise to over 3% by the end of 2022 before falling in 2023 to support a slowing economy.3

Slower periods of growth may favor fixed income allocations; a weaker dollar, which will likely result from a slower pace of rate hikes, could favor emerging market bonds. Within equities, strategies that emphasize minimal volatility and companies with healthier balance sheets may fare better than the market as a whole.


© 2022 BlackRock, Inc. All rights reserved.

1 Source: BlackRock, US Bureau of Economics Analysis, report on the advanced estimate of GDP in the 2nd quarterJuly 28, 2022.

2 Source: Walmart Inc. Provides Second Quarter and Fiscal 2023 UpdateJuly 25, 2022.

3 Source: CME Group’s FedWatch Tool, as of July 28, 2022.

Carefully consider the Funds’ investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the prospectuses of the Funds or, where applicable, the simplified prospectuses, which can be obtained by visiting the iShares Funds and BlackRock Funds flyer pages. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Risks associated with fixed income securities include interest rate risk and credit risk. Generally, when interest rates rise, there is a corresponding decline in the value of bonds. Credit risk refers to the possibility that the bond issuer may not be able to make principal and interest payments.

International investing involves risks, including foreign currency risk, limited liquidity, less government regulation and the possibility of significant volatility due to adverse political, economic or other developments. These risks are often heightened for investments in emerging/developing markets or single country concentrations.

The iShares Minimum Volatility Funds may experience volatility in excess of the Minimum Volatility as there is no assurance that the Underlying Index’s strategy to reduce volatility will be successful.

This document represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a prediction of future events or a guarantee of future results. This information should not be considered by the reader as research or investment advice regarding the funds or any particular issuer or security.

The strategies discussed are strictly for illustrative and educational purposes and do not constitute a recommendation, offer or solicitation to buy or sell securities or to adopt any investment strategy. There is no guarantee that the strategies discussed will be effective.

The information presented does not take into account commissions, tax implications or other transaction costs, which may significantly affect the economic consequences of a given investment strategy or decision.

This document contains general information only and does not take into account any individual’s financial situation. This information should not be relied upon as the primary basis for an investment decision. Rather, one should assess whether the information is appropriate in the individual circumstances and consider speaking to a financial professional before making an investment decision.

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Bloomberg, BlackRock Index Services, LLC, Cohen & Steers, European Public Real Estate Association (“EPRA®”), FTSE International Limited (“FTSE”), ICE Data Indices, LLC, NSE Indices Ltd, JPMorgan, JPX Group, London Stock Exchange Group (“LSEG”), MSCI Inc., Markit Indices Limited, Morningstar, Inc., Nasdaq, Inc., National Association of Real Estate Investment Trusts ( “NAREIT”), Nikkei, Inc., Russell or S&P Dow Jones Indices LLC or STOXX Ltd. None of these companies makes any representation regarding the advisability of investing in the Funds. Except for BlackRock Index Services, LLC, which is an affiliate, BlackRock Investments, LLC is not affiliated with any of the companies listed above.

Neither FTSE, LSEG nor NAREIT makes any representations about the FTSE Nareit Equity REITS Index, the FTSE Nareit All Residential Capped Index or the FTSE Nareit All Mortgage Capped Index. Neither FTSE, EPRA, LSEG nor NAREIT make any representations about the FTSE EPRA Nareit Developed ex-US Index or the FTSE EPRA Nareit Global REITs Index. “FTSE®” is a registered trade mark of the companies of the London Stock Exchange Group and is used by FTSE under licence.

© 2022 BlackRock, Inc. All rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, BUILD ON BLACKROCK, ALADDIN, iSHARES, iBONDS, FACTORSELECT, iTHINKING, iSHARES CONNECT, FUND FRENZY, LIFEPATH, WHAT TO DO WITH MY MONEY, INVESTING FOR A NEW WORLD, BUILT FOR THESE TIMES, the iShares Core chart, CoRI and the CoRI logo are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are the property of their respective owners.


This Publish originally appeared on iShares Market Insights.

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

Winning and losing interest rates rise as the Fed tightens the screws

Are there winners and losers on Wall Street after the latest Fed rate hike?

Now that the US Federal Reserve has announced its latest interest rate hike to calm inflation and the market has priced in a potential recession, winners and losers on Wall Street are beginning to surface.

From the usual havens in utilities (XLU) and real estate (XLRE) during economic downturns, to a return to growth stocks in big tech like Apple (APPL) and Amazon (AMZN), traders are now positioning themselves for the bear market rallies ahead.

Winners: The Usual Suspects + Mega-cap Technology

Edward Moya, senior market analyst for OANDA in New York, told Capital.com: “A strong recessionary signal brought defensive trading back to life on Wall Street, with a surge in utilities and oil. immovable.”

“The second straight quarterly contraction suggested stagflation is here, as traders brace for more bear market rallies down the road,” he said.

Real Estate Price Chart (XLRE)

Moya added, “Mega-cap technology will also become a safe-haven trade during the recession.”

“The benchmark trade on Wall Street will be cash-rich companies, decent product cycles and earnings momentum, while the traditional investor may look to typical defensive stocks,” he continued. “Massive earnings from Apple and Amazon are also boosting risk appetite.”

Amazon Price Chart (AMZN)

Losers: low-income businesses + US economy

With inflation at its highest level in four decades, ongoing supply chain issues related to the Covid-19 pandemic, and the likelihood of a recession, “traders should avoid companies with no revenue and high debt levels. “, warned Moya.

With the market pricing in a slower pace of tightening from the Fed, “it’s premature,” he said. “Inflation is unlikely to come down quickly, so the aggressive stance to fight inflation will not change drastically.”

US economy: burned by inflation, blocked by a possible recession

In an interview with Capital.com, Joey Von Nessen, a research economist at the Darla Moore School of Business at the University of South Carolina, said that “two consecutive quarters of negative growth are concerning, but some of that which is causing the slowdown is temporary”.

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According to Von Nessen, two major factors are driving today’s GDP estimates, including high inflation and rising interest rates, and “this can be seen in housing markets, where demand declined in 2022 as mortgage interest rates rise.”

“However, we are also in a period of transition as consumers slowly return to normal spending habits,” he added. “The bottom line is that uncertainty remains elevated as we look to the second half of the year, which will likely translate into increased market volatility.”

Read more:

How the Federal Reserve’s 75 basis point interest rate hike affects you


What the Federal Funds Rate Means to You

The federal funds rate, which is set by the US central bank, is the interest rate at which banks borrow and lend to each other overnight. While that’s not the rate consumers pay, Fed decisions still affect the borrowing and savings rates they see every day.

For starters, rising rates will correspond to a rise in the prime rate and will immediately lead to higher financing costs for many forms of consumer borrowing.

On the other hand, higher interest rates also mean that savers will earn more money on their deposits.

What Borrowers Need to Know About Higher Rates

Short-term borrowing rates will be among the first to jump.

“With the Federal Reserve raising interest rates at an unprecedented rate, variable rate debt such as credit cards and home equity lines of credit will be most exposed,” said Greg McBride, financial analyst in chief at Bankrate.com.

Since most credit cards have a variable rate, there is a direct link to the Fed’s benchmark index. As the federal funds rate rises, the prime rate also rises, and credit card rates follow.

Annual percentage rates are currently just above 17%, on average, but could be closer to 19% by the end of the year, which would be an all-time high, according to Ted Rossman, senior industry analyst at CreditCards.com.

That means anyone with a balance on their credit card will soon have to shell out even more just to cover interest charges.

With this rate hike, consumers in credit card debt will spend an additional $4.8 billion in interest this year alone, according to an analysis by WalletHub. Factoring in the March, May, June and July rate hikes, credit card users will end up paying about $12.9 billion to $14.5 billion more in 2022 than they would have does otherwise, WalletHub found.

When rates rise, the best thing you can do is pay off your debt before bigger interest payments drag you down.

If you have a balance, try calling your card issuer to ask for a lower rate, consolidate and pay off high interest credit cards with a low interest home loan or personal loan or switch to an interest-free balance transfer credit card. .

“Zero percent balance transfer offers can be a boon for people in credit card debt,” said Matt Schulz, chief credit analyst at LendingTree.

Variable rate mortgages and home equity lines of credit are also indexed to the prime rate, but 15- and 30-year mortgage rates are fixed and tied to Treasury yields and the economy. Yet anyone buying a new home has lost considerable purchasing power, with rates nearly doubling since the start of the year.

On a $300,000 loan, a 30-year fixed rate mortgage at the December rate of 3.11% would have meant a monthly payment of around $1,283. Today’s rate of 5.54% brings the monthly payment to $1,711. That’s $428 more per month or $5,136 more per year and $154,080 more over the life of the loan, according to Jacob Channel, senior economist at LendingTree.

Even though auto loans are fixed, payments go up because the price of all cars goes up along with interest rates on new loans, so if you’re planning on buying a car, you’ll be shelling out more in the months ahead.

According to data from Edmunds, paying an APR of 5% instead of 4% would cost consumers $1,324 more in interest over the term of a $40,000 auto loan over 72 months.

Federal student loan rates are also fixed, so most borrowers won’t be hit immediately by a rate hike. But if you’re about to borrow money for college, the interest rate on federal student loans taken out for the 2022-23 academic year has already dropped to 4.99%, down from 3, 73% last year and 2.75% in 2020-2021.

If you have a private loan, those loans can be fixed or have a floating rate tied to Libor, prime, or treasury bills — meaning when the Fed raises rates, borrowers are likely to pay more interest, although that how much more will vary depending on the reference.

What savers need to know about higher rates

Thana Prasongsin | time | Getty Images

The good news is that interest rates on savings accounts are finally higher after several consecutive rate hikes.

Although the Fed has no direct influence on deposit rates, they tend to correlate with changes in the target federal funds rate and the savings account rates of some of the larger retail banks, which were at lowest since the start of the pandemic, are currently up to 0.10%, on average.

Thanks in part to lower overheads, rates on top-performing online savings accounts reach 1.75% to 2%, far higher than the average rate at a traditional bank.

Inflation has to come down substantially for those higher savings returns to really shine.

Greg McBride

chief financial analyst at Bankrate

As the central bank continues its rate hike cycle, these yields will also continue to rise. Yet any money earning less than the rate of inflation loses purchasing power over time.

“Savers are seeing better returns in savings accounts, money markets and certificates of deposit and further rate hikes will support that momentum,” McBride said. “More importantly, inflation needs to come down substantially for those higher savings returns to really shine.”

What’s next for interest rates

Consumers should prepare for even higher interest rates in the coming months.

Even though the benchmark federal funds rate has now returned to its July 2019 level, at the peak of the last cycle, inflation “still sits north of 9%,” McBride said. “We are not at the finish line, and there will be more interest rate hikes to come in the months to come.”

Traders are betting that the Fed will raise rates again at its next meeting in September, then again in November and December before possibly cutting rates in the spring, depending on how economic conditions change.

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Why is now the best time to invest in cryptocurrencies?


While some are skeptical about investing in crypto soon after the price crash, Richard Iamunno offers information that can help savvy investors understand why buying cryptocurrencies can be a smart financial decision.

First, iamunno explains, it is essential to understand that many companies are optimistic about the short-term prospects of crypto and thus allow customers to pay for their purchases in one or more cryptocurrencies.

Bitcoin is particularly popular because major international companies such as Microsoft, PayPal, Starbucks, Virgin Galactic, Twitch (which is owned by Amazon), Etsy, Rakuten, and Whole Foods allow payments using this particular cryptocurrency. A host of restaurants, hotels, web hosting services, fashion retailers and service retailers are allowing payments in Dogecoin, a crypto that was once considered a joke but has now garnered plenty of celebrity endorsements .

Ethereum is also becoming more and more popular and can be used on many online shopping sites like Overstock. In effect, Richard Iamunnohis own company, AIC, recently expanded its yacht and luxury goods platform to include the top 1,500 tokens in the market. The fact that the business community is becoming increasingly comfortable with cryptocurrencies shows that crypto is likely to be in demand for the foreseeable future.

Naturally, market fluctuations still cause those who fear that their investment could lose tens of thousands of dollars in a matter of minutes to hesitate. It is true, Iamunno points out, that crypto is much more volatile than other traditional investment options such as stocks, bonds, and mutual funds.

However, richard is quick to note, fluctuations work both ways. A cryptocurrency that has lost 30% of its value in a few months can easily regain that value and even exceed past highs. In fact, some experts predict that Bitcoin could hit $100,000 per coin by the end of 2023.

While market fluctuations can make crypto a poor investment option for those who want to generate quick returns, it can be an ideal long-term investment option for those willing to wait for their investment to grow. value. In fact, it can be considered to be similar to a real estate investment. A house, building or land may lose value due to rising interest rates and other market factors; however, the value of real estate increases steadily over the long term and is a good investment for those who buy and sell at the right time.

In addition, he explains, cryptocurrency values ​​are not as inflation-sensitive as official currencies such as the US dollar, making them an ideal investment option for those who want to avoid losing money due to current market issues. Inflation in the United States has reached a staggering 8.5%, a 40-year high. Supply chain shortages, the Russia/Ukraine conflict, COVID-19 lockdowns, and arguably the distribution of COVID-19-related aid to individuals and businesses have led to runaway inflation that the FED has struggled to stop, and experts believe inflation could last the next two years until it drops to an ideal rise of 2% per year.

Crypto, on the other hand, has performed well in 2021 and, after a notable crash, its value has steadily increased thanks in part to the fact that there is only a limited amount of tokens in circulation at a given time. There is no chance of inflation disrupting the crypto markets which are designed to maintain a reasonably low supply of coins to avoid artificial inflation in the value of tokens.

Crypto is also a great option for any investor looking to diversify their portfolio. Although token values ​​can be affected by fluctuations in the stock market, they are not as strongly affected as paper investments. Rich highly recommend his own company to those new to crypto investing, because AIC can offer the solutions and the expert help new investors need to get started.

On another note, Iamunno explains that crypto investors will have greater control over their crypto investments than they would over alternative investment options. Although a typical financial institution may take three to five days to complete a transaction, a crypto transaction can be completed in seconds.

iamunno is the first to point out that anyone considering investing in crypto should do extensive research to select the investment most likely to yield a good profit. Investment goals, the amount of money one wishes to invest, and other factors will determine which crypto option is best.

Additionally, it is also important to pick the right crypto and identify a time when crypto values ​​are low but ready to rise.

That time is now, Rich affirms. Cryptocurrencies are becoming more widespread, easier than ever to buy and sell, and will likely increase in value over the long term, although they are subject to significant fluctuations. Prices have risen somewhat since the last crypto market crash, but could rise significantly in the near future, providing windfall profits for investors who know when to enter and exit the market.

Written by Richard Iamunno.
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Homeowners in Singapore may soon feel the pinch of rising mortgage lending


Singapore banks raised home loan rates in June, following the US Federal Reserve’s decision to raise interest rates by 75 basis points in the same month to calm inflation – its most aggressive rise since 1994.

Nurphoto | Nurphoto | Getty Images

Homeowners in Singapore are starting to tighten their belts as they will soon face higher mortgages, thanks to rising interest rates.

The country’s three largest banks raised rates on home loans in June, following the US Federal Reserve’s decision to raise interest rates by 75 basis points in the same month. to calm inflation – its most aggressive rise since 1994.

DBS raised its rates Two-year and three-year packages at 2.75% per year; OCBC increased its two-year fixed rate at 2.98%; and UOB its three-year fixed rate package at 3.08% per annum. Rates have risen since late last year, when three-year fixed rates were 1.15%.

Real estate experts say the rate increase is not surprising.

A home loan with an interest rate of around 2% is considered “super cheap,” said Christine Li, Asia-Pacific research manager at Knight Frank.

Homeowners with existing property would have “enjoyed two years of very low mortgage rates, and now it’s just normalizing (period from two or three years ago”), she said.

But residents who own private properties and whose mortgages are tied to a bank loan are starting to feel the pinch.

Tan, 34, who works at a software company and only wanted to be referred to by her last name, and her husband, 36, bought a condominium in 2021 for 1.75 million Singapore dollars (1.26 million of dollars). They applied for a two-year fixed rate mortgage of SG$1.31 million from a local bank with interest at 1.1%.

Tan said she initially felt relieved when she heard the news, as they would not be immediately affected. But panic set in when she realized their mortgage could go up towards the end of 2023 when their fixed rate ends.

The couple are currently paying S$4,274 a month on their mortgage and expect it to “rise quite significantly”, she said.

“What we should be doing is cutting unnecessary spending – [fewer] restaurant meals, fewer errands and the amount of wine we buy each month,” Tan said.

Two scenarios for public housing owners

The situation is similar for Singaporean owners of public flats – known locally as HDB flats – whose mortgages are also tied to bank loans, rather than the country’s public housing authority.

Régine, 25, who works as a public affairs executive and only wanted to be referred to by her first name, belongs to the first group. She bought a four-bedroom resale apartment for SG$482,000 in 2020 on a five-year fixed rate package from DBS with 1.4% interest.

“We’re still at the start of our lease, so it’s a relief that we’ve secured a good deal and are secure for the next few years,” Regine said. “Interest rates are crazy now.”

“Markets are very volatile right now, so we’re hoping interest rates will stabilize over the next five years and bank rates won’t be higher than HDB rates,” she added.

When asked how the couple might cope if interest rates remained high in the years to come, she said they would be ‘still very comfortable’ as they were not spending above their means for the house.

Knight Frank’s Li estimated that Singapore residents who own public housing could see their monthly mortgages rise by $200 to $300 with the current rate hike.

But apartment owners who have opted for an HDB home loan instead of a bank loan may be in a better situation.

Their loan carries an interest rate of 2.6%, less than bank loans.

Samantha Pradeep, 31, who owns a S$380,000 five-room apartment with her husband, said she felt comfortable with their decision to go for an HDB loan despite bank lending rates” slightly more attractive” in 2017 when buying the house.

“It was a neck and neck fight between the bank and the HDB loan five years ago, but it’s much more different now,” she said. “If we had taken out a bank loan, it would have affected our finances a lot at this time.”

Singapore introduced new measures in mid-December aimed at cooling the country’s scorching private and residential real estate market. He raised taxes on second and subsequent property purchases and imposed stricter limits on loans.

The government has also said it will increase the supply of public and private housing to meet the high demand, the The Ministry of National Development reported in the same month.

across the border

In Malaysia, mortgage prices have been relatively stable.

The country’s central bank raised interest rates on July 6 by 25 basis points, but real estate experts said the increase would not move the needle on mortgage prices much.

Ng Wee Soon, a Malaysian who owns two investment properties in Johor Bahru that cost around 500,000 Malaysian ringgits ($112,000) each, said increasing mortgages could cost him “around $100 per property”.

People with multiple properties will see their cash outlays eaten away each month as mortgage rates rise, Knight Frank’s Li said. “But if the rental market is resilient … investment property owners are able to adjust the rental rates to achieve higher rental yields.”

However, Ng said that with Malaysia’s economy still recovering from the pandemic and the country’s housing surplus, he would rather “absorb the cost of higher mortgages, rather than increase rents.”

– CNBC’s Abigail Ng contributed to this report.

BMO ETF Mid-Year Report: Investors Bet on ETFs for Strategic Positions and Inflation Hedge

  • Flows reached $17 billion during the first semester of Canada1
  • Inflation poses a major risk, technology is under pressure and few places to hide for bond investors
  • BMO’s equally weighted banks ETF among top 10 by flow1

TORONTO, July 26, 2022 /CNW/ – BMO Global Asset Management (BMO GAM) today released its semi-annual report on exchange-traded funds (ETFs) highlighting the continued popularity and growth of ETFs in Canada. The report features experts from across BMO GMA’s ETF team sharing insights into the Canadian ETF market and ETF trends in volatile markets.

“Investors have struggled with the markets this year,” said Marc Raes, Head of Product, BMO Global Asset Management Canada. “ETFs continue to prove their value both strategically and tactically as access vehicles for satellite positions and as the basic building blocks in portfolios. Even in an environment of increased inflation, ETFs that focus on specific areas of the market such as infrastructure can provide good coverage and offer protection for investors.”

Key themes

Inflation: Alfred Lee (Portfolio Manager)

  • With aggressive assumptions for further rate hikes already priced in, inflation leveling would be the catalyst for markets to rally.
  • ETFs exposed to certain sectors, such as financial services and infrastructure, can offer investors a hedge against inflation.

Growth and innovation: Marc Raes (Product manager)

  • Rising inflation has hit growth stocks hard as companies valued on future cash flows now face a higher discount rate and lower growth estimates.
  • In the long run, these ETFs will continue to influence our behaviors and routines and have the potential to propel stock markets into the future.

Environment, Social and Governance (ESG): Erin Allen (VP, Online ETF Distribution)

  • Despite uncertain markets, geopolitical events and the pandemic, ESG ETFs continue to attract investors, driven by institutional flows.
  • BMO’s range of leading ESG ETFs targets neutral sector exposure, which under normal circumstances helps keep performance in line with the broader market.

Sectors: Chris McHaney (Portfolio Manager)

  • Canadian ETFs in the energy sector saw inflows of $730 million year to date.1
  • BMO’s Equal Weight Banks ETF was in the top 10 by flow.1
  • Utilities have posted a positive year-to-date performance, with the defensive sector having ties to the energy complex and high levels of current cash flow.

Dividend and low volatility: Chris Heakes (portfolio manager)

  • Shift from growth factors to defensive factors due to market volatility.
  • Investors have used ETFs to add strategic portfolio positions to capitalize on this market rotation: dividend ETFs have seen $1.3 billion new net flows since the beginning of the year.1

Fixed income: Matt Montemurro (Portfolio Manager)

  • A difficult first half for fixed income where the combination of negative performance drag from interest rate sensitivity and widening credit spreads left investors with very little safe haven.

To view the full report, please click here.

To learn more about BMO ETFs, visit: www.bmo.com/etfs.

About BMO Exchange Traded Funds (ETFs)

BMO Exchange Traded Funds has been a leading ETF provider in Canada for over 11 years, with over 100 strategies, over 25% market share in Canada.2, and $80.6 billion in assets under management. BMO ETFs are designed to stay ahead of market trends and provide compelling solutions to help advisors and investors. This includes a full range of ETFs developed in Canada for Canadians, such as profitable core equity ETFs tracking major market indices, and a wide range of fixed income ETFs; solution-based ETFs that meet customer demand; and innovation with smart beta ETFs, as well as combining active and passive investing with active mutual fund ETF series.


National BankETF report, June 30, 2022


morning star, May 2022

About BMO Financial Group

Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8th largest bank, by assets, in North America. With total assets of $1.04 trillion of the April 30, 2022and a diverse and highly engaged team of employees, BMO offers a wide range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and operates through the through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.


Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the ETF Facts or BMO ETFs prospectus before investing. Exchange traded funds are not guaranteed, their values ​​change frequently and past performance may not be repeated.

For a summary of the risks of investing in BMO ETFs, please see the specific risks set out in the BMO ETFs’ prospectus. BMO ETFs trade like stocks, their market value fluctuates and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and may be changed and/or eliminated.

BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and portfolio manager, and a separate legal entity from Bank of Montreal.

BMO Global Asset Management is a brand that includes BMO Asset Management Inc. and BMO Investments Inc.

®/™Registered Trademarks/Trademarks of Bank of Montrealused under license.

THE SOURCE BMO Financial Group

© Canada Newswire, source Canada Newswire English

South Korea’s economy accelerates unexpectedly, pointing to further rate hikes


Pedestrians cross a road outside the Bank of Korea headquarters in Seoul on July 13, 2022. South Korea’s economic growth unexpectedly accelerated in the second quarter as strong consumption linked to the easing of Covid-19 restrictions offsetting weak exports, which argues for a further central rise in bank interest rates.

Jung Yeon-i | AFP | Getty Images

South Korea’s economic growth unexpectedly accelerated in the second quarter, with strong consumption linked to the easing of Covid-19 restrictions offsetting weak exports, arguing for further interest rate hikes of the central bank.

The Bank of Korea estimated on Tuesday that gross domestic product for the April-June period grew 0.7% quarter-on-quarter, faster than the 0.6% growth in the first quarter and above a rise 0.4% announced in a Reuters survey.

Economists said the upbeat data allowed the central bank, which this month carried out an unprecedented rate hike of 50 basis points, to continue to tighten policy in the months ahead.

“The economy will inevitably slow due to prolonged inflation and slowing exports, but today’s strong numbers are a good boost for the central bank which sees inflation as the biggest risk to the economy. moment,” said Chun Kyu-yeon, an economist at Hana Financial Investment.

The BOK raised the key interest rate by a combined 1.75 percentage points to 2.25% from the record high of 0.5% since August last year, with economists predicting rates will be at 2 .75% by the end of this year. The bank holds its next policy meeting on August 25.

CNBC Pro Stock Picks and Investing Trends:

Private consumption jumped 3.0%, the best in a year, after falling 0.5% in the first quarter as the government scrapped almost all Covid-19 social distancing restrictions in April.

The strong consumption comes despite the BOK’s aggressive series of interest rate hikes since August last year.

The economy was also boosted by increased government spending after parliament approved a 62 trillion won ($47.33 billion) supplementary budget weeks after President Yoon Suk- yeol early May.

However, exports and business spending on production facilities slumped amid a slowing Chinese economy and fallout from a war in Ukraine as well as a global wave of monetary policy tightening to fight against inflation.

Exports fell 3.1% in the April-June period from the previous quarter, the biggest drop in two years. Capital investment fell for a fourth consecutive quarter by 1.0% after contracting 3.9% in the January-March period.

Asia’s fourth-largest economy grew 2.9% in the second quarter year-on-year, faster than analysts’ expectations for 2.5% growth but slower than the 3.0% growth in first trimester.

Rain: light up faces before payday


Financial health is a key component of an individual’s overall well-being. This has never been more true than in the aftermath of the pandemic when, along with mental and physical well-being, financial health became one of the priority areas for employers and individuals. In fact, in a recent survey conducted by fintech platform Rain, around 55% of respondents said that financial issues were their main source of stress, which reiterates the importance of reassuring employees about their future and relieve their financial difficulties.

“At Rain, that’s exactly what we aim for,” says its CEO, Akbar Khan. “We want to expand people’s financial freedom, allow them to meet their financial obligations, give them a sense of security and, above all, allow them to make their own choices, rather than falling into the trap of predatory financial products like payday loans. .”

Thus, Rain is a comprehensive financial benefits platform for the well-being of underserved employees. It focuses on empowering employees with paid monetary solutions. The company was established in 2019 by Alex Bradford and Jennifer Terrell in the United States, with its Indian subsidiary being established in December 2020. It is backed by QED, LightSpeed, Dreamers VC, Picus Capital, Jump Capital, CMV, Ethos Capital, and Quad Partners.

The company’s product allows employees to get paid daily instead of waiting for payday. Under normal circumstances, most salaried employees live paycheck to paycheck. However, the fintech allows them to access their salary at any time of the month for the days already worked.

Rain partners with employers and also connects directly with employees to provide on-demand access to earned wages. Employees access their earned pay through the Rain app and can repay it on their payday. “We work across a myriad of industries and industry verticals,” says Khan. “Industry leaders in IT, telecommunications, manufacturing, energy, as well as major enterprise service providers, managed service providers and consulting firms benefit from the platform of Rain.”

Among the features that set Rain apart are hassle-free processes, no hidden fees, and no interest on refunds or EMIs. Through its offerings, Rain strives to help organizations improve retention and productivity, and attract talent.

Khan says the startup has had a great start in the Indian market, “which highlights the huge need for such a product.” Employers have seen improved productivity and employee engagement. As employees appreciate and benefit from having access to on-demand earned pay, “we intend to capitalize on our strong start and move into the next phase of growth,” he adds.

The payday early access fitness platform is a well-funded Series A company. “We have been growing steadily and are ready to leverage our large customer base. We have seen 50% growth month over month and we aim to increase it several times, given the large addressable market and strong demand. “We currently have over 2 million eligible users on our platform and are looking to aggressively increase the numbers in the second half of the year,” he said.
Rain’s larger vision is to build the world’s largest mobile bank for employees. “We have a very comprehensive product pipeline that will help us achieve this goal,” says a confident Khan.


Rain was created in 2019 by Alex Bradford and Jennifer Terrell in the United States. Its Indian subsidiary was created in December 2020
A well-funded Series A company, it is backed by QED, LightSpeed, Dreamers VC, Picus Capital, Jump Capital, CMV, Ethos Capital and Quad Partners
The company meets the requirements of employers and employees by paying wages earned before payday
It has more than 2 million eligible users on its platform

Collingwood pilots reduced parking rates for fundraisers


A pilot parking program will seek relief for charities or nonprofits at fundraising events in riverside parks with paid parking

Parking tickets issued to attendees at a charity fundraising event have prompted the council to review its paid parking rules for riverside parks and ask staff if relief can be given to people who attend fundraisers.

Tasked with creating a plan with exceptions for paid parking, staff returned to the July 18 council meeting with a pilot project proposal.

Staff recommended a case-by-case approach to parking relief and suggested the best way to handle approval was to use the city’s existing event permit process and the Recreation and next year’s community grants. Indeed, staff recommended treating free and discounted parking as an in-kind donation to the charity and fundraising event.

The Board gave its unanimous support to the project at the July 18 meeting.

Under the pilot, charities and fundraisers can apply for up to 10 free parking permits for event organizers for the period requested to set up, run the event and clean it up. .

The city could also provide a 50% discount code for the duration of the event up to one day, allowing people to pay for parking as usual with a smartphone and the HotSpot app, but at a discounted rate. .

A smartphone would be required to benefit from this reduction.

Staff said the 50% reduction recognizes that event parking takes away available parking for residents and reduces budget revenue for non-residents. A discount code could also be abused if shared with non-participating visitors who are not attending the event.

Collingwood residents can park for free at waterfront parks by getting an annual pass through the HotSpot app or through City Hall.

The July 18 staff report also noted that event organizers would be encouraged to use other park facilities like Harbourview Park where parking is free.

A reduced and/or free parking pass reduces the amount of revenue the city collects from its paid parking program, but staff could not estimate the impact this would have.

The staff, however, were supportive of the idea of ​​sacrificing revenue for a good cause.

“Local charities are an integral part of the community and requiring people who attend these events to pay for parking may place an undue financial burden on the fundraising activities and initiatives of these vital groups,” the report said. Staff.

New bank CDs pay more than double the interest rate of some old ones | Company


A bank certificate of deposit is traditionally a good way to get a little more interest on your savings, in exchange for leaving that money tied up for a while.

A CD can usually be paid off sooner, with a penalty of forfeiting the last few months of interest earned, so putting money in a 2-year-old CD doesn’t really mean the money is out of reach for two year.

Lately, with rising interest rates, rates for CDs and regular savings accounts have nearly doubled since the start of this year.

Nobody gets rich with these rates – we’re talking about an interest rate between 2% and 3% – and they’re well behind the rate of inflation, but the changes taking place raise some issues.

For example, when does it make sense to pay a penalty and close a CD early in order to put that same money into a higher yielding CD?

Consider how the rates have changed. Here is an overview of the evolution of the rates offered by Ally, one of the large online banks, for 18-month CDs:

  • February 2021: 0.6% interest.
  • April 2022: 1.25%
  • May 2022: 1.75%
  • July 2022: 2.25%

Today, Ally pays 1.25% on regular savings accounts, so a CD acquired last year would look like a real loser. I’m using Ally as an example because I have an account with them and know their rates and policies, but always shop around and also check local banks for the best rates.

Regular readers may recall that in February 2021 I wrote about Escalating Rate CDs, which allow account holders to upgrade to presumably higher rates offered at any time during the term of their CD, usually once or twice depending on duration.

In retrospect, it was a good idea at the time.

But what if a person put money in a CD just a few months ago when the interest rate was 1.25% and now it’s almost double that?

The penalty for early withdrawal of CDs, at least at Ally, is 60 days interest, and someone who released a CD in April would have about three months.

Let’s say it’s a $10,000 CD. At 2.25% versus 1.25%, that’s about $100 more in annual interest. So yes, it would pay to cash in that CD and put the money into a new one paying almost twice as much.

And if you think interest rates will continue to rise, then an increasing rate CD might again be a good choice. With one of these, you can upgrade to a higher rate when offered without the early withdrawal penalty.

Now, none of these CD rates will make anyone rich. Heck, they won’t even keep up with rising prices, especially in today’s high inflation environment. But ideally, people have some emergency savings tucked away, and it’s good to earn as much interest as possible.

US inflation-linked savings bonds are a good option for long-term savers

In April, I wrote about Federal Inflation-Linked i-Bonds, US government bonds that currently offer a 6-month guaranteed interest rate of 9.62% on treasurydirect.gov. It’s a great, safe way to save, but there’s an annual limit ($10,000) on how much a person can buy, and you can’t withdraw the money until a year has passed. elapsed.

For emergency savings that you don’t think you’ll need for at least a year, i-bonds remain my top recommendation. After that, check current CD rates and consider an increasing rate CD. With emergency funds in a CD, you can always withdraw them if needed and lose just a little interest.

Our bi-weekly newsletter features all the business stories shaping Charleston and South Carolina. Go ahead with us – it’s free.

Reach David Slade at 843-937-5552. Follow him on Twitter @DSladeNews.

It is the last taboo of the central bank. So, will the RBA review examine how money is created?


Last week, the federal government announced its intention to conduct a review of the Reserve Bank of Australia.

The review is Terms of reference are broad, so its panelists will be able to examine a wide range of issues.

But you know what would be great to see? The panelists took the opportunity to seriously discuss one of the last central bank taboos: the bank’s ability to create money.

Should the Reserve Bank fund government spending?

In 2020, a young generation of Australians saw for the first time how the federal government could extract huge sums of money out of thin air.

Suddenly, in the first year of the pandemic, the government found hundreds of billions of dollars to subsidize the incomes of millions of households during lockdowns.

Where is he from?

The government “raised” the money by asking the Australian Office of Financial Management (AOFM) to sell bonds on its behalf, leading to an explosion in public debt.

But could the government have raised funds in another way?

Why would a government that issues its own currency, and therefore has the power to create money to pay for things, want to fund its deficit spending with borrowed money?

It’s a fascinating question.

And that’s getting into controversial territory that Reserve Bank Governor Philip Lowe has done his best to avoid during the shutdowns.

Government bonds for all

Let’s take a quick look at the process.

When the Australian government wants to spend more money in the community than it collects in taxes, it borrows money to cover the expenses.

And it does this by issuing bonds.

Specifically, AOFM sells bonds on behalf of the government and it sells the bonds to authorized institutional investors (large foreign and local banks).

These institutional investors then take the bonds and create another market for them (called the “secondary market”), where entities such as super funds, hedge funds, insurance companies, private banks and central banks can buy and sell bonds.

These entities are always keen to buy government bonds in the secondary market because the bonds guarantee them a source of future income.

What does that mean?

Well, when the Australian government sells a bond, it promises to pay regular interest to the owner of the bond.

For example, suppose the AOFM issues a bond with a term of 10 years with an annual interest payment of 2%.

If the face value of the bond is $100, the government has promised to repay that $100 to the bond owner when the term of the bond expires in 10 years.

But during those 10 years, the bond owner will also receive an annual interest payment of 2% of the face value of the bond (i.e. $2 per year).

So the Australian government says, “If you lend us $100 now, we promise to pay you back that money in 10 years and we’ll pay you $2 every year for the next decade.”

It is these interest payments that provide a guaranteed source of future income for the bond owner: $2 a year, every year, until the bond expires.

But this traditional practice of the government borrowing money (at interest) to finance its deficit spending is what has contributed to the explosion of Commonwealth government debt during the pandemic.

Isn’t there a cheaper way to raise funds?

Is there no alternative?

Well, in late 2020 former Prime Minister Paul Keating said there was no reason the RBA couldn’t just buy Australian government bonds directly from the AOFM and bypass the secondary market altogether. .

He said the RBA could buy a huge amount of government debt and lock it into its own balance sheet.

He said this kind of direct monetary financing of the government’s stimulus program would make the government’s job of funding “much easier”, but the RBA was too timorous to do so.

“You have to remember that these are the high priests of the incremental,” Mr. Keating said.

“Being absolutely certain that no banking toe will cross the line of central banking orthodoxy.

“Certainly not buy bonds directly from [the AOFM] – wash your mouth on that one – what would they say about us at the annual meeting of the Bank for International Settlements in Basel?”

And a few months later, economics professor Ross Garnaut agreed.

During the heady days of the pandemic, when AOFM raised emergency funds for the government by issuing bonds, authorized institutional investors (i.e. large banks) could buy the bonds knowing full well that the RBA would be keen to buy the bonds in the secondary market, so they could be sure they wouldn’t be stuck holding bonds they didn’t want.

Professor Garnaut said it was not necessary.

“We’re really talking about angels dancing on a pinhead when we’re talking about difference,” he told reporter Alan Kohler in early 2021.

“The only difference between the government selling bonds in the market and the Reserve Bank buying them is that you give margin to the small number of bond market players, to the banks that participate in this trade.

“I would say, let’s take their free lunch.”

Why is it necessary to do this?

During the first year of the pandemic, RBA Governor Philip Lowe was repeatedly asked about the issue of deficit financing.

He has repeatedly rejected suggestions that the RBA should fund government stimulus spending directly.

However, he never said it wasn’t possible. He just said it wasn’t necessary.

There is a big difference between the two.

“I want to make it very clear that monetary financing of fiscal policy is not an option being considered in Australia, nor does it need to be,” he said in July 2020.

“The Australian government is able to finance itself in the bond market, and it can do so on very favorable terms.”

Why wouldn’t he think of it?

Probably because there’s an old argument on this issue, dating back centuries, that politicians shouldn’t be allowed to get too close to printing presses.

He says politicians should be forced to borrow the money they need to cover their extra spending plans because it will impose some discipline on them.

You can see the argument in David Ricardo’s famous Plan for the Establishment of a National Bank (published posthumously in 1824):

“It is said that the government could not be safely entrusted with the power to issue paper money; that it would most certainly abuse it.” he said.

“There would be, I confess, a great danger if the government, that is to say the ministers, were entrusted with the power to issue paper money.

“But I propose to place that trust in the hands of commissioners, not removable from their official position but by a vote of one or both houses of parliament.

“I also propose to prevent all communication between these commissioners and these ministers, by prohibiting any kind of transaction of money between them. Commissioners should never, under any pretext, lend money to the government, nor be the least of the world under his control or influence.

“If the government wanted money, it should be compelled to raise it legitimately; by taxing the people; by the issue and sale of treasury bonds, by funded loans, or by borrowing from one of the many banks that might exist in the country, but under no circumstances should it be allowed to borrow from those who have the power to create money.

I guess that’s why Dr. Lowe says he wants to maintain some separation between the issuance of bonds by the AOFM and the financing of government expenditure by the Reserve Bank.

But let’s think about that for a second.

Australians now face much higher levels of public debt than they did before the pandemic, thanks to stimulus spending by the Morrison government.

Would you say that all of this spending has been disciplined?


AFR columnist Joe Aston has made an art form of cataloging the blatant trash in the JobKeeper scheme.

“[Josh] Frydenberg passed a free money law as part of a no-recourse honesty system. What did he think was going to happen?!” Aston cried at one point.

Should we consider ourselves lucky that the orthodox way of financing deficit spending has been used for the pandemic? I mean, it imposed so much discipline.

So, would it be possible to avoid this situation in the future by having an agreed mechanism – to be used in an emergency – that would increase the government’s fiscal firepower without giving the banks a free lunch in the bond market?

Even some orthodox economists are quietly wondering if, perhaps, we would find ourselves in a future situation in which nominal interest rates were close to zero and inflation was exceptionally low, the RBA could get creative with its financing public spending.

Or could there be even better ways to think about government funding?

The RBA exam would be the perfect place to discuss this.

Your money is trash, 2 big yields to buy NOW



Co-produced with Treading Softly

I hate to see wasted potential. It saddens me to see possibilities that never arise simply because the time, effort, or energy has not been expended to realize them.

I recently saw a WWII Jeep Willys on parade. It has been beautifully restored. Someone put in a lot of effort to get the engine running right, to get the paint scheme and tires right, it was a work of driving art.

I’ve also seen the exact same vehicle idle in a farmer’s field, exposed to the elements and rusting. The potential for an excellent, fun-to-drive car awaits someone who wishes to unleash that potential.

It is likely that this will never happen. All that wasted potential. A real shame!

For many of us, our portfolios are operating near their peak performance. However, among the investment community, we have a number of us who are sitting on wasted potential in our portfolios.

We are talking about their liquidity. Losing value due to inflation and not gaining anything significant while losing that value.

Cash as an emergency savings tool is valuable as cash and should not be confused with an “investment” in one’s wallet.

The money left in his wallet is a Pyrrhic victory. Sure, it sounds great that it “beats the market”, but in all honesty, that doesn’t matter. If you sit on it, it will lose to the market on the next rally. It does not pay dividends, it has simply lost value over time. You may be “winning”, but even when you win, you lose.

It’s time to put that money to work. Collect excellent dividends and take advantage of the timely market recovery.

Let’s dive into it.

Choice #1: ARCC – Yield 8.9%

Ares Capital Corporation (ARCC) is a premium BDC (business development company) that has stood the test of time. One of the oldest BDCs listed on the stock exchange, ARCC is one of the few companies in the sector to have been tested under the difficult conditions of the Great Financial Crisis.

BDCs are direct lenders to middle market businesses. These are companies that are not usually listed on the stock exchange, but are still quite large. ARCC focuses on the upper middle market segment, with the average borrower having an EBITDA above $170 million per year. These are much larger borrowers than most BDCs invest in, and ARCC can focus on this segment due to its size.

ARCC has the perfect business model for a rising fare environment. The majority of the loans it grants are at variable rates and the majority of the debt it borrows is at fixed rates. Thus, as interest rates rise, the ARCC collects more interest, while the interest it pays remains fixed. The combination of higher income and lower expenses means a better bottom line. (Source: Quarter ended March 31, 2022).

Quarter ended March 31, 2022

Quarter ended March 31, 2022

A 100 basis point increase from March 31 rates adds $0.23 to basic EPS. A 200 basis point increase adds $0.44 to basic EPS. Rates have already increased by 140 basis points, which means that ARCC’s income is already increasing at this time.

So let me clear things up. The CRA has:

  • Increase of its regular dividend by 2.4% in the first quarter.
  • Announcement of an additional dividend of $0.12 to be paid in four quarterly installments throughout 2022.
  • Net asset value increased to $19.03 in the first quarter.
  • Expects basic earnings per share to increase +20% for the remainder of the year.
  • Will benefit even more if interest rates continue to rise, as the market expects.

With all of these tailwinds, ARCC should be trading at a larger premium to NAV. Instead, ARCC is trading at a slight 2% premium and is cheaper than it was this time last year.

All I can say is thank you for the dividends as I pick up more ARCC.

The ARCC publishes its results on the morning of July 26th.

Choice #2: RNP – Yield 7.2%

Do you know what I love most about bear markets? Investors tend to sell everything. The good, the bad, the ugly and the profitable tend to be lumped together when investors rush to cash in.

Cohen & Steers REIT & Preferred Income Fund (RNP), is an example of a great investment that the market has pushed aside in its rush to cash. RNP is a fund that invests in some of the highest quality real estate investment trusts (“REITs”). Their Top 10 is a “who’s who” of blue chip REITs. (Source: RNP Fact Sheet)

Fact sheet

Fact sheet

The market is selling REITs as if they were toxic, likely due to rising interest rates. Yet these companies find themselves in a fantastic earnings environment, as rents have risen with inflation, while they benefit from the tailwinds of having refinanced at historically low interest rates.

REITs benefit from rising rents while having relatively fixed expenses. The biggest expense for most REITs is the interest on their debt. However, over the past two years, REITs have refinanced as much debt as they could at historically low rates. Refinancing often over more than 10 years. Few REITs have significant debt maturing before 2024, so they benefit immediately from increased revenues, but it will be several years before rising interest rates drive up expenses. REIT earnings generally surprised the market in Q1, and as Q2 begins, we expect the market to be even more “surprised” by the strength of REIT fundamentals.

It had been a long time since inflation had been this high. Wall Street is used to looking at REITs in a low inflation environment and fails to understand the real benefits of owning in an inflationary environment.

In addition to an excellent portfolio of REITs, RNP also has a significant allocation to preferred shares

Fact sheet

Fact sheet

Preferred shares also faced headwinds as fears of Fed rate hikes dominated the world. They are significantly oversold and this part of the portfolio is likely priced higher as well.

With RNP, we have a solid return of 7.2% and plenty of room for capital appreciation in the second half. When the market is scared, I’m happy to find quality payers and collect my distributions until the market comes back.




By using RNP and ARCC, we can turn a Pyrrhic victory into a real victory. We can approach the battlefield of life with a growing and steady supply of income knowing that our original capital is working hard to earn more.

Unlike cash, we don’t beat the market, while simultaneously losing.

Retirement shouldn’t be a time to lose by winning. You will be able to enjoy victory without knowing that the next battle will be the last.

Instead, have constant reinforcements flowing into your account. This army of dollar bills will help you win the war against rising prices and the escalating cost of living. You can enjoy continued financial freedom and independence without being weighed down by debts and bills you can’t pay.

Live victoriously. Live in the light of financial freedom.

Achieve this goal through income investing. You can do it. I shoot for you.

Payday lender ordered to pay $39 million in embezzlement lawsuit | Sheppard Mullin Richter & Hampton LLP


On June 29, a Florida court issued a final judgment against a Miami-based payday lender and its CEO, resolving allegations that the defendants misappropriated funds from investors. According to the complaint, the company fraudulently raised more than $66 million through the sale of promissory notes to more than 500 Venezuelan-American investors who were told the company would use their funds to fund payday loans through to the offering and selling of “safe and guaranteed promissory notes”. Investors were promised returns of up to 120%, but it was alleged that the company had not generated income to cover its principal and interest payments due to investors.

The complaint also alleged that the CEO misappropriated investor funds for personal gain and authorized the transfer of funds to friends and relatives without apparent legitimate business motives.

The company and the CEO have agreed to a final judgment under which they are permanently prohibited from trading in securities in the future and from committing further violations of the Securities Act and the Exchange Act. The company must also return $39 million to investors. The CEO is liable for approximately $4.5 million, which, if paid, will reduce the amount owed by the company by the same amount.

On July 13, the SEC filed new related charges against four company sales representatives for their role in soliciting dollars from investors in the unprofitable business. The lawsuit, filed in the Southern District of Florida, alleges the representatives sold more than $25 million in unregistered promissory notes to nearly 350 investors. None of the representatives were registered with the SEC as a dealer or were associated with registered dealers.

Put into practice : The misuse of investor funds in this particular case was particularly egregious. However, this series of enforcement actions should serve as a stark reminder that companies engaged in the sale of promissory notes must comply with federal and state securities laws at every stage and at all levels of employment, from sales representative to the CEO. The SEC, in particular, has signaled that it will vigorously enforce violations at both the corporate and individual level.

Research: Rating Action: Moody’s confirms Saint Louis University, MO’s A1; stable outlook


No related data.

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U.S. jobless claims and job cuts rise as interest rate hikes begin to hit economy


New claims for unemployment benefits in the United States rose again last week for the third week in a row, as Ford, Stellantis and other automakers announced job cuts. Interest rate hikes by the US central bank. aimed at driving up unemployment to undermine workers’ wage demands, increasingly seem to be having the desired effect as the US economy heads into a possible recession.

Ford World Headquarters in Dearborn, Michigan (WSWS Media)

Initial jobless claims rose to 251,000 for the week ending July 16, from 244,000 the previous week and well above the pre-pandemic weekly average of 218,000. The four-week moving average rose to 240,000, up 4,500 from the previous week. Hiring in June was down 5.4% from May, according to Linkedin data.

Other signs of impending recession abound. The price of copper, a key material used in manufacturing, has fallen 20% since January, hitting a 17-month low on July 1. Consumer confidence is at its lowest level since 1952 as incomes are eroded by inflation and new home construction slows.

The higher layoff numbers follow rate hikes of half a percent in May and three-quarters of a percent in June. Another halving to three-quarters hike is expected when the US Federal Reserve meets later this month. Rising interest rates impact borrowing and increase the cost of car loans, home loans, student loans and credit card debt.

The impact of the impending economic downturn is evident in the auto industry, which is particularly sensitive to rising interest rates, with Ford and several electric vehicle makers announcing major job cuts.

This week, Ford announced it was cutting 8,000 jobs, mostly in its “Ford Blue” internal combustion engine operations. The layoffs will largely involve salaried staff and are aimed at cutting costs to provide cash for investing in electric vehicles. Most of the cuts will take place in the United States.

Ford CEO Bob Farley said the company needs to cut costs by $3 billion by 2026, with savings coming from the company’s gasoline engine operations, which he says must become the “profit and cash engine” as the global automaker seeks to expand its EV operations.

The significance of this was explained at an automotive conference last February where Farley complained: “We have too many people. That would come as a surprise to workers who are forced to work 12-hour shifts and six-day weeks due to COVID-related labor shortages. What Farley meant, however, is that Ford wants to cut costs by further cutting production from a smaller, overstretched workforce.

US electric truck maker Rivian Automotive Inc. also plans to make layoffs. According to a Bloomberg report, the cuts could affect 5% of the company’s 14,000 employees. Rivian CEO RJ Scaringe said in a letter to employees, “Rivian is not immune to the current economic circumstances, and we need to ensure we can grow in a sustainable way.

Meanwhile, electric car maker Tesla is closing its offices in San Mateo, Calif., impacting 229 jobs. Tesla CEO Elon Musk has spoken about possible job cuts totaling 10% of the company’s salaried workforce, saying he has a ‘super bad feeling’ about the economy .

Stellantis also announced the indefinite layoff of 40 workers at its Warren stamping plant north of Detroit. This follows the layoff of workers at the nearby Sterling Stamping plant in June. Another 98 were made redundant in March. Management issued a boilerplate statement saying the layoffs were necessary to “operate the plant in a more sustainable way”.

The layoffs come as Stellantis is downsizing its Belvidere, Ill., assembly plant from 1,800 to about 800 workers. As workers are offered transfers to other Stellantis factories, the layoffs put a question mark on that.

A number of tech companies have also indicated plans to cut staff, including Google, Twitter and Netflix.

The Federal Reserve’s interest rate hikes, which are touted by the Biden administration as a way to fight inflation, are actually directed at workers’ attempts to raise wages to deal with the surge of the cost of living. Over the past few months, a series of militant strikes and contract struggles have taken place as workers resist the attempt by management and unions to impose wage deals well below the current annual inflation rate of 9 .1%.

However, the Federal Reserve’s efforts to raise unemployment to dampen militancy may produce the opposite backlash, serving to further stoke workers’ anger, as evidenced by posts filling Facebook pages in response to recent job cut announcements. jobs.

“Ford’s net income was $18 billion in 2021, its executive compensation $22 million, for a median total compensation ratio for all employees of 356 to 1. Its worker productivity, a faithful group, is absolutely not appreciated. They know where to cut costs, but those making the decisions in the boardroom are instead choosing to stoke inflation to feed their greed,” said one worker.

“Inexcusable. They made money off the backs of these employees and put it in the pockets of the top 1%?? Ford made a profit, it’s greed and nothing else” , said another.

While announcing cuts, on the one hand automakers have imposed forced overtime and hired hundreds of temporary and casual workers, who earn a fraction of the wages and benefits of older workers, to produce more vehicles.

The Stellantis layoffs are also drawing strong opposition, particularly the miserable treatment of casual workers. A young Stellantis employee in Detroit told the World Socialist Web Site Autoworkers Bulletin, “The company hires workers from the streets and makes them work 10 to 12 hours a day, six days a week. They barely have time to sleep, let alone do anything else, like trying to get to school. Every moment they are at work.

“But the factories are constantly down due to shortages of chips, dashboards and other parts. One week they work 60-70 hours, the next week they only work 30 hours. TPTs (temporary workers part-timers) cannot collect unemployment benefits and do not receive short-workweek wages like full-time workers.

“I can sympathize with them because I was TPT for years before going full time. Their paychecks are like Burger King’s. They make $15, they have health benefits but no profit sharing, and if they get laid off they don’t get a salary (SUB) like full-time workers. I was taking home $572 a week as a TPT when I started.

“They bring home maybe $700 a week after taxes now. If the plant is down for a day or two or a week, it loses $100 a day. How can a TPT, especially with a child or two, live on $400 or $500 a week? It’s impossible.”

To defend jobs and living standards, workers must adopt a comprehensive strategy. Ford and other automakers are cutting costs around the world as they seek to outsmart workers from different countries in a brotherly competition for jobs.

In Europe, Ford confirmed this month that it would close its plant in Saarlouis, Germany, by 2025, at a cost of 4,600 people at the plant and another 1,500 workers at related suppliers. Ford management, with critical help from unions, is pitting German Ford workers against workers in Valencia, Spain over who could offer the biggest cuts.

Meanwhile, Ford in India is closing its Chennai manufacturing plant in the state of Tamil Nadu this month, at the cost of 4,000 jobs and potentially tens of thousands more in supplier industries. The announcement of the closure sparked a militant strike by young factory workers, who were betrayed by their union.

The struggle to protect workers’ living standards against runaway inflation as well as the defense of jobs requires workers to organize independently of pro-corporate bureaucratic and union apparatuses. This means expanding the network of rank-and-file committees in the automotive, logistics, education, health care and other sectors within the framework of the International Alliance of Rank-and-file Committee Workers ( IWA-RFC).

The struggle to defend jobs and the standard of living raises the need for a fundamental reorganization of society. The myriad and escalating social problems facing humanity, from inflation and unemployment to the pandemic and climate change, cannot be solved within the framework of the capitalist system which subordinates all social issues to research private profit. This requires workers to fight for an international socialist program and perspective.

British Columbia Investment Management returns 7.4% for the year on strong equity performance


The five-year return compares to a benchmark annualized net return of 7.3%, while the benchmark 10-year net return was 8% and the benchmark 20-year return was 6.9% net.

BCI’s net assets under management increased by C$11.5 billion ($9.2 billion) during the year to reach C$211.1 billion at the end of fiscal 2022.

During the previous year, BCI posted a net return of 16.5%, below the benchmark return of 17.1%.

BCI’s asset mix as of March 31 was 37% fixed income, including private debt; 30.5% public shares; 15.9% real estate equity; 11.8% private equity; 9.5% renewable infrastructure and resources; 3.7% real estate debt; and -8.4% from other strategies, including “leveraged liabilities and client currency hedging,” based on press release numbers.

Within fixed income, short-term securities delivered a net return of -0.3% in fiscal 2022, compared to a net return of 0.1% for the benchmark; nominal bonds posted a net return of -3.9% (-4.2% for the benchmark); and private debt, a net 7.3% (benchmark 2.2%).

Among public equities, Canadian equities generated a net return of 19% in fiscal 2022, below the benchmark’s net return of 20.2%; global public equities, 5.7% (benchmark 9%) and emerging market public equities, -10.6% (-11.9%).

Overall, public equities “generated positive returns as markets continued to recover from 2020 lows,” BCI said in the statement. Despite “outstanding gains, equity market volatility persisted, influenced by the COVID-19 pandemic and the Russian government’s invasion of Ukraine,” the company added.

Within private markets, private equity generated a net return of 29.7% in fiscal 2022, above its benchmark return of 19.5%; and infrastructure and renewable resources generated a net return of 12.1% (benchmark 6.8%).

Regarding its private equity portfolio, BCI said in the statement that “timely partial and full exits from direct investments supported the strong performance for the year.”

Vicor Corporation: a company on the razor’s edge! (NASDAQ: VICR)


jiefeng jiang

Company Description

Vicor price target

Price Target Vicor (Samuel Eneh Research)

Founded in 1981, based in Andover, MA, Vicor Company (NASDAQ: VICR) designs, develops and manufactures power modules for electrical power conversion. Most electrical appliances are often plugged into a wall outlet; the stream from the outlet is known as alternating current (AC) voltage. Vicor products convert AC voltage to direct current (DC) voltage used by the device or a subsystem/application within the device. Vicor products can further convert DC voltage to a higher or lower form of DC voltage required by a subsystem/application within the device.

Vicor has two business segments: Advanced Products (47.4% of FY21 Rev); and Brick Products (historical activity, 52.6% of FY21 rev). Vicor’s products come in the form of a chipset. Some of the advanced products are Pre-Regulator Module (PRM), Modular Current Multiplier Driver (MCD), and Voltage Transformer Module (VTM).

Advanced Products has utilized Vicor’s unique factorized power architecture for a range of 48V applications in the data center, AI, HPC, and automotive space. While Brick products are standard and customizable chipsets i.e. AC-DC converter, DC-DC converter, Intermediate Bus Converter (IBC) with applications in aerospace, electronics defense and industrial automation.


Vicor management, at the recent annual meeting of shareholders in June 2022, made a statement worth capturing here:

“In summary, the market opportunity in HPC is very large and growing, we have a clear technology advantage that we will grow, we also now have the manufacturing footprint and vertical integration to be successful, so no apologies.”

Vicor, in my view, is a cutting-edge company, poised to accelerate its technological advancement and embark on unprecedented growth. So the thesis here is that of technological innovation coming to market, the questions become: how good is the technology compared to the status quo; is the end user comfortable with the product; and how fast can the product enter the market. Nearly a decade ago, Vicor introduced an innovative 48V Power Factorized Architecture (FPA) chipset that still has no real competition in the market.

How is the quality of the product? Using high-performance computing as an example here (“HPC”; AI, data center, cloud computing, enterprise computing, and hyperscalers can be grouped under HPC), most data centers in the market run on conventional 12V, with the exception of Google’s data center. The 12V or intermediate conversion option in place, as you would expect, is inefficient compared to 48V. 48V increases voltage in systems by a factor of 4x, decreases current by a factor of 4x, and reduces dissipative power losses by a factor of 16x. The 48V FPA technology, according to Vicor, improves energy efficiency by 10%, which translates into greater computing density, thus saving electricity and enabling higher performance.

Is the end user comfortable with the product and what is the adoption rate? Google Data Center’s adoption of 48V demonstrates that the product works, however, the product faces 12V occupancy challenges, thus, the market has been slow to adopt 48V. That said, Vicor has established a relationship with the two largest CPUs, the three largest GPUs, the largest FGPA, and over a dozen AI accelerator vendors. Therefore, we expect Vicor’s topline to accelerate as next-generation CPU, GPU, FPGA and AI accelerators ramp up.

Business model and revenue accumulation

Vicor Company Reports and Samuel Eneh Research

Vicor Usable Available Market (SAM) (Samuel Eneh Corporate Reporting and Research)

Vicor’s customers have traditionally been players in the aerospace, defense electronics, transportation, industrial equipment and industrial automation industries. For these players, Vicor designs, develops, manufactures and distributes standard and customizable power modules, ie 12V AC-DC converters (Brick Products). With the introduction of 48V (Advanced Products), Vicor is targeting 100 customers in high growth markets. Markets include HPC with SAM worth $3.5 billion, automotive with $5 billion SAM, aerospace and defense with $1 billion SAM, and industrial with $1.5 billion dollars SAM. Cumulatively, $11 billion SAM by 2026.

Vicor is expected to grow at a double-digit CAGR over the next five years, driven by Advanced Products revenues as Brick Products revenues decline steadily over time. Vicor intends to convert Brick Products customers to Advanced Products customers.

As of YE21, Advanced Products has accounted for 47% of Vicor’s sales, while Brick Products has 53%. By YE26, Vicor expects advanced products to account for 80% of total revenue. Vicor expects Advanced Product revenues to exceed Brick Product revenues in dollar value by YE22. Vicor’s total FY21 revenue was $359 million, representing a CAGR of 7.3% over the past four years. Advanced products in the same period grew around 18% CAGR, while brick products had a CAGR of less than 0.5% in the same period.

Vicor management is aiming for $1 billion in revenue by FYE26, driven by advanced products – I believe Vicor will grow double-digit CAGR over the next five years. For conservative calculation purposes, I modeled Vicor to reach $850-870 million by YE26.

Growth strategy

Vicor’s strategy is to reach $1 billion in revenue by FYE26. This revolves around five key areas: 1. The high growth markets highlighted earlier; 2. Applications with difficult power delivery challenges; 3. Vertically integrate the new manufacturing plant; 4. Achieve operational excellence; and 5. Focus on specific top 100 accounts.


Research Samuel Eneh

Price Target Vicor (Samuel Eneh Research)

Multiple EBITDA: I got a price target of $78 using a 17x multiple on 2026 EBITDA of $244 million discounted at 6%.

PES: The model assumes EPS growth at a CAGR of 23.7% over the next five years, discounted at 6%. For comparison, EPS increased by 76.2% CAGR between 2018 and 2021. Price target of $73.

Perpetuity method: The model assumes that revenue will grow at a CAGR of 19% over the next five years, driven by an acceleration in advanced product revenues. Gross and operating margins improved to 58% and 25%, respectively for FY26, and a discount rate of 6%. Price target $75.


  • Successfully execute the vertical integration program which is expected to start in 2H22, furthermore, show some traction to achieve the 65% gross margin and 35% operating margin target.
  • Accelerating adoption of AI servers in a data center within HPC, with design wins for Vicor.
  • An increase in design gains in the automotive space as the electrification of automobiles accelerates.
  • Licensing revenue could accelerate market adoption of 48V, especially for customers reluctant to rely on Vicor as a sole supplier.


  • Political/commercial tension. In fiscal years 21, 20 and 2019, Vicor generated 67.0%, 64.4% and 53.7% of its total revenue, respectively, outside of the United States. In addition, net customer revenues in China and Hong Kong, Vicor’s largest international market, were approximately 27.5% in FY21, 31.4% in FY20 and 22, 1% in FY19, respectively, of total net revenue. Therefore, a trade tension or dispute would negatively impact Vicor’s topline.
  • As of February 16, 2022, CEO and Founder Dr. Patrizio Vinciarelli owns 80% of the voting shares, which limits the space for shareholder defense.
  • Slower adoption of 48V, continued decline in Brick Products sales.
  • Global economic uncertainty/recession.
  • Limited clientele.
  • Interrupted operation of the Andover installation.
  • Extensive global supply chain disruption


Based on the analysis of this report, I issue a buy recommendation on Vicor with a target price range of $73-$78. The completion of the Andover installation and the implementation of the vertical integration allow Vicor to increase the utilization rate of the order backlog (~$424 million, up 22.6% in T1FY22) and reduce customer waiting time (~ eight months for Advanced Products and Five for Bricks products). The vertical integration program is expected to start in 2H22, therefore Q3FY22 and Q4FY22 results should provide evidence that Vicor is gaining momentum to accelerate revenue and improve margins.

Finally, further design gains in the HPC and automotive space and headline acceleration beyond model projections would warrant a positive revaluation of the stock.

Next Earnings Call

Vicor Q2FY22 Earnings Conference Call: July 21, 2022. 5:00 p.m. EST.


Vicor income statement

Vicor forecast income statement (Samuel Eneh Research)


Income Accumulation (Samuel Eneh Research)

Vicor balance sheet

Vicor forecast balance sheet (Samuel Eneh Research)

Vicor cash flow

Vicor projected cash flow (Samuel Eneh Research)

ICICI Bank Home Loan Interest Rate: Latest ICICI Bank Home Loan Interest Rate

The Reserve Bank of India (RBI) has raised the repo rate by 90 basis points since May 2022. Many banks, including, have raised their interest rates on home loans for this reason.

According to ICICI Bank’s website, “The RBI policy repo rate effective June 8, 2022 is 4.90%. ICICI Bank External Benchmark Lending Rate (I-EBLR) is referenced to the repo rate of the RBI policy with a markup over the I-EBLR repo rate is 8.60% papm effective June 8, 2022.”

What is a Credit Score?

According to the ICICI Bank website, “There are now credit bureaus like CIBIL that keep track of people’s credit history. Based on how you have handled loans and credit cards in the past, these credit bureaus calculate a 3-digit score. This score helps lenders know whether or not you are creditworthy.

Banks add a margin to the interest rate based on your Cibil score and other factors such as profile, segments, etc.

What is the latest interest rate on ICICI Bank home loans

ICICI Bank offers floating interest as well as a repo rate and risk premium which will vary depending on the CIBIL score. For home loans up to Rs 35 lakhs, RR+2.70% (7.60%) to RR+3.15% (8.05%). The interest rate varies between 7.60% and 8.05%, plus the pension rate and the risk premium are added between 2.70% and 3.15% for salaried borrowers.

For home loans ranging from Rs 35 lakhs to Rs 75 lakhs, the interest rate varies between 7.60 and 8.20% and the risk premium varies between 2.70 and 3.30% for salaried borrowers.

For home loans above Rs 75 lakhs, the interest rate varies between 7.60 and 8.30% and the risk premium varies between 2.70 and 3.40% for salaried borrowers.

ICICI Bank MCLR on loans

In early July 2022, ICICI Bank increased its marginal cost-based lending rate (MCLR) by 20 basis points across all mandates. (0.01% equals one basis point.) The higher interest rates take effect July 1, 2022.

According to the ICICI Bank website, the overnight MCLR rate was increased to 7.50% from 7.30%. The one-month and three-month MCLRs at ICICI Bank were increased to 7.50% and 7.55%, respectively.


Important FAQs according to ICICI Bank website

1. How to reduce the interest rate of the mortgage?

The home loan interest rate can be reduced by making a balance transfer to the new lender offering a lower interest rate than the existing lender. One can also approach an existing financier to lower the interest rate.

2. How is the mortgage loan EMI calculated?

The EMI home loan is calculated based on the loan amount required, the loan term and the applicable interest rate.

3. What is a variable rate mortgage?

A variable rate home loan is a loan where the interest rate is tied to the benchmark rate and the interest rate changes with the change in the benchmark rate.

4. What is a fixed rate mortgage?

A fixed rate home loan is one where the interest rate is fixed for a specific term and the interest rate does not change with benchmark rate movements.

Summer readings on cash transfers and social protection


The first half of 2022 generated a lot of research on social protection. Having reviewed about 500 articles themed since January, allow me to share a quick pick of 40 exciting materials on 10 themes you might want to take with you on vacation.

1. Health and nutrition

A meta-analysis by Manley et al. found this cash transfers reduce both child stunting and wasting, but only by 1.3%. Moreis et al. show that, compared to municipalities with low cash transfer coverage, Brazilian areas with high cash transfer coverage reduction in the incidence of AIDS between 4.4 and 13.1%. Worldwide, a systematic review of the effects of cash transfers and other programs on HIV by Stoner et al., concludes that “Cash transfer [and] programs that encourage adolescent girls and young women to attend school show the most promise. A review by Ahmed et al. document it positive effects of cash in reducing “neglected tropical diseases” (leprosy, schistosomiasis and soil-transmitted helminthiasis). Roelen and Rodriguez summarize the effects of cash transfers on water, sanitation and hygiene (WASHING) results. And Cygan-Rehm and Karbownik show that in Poland a one-time cash transfers conditional on prenatal visits reduced fetal mortality and improved birth weight.

2. Education

A meta-analysis of cash transfers conditional on education by García and Saavedra shows that there are clear effects on schooling, few impacts on learning and relatively high implementation costs. Evans et al. have on hand Excel database of more than 100 studies on the subject.

3. Economic profitability

Aiser et al. emphasize the need to consider benefits over time: “Once the long-term positive benefits for children are considered, many safety net programs are cost effective…. Limiting the time horizon of cost-benefit calculations…often doesn’t take this into account. In Rwanda, Taylor et al. estimate the economic multipliers of cash transfers in the context of Congolese refugees and find that “an additional refugee who receives cash increases the real annual income of the local economy by $205 to $253, far more than the $120 to $126… each refugee receives”.

4. Brain and stress

A study of cash transfers in the United States by Troller-Renfree et al. found that children with mothers receiving higher cash benefits showed better brain development (effect size = 0.17 to 0.26) compared to infants whose mothers receive lower cash amounts. Jaroszewicz et al. AC watch cash transfers can increase stress among recipients. Indeed, transfers operate in an ecosystem of hopes, dynamic needs, pressures and expectations, which amplify and exert more psychological pressure when a windfall of money materializes. What happens when you provide lump sum cash, psychosocial support, or both cash and support? In Niger, Bossuroy et al. detect positive effects in these three treatment arms, but interventions with a psychosocial component were the most cost-effective.

5. Fits

A cocktail of three concurrent crises is pushing governments around the world to put in place 5,000 social protection measures: There are 3,856 social protection measures in response to COVID-19 in 223 economies; 730 additional programs established by 41 countries for displacement caused by the war in Ukraine; and 221 other measures to counter soaring prices for food, fuel, fertilizer and other items in 84 economies (updated version available in a few days).

Beyond quantitative trends, what do we learn from the evaluations and implementation of these responses? I offer a range of lessons and reflections on cash transfers in times of pandemic.

A trio of studies on Cameroon (Levine et al), Greece (Tramountanis and Levine), and Colombia (Ham et al) highlighted various factors preventing the integration of humanitarian assistance and social protection for displaced populations. Development initiatives estimate that 21% of humanitarian aid is now in cash, but only 0.6% of total aid is channeled through national governments. And other things like that “parallel” systems are also evident in Ukraine, like Stoddard et al. document.

6. Politics and Trust

“State capacity alone is insufficient. Vitally, national and local political dynamics shape how this state capacity is deployed in program implementation. It is a key element of the book edited by Laver on the social transfer distribution policy in Ethiopia, Rwanda, Ghana, Kenya, Bangladesh and Nepal. What happens when a conflict erupts in the middle of program implementation? In South Sudan, Budjan et al. investigate on divergent fates of participants who got the grant and those who did not: The latter shows drops in consumption and confidence, suggesting psychological repercussions due to the cancellation of the program.

7. Child labor

A study by the ILO and UNICEF revealed that about 60 percent of the 62 studies reviewed report “unambiguous reductions in children’s engagement in productive activities(i.e. economic activities and/or household chores). Marcillo et al. show that in Colombia, cash transfers help keep children in school, but “It is women who make up for lost work at home when older children stay in school longer.” And Sviatschi shows that in Peru, participation in conditional cash transfers reduced child labor, which in turn reduced coca production by 34 percent.

8. Gender

A review of 70 systematic reviews on social protection and gender by Perera et al. found that having explicit gender goals leads to greater effects than setting general goals, but there can be negative and unintended consequences. A note by Peterman and Roy offers practical advice for adapting cash transfers to preventing and mitigating gender-based intimate partner violence. And in the Indian state of Bihar, Gelb et al. show that female cash recipients who are illiterate and live in a household without a smartphone have a probability of reporting the use of digital payments less than 4 percent.

9. Access to benefits

Immervoll et al. show that among eight high-income countries, there is only a small gap between the social protection coverage provisions given to standard versus “atypical” workers (i.e. self-employed, part-time workers and those in unstable salaried employment). De Schutter’s report on the “non-use” of social protection programs illustrates that program awareness, application information, cumbersome processes and stigmatization can hinder program access by eligible populations. And the Organization for Economic Co-operation and Development shows that forcibly displaced populations often have access to social protection “on paper”, but not in practice.

10. Design choices

Hammad navigates key transfer-related choices, like determining transfer values, timing, duration, frequency, and digital vs. manual payments. In Niger, Bossuroy et al. compare the cost-effectiveness of alternative “graduation” models on economic and psychosocial outcomes, while Premand and Barry found that parent trainings were more effective than money alone on early childhood development. Dwyer et alcontrast 87 programs in high compared to low- and middle-income countries and found that cash transfers in advanced economies have steeper benefit ‘cliffs’. Grosh et al. have a new edited volume on targeting in social work emphasizing the role of delivery systems in shaping targeting outcomes. Della Guardia et al. illuminate the animosity, resentment and divisions within communities in Chad. And in Kenya, Haushofer et al. claim that reaching the most “impacted” – as opposed to the most “poor” – could be socially beneficial.

US housing starts fall to nine-month low in June


Carpenters work on new townhouses that are still under construction as building material supplies are in high demand in Tampa, Florida, U.S., May 5, 2021. REUTERS/Octavio Jones

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July 19 (Reuters) – New home building activity in the United States fell to its lowest level in nine months in June and permits for new construction projects also fell, the latest indication of a slowdown housing market as soaring mortgage rates reduce affordability.

Housing starts fell 2% to a seasonally adjusted annual rate of 1.559 million units last month, the lowest level since September 2021, the Commerce Department said Tuesday. Data for May was revised upwards to a rate of 1.591 million units from the 1.549 million units previously reported.

Economists polled by Reuters had forecast housing starts to come in at a pace of 1.580 million units. Future housing permits fell 0.6% to a rate of 1.685 million units.

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The housing market is very sensitive to interest rates, and with the Federal Reserve raising rates aggressively to dampen inflation to its highest level in four decades, the market has weakened significantly this year. The average contract rate for a 30-year fixed-rate mortgage rose to nearly 6% in June from around 3.3% at the start of the year, putting home buying off the hook. reach for a growing number of potential buyers, especially first-time buyers.

While it is unclear how much mortgage rates will rise, it is almost certain that they will remain elevated for some time as the Fed prepares to raise interest rates again at its meeting this week. next and other increases to come until the end of the year.

An Oxford Economics index released last week showed homes were the least affordable in the first quarter of 2022 at any time since the 2007-09 financial crisis, and it predicted the situation would deteriorate for the rest of this year. .

Meanwhile, a survey released on Monday showed the National Association of Home Builders/Wells Fargo Housing Market Index suffered its second-biggest decline on record in July, with a traffic gauge of potential buyers falling. below the breakeven point of 50 for one second. months in a row. Read more

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Reporting by Dan Burns; Editing by Paul Simao

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CMS reverses 340B drug pricing program rate reductions


The Centers for Medicare and Medicaid Services (CMS) has announced that it “fully expects” to reverse Medicare Part B rate reductions for separately payable drugs acquired through the 340B drug pricing program, which would result in a estimated increase of $1.96 billion for 340B hospitals. The announcement was made in conjunction with the recently proposed rule for calendar year (CY) 2023 Medicare Outpatient Prospective Payment System (OPPS) (related fact sheet), and stems from the recent Supreme Court ruling invalidating the same rate reductions for CY 2018 and CY 2019. 340B hospitals are public, non-profit hospitals that meet certain statutory conditions related to their commitment to serve low-income patients. As of January 1, 2018, certain separately payable drugs and biologics — which they can purchase at a discount under the 340B program — are reimbursed at significantly reduced rates by the Medicare program.

This news is especially significant given the unresolved issues surrounding the resolution of the Supreme Court’s decision. The Supreme Court litigation was limited to CY 2018 and CY 2019, but CMS had pursued the same payment reductions for 340B hospitals in CY 2020, CY 2021 and CY 2022 – and planned to continue them in CY 2023. However, CMS has announced that it will not continue the cuts in CY 2023, suggesting that it considers the Supreme Court ruling to apply to other years as well. CMS’s announcement indicates that going forward, it intends to discontinue its 340B drug payment policy differently than other drugs reimbursed by Medicare’s OPPS.

Significant issues remain with reversal of rate reductions for CY 2018 through CY 2022. Medicare OPPS payments are “budget neutral,” meaning rate reductions for 340B drugs have increased payments for other services reimbursed through the OPPS. For CY 2023, the estimated impact of these changes is $1.96 billion. CMS could potentially claw back payments from non-340B hospitals to remedy 340B hospitals for invalidated rate reductions for CY 2018 through CY 2022, although it is unclear if they will. In the proposed CY 2023 OPPS, CMS is seeking public comment on how best to craft remedies for CY 2018 through CY 2022. CMS’s remedies for CY 2018 and CY 2019 will also be subject to District Court oversight. American from the District of Columbia.

Also of interest to 340B hospitals is whether Medicare will continue to require identification of 340B drugs on Medicare claim forms, if there is no further impact on reimbursement. Identifying 340B drugs at the time of billing has created administrative complexity for 340B hospitals.

© 2022 Foley & Lardner LLPNational Law Review, Volume XII, Number 199

Installment Loans with BridgePayday: How They Help You Finance Big Purchases or Consolidate Debt


When it comes to financing big purchases or consolidating debt, installment loans can be a great option. Unlike a payday loan, an installment loan is repaid over time in fixed monthly payments. This makes it more manageable for borrowers and can help them avoid costly penalties and interest rates.

Installment loans are disbursed all at once, giving borrowers quick access to important expenses. Just make sure you’ll eventually pay off your debt and have a stable source of income to help pay your monthly payments. In this blog post, we will discuss the benefits of installment loans and how they can help you advance financially.

What are installment loans and what are their benefits?

Installment loans are a type of loan in which the borrower repays the loan in fixed monthly installments. The main advantage of installment loans is that they are easier for borrowers to manage than other types of loans, such as payday loans. Indeed, the borrower knows exactly how much he has to pay each month and can budget accordingly. Additionally, installment loans often have lower interest rates than other types of loans, which can save long-term borrowers money.

Another advantage is that installment loans can be used for a number of things. For example, consumers can use installment loans to pay for important acquisitions such as a car or a new house. Or, customers can combine their debts using installment loans. For borrowers who have multiple debts with different interest rates, this can be a viable solution. Borrowers could reduce their monthly payments by combining these obligations into a single loan with a reduced interest rate.

Be sure to browse and compare offers from several lenders if you are considering taking out an installment loan. Before signing a loan agreement, make sure you fully understand the terms and conditions. Before taking out an installment loan, like any other type of loan, make sure you can afford the monthly payments.

How to benefit from an installment loan?

To qualify for a BridgePayday installment loan, you will generally need to have a stable source of income and good credit. Lenders will also want to see that you have a history of making payments on time. If you don’t have perfect credit, you may still qualify for an installment loan with a co-signer. A co-signer is someone who agrees to repay the loan in the event of default.

If you’re not sure if an installment loan is right for you, there are a few other options to consider. For example, personal loans and lines of credit have their own advantages and can be used for various purposes. However, personal loans generally have higher interest rates than installment loans. Lines of credit, on the other hand, can be a good option for borrowers who need flexibility in how they repay their debt.

Whichever type of loan you choose, be sure to shop around and compare offers from multiple lenders. Make sure to read the terms and conditions carefully before signing any loan agreement. And, as with any type of loan, make sure you can afford the monthly payments before taking out a loan.

The different types of installment loans

There are several types of installment loans. The most common type is a mortgage, which is used to purchase a home. Mortgages are generally repaid over a period of 15 to 30 years. Other types of installment loans include auto loans, student loans, and personal loans.

  • The car loan is used to finance the purchase of a new or used vehicle. Auto loans are generally repaid over a period of two to seven years.
  • Student loans are used to finance the cost of college or higher education. Student loans are generally repaid over a period of five to 20 years.
  • Personal loans can be used for a variety of purposes, such as consolidating debt or financing a major purchase. Personal loans are generally repaid over a period of two to five years.

The borrower’s credit history will be a major factor in determining the interest rate and other parameters of the installment loan. Compared to alternative financing options, a borrower with a poor credit rating might not qualify for an installment loan with a favorable interest rate and payment size. However, a low credit score does not always prevent you from obtaining an installment loan. Never hesitate to check with a lender to determine if you are prequalified for a loan without it affecting your credit score.

If you’re considering an installment loan, be sure to shop around and compare offers from multiple lenders. Make sure to read the terms and conditions carefully before signing any loan agreement. And, as with any type of loan, make sure you can afford the monthly payments before taking out an installment loan.

What you need to know before taking out an installment loan

Before taking out an installment loan, there are a few things you need to know.

First, installment loans can be used for a variety of purposes, such as financing a major purchase or consolidating debt.

Second, when shopping for an installment loan, be sure to compare offers from multiple lenders. And third, make sure you can afford the monthly payments before taking out an installment loan.

When you are ready to apply for an installment loan, be sure to read the terms and conditions carefully before signing any loan agreement. And, as with any type of loan, make sure you can afford the monthly payments before taking out a loan.

By adding a history of on-time payments to your credit report, installment loans can boost your credit score. They can also diversify your credit mix, as the different forms of credit you’ve successfully managed affect your credit score.

If you are considering a BridgePayday installment loan, be sure to keep these things in mind. Installment loans can help you finance a major purchase or consolidate debt, but it’s important to compare offers from multiple lenders and make sure you can afford the monthly payments before taking out a loan.

Author Bio: Julie Snearl, Senior Personal Finance Writer at BridgePayday

An editor and writer for over a decade, writing and editing finance for the national technical and mainstream readership, Julia Snearl is the Personal Finance Editor at BridgePayday. Her background in business book publishing also includes working as the Graphics Editor of Ahead of the Curve. With over 3 years of experience editing content for finance on BridgePayday, Julie is interested in learning how to use digital content to help people make better financial choices.

Dollar retreats as rate hike bets ease


US dollar and euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration

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NEW YORK, July 18 (Reuters) – The U.S. dollar eased against a basket of currencies on Monday, retreating from a two-decade high hit last week as traders cut bets on the aggressiveness of the Federal Reserve to raise rates at its meeting. later this month.

A modest rebound in investor appetite for riskier assets also weighed on demand for the safe-haven currency.

Federal Reserve officials signaled on Friday that they are likely to stick to an interest rate hike of 75 basis points at their July 26-27 meeting, although a recent high reading in the inflation could still justify larger-than-expected increases later in the year. Read more

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Futures traders tied to the Fed’s short-term key federal funds rate, which had been tilting toward a one-percentage-point interest rate hike, shifted their bets firmly in favor of a increase of 0.75 percentage points at the next meeting. .

“(It’s) a clear reversal in this price from last week after the UMich 5-year inflation expectation figure faded, and after (Fed Governor Christopher) Waller has cast significant doubt on a bigger upside,” said Michael Brown, head of market intelligence at Caxton in London.

On Friday, the University of Michigan’s preliminary consumer survey for July showed consumers expect inflation to be 2.8% over a five-year horizon, the lowest in a year and down from 3 .1% in June. Read more

On Thursday, Fed Governor Waller said he backed another 75 basis point interest rate hike this month, prompting a cut in bets on a 100 basis point rate hike. basis that rose after a Labor Department report on Wednesday showed consumer prices rose at an annual rate of 9.1% in June. Read more

Against a basket of currencies, the dollar was down 0.51% at 107.29. The index closed at a two-decade high of 108.65 on Thursday.

Some of Monday’s dollar weakness likely reflects profit taking after its strong rally, Brown said.

Yet investors remain largely hesitant to go bearish on the greenback. Read more

The euro, which has come under selling pressure in recent sessions amid uncertainty over a potential energy supply crisis in the euro zone, trimmed gains after a Reuters report that the Russian Gazprom (GAZP.MM) has declared force majeure on gas supplies from Europe to at least one major customer. Read more

The euro was last up 0.65% at $1.01545.

The New Zealand dollar was up 0.28% after an alarming inflation reading fueled speculation of more aggressive rate hikes, pushing bond yields higher. Read more

The Australian dollar, considered a liquid indicator of risk appetite, was up 0.68%. Commodity currencies also got a boost after Chinese authorities announced support for the real estate sector, boosting iron ore and copper prices, read more

Broad-based dollar weakness helped push the pound up 1.07% to $1.19975, but the British currency’s recovery was limited by political risks and lingering recession fears in Britain. Read more

In cryptocurrencies, bitcoin rose 5.95% to hit $22,164.95, extending its rally after a week-long selloff that took it below the $20,000 level.

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Reporting by Saqib Iqbal Ahmed; Editing by Kirsten Donovan

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How close are we to frictionless international payments?


High costs, slow speeds, sprawling networks and lack of transparency make international payments notoriously inefficient. According to bank of englandsome overseas transactions can take up to ten days and cost up to 10% of the transfer value.

But fix some of these legacy issues and there’s a lot to be gained. A recent report from Boston Consulting Group puts the value of cross-border payments at more than $250 billion by 2027, up from $150 billion in 2017. That’s an increase of more than $100 billion in just ten years.

So how close are we to frictionless international payments? We asked the experts what obstacles remain and how smoother cross-border transactions will affect both startups and the global marketplace in the future.

What holds us back?

Søren Mogensen, Director of Growth at Banking Circle Group, which includes banking circle, a technology-driven payments bank specializing in B2B banking solutions and international payments, says the main challenge today is the correspondent banking system. This is where a bank provides services to another bank, usually in another country.

Countries and jurisdictions have different conventions for data format and storage. Their harmonization requires manual intervention”

“Every transaction on the correspondent banking system has to pass through the major banks before it can reach the final beneficiary and each bank has to do its control and monitoring of sanctions, which costs time and money,” explains Mogensen. “This fragmentation means that often the money doesn’t get there, or half of it gets there, or it goes back to the sender.”

Lewis McLellan, editor of the OMFIF Digital Monetary Institute, an independent forum for central banks, tells a similar story.

“Countries and jurisdictions have different conventions for formatting and storing data,” McLellan explains. “Their harmonization requires manual intervention. Likewise, there are different data protection standards, such as AML (Anti-Money Laundering) and CFT (Anti-Financial Terrorism) checks that require processing at both ends of the transaction, or by banks matches in the string.

McLellan adds that banks may also have different opening hours and work in different time zones, which can slow down the process.

Smarter, faster, better?

To circumvent some of these issues, neobanks and other financial institutions have entered the payments space promising to make cross-border banking smarter, faster and better.

“Because Banking Circle has its own banking license, we build our own access to major currencies, and because we bring this access together on the same platform – with the right technology, anti-money laundering controls and good management of data – we can offer smooth, near real-time, low-cost international payments,” says Mogensen.

Other companies looking to revolutionize cross-border payments include UK fintech Leatherback, which raised a $10 million pre-seed round in April 2022 to expand its solutions in South Africa, Egypt, Uganda, India and the United Arab Emirates.

And payment services can be especially useful for fintechs that haven’t yet received financial licenses, which Banking Circle offers.

“Banking Circle Group may provide banking services as a service to unlicensed businesses,” Mogensen says. “More recently, Juni, the Nordic fintech that is growing at 800% per year, has taken advantage of this while waiting for its license to go live.”

A mobile revolution

Smartphones are another key driver towards frictionless international payments.

“The mobile payments revolution started in the UK a decade ago when Barclays launched PingIt, an app that allowed money to be transferred from person to person with minimal friction,” explains Mogensen. “Since then, we have seen similar offerings in almost all European countries, spreading either as P2P (peer-to-peer) or P2M (peer-to-merchant) solutions.”

But while this has helped improve domestic payments, he says cross-border payments remain insufficient.

European Association of Mobile Payment Systems (EMPSA) uses a technology it calls “The Bridge,” which connects different members to enable frictionless international payments”

One initiative that is helping to broaden the reach of mobile payments is the European Association of Mobile Payment Systems (EMPSA). It was founded in 2019 to unite payment methods across the European continent and today connects 15 mobile payment systems, over 90 million mobile payment users and hundreds of banks.

“EMPSA uses a technology it calls ‘The Bridge,’ which connects different members to enable frictionless international payments,” says Mogensen, adding that Banking Circle is helping the initiative with its technology.

“We are very happy to be able to help them realize this new cross-border mobile payment system,” he told Sifted. “Because it will effectively become a new means of European payment.”

Whether or not EMPSA becomes the de facto payment method in Europe, many fintechs and neobanks are making good use of the digital infrastructure offered in the mobile payment ecosystem.

Crypto to the rescue?

Cryptocurrency and public blockchains also offer near-instantaneous transactions. But to send money across borders, users need to access a crypto exchange to exchange fiat for crypto, send said cryptocurrency to the recipient’s crypto wallet, and then exchange it again for fiat – an experience to be had. trouble without friction.

“Technically, cryptocurrency can be transferred internationally without friction,” McLellan says. “However, the absence of AML, CTF and KYC checks means it does not represent a viable alternative payment mechanism for international businesses.”

For this reason, many countries are researching or piloting central bank digital currencies (CBDC or government-backed digital tokens that are the digital version of their fiat currency) to harness the speed and frictionless nature of cryptocurrencies, while providing much-needed checks and balances.

A frictionless future is the key to global trade

Mogensen optimistically tells Sifted that more and more payments in the future will be account-to-account-based, regardless of location. But, he says, the current inefficiency of frictionless international payments is hampering startups, global commerce and e-commerce – once we improve these inefficiencies and reduce friction, we will encourage more efficient international trade.

“TThe value lost by payment processors can be spent on capital investment, job creation, research and other more productive things”

McLellan paints a similar picture, saying friction in payments doesn’t help anyone except businesses that derive revenue from payment processing — and the sooner that stops, the better.

“If a system can be designed where international payments can be sent instantly, securely and inexpensively, then the value lost to payment processors can be spent on capital investment, job creation, research and other things. more productive,” he said. “It will also reduce margins on international trade, opening up markets that previously would not have been economically viable.”

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Banking Circle, the next generation technological payment bank.

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Loans: Should you opt for an overdraft facility?


In an era of rising interest rates, borrowing wisely is essential. For emergency needs, most individuals turn to personal loans. However, an overdraft account at a bank can help meet any short-term financial needs and avoid liquidating other savings and investments.

A bank will allow an account holder to withdraw money beyond what is available in their bank account. The credit limit is set by the bank based on the balance of the account holder. The interest rate depends on the overdraft amount and the period.

Adhil Shetty, CEO of Bankbazaar.com, explains that an overdraft facility is usually tied to the borrower’s bank account, allowing the borrower to withdraw up to a set limit an amount in addition to the account balance. “It’s similar to revolving credit like credit cards where you can use credit up to a set limit, pay off your dues, and have your credit limit reinstated,” he says.

Personal loan or overdraft?
One of the biggest advantages of an overdraft facility is that interest will only be charged on the amount withdrawn compared to a personal loan where interest is charged from the day the amount is disbursed. To qualify for personal loans, the lender will perform background checks and verify documents each time the borrower applies for a loan. In case of overdraft, the documentation is done only once and the borrower can withdraw money several times from the same account up to the amount sanctioned for overdraft.

Loans offered as an overdraft facility allow borrowers to repeatedly withdraw any amount from the authorized limit, repay the amount withdrawn and borrow again, as needed. Interest is charged only on the drawn amount until it is repaid.

Sahil Arora, Senior Manager, Paisabazaar, said that although the interest component has to be handled monthly, borrowers have the flexibility to handle the principal component depending on the availability of their funds. “An overdraft facility is best suited for those who face frequent short-term cash mismatches. The higher repayment flexibility offered by overdraft facilities causes lenders to charge higher interest rates than personal loans loans offered in the form of a term loan,” he says.

What to pay attention to
Experts say that while availing overdraft facility is faster than personal loan, borrower should be careful. In the event of a pre-approved overdraft at a bank, the individual must keep an eye on the loan and repay regularly. Experts say unchecked borrowing can lead to a debt trap, as interest will continue to accrue.

Borrowers with sufficient repayment capacity to repay the borrowed lump sum within a very short period of time, such as less than three months, should opt for a personal loan overdraft facility, Arora says. He adds that others should stick with the regular personal loans offered as fixed term loans and EMIs. “Most lenders charge fixed interest rates on personal loans, whether term or short. So, once a borrower avails a personal loan, their interest rate would remain unchanged regardless of changes in the interest rate regime,” he says.

Borrowers should compare overdrafts by interest rate, processing fees, and renewal fees. “See how the fees compare to other forms of borrowing that meet similar needs. For employees, credit cards can be just as useful. For freelancers who need flexibility with their cash, an overdraft can be helpful. Interest only applies to the credit you have and prepayments are free,” says Shetty.

Overdraft rules
An overdraft facility is usually linked to the borrower’s bank account
Interest is only charged on the amount withdrawn from an account with overdraft facility
Borrowers can withdraw any amount from the sanctioned limit multiple times
Unchecked borrowing can lead to a debt trap as interest will continue to accrue
Compare overdrafts from different banks by interest rate, processing fees, and renewal fees before settling on one.

House prices in Sydney and Melbourne: interest rates could lead to a record correction


If the Reserve Bank continues to raise the cash rate, Sydney and Melbourne are looking at their biggest house price corrections in living memory.

Earlier this month, the Reserve Bank of Australia (RBA) plunged a dagger into the hearts of mortgage holders by raising the cash rate by another 0.5% – the third consecutive monthly increase.

Home values ​​in Australia’s five major capital markets began falling shortly after the RBA’s initial 0.25% rate hike in May and have so far fallen around 2% from its peak, according to CoreLogic.

The decline at the five-city aggregate level was led by Sydney and Melbourne, where quarterly values ​​fell 3.5% and 2.3% respectively, more than offsetting growth in smaller markets:

AFR The latest survey of 31 economists revealed a median forecast for the official exchange rate (OCR) of 2.85% by the middle of next year. If true, Australia’s OCR would rise another 1.5% from its current level.

The futures market remains even more hawkish, tipping a peak OCR of 3.5% by May 2023.

If either interest rate forecast materializes, Australian mortgage rates would soar. Australia’s average discount variable mortgage rate would climb to 6.2% according to economists’ forecast (dotted red line below) and 6.8% according to market forecast (solid red line below) :

The market’s OCR forecast would mean that the variable discount mortgage rate would climb to roughly double its level (3.45%) before the start of the RBA’s tightening cycle.

Either way, Australian mortgage holders would face massive increases in repayments, putting many borrowers in serious financial trouble at the same time as their property values ​​plummeted.

In its latest Financial Stability Review, the RBA estimated “that a 200 basis point rise in interest rates from current levels would lower real house prices by around 15% over a two-month period. year “.

Therefore, the economists’ forecast of 2.85% OCR suggests a peak-to-trough fall in real Australian house prices of around 20%.

According to RBA modeling, the futures market forecast of 3.5% OCR would cause Australian house prices to fall by around 25% in real terms.

Sydney and Melbourne would likely face even bigger price drops than the national average, as they are the most expensive housing markets with the most indebted households.

As shown in the following chart, house price to income ratios for NSW (read: Sydney) and Victoria (read: Melbourne) are much higher than other Australian jurisdictions:

Sydney and Melbourne are also the most expensive housing markets in the country relative to rents, as illustrated by their anemic gross rental yields of 2.7% and 2.9% respectively, according to CoreLogic:

Their extreme valuations make Sydney and Melbourne more susceptible to RBA rate hikes, meaning their prices are likely to fall more than the national average according to economists’ or futures market’s OCR forecasts. The fact that these two markets are leading the current downturn is proof enough.

Mortgage holders in our two biggest cities are hoping that neither the economists nor the market are right, and that the RBA stops well before its monetary tightening.

Otherwise, Sydney and Melbourne are eyeing their biggest price corrections in living memory.

Leith van Onselen is Chief Economist at MB Fund and MB Super. Leith previously worked at Australian Treasury, Victorian Treasury and Goldman Sachs.

Nationwide Increases Account Interest Rate to 5% – Full List of New Savings Rates | Personal finance | Finance


It comes as banks and building societies increasingly look for different ways to help their customers during the cost of living crisis. One of the main causes of the economic slowdown is the skyrocketing rate of inflation, which recently hit a 40-year high of 9.1%. With inflation hurting people’s savings, financial institutions, such as Nationwide, are responding by raising rates on its entire slate of savings products.

Last month, Nationwide raised the introductory credit interest rate on its FlexDirect checking account to five percent.

It is estimated that this move by the building society will help members up to £200 within a year if they switch to their services.

Individuals who have chosen to switch to Nationwide’s FlexDirect will also benefit from the financial institution switching incentive.

This deal gives £125 to existing members who transfer their current account to the building society and £100 to new customers.

READ MORE: State pensioners may be able to top up the sum up to £14.75 a week

Debbie Crosbie, chief executive of the building society, explained why interest rates are being raised so much amid the cost of living crisis.

Ms Crosbie said: “Being able to offer very competitive rates is one of the greatest benefits of mutuality.

“This market-leading rate will help new and existing members get the most out of their money, which is especially important right now.

“The FlexDirect checking account also has an initial interest-free overdraft to give some peace of mind to those in financial difficulty and free them up to focus on paying off other debts.”


However, the five per cent interest rate for Nationwide’s FlexDirect checking account isn’t the only increased rate the construction company has implemented.

The construction company has also launched a new issue of its popular Triple Access Online Saver which has an interest rate of 1.40%.

Under this savings account, Nationwide allows three withdrawals within the 12 month period.

However, any further withdrawals will reduce the interest rate to 0.10% for the rest of the period.

Tom Riley, director of banking and savings at Nationwide, highlighted why the construction company’s latest moves are aimed at giving its customers “peace of mind”.

Mr. Riley explained, “Many savers like to put at least a portion of their savings in an instant access account to have peace of mind knowing they can access the funds if they need them.

“The new issue of our Triple Access Saver account pays one of the highest rates on the market and will appeal to those looking to save with a brand they know and trust.

“We are always looking to offer a wide range of accounts to meet the different needs of our members, which is why we have also increased rates for those who do not need immediate access and want to save in a bond. fixed rate or ISA.”

Student loans: 3 important deadlines


Here are 3 important deadlines every student borrower should know.

Here’s what you need to know — and what that means for your student loans.

Student loans

Student borrowers should be aware of three deadlines that will affect the future of student loans. In the coming weeks, President Joe Biden could make these monumental decisions regarding student loans and student loan forgiveness.

1. Large-scale cancellation of student loans

The large-scale cancellation of student loans is one of the most important decisions of the Biden presidency. Proponents say it will boost the economy, reduce disparities and help student borrowers have more money to get married, start a family, buy a home, save for retirement and start a business. Yet despite these potential benefits, Biden has not enacted large-scale student loan forgiveness. There has been speculation that Biden will forgive up to $10,000 in student loans for borrowers, but the White House has denied Biden has made a decision. Progressive members of Congress are still pushing the president to forgive $50,000 in student loans. Although Biden did not accept a large student loan forgiveness, Biden has forgiven more than $25 billion in student loans. This includes targeted cancellation of student loans, including $6 billion in student loans canceled last month. Biden said he plans to announce his decision on large-scale student loan forgiveness in the coming weeks. So, student borrowers can expect Biden’s announcement in August.

2. Student loans: restarting student loan repayment

Student loan payments for federal student loans have been suspended since March 2020. That’s when Congress passed the Cares Act, the $2 trillion stimulus package. This historic student loan relief included 0% interest on student loans and a moratorium on student loan repayments. After several extensions from President Donald Trump and Biden, student loan payments are expected to resume on September 1, 2022. However, Biden has not indicated whether he will extend the student loan payment pause beyond the start date. expires August 31. US Education Secretary Miguel Cardona has said Biden could extend the student loan payment break again. That said, Republicans want Biden to boost student loan repayments to save money for the federal government and fight monster inflation. Biden will likely decide the future of student loan repayments in August so borrowers have plenty of time to prepare.

3. Student Loan Forgiveness: Limited Exemption

The Biden administration instituted a limited, game-changing waiver in October 2021 for student loan forgiveness. Until October 31, 2022, student borrowers can “count” previously ineligible student loan payments for student loan forgiveness. This unique exception allows student borrowers to get credit for late student loan payments, partial student loan payments, and student loan payments made under the wrong student loan payment plan. While the limited waiver for student loan forgiveness is set to expire in October, Biden has already proposed a permanent extension of the limited waiver for student loan forgiveness. How? Biden has proposed major changes to student loan forgiveness through the Department of Education’s rulemaking process. Over the next 30 days, student borrowers and the general public will be able to comment on Biden’s proposals for student loan forgiveness. Then, the Department of Education will finalize the new student loan forgiveness rules and implement the final policies by July 1, 2023.

The restart of student loan repayments, the prospect of large-scale student loan forgiveness, and the extension of the limited waiver will have a significant impact on your wallet. As these deadlines approach, make sure you understand all of your student loan repayment options. Here are some of the best ways to save money and pay off your student loans faster:

Student Loans: Related Reading

Student loans: red, white and blue

9 million borrowers are now eligible for student loan forgiveness

Senators propose major changes to student loan forgiveness

Department of Education cancels $6 billion in student loans

Latest mortgage interest rates: July 15, 2022


What are the different fixed and variable interest rates offered for home loans today? Let’s take a detailed look at the interest rates of banks and housing finance companies.

Institution Amount of the loan
Rs. 30,000,000
Rs. 30 to
Rs. 75,000,000 More
BANKS (Floating rates)
Axis Bank 7.60-8.05 7.60-8.05 7.60-8.05
Bank of Baroda 7:45-8:90 a.m. 7:45-8:90 a.m. 7:45-8:90 a.m.
Bank of India 7h40-9h25 7h40-9h25 7h40-9h25
Bank of Maharashtra 7:30-8:85 a.m. 7:30-9:20 a.m. 7:30-9:20 a.m.
Canara Bank 7:55-9:80 a.m. 7:55-9:80 a.m. 7:55-9:80 a.m.
central bank 7h20-7h65 7h20-7h65 7h20-7h65
DBS Bank
federal bank 8h55-8h60 8h55-8h65 8h60-8h70
ICICI Bank 7h60-8h20 7:60-8:35 a.m. 7:60-8:45 a.m.
Indian bank 7h40-7h90 7h40-7h90 7h40-7h90
BIO 7.05 7.05-7.15 7.15-7.3
IDBI Bank 7h50-10h65 7h50-10h65 7h50-10h65
J&K Bank 7.85-7.95 7.85-7.95 7h85-8h25
Bank of Karnataka 7.89-9.14 7.89-9.14 7.89-9.24
Karur Vysia Bank 7:15-9:35 a.m. 7:15-9:35 a.m. 7:15-9:35 a.m.
Kotak Mahindra Bank 7.5-8.1 7.5-8.1 7.5-8.1
National Bank of Punjab 7h45-8h70 7h40-8h70 7h40-8h35
Bank of Punjab and Sindh 7h40-8h50 7h40-8h50 7h40-8h50
National Bank of India 7:55 a.m. – 8:15 a.m. 7:55 a.m. – 8:15 a.m. 7:55 a.m. – 8:05 a.m.
Bank of South India 8.25-11 8.25-11 8.25-11
Commercial Bank of Tamilnad 7.95 7.95 7.95
UCO Bank 7h40-7h60 7h40-7h60 7h40-7h60
Union Bank of India 7h40-8h90 7.40-9.10 7.40-9.10
BANKS (fixed rates)
Axis Bank 12 12 12
IDBI Bank 9.85-10.10 9.85-10.10 9.85-10.10
Union Bank of India 11.4 11.4-12.4 12.4-12.65
Floating rates:
Tata Capital >=7.75 >=7.75 >=7.75
GNP housing 7:50 a.m. – 10:45 a.m. 7:50 a.m. – 10:70 a.m. 7:60 a.m. – 10:70 a.m.
Central Bank housing 9h95-11h15 9h95-11h15 9h95-11h15
HDFC Ltd 7:55-8:30 a.m. 7h55-8h55 7h55-8h65
Indiabulls housing fin >=7.6 >=7.6 >=7.6
Aditya Birla housing fin 8-12.5 8-12.5 8-12.5
Bajaj Finserv 7.20-14.00 7.20-14.00 7.20-14.00
GIC Housing Finance Ltd >=8.20 >=8.20 >=8.20
Reliance real estate financing 9.75-13 9.75-13 9.75-11
Sundaram Home Finance Ltd >=8.65 >=8.65 >=8.65
Piramal Capital & Housing Finance >=10.5 >=10.5 >=10.5
LIC Housing Finance Ltd 7h50-8h35 7h50-8h55 7h50-8h75
HDFC Ltd N / A N / A N / A
LIC Housing Finance Ltd 9h50-10h35 9h50-10h55 9h50-10h75

Compiled by BankBazaar.com from the respective bank’s website on the date mentioned above. Note that fixed interest rates may be subject to revision after a fixed term depending on the general conditions of the bank.

Some banks/FIs only allow fixed rates for a fixed period, after which the prevailing floating rates apply. ^ Card rates

A Democrat-funded Super PAC launched TV ads attacking Bob Stefanowski


HARTFORD, Conn. (WFSB) – A super PAC funded by the Democratic Governor’s Association has launched television ads attacking Bob Stefanowski.

Two other PACs could spend millions on ads to attack Governor Lamont.

We still have more than three months until the November election, but the negative publicity has already started.

PAC money is spent on both campaigns. A super PAC funded by the Democratic Governor’s Association launched a television campaign reminding voters of Stefanowski’s former role as CEO of a payday loan company. A company whose high interest loans are illegal in Connecticut.

Stefanowski’s role with payday loans was in question during his first run for governor. Stronger CT’s ad says, “He made millions running a payday loan company that charged workers up to 450% interest.”

Stefanowski’s campaign says, “We know Ned Lamont is stuck on the same old, tired policies and his big-money super PAC friends will say and do whatever they want to keep him in power.”

Stefanowski also receives PAC money, 1.6 million from CT Truth. Another PAC promised a $1 million campaign against Lamont.

This month, the candidates filed their quarterly financial reports. Since January 1, Governor Lamont has received nearly $7 million for his campaign. He invested most of that money. Lamont has spent over 6 million so far.

Bob Stefanowski has a total of over $11 million. He took out a $10 million loan and put it in the pot.

He has spent over $4 million so far.

5 Best Bad Credit Debt Consolidation Loans with Guaranteed Decisions in 2022

Debt consolidation loans for people with bad credit have become more accessible than ever, thanks to online portals that connect borrowers with potential lenders. These portals offer a seamless application process that can be completed in minutes, with loan decisions often offered the same day. This article provides a list of debt consolidation loans for bad credit providers, highlighting the financing options they offer and how you can apply for a debt consolidation loan today.

Best Bad Credit Debt Consolidation Loans – Quick Overview

  1. Green Dollar Loans – Best Debt Consolidation Loan for Bad Credit
  2. Big Buck Loans – Best for Credit Card Debt Consolidation
  3. Viva Payday Loans – Best for Debt Consolidation Payday Loans
  4. Low Credit Finance – Best for Personal Loans for Debt Consolidation
  5. Credit Clock – Best for Same Day Debt Consolidation Loans

Best Bad Credit Debt Consolidation Loans 2022 – Full Overview

Green Dollar Loans – Best Debt Consolidation Loan for Bad Credit

Projector wire

Green Dollar Loans specializes in fast debt consolidation loans with bad credit, offering accessibility to all FICO scores. Loan amounts range from $100 to $5,000, with flexible repayment terms of up to 24 months.

Applying with Green Dollar Loans takes about two minutes, all made easy through a convenient online form. Although loan decisions may be subject to credit or financial capability checks, funding can often be transferred the same day.


Fast application process

User-friendly loan calculator

Fast financing offered

The inconvenients:

APR up to 35.99%

>>> Click to request your debt consolidation loan offer today

2. Big Buck Loans – Best for Credit Card Debt Consolidation

Big Bucks loan (1)Projector wire

Big Buck Loans is another debt consolidation loan for bad credit providers, offering the ability to transfer funds in as little as 15 minutes. This provider has several customer testimonials on their website detailing their positive experiences.

All FICO scores are welcome to apply for these bad credit debt consolidation loans online, with financing of up to $5,000 available.


Several customer testimonials

All FICO scores are welcome

· Offers up to $5,000 in financing

The inconvenients:

APR determined by end-lender

3. Viva Payday Loans – Best for Debt Consolidation Payday Loans

Viva Personalized Payday Loans (3)Projector wire

The best debt consolidation loans for bad credit providers are Viva Payday Loans. This broker offers APRs that start at just 5.99%, with repayment terms of 2 to 24 months.

Viva Payday Loans also offers flexible financing amounts, ranging from $100 to $5,000. Notably, all FICO scores are welcome to apply with Viva Payday Loans, making it one of the most popular secured debt consolidation loan providers.


A loan decision in minutes

· Borrow up to $5,000

All FICO scores are welcome

The inconvenients:

· Not available in some states

4. Low Credit Financing – Best for Personal Loans for Debt Consolidation

low credit financing (1)Projector wire

Low Credit Finance offers fast online debt consolidation loans for bad credit through a convenient online portal. All types of credit are welcome to apply, with same-day decisions possible in certain circumstances.

APRs range from 5.99% to 35.99% and funding starts from just $100. Finally, no paperwork is required and no hidden fees are charged to this provider.


No documents required

No upfront/hidden fees

Extensive network of lenders

The inconvenients:

The loans are unsecured

5. Credit Clock – Best for Same Day Loan

Custom credit clock (2)Projector wire

Rounding out the list of secured debt consolidation loans, Credit Clock. This provider connects borrowers and lenders through a streamlined online portal, offering repayment periods of 3 to 24 months.

Pre-approval can take as little as two minutes, with financing from $100 to $5,000. Although guaranteed approval of debt consolidation loans for bad credit is not possible due to US regulations, this provider can facilitate quick loans using its extensive network of lenders.


Pre-approval in just two minutes

Repay between 3 and 24 months

No documents required

The inconvenients:

Not available in some states

What are bad credit debt consolidation loans and how do they work?

Getting debt consolidation loans with bad credit is easier than ever, thanks to the growth of fully digital application processes. These loans represent short-term financing, usually for amounts less than $5,000.

Although guaranteed approval of debt consolidation loans for bad credit is not possible, since regulations state that the end lender may require a credit check, these loans can still be obtained quickly. Debt consolidation loans with bad credit can often be received the same day the loan decision is approved.

How to Apply for a Bad Credit Debt Consolidation Loan in Quick Steps on Viva Payday Loans

  • Step 1: Choose your loan amount – Decide on the amount of financing you want ($100 to $5,000) and the repayment period (2 to 24 months).
  • Step 2: Complete the application form – Fill up the application form offered through the website of the fast bad credit debt consolidation loan provider.
  • Step 3: Wait for a decision – A lender will provide a decision in minutes or an alternative.
  • Step 4: Get your loan – The ultimate lender may require a credit check, in accordance with US regulations; if the check is successful, funding can arrive the same day.

Debt Consolidation Loans for Bad Credit Features and Factors to Consider

Below are some key features of the best bad credit debt consolidation loans online:

Digital apps

Debt consolidation loan providers offer fully digital application processes, which means borrowers can apply without having to send in physical documents.

Range of funding amounts

Many bad credit debt consolidation loan brokers offer financing amounts ranging from $100 to $5,000.

Accepts all FICO scores

Online bad credit debt consolidation loans can be applied for regardless of creditworthiness – although the end-lender may require a credit check, in accordance with US regulatory guidelines.

How to Choose the Best Debt Consolidation Loans for Bad Credit Providers?

These criteria were used to decide which debt consolidation loans for bad credit online providers to include:

  • APR ranges were clearly marked
  • No upfront fees or fees charged
  • Range of financing amounts offered
  • All FICO scores are welcome


This article explained how to get online debt consolidation loans for bad credit, highlighting several respected providers with simple application processes. Viva Payday Loans is a safe bet for those looking to apply for a payday loan today, as this platform can provide a decision in just two minutes, with funding up to $5,000 available.


Which Debt Consolidation Loans Accept Bad Credit?

The best online debt consolidation loans for bad credit can be obtained through Viva Debt Consolidation Loans, which offers a fully digital application process with fast decisions.

Where to get the best debt consolidation loans with very bad credit?

Fast bad credit debt consolidation loans are offered through Viva Debt Consolidation Loans, which provides a platform to match borrowers with potential lenders.

Are bad credit debt consolidation loans safe?

Yes, bad credit debt consolidation loans are safe as long as you partner with a respected loan facilitator.

Disclaimer – The above content is not editorial, and TIL hereby disclaims all warranties, express or implied, with respect thereto, and does not necessarily guarantee, vouch for or endorse any content . The loan websites reviewed are loan matching services, not direct lenders. Therefore, they are not directly involved in the acceptance of your loan application. Applying for a loan with the websites does not guarantee acceptance of a loan. This article does not provide financial advice. Please seek the assistance of a financial advisor if you need financial assistance. Loans available only to US residents.

The bad news may not be over for stocks


As we approach summer, many families will be hitting the road for summer vacation. For anyone who makes these long drives, or has done so before, this inevitable question will be familiar: Are we already there?

The current market turmoil is also causing investors to wonder: is the sell-off over? Are we already there?

The odds of an economic hard landing (and ultimately a recession) have increased dramatically. For market participants, the key questions are whether all the bad news is already priced in and the groundwork is laid for a potentially lasting bottom.

Where the U.S. stock market eventually bottoms out will depend on how resilient the economy is and where earnings go. At the beginning of the year, we expected a difficult period, but we did not expect the economic environment to deteriorate as quickly as it has over the past few months.

Our resulting shift in mindset can be described by this quote, which has been attributed to various people: “When the facts change, I change my mind. What are you doing, sir?”

History suggests that additional digestion may be required to maintain the rise later. So far, this bear market has lasted six months, with investors suffering a -23.6% drop in the S&P 500 index from January 3 to June 16. The pain may have been intense, but bear markets tend to last 16 months and go down 35 months. % decline, with recession periods being worse than non-recession periods.

Most bear markets have two components: multiple adjustment and earnings contraction.

Falling price-earnings (P/E) ratios typically trigger bear markets, followed by declining P/Es with each US Federal Reserve tightening cycle. This happened in 2022: the S&P 500 forward P/E contracted from 21.3x in January to 15.8x today. This devaluation rivals some of the steepest six-month declines in modern history.

Still, the multiples could drop further. Historically, the average P/E in bear markets was 11.9x. Over the past 20 years, major market lows have averaged 14.4x, partly due to falling interest (discount) rates.

Bear markets are also typically characterized by shrinking earnings. This bear market was driven by P/E compression, while forward earnings expectations rose 7.4% this year.

Earnings revisions have started to decline. There is a strong possibility of more significant downward revisions in the second half of 2022. Ultimately, the degree to which earnings expectations decline could determine the severity of the economic downturn.

To gauge this momentum, we follow the ISM Manufacturing PMI, which tends to lead S&P 500 earnings by six months. In bear markets after Fed tightening cycles, the ISM has often fallen below 43, a level consistent with double-digit earnings declines. If this relationship holds, the market could experience new lows.

With high inflation and a peak employment rate reached with an unemployment rate below 4%, the Fed is increasingly concerned that inflation expectations will become unanchored. His research supports the idea that the longer inflation remains high, the greater this risk.

For the Fed, the risks of doing too little to control inflation are much greater than the risks of doing too much.

This thinking has led to a dramatic shift in US monetary policy from expectations of three 25 basis point rate hikes to just over 13 today, implying a fed funds rate of 3.25% to 3 .5%. It would be the second-fastest monetary tightening in 65 years, after only 1980, when Fed Chairman Paul Volcker broke his back on double-digit inflation.

Bear markets are never happy, but it’s important to remember that they are both rare and usually offer great opportunities for patient long-term investors. The bottom of the market will only be determined with hindsight. By the time it becomes apparent, stocks may have climbed well past the lows, with possible false starts along the way.

Many questions remain unanswered regarding inflation, Fed policy, interest rates, recession risk, valuations and earnings. Despite the concern caused by these uncertainties and the difficult start to 2022, visibility should improve over the next two quarters.

Still, US equity investors may not be able to say “we’re there” for some time.

Jeffrey Schulze, CFA

, is a director and investment strategist at ClearBridge Investments, a subsidiary of Franklin Templeton. Its predictions are not intended to be considered predictions of actual future events or performance or investment advice.

Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial condition or needs of any particular investor, and does not constitute, and should not be construed as, a investment advice, a prediction of future events, a guarantee of future results, or a recommendation regarding a particular security, investment strategy, or type of retirement account. Investors seeking financial advice regarding the advisability of investing in securities or investment strategies should consult their financial professional.

Past performance is not indicative of future returns. Performance Source: Internal. Reference source: Standard & Poor’s.

Franklin Distributors, LLC (“FD, LLC”), Member FINRA, SIPC. FD, LLC and Clearbridge Investments LLC are affiliates of Franklin Templeton.

CFA® and Chartered Financial Analyst® are registered trademarks of CFA Institute.

HTLF’s Trade Card Program Ranked by Nilson Report for


DUBUQUE, Iowa, July 14 12, 2022 (GLOBE NEWSWIRE) — Heartland Financial USA, Inc. (NASDAQ: HTLF), operating under the HTLF brand, continues to show consistent strength in the commercial payments space. Nilson Report ranked HTLF among the top commercial credit card issuers in the United States for the seventh consecutive year.

HTLF saw a 48% increase in purchase volume growth and ranked 31st overall among acquisition and fleet card issuers, an improvement from 36th in 2020.

Nilson Report The ranking reflects HTLF’s innovative approach to digital technology products and provides excellent customer education and experience.

“Companies can improve cash flow, manage expenses and reduce payment fraud by partnering with HTLF. We help companies define and implement a comprehensive payment strategy,” said Nicole Dews, Director of Treasury and Payment Solutions at HTLF.

“With our suite of payment solutions including in-app payments, virtual cards and contactless cards, HTLF and our banks are helping customers streamline their AP process, optimize working capital and create a recurring revenue stream. .”

Also this year, HTLF was again recognized by Forbes as one of “America’s Best Banks”, earning our highest ranking to date of #28 among a national group of 100 leading banking organizations with assets ranging from $9 billion to over $2 trillion dollars.

For 50 years, Nilson Report has been a respected source of payment industry news and market intelligence. nilson analyzes and reports on the performance of hundreds of credit, debit and prepaid card issuers, transaction acquirers and technology providers with an unbiased perspective.

About HTLF

Heartland Financial USA, Inc., trading as HTLF, is a financial services company with assets of $19.2 billion. HTLF banks serve communities in Arizona, California, Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, New Mexico, Texas and Wisconsin. HTLF is committed to its core business, supported by a strong retail business, and provides a diverse range of financial services including cash management, wealth management, investments and residential mortgages. Additional information is available at www.htlf.com

Safe Harbor Statement
This release, as well as future oral and written statements by Heartland and its management, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding financial condition, results of operations, plans, , future performance and activities of Heartland. . Although these forward-looking statements are based on the beliefs, expectations and assumptions of Heartland’s management, there are a number of factors, many of which are beyond management’s control or ability to predict, that could cause that actual results differ materially from those in its forward-looking statements. These factors, which are detailed in the risk factors included in Heartland’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, include, among others: (i) the strength of the local and national economy; (ii) the economic impact of past and future terrorist threats and attacks and any acts of war; (iii) changes in state and federal governmental laws, regulations and policies regarding the Company’s general business; (iv) changes in interest rates and prepayment rates of the Company’s assets; (v) increased competition in the financial services industry and inability to attract new customers; (vi) the evolution of technology and the ability to develop and maintain secure and reliable electronic systems; (vii) loss of officers or key employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions; (x) unexpected results of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. All statements in this release, including forward-looking statements, speak only as of the date they are made, and Heartland undertakes no obligation to update any statement in light of new information or future events.


CashPal revolutionizes the way to get personal loans with approvals in minutes


Through connections with over 60 lenders in Australia, CashPal makes it easy to get fast cash loans of up to $30,000.

CashPal is revolutionizing the personal loan industry with same day cash loans and approvals in minutes. He works with over 60 lenders across Australia to find the best personal loans for his clients.

The number of personal loans in Australia has increased, with $2.3 billion in personal loans taken out in February 2022. Economists believe the COVID-19 pandemic and resulting inflation are to blame, with Australians turning to personal loans from private lenders for their simplicity and flexibility. . For example, interest rates from private lenders tend to be lower than those from banks, and banks often won’t approve someone with poor credit.

But, finding fast cash loans can be a frustrating process. Knowing who to trust and which online lenders are legitimate takes time. CashPal takes the guesswork out of working with verified lenders to find the lowest rates and makes it easy to get cash loans from $2,500 to $30,000 almost instantly.

The CashPal process is quick and easy

CashPal has processed over 200,000 personal loan applications in Australia. His loan application is 100% online and takes less than 10 minutes to complete. Additionally, a loan calculator on the CashPal website allows customers to choose the loan amount and preview the potential repayment amount and schedule. No documents are needed up front – CashPal will access a read-only copy of the customer’s bank statement, although a lender may require more documents.

Once a customer completes the online application, CashPal quickly assesses needs and immediately begins searching for a lender. Then an offer is sent to the customer for them to review and accept. The lender determines the disbursement of payments and loan repayments, but most work to lend money as soon as possible – some instant cash loans can be funded in as little as an hour.

To qualify for an instant cash loan with CashPal, customers must
– Be at least 18 years old
– Be an Australian citizen or permanent citizen
– Have received regular income in a personal bank account within the last 90 days
– Have a mobile number and an e-mail address

Benefits of personal loans and factors to consider

Personal and instant cash loans have several advantages. For example, versatility is a big advantage – customers can use the loans for any purpose, such as vacations, car repairs, home renovations, or debt consolidation. Plus, customers can borrow any amount — CashPal’s cap is $30,000 — often with poor credit.

CashPal lenders offer quick approvals and, unlike payday loans, give customers a reasonable amount of time to repay the loan. In some cases, the repayment period can last for a year or more.

Personal loans are either unsecured or secured. Lenders do not require collateral for unsecured loans, which makes them riskier and usually means the loan amount will be lower. On the other hand, secured loans are usually larger and require an asset for approval.

Consider these factors when reviewing the loan offer:
– The interest rate
– Whether the interest rate is fixed or variable
– Application fees
– Whether it is possible to qualify for a personal loan with a lower interest rate
– If additional refunds are allowed and include penalty fees


Personal loans are growing in popularity, but can be confusing. CashPal simplifies the process by matching its customers’ online applications with dozens of lenders for quick cash loans.

Media Contact
Company Name: Cash Pal
Contact person: Peter A.
E-mail: Send an email
Country: Australia
Website: http://www.cashpal.com.au

Hannon Armstrong defines Reco


Hannon Armstrong Sustainable Infrastructure Capital, Inc. (“Hannon Armstrong”, “we”, “us” or the “Company”) (NYSE: HASI), a leading investor in climate solutions, today released the statement following in response to baseless allegations made in a short spurious attack report by Muddy Waters Capital LLC on July 12, 2022.

For more than 40 years, Hannon Armstrong has operated with the highest level of integrity, which includes providing audited, accurate and timely financial statements. The Muddy Waters report calls into question the integrity of these financial statements based on factual errors and inflammatory and misleading statements. Hannon Armstrong believes that its accounting is fully compliant with GAAP and SEC regulations and is an accurate representation of our financial performance. We supplement our GAAP financial statements with certain non-GAAP measures, including a measure we call distributable income. We believe these non-GAAP measures are a useful supplement to our GAAP earnings for our investors and we fully disclose our methodology and distributable earnings adjustments in our SEC filings. In addition to EY as our independent auditor, Hannon Armstrong works with another of the “big four” accounting firms on risk management and disclosure controls, including on our investments under the equity method. We believe this comprehensive approach and commitment to financial integrity stands in stark contrast to the false claims made in the report.

The report contains both a series of factual errors and numerous inflammatory and misleading statements demonstrating a fundamental lack of understanding of our financial statements and business. It insinuates that our non-cash earnings (a) indicate a lack of cash available to pay our dividend, (b) lead to inflated earnings, and (c) reflect struggling borrowers/projects. In fact, our non-cash earnings do not impact our ability to fund our dividend, are intentionally structured at the time of subscription and are not indicative of hardship.

While we do not engage in a tit-for-tat rebuttal of every lie in the report, it is important to set the record straight on the following key points:

  • We have sufficient portfolio cash flow to pay our dividend. The report assumes that the non-cash earnings shown in our financial statements result in insufficient cash flow needed to fund our dividend each year. It is absolutely false. We have internal processes to rigorously model our liquidity and expected cash flows and our expectations consistently reflect that portfolio cash flows remain adequate to cover our dividend. In order to provide the most up-to-date information, we will introduce additional non-GAAP information to support this statement in our second quarter earnings report scheduled for August 4, 2022.
  • Since HLBV accounting is complex and does not reflect our economic condition in a given period, we use distributable earnings as supplemental information. For certain equity method investments in renewable energy projects, GAAP permits the use of hypothetical liquidation at book value (“HLBV”). These investments also typically include a tax equity investor who is allocated tax credits. At the time of these tax credit allocations, the remaining investors (including Hannon Armstrong) are often allocated a large gain. The report suggests there is something inappropriate about our HLBV allocations since there is no matching money. However, this accounting is required when the HLBV methodology is used, and we fully disclose that we expect to recover the carrying amount of our investment over time. In addition, we perform an impairment analysis quarterly to substantiate the carrying value of these investments. We provide our non-GAAP distributable earnings measure in part to reverse our HLBV allocations and make an adjustment that reflects earnings that are consistent with our economic data for the period. The report also alleges that tax credits are attributed to us, that we inflate our profits inappropriately, that we move cash around with our investments under the equity method and that we do not disclose the related party transactions. All of these claims are false. The report lacks a basic understanding of revenues and cash flows associated with renewable energy projects and standard accounting practices for these projects.
  • SunStrong’s cash flows come from residential solar portfolios, which are one of the best performing ABS asset classes. All transactions have commercial substance and are executed at arm’s length. As is customary in joint venture transactions, we do not exercise unilateral governance control and we do not exercise voting rights with respect to related party transactions. None of the revenue we have booked with SunStrong is unachievable. All related party transactions are disclosed as such. We don’t “round trip” cash from SunStrong to inflate our revenue.
  • We have not incurred any losses on our securitization residuals over the past 20 years and our market-based discount rates reflect this. Although the report erroneously claims that we manipulate the discount rate of our securitizations and residuals, resulting in inflated gains and residual balances, the fact is that we use market-based assumptions to calculate the rates discount. These assumptions use interest rates and market risk premiums, and our residuals are fully supported by expected future cash flows. The report mentions that our discount rate is expected to be reasonably in the “high teens” for a subordinated interest in trade receivables, regardless of whether the receivables we securitize have a quality high credit ratings and in many cases are with government debtors or other debtors with low risk assets, as evidenced by our historical zero loss rate on residuals. A lower discount rate is therefore to be expected.
  • The PIK of our loans is intentionally structured to match the cash flows of the underlying projects. The report alleges incorrect recording of payment-in-kind (“PIK”) interest. Our PIK interest is not indicative of distressed borrowers and has been fully considered in our underwriting. This PIK interest typically results from investors participating in the tax equity being allocated cash in the early years of the transaction, causing our cash flow allocation to be lower than our loan interest rate. Because there is enough cash to pay all of our interest, those loans that are classified as PIK in the early years have cash flows that exceed income in later years. This accounting is in accordance with GAAP and consistent with our economic results. We disclose our policies for recognizing our trade and government receivables, in which we assess the collectability of amounts we have recognized as revenue and will cease recognizing revenue if we believe there is substantial doubt about our ability to collect these amounts. We perform this analysis quarterly and have concluded that our PIK interest is fully achievable.

“We have a long history of adhering to the highest ethical and professional standards, and we will communicate proactively with our investors, customers and other stakeholders,” said Jeffrey W. Eckel, chairman and CEO of Hannon Armstrong. “We are committed to fiercely defending our business, while continuing to prove our investment thesis of achieving better risk-adjusted returns by investing on the right side of the climate change line.”

About Hannon Armstrong

Hannon Armstrong (NYSE: HASI) is the first U.S. public company dedicated exclusively to climate solutions investments, providing capital to assets developed by leading companies in energy efficiency, renewable energy and other energy markets. sustainable infrastructure. With $9 billion in assets under management, our primary focus is to make climate-positive investments with superior risk-adjusted returns. For more information, visit hannonarmstrong.com or follow us on Twitter and Linkedin.

Forward-looking statements

Certain of the information contained in this press release is forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to risks and uncertainties. . For these statements, we claim the protections of the safe harbor for forward-looking statements contained in these sections. These forward-looking statements include information about possible or suspected future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words “believe”, “expect”, “anticipate”, “estimate”, “plan”, “continue”, “intend”, “should”, “may” or similar expressions, we mean identify statements to search.

Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned not to place undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under “Risk Factors” included in our most recent Annual Report on Form 10-K as well as in other periodic reports. that we deposit. with the United States Securities and Exchange Commission

Forward-looking statements are based on beliefs, assumptions and expectations as of the date of this press release. We undertake no obligation to publish the results of any revisions to these forward-looking statements reflecting new estimates, events or circumstances after the date of this press release.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220713005883/en/

The euro reaches parity with the US dollar for the first time in 20 years


Take a look: €1 = $1.

With a war on the eurozone border, an uncertain energy supply from Russia and a growing risk of recession, the pressures on the euro finally became so strong that on Wednesday it fell to parity with the US dollar – one to one exchange rate.

This is unheard of since December 2002, in the first years of existence of the currency. The aesthetically pleasing round number has become a focal point for investors.

In the currency markets, “1.00 is probably the highest psychological level,” analysts at Dutch bank ING said in a note to clients.

What is even more remarkable than breaking through this level is how quickly the euro fell against the dollar. The currency, shared by 19 European countries, has fallen more than 11% this year as the strength of the dollar is almost unparalleled.

The sharp drop in the euro came as the dollar, one of the safest places to put money for generations, strengthened against nearly every major currency in the world.

Currencies move like stocks, bonds or any other asset – investors can buy them straight when they think they will go up in value and sell when they think they will go down. They also reflect global demand for a country’s assets in general, as buying US government bonds or Apple stock requires first obtaining dollars, and many global transactions are done in dollars. . So, as often happens in tough economic times, people looking for a safe place to put their money bought more dollars, at the expense of other currencies like the euro.

The euro was introduced in 1999 after decades of discussion and planning, with the aim of bringing unity, prosperity and stability to the continent. After two major wars in the first half of the 20th century, the argument for the euro and the wider European project was that common institutions would reduce the risk of war and crisis and provide diplomatic arenas for conflict resolution. . The euro was an essential symbol of this unity.

But like all currencies, the strength of the euro depends on people’s belief in it. This was seriously tested a decade ago when investors fled debt from heavily indebted countries and bailouts led to wrangling over fiscal policy. The crisis threatened the future of the currency, but confidence was largely restored. The euro zone, which started with 11 countries, will welcome its 20th member next year.

Over the past few months, however, a host of factors have stacked against the euro and in favor of the US dollar, which has reasserted itself as a safe haven during the economic turmoil.

Globally, supply chains have been disrupted by the pandemic and the war in Ukraine. Since Russia’s invasion in February, prices of commodities such as oil, natural gas, wheat and fertilizers have soared, driving up food and energy prices around the world entire. This has led to the highest inflation rates in decades.

Today, central bankers in the United States and Europe pledged to reduce inflation by raising interest rates, even as the global economic outlook deteriorates. The risk of recession has been heightened by curbs on Chinese production due to Covid-19 rules, while efforts to wean Europe off Russian energy are proving elusive. These trends have made the dollar stronger while offering little to help the euro.

“The outlook remains very supportive of the dollar,” said Ebrahim Rahbari, global head of currency analysis at Citi.

The fall of the euro has amplified fears that the euro zone could fall into recession.

Last week, uncertainty over the future of Europe’s energy supply and growing fears that Russia would permanently close a critical gas pipeline to Germany pushed the euro to a 20-year low. .

But parity bets started piling up months ago. Since April, Jordan Rochester, strategist of the Japanese bank Nomura, bet that the euro would reach parity with the dollar. Similar predictions followed, notably at JPMorgan Chase and HSBC.

Then came a brief respite in the slide of the euro. Among other things, European Central Bank President Christine Lagarde outlined a clear plan to raise interest rates for the first time in more than a decade in July and signaled that the eight-year era of negative interest rates would be over early falling. Since then, policymakers have stepped up their commitment, saying that when rates rise again in September, the jump will likely be even bigger than in July.

Ultimately, this was not enough to reverse the course of the currency. “It’s hard to find much positive to say” about the euro, HSBC analysts wrote in a note to clients in early July. “The economic news is very tough.”

Around the same time, Nomura’s Rochester said he expected the euro to reach parity with the dollar by the end of August. In the end, it went much faster.

“That’s very much human psychology,” Rochester said. There’s no market-based reason why parity matters – “it’s just a round number,” he added. But this could be the start of a period similar to the currency’s early years, when trades ranged from 82 US cents to 1 dollar against the euro.

Back then, in the early 2000s, before the euro existed in the form of banknotes and coins and was just a virtual currency, the weak exchange rate undermined confidence in the new change. The European Central Bank even intervened to try to strengthen it.

Today, there are fewer questions about the resilience of the euro as progress has been made in strengthening the union. The central bank’s commitment to preserving the currency a decade ago has not been significantly tested since.

But the weaker currency poses an additional headache for the European Central Bank, as it will add to inflationary pressures in the region by raising the cost of imports. Central bankers say they are not targeting an exchange rate level, but it will be difficult for them to stop the currency’s decline in words because the forces pushing the dollar higher have been so strong.

As US inflation nears its highest rate in four decades, the Federal Reserve has intensified its monetary policy tightening with significant interest rate increases. Fed Chairman Jerome H. Powell told a conference in late June that he expected his benchmark rate to hit 3.5% this year. He added that there was a risk that the central bank would go too far in raising rates to cool the US economy, but letting inflation stay high was a bigger risk.

As Mr Powell spoke, he sat next to Ms Lagarde at the European Central Bank’s annual retreat in Sintra, Portugal. While she agreed with him on the risk of continued inflation, she did not match his commitment and clarity on how interest rates could rise in the euro zone. Investors can only speculate on what might happen by the end of the year.

But even before the first rate hike, on July 21, the growing risk of a recession in the euro zone has investors wondering how far the bank can raise rates before having to halt again.

“The ECB will struggle to keep pace with the Fed’s decision to fight inflation or raise rates,” said Citi analyst Rahbari.

As the European Central Bank plans its rate hikes, it must also keep an eye on sovereign bond markets. There have been concerns about the impact of rising interest rates and the end of central bank bond-buying programs on the bloc’s most indebted members.

In Italy, for example, borrowing costs rose sharply in June, and officials are trying to discern how accurately those moves reflected the risk in Italy’s financial situation and what has been called fragmentation, or rapidly diverging interest rates among eurozone members that would make monetary policy less effective. The bank is preparing a new policy tool to deal with this fragmentation, which central bankers see as a disconnect between economic fundamentals and government borrowing costs.

“It will be another testing period for the eurozone” and its central bank over the next year, Rahbari said.

NBA stiffs take foul penalty and will keep play-off tournament | News, Sports, Jobs


LAS VEGAS — The NBA has completed the process of changing the transitional foul rule, ending years of discussion about what to do with the long-maligned tactic.

And, as expected, the play-in tournament will be here for the foreseeable future.

The league’s board of governors finalized both of those issues on Tuesday, approving a plan to award a free throw when teams are at a foul-playing disadvantage – as well as removing the “experimental” designation from the play-element. in the playoffs.

It was no surprise that the league changed the penalty for grappling fouls; Commissioner Adam Silver told The Associated Press in early June that would change, while warning that the new rule could still be changed in years to come.

The gripping foul – in which the defender does not play on the ball – is what the league classifies as a foul that occurs either “during a transition scoring opportunity or immediately after a change of possession and before the offensive team has had the opportunity to advance. the ball.” The exception is in the last 2 minutes of the fourth quarter or extra time.

The new penalty for such a foul is a free throw, which may be attempted by any player of the offending team in play at the time the foul occurred, and possession continues.


The play-in tournament was generally considered a success, so it’s no surprise the league is keeping it going.

The play-in tournament – ​​in its current form – has been used in each of the past two seasons, where the teams that finish seventh, eighth, ninth and 10th in the East and West meet to determine the last two playoff berths in each conference. .

The No. 7 team plays the No. 8 team, with the winner earning the No. 7 seed in the playoffs. Team #9 plays Team #10, with the loser being eliminated and the winner playing the team that lost the game 7-8. The winner of this match is the No. 8 seed.

It’s been a success, mostly because it tends to give a March madness feel – four playoff games before the playoffs even start – and encourages more teams not to tank for better lottery odds. of the draft.

There was also an element of play in 2020 in the reboot bubble at Walt Disney World, when Portland beat Memphis for the No. 8 seed in the Western Conference. Memphis could have secured the No. 8 seed that year by beating Portland twice; the Blazers only had to win one game to claim the spot.


The NBA and NBPA announced a new program — jointly funded — to provide payments to approximately 115 ABA players who played at least three seasons but were ineligible for NBA pensions. They will receive “recognition payments” of $3,828 per year of service.

“Our players have a genuine sense of appreciation for those who paved the way and helped us achieve the success we enjoy today,” said NBPA General Manager Tamika Tremaglio. “We have always considered ABA players part of our fraternity and we are proud to finally recognize them with this benefit.”

Silver said the league and the players “felt the need to act on behalf of these former ABA players who are aging and, in many cases, facing difficult economic circumstances.”

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Why HUD Funding May Be the Vehicle to Drive Skilled Nursing Innovation


If there is one source of financial support that has become a favorite among retirement home owners, it is funding from the US Department of Housing and Urban Development (HUD).

Even still, it may come with some limitations.

HUD loans can be used to buy, build, refinance or renovate retirement homes, among other health care facilities, and their use in the long-term care sector continues to grow, according to recent analysis by ATI Advisory. .

HUD insured more than 2,300 active mortgages in 2019, up from about 800 in 1995.

While HUD’s “longstanding dominance” in the nursing home industry proves its reliability as a source of long-term funding, the program could better serve residents by encouraging innovation, the researchers noted.

The analysis, commissioned by the National Investment Center for Housing and Aged Care (NIC), specifically noted that HUD has been an “ineffective vehicle” for pursuing growth and innovative investments in the sector.

Although HUD’s stability is what makes it an attractive option for so many providers, such financing typically takes up to a year to obtain due to a lengthy administrative process – often longer than traditional debt financing. or equity investments.

Additionally, HUD loans are geared toward the real estate side of the nursing home business, which has led to a relatively prescriptive underwriting process. However, this does not necessarily incentivize innovative investments, such as communications and technology upgrades, which would benefit the operational side of the business, according to the ATI researchers.

Bob Kramer, NIC’s founder and strategic adviser, said while he wasn’t surprised by the increase in HUD loans, he thinks its focus is more on getting reimbursed than quality of care.

“There is no incentive given for upgrades, upgrades, like 5G, or the air quality and purification system, let alone moving three and four bedroom rooms to semi-private and private rooms. , creating neighborhoods, as opposed to long hallways,” he said.

Kramer thinks more should be done to make the program a tool used to drive innovation and modernization in the sector.

Conner Esworthy, a researcher with ATI Advisory and one of the report’s authors, told SNN that “at best the program [currently] is growth-incentive neutral, as both innovative and non-innovative borrowers can access loans at the same rate.

“There are many operators today who are already investing in innovative projects (eg, I-SNP, technology upgrades) and an updated HUD program that rewards these operators could accelerate those investments,” Esworthy said.

However, not everyone agrees with these points.

Steve Kennedy, executive managing director of VIUM Capital, “pushed back” against the idea that the HUD is not driving innovation within the industry.

“Earlier this year [HUD started] allowing owner-operators to access reduced mortgage insurance premiums if certain building energy efficiency thresholds are met,” Kennedy told Skilled Nursing News. “I think it’s a good way to emphasize improving the energy efficiency of projects by combining it with an economic incentive.”

The reality is that HUD remains one of the strongest sources of capital for the skilled nursing industry, and ATI researchers believe that with a few tweaks and tweaks, HUD could be well positioned to drive growth. growth and innovation in the industry.

“This would imply a more direct approach to influencing operators’ capital choices, compared to some payment policy changes (such as reduced refunds) that indirectly aim to discourage some investors and ultimately penalize operators,” the authors wrote. researchers in the report.

HUD limitations

Operators must be stabilized as a property before going to HUD for funding or they will not meet the criteria.

“HUD’s health care leadership is very focused on not only the last 12 months of cash flow, but also the last three months that will cover the proposed debt service,” Kennedy explained.

He said a number of closures had been suspended as the Covid recovery continued. Meanwhile, interest rates have only gone up, which is not helping that ability to cover the debt.

He said the program is aimed at successful operators and facilities that are already performing well.

“You don’t see HUD funding as a way to save nursing homes, you see HUD funding as a way to best help relatively successful facilities with proven operators,” he said.

Timing has always been the biggest challenge with HUD funding.

“It just takes longer to complete a HUD deal than bank financing or finance company financing or fulfillment through other agency alternatives like Fannie or Freddie, who are active in the world of assisted living, memory care and independent living,” Kennedy said. “When rates are rising and your margins are as thin as they are, the day-to-day matters.”

Therefore, VIUM operates as a bridge lender to ensure that there is flexibility in the bridge product so that owners/operators have the time they need to operate these projects in a way that they finally be “HUD compatible”.

Has HUD Funding Peaked for Retirement Home Owners?

It’s easy to see why the HUD program has become an integral part of the skilled nursing space given its long-term, fixed-rate, non-recourse guarantees, according to Esworthy.

Although the program has been a vital lifeline for steady-state operators, HUD loan amounts are based on the “estimated value of major physical upgrades and mobile equipment,” Esworthy added.

“Many innovative investments – such as an air purification system or 5G infrastructure – could be made without changing the exterior of a facility, but they tend to fall into a gray area where they are not. eligible for separate HUD funding, or difficult to fund within HUD’s substantial rehabilitation needs,” he said.

For some single-installation rural operators, HUD remains the only affordable and feasible debt option and a consistent and important source of capital, even for operators who have not used the program before, according to Esworthy.

“The continued high volumes of HUD loans during the first half of the pandemic – when other private lenders remained on the sidelines – suggest that HUD funding was a reliable lifeline for operators during a very precarious time,” did he declare.

After booming in recent years, Kramer thinks HUD funding may have peaked.

“There’s so much uncertainty right now about interest rates,” he said. “I think the height of the HUD rush probably happened in the last couple of years when everyone said these historically low interest rates wouldn’t last forever. Now we see there , they don’t last forever.

Kramer thinks the federal government will continue to raise interest rates as a tool to try to control inflation.

Kennedy is also seeing a decrease in the number of deals approved and closed because HUD is very careful in how it underwrites projects.

Payday Loans Market Report 2022-2027: Creditstar, Lending Stream, Myjar


payday loan

OREGAON, PORTLAND, USA, July 12, 2022 /EINPresswire.com/ — Allied Market Research has released a report titled, “Payday Loans Market by Type (Storefront Payday Loans and Online Payday Loans), Vital (Married, Single, and Others) and Client Age (Under 21, 21-30, 31-40, 41-50, and Over 50): Global Opportunity Analysis and Industry Forecast, 2021-2030 “.

The report offers an in-depth analysis of drivers and opportunities, key segments, major investment pockets, competitive landscape, and value chain. These data, statistics and information will prove useful to market participants, shareholders, new entrants and investors to have market insights and adopt various growth strategies.

@ https://www.alliedmarketre.com/request-sample/10377

The research provides a comprehensive analysis of drivers, restraints, and opportunities in the global payday loans market. This information is valuable for identifying driving factors, highlighting them and implementing strategies to help achieve sustainable growth. Additionally, market players, investors, and startups can use this information to determine new opportunities, explore market potential, and gain competitive advantage.

The report provides a detailed impact of the Covid-19 pandemic on the global payday loans market. This information will help market participants, investors and others to change their strategies accordingly to deal with the pandemic and stay in the market.

Key market segments include:

• By type
o Storefront Payday Loans
o Online payday loans

• By marital status
o Married
o Others

• By customer age
o Under 21
o 21 to 30
o 31 to 40
o 41 to 50
o More than 50

A detailed analysis of each segment and sub-segment is provided in the report. Tabular and graphical formats are used to allow better understanding. This analysis is valuable in identifying the most dynamic and revenue-generating segments. It will help market players adopt various strategies to achieve sustainable growth.

Customization Request @ https://www.alliedmarketresearch.com/request-for-customization/10377?reqfor=covid

The research offers a detailed analysis of the global payday loans market for each region. The regions analyzed in the study include North America (United States, Canada and Mexico), Europe (Germany, United Kingdom, Russia, Spain, France and Italy), Asia-Pacific (China, Japan, Korea, India and rest of Asia-Pacific) and LAMEA (Latin America, Middle East and Africa). The data and statistics mentioned in the research are valuable in determining strategies such as expanding into specific regions and exploring untapped potential in different markets. AMR also offers customization services for specific region and segment as per customer requirements.

Main benefits for stakeholders
• This report provides a quantitative analysis of market segments, current trends, estimates and dynamics of the 20WW-20MM Operating Room Equipment market analysis to identify current opportunities in the equipment market of operating room.
• Market research is offered with information related to key drivers, restraints and opportunities.
• Porter’s Five Forces analysis highlights the ability of buyers and suppliers to enable stakeholders to make profit-driven business decisions and strengthen their supplier-buyer network.
• In-depth analysis of operating room equipment market segmentation helps to determine existing market opportunities.
• Major countries in each region are mapped according to their contribution to global market revenue.
• Positioning of market players facilitates benchmarking and provides a clear understanding of the current position of market players.
• The report includes analysis of regional and global Operating Room Equipment market trends, key players, market segments, application areas and market growth strategies.

Interested potential key market players can inquire for purchase of the report at: https://www.alliedmarketresearch.com/purchase-enquiry/10377

The report offers a detailed analysis of key market players operating in the global Payday Loans Market. Key market players analyzed in the report are Cashfloat, CashNetUSA, Creditstar, Lending Stream, Myjar, Silver Cloud Financial, Inc., Speedy Cash, THL Direct, Titlemax, and TMG Loan Processing. They have implemented various strategies including new product launches, mergers and acquisitions, joint ventures, collaborations, expansions, partnerships and others to achieve growth and gain an international presence.

The adoption of the payday loan market is increasing significantly in recent years due to its usefulness and efficiency. With the rapid advancements in technology, the application areas of the payday loans market are expanding into various fields. The research offers a comprehensive analysis of drivers, restraints, and opportunities in the global payday loans market.

About Us:
Allied Market Research (AMR) is a full-service market research and business consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global corporations as well as small and medium enterprises with unparalleled quality of “Market Research Reports” and “Business Intelligence Solutions”. AMR has a focused vision to provide business insights and advice to help its clients make strategic business decisions and achieve sustainable growth in their respective market area.

Pawan Kumar, CEO of Allied Market Research, leads the organization in delivering high quality data and insights. We maintain professional relationships with various companies which helps us to extract market data which helps us to generate accurate research data tables and confirm the utmost accuracy of our market predictions. All data presented in the reports we publish are drawn from primary interviews with senior managers of large companies in the relevant field. Our secondary data sourcing methodology includes extensive online and offline research and discussions with knowledgeable industry professionals and analysts.

David Correa
Allied Analytics LLP
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Tryg A/S – Report Q2 and H1 2022


The Supervisory Board of Tryg today approved the interim report for the second quarter and first half of 2022. This is the first consolidated report for the extended group and therefore the comparison figures in brackets related to the Insurance business refers to second quarter 2021 pro forma figures which have been published on tryg. com before the release of the Q2 report.

Tryg recorded premium growth of 6.8% in Q2 in the first quarter of full consolidation of Codan Norway and Trygg-Hansa, growth was mainly driven by positive developments in the Private and Commercial segments. Technical result of DKK 1,902 million (DKK 1,567 million), supported by the positive development in turnover, the improvement in underlying profitability thanks to the realization of RSA Scandinavia synergies and an increase in the level interest rates (implying a higher discount rate for insurance liabilities). The underlying loss ratio improved by 0.8% for the Group. Tryg’s investment result for the second quarter was -878 million DKK (-757 million DKK), driven by highly volatile financial markets, with equity markets experiencing one of the most challenging quarters in recent memory, widening credit spreads and rising interest rates.

Q2 2022 Financial Highlights

• Premium growth of 6.8% in local currencies
• Technical result of DKK 1,902 million (DKK 1,567 million)
• Combined ratio of 79.7 (81.9)
• Underlying loss ratio (Group) improved by 0.8
• Large claims at 3.1% (1.4%) and climatic claims at 0.9% (2.3%)
• Expense ratio of 13.9 (14.7)
• Free portfolio ROI of -944 million DKK (312 million DKK)
• Total return on investment of -878 million DKK (-757 million DKK)
• Synergies linked to the RSA of DKK 92 million
• Profit before tax of DKK 508 million (DKK 274 million)
• Quarterly dividend of DKK 1.56 and solvency ratio of 195

Financial highlights H1 2022

• Premium growth of 5.3% in local currencies
• Technical result of DKK 2,656 million (DKK 1,895 million)
• Combined ratio of 83.0 (84.0)
• Large claims at 2.9% (1.9%) and climatic claims at 1.9% (1.6%)
• Expense ratio of 14.0 (14.1)
• Return on investment of the free portfolio of -916 million DKK (505 million)
• Total return on investment of -1,162 million DKK (-414 million DKK)
• Synergies linked to the RSA of DKK 142 million
• Profit before tax of DKK 711 million (DKK 1,296 million)
• Dividend per share of DKK 3.11 (DKK 1.55 paid in April and DKK 1.56 to be paid on July 15)

Q2 2022 Customer Highlights

• Customer satisfaction score of 85 (84 in Q2 2021)
• For the seventh consecutive year, TryghedsGruppen has decided to pay a bonus to members. For 2021, this equates to 8% of premiums paid in the fall

Statement from Group CEO Morten Hübbe:

In the second quarter, we present for the first time the financial performance of the enlarged Group after the recent acquisitions of Trygg-Hansa and Codan Norway. I am delighted to see that we continue to deliver profitable growth in all Nordic markets, a strong technical result of DKK 1,902m and a combined ratio of 79.7. The performance in the second quarter of the year was supported by continued positive developments in the core insurance business supported by the delivery of RSA Scandinavia synergies. At the same time, we saw that inflation continued to develop negatively and therefore began targeted price adjustments to offset this development.

In a difficult macroeconomic environment with accelerating inflationary pressure, this strong set of numbers reflects a healthy core business, and it is very positive to see that we are able to win new customers and grow our turnover while realizing synergies. upon acquisition.

Financial markets are experiencing almost unprecedented volatility due to geopolitical tensions and a sharp rise in interest rates. Our ROI of -878 million DKK reflects these uncertainties after a quarter where virtually all asset classes produced negative returns.

Finally, we are pleased to announce a quarterly dividend per share of DKK 1.56, which represents an increase of around 45% compared to the same quarter last year. The dividend is supported by a healthy solvency ratio of 195 which provides a solid foundation at the start of the new adventure and ensures a solid return on capital for our shareholders.

Conference call
Tryg is hosting a conference call today at 10:00 CET. CEO Morten Hübbe, CFO Barbara Plucnar Jensen and Commercial Director Johan Kirstein Brammer will briefly present the results followed by Q&A.

The conference call will be conducted in English. An on-demand version will be available shortly after the conference call ends.

Conference call details:
Danish participants: +45 78 15 01 07
UK participants: +44 333 300 9271
US participants: +1 631 913 1422 (PIN: 94357481#)

All Q2 and H1 material can be downloaded from tryg.com/ shortly after release.

  • 20_TRYG_Interim report Q2 and H1 2022

Canadian household budgets have stretched as inflation and interest rates rise: Poll – Saanich News


A new poll shows that Canadians are making increasingly difficult budget decisions due to rising interest rates and inflation.

The MNP Ltd. poll, conducted by Ipsos in early June, suggests more than a quarter of Canadians are cutting back on basic expenses like food, shelter and utilities.

The poll found that nearly half of respondents restrict non-essential spending on outings like travel, dining and entertainment.

Around a third of respondents also said they buy cheaper versions of everyday items and drive less to save on fuel costs.

The results suggest that Canadians are making tough choices as higher costs weigh on household budgets.

Grant Bazian, chairman of insolvency firm MNP, says Canadians are trying to adjust their budgets and cut costs where possible to meet their monthly bills.

But he warns that the situation is likely to get worse before it gets better as the cost of living continues to rise.

“Households will have to make increasingly difficult choices about what to cut and could find themselves going into debt to make ends meet,” Bazian said in a statement Monday.

Half of survey respondents said that if interest rates rose much more they would be in financial trouble, with four in 10 saying higher rates could bring them closer to bankruptcy.

Economists predict the Bank of Canada will raise its key interest rate by three-quarters of a percentage point on Wednesday as inflation rages around the world.

The central bank raised its key rate by half a percentage point on June 1, bringing it to 1.5%. Since then, he has signaled a willingness to move in a more aggressive direction.

“With inflation approaching a 40-year high, there is growing pressure for more aggressive interest rate hikes to bring inflation under control,” Bazian said.

“Canadians who are not financially prepared to absorb future interest rate increases risk finding themselves in financial difficulty.

The online survey of 2,000 Canadians was conducted June 6-9.

The polling industry trade body, the Canadian Research Council, says online polls cannot be assigned a margin of error because they do not randomly sample the population.

—The Canadian Press


the pros and cons of a new republican plan


Children draw on a Treasury check prop during a rally outside the US Capitol on December 13, 2021.

Alex Wang | Getty Images

Millions of families have come to rely on monthly pandemic-era child tax credit checks of up to $300 per child, a program that expired last December.

Now, a new Republican Senate proposal aims to restart monthly payments to parents — with new requirements, though.

The proposal, called Family Safety Act 2.0was created by Republican Senators Mitt Romney of Utah, Richard Burr of North Carolina and Steve Daines of Montana, who describe it as a “pro-family, pro-life, pro-marriage plan”.

The proposal follows the expiration of an expanded child tax credit that gave families access to monthly child tax credit payments for the first time. This included $300 per month for each child under 6 and $250 per month for each child 6-17.

Learn more about personal finance:
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Monthly payments began in July and ended in December, with families receiving cash up to half of the total credit value of $3,600 per child under age 6 and $3,000 per child age 6-6. 17 years. Families received the remaining credit when they filed their taxes this year.

Beginning in 2022, the Child Tax Credit is reverted to $2,000 per child under age 17 with no advance monthly checks.

The 2021 expanded child tax credit helped reduce child poverty by about 30% in December, measured by monthly income, according to the Center on Budget and Policy Priorities.

“The research is so strong that children’s lives would be so much better — school, health, future income,” said Chuck Marr, vice president of federal tax policy at the Center on Budget and Policy Priorities.

“There was so much promise, it was a big step forward,” he said. “So it’s terrible that it has lapsed.”

The new proposed Family Safety 2.0 Act is a “welcome development” showing that there is credit-building support available to low-income families, the Center on Budget and Policy Priorities said in a statement. new analysis.

Yet while it could “create an opening” for expansion this year, it has “significant weaknesses”, the group wrote of the proposal. Some children from low- or no-income families may receive a partial child tax credit or no credit at all. In addition, a significant reduction in the earned income tax credit and other offsets could make things worse for millions of children, the Center on Budget and Policy Priorities found.

The offices of the sponsoring Republican senators did not respond to requests for comment before press time.

How much money families can receive

Under the Republican senators’ plan, families would receive $350 per month per child until age 5, for a total of $4,200 per year. They would receive $250 per month for children ages 6 to 17, for a total of $3,000 per year.

Benefits would be limited to a maximum of six children per year.

In order to receive the full benefit, families would need to earn $10,000 in the previous year. Those earning less than $10,000 would have their credits reduced in proportion to their income.

The child tax credit would begin to disappear at $200,000 of income for single filers and $400,000 for joint filers. For every $1,000 earned above these thresholds, the credit would be reduced by $50.

Expectant parents would also be eligible to start receiving payments four months before their child’s due date. This would include monthly payments of $700, up to $2,800 per pregnancy.

The in-work income tax credit, which provides tax relief to low- and middle-income workers, would see reductions in both the phase-in rate and the maximum credit available to single parents and married couples with children.

How changes would be paid for

Yunio Baro Gomez / Eyeem | Eye | Getty Images

Earned income tax credit reductions would result in estimated annual savings of $46.5 billion.

The bill also calls for the elimination of the state and local tax deduction, which the proposal calls “inefficient tax relief for high-income taxpayers.” This change would result in savings estimated at $25.2 billion.

It also proposes removing head of household status, which would save about $16.5 billion.

In addition, eliminating the child portion of the child care and dependent care credit would reduce another $4.7 billion per year.

In total, these changes represent annual savings of $92.9 billion.

The “great weakness” of the child tax credit

Under the current child tax credit, children from families with low or no income receive only part of the credit or no money at all. The Center on Budget and Policy Priorities calls this a “major flaw.”

That all changed last year when the American Rescue Plan Act temporarily made the credit fully refundable, meaning it was fully available to children from families with little or no income.

The estimated 30% drop in child poverty in December included about half of all black children, half of Latino children, one-fifth of Asian children, one-fifth of white children and about half of children who live in the rural areas, according to the Center on Budget and Policy Priorities.

Denying credit to children based on their parents’ income will not help increase their parents’ employment and will hurt children’s future, the group found.

Still, the Republican proposal has several strengths, according to the analysis. First, the credit applies more quickly as family income increases, on a per child basis.

Second, it also staggers the credit starting with the first dollar of income, rather than after the first $2,500 of income under current law.

Third, it also eliminates the current cap of $1,500 that families can receive in reimbursement.

New Hampshire parents and others gather outside the Manchester office of Senator Maggie Hassan on September 14, 2021.

Scott Eisen | Getty Images Entertainment | Getty Images

But the plan has other downsides, including cuts to the working income tax credit and the elimination of head of household tax filing status, according to the Center on Budget and Policy. Priorities.

For example, a mother earning $25,000 a year with a toddler and a daughter in grade two would qualify for a child tax credit of $3,640, but would lose $4,105 due to reductions in the child tax credit. tax on earned income, which would result in a loss of net income of $465, according to the Center on Budget and Policy Priorities. If both children were 6 or older, the net loss of income would be $1,665.

According to the Center on Budget and Policy Priorities, about 7 million families earning less than $50,000 would be worse off under the Republican plan compared to the current law. The median loss would be over $800 per family.

Major banks are reporting earnings this week. Here’s what Wall Street is watching.


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CEO Brian Moynihan said Bank of America is always prepared for a recession because it has no choice but to be ready,

Davis Turner/Getty Images

Big banks are starting to report earnings this week, and Wall Street expects second-quarter results to be “good,” a lukewarm call that sums up stock performance this year.



(ticker: KBE) is down 17.8% this year, doing only slightly better than the


That wouldn’t be so bad, except that this year was supposed to be a good year for banks, which defied expectations and thrived during the pandemic. Earnings were expected to rise as the Federal Reserve raises interest rates, making lending more profitable, but fears that those rate hikes could lead to a recession weighed on stocks.

Still, the big banks have proven their resilience, easily passing the Fed’s annual stress test last month. Sentiment is cautiously returning in favor of the sector.

“Bank results [are] probably well,” Baird analyst David George wrote in a recent note, adding that the balance between risk and potential rewards looks attractive, with the banks he covers trading at a median of 5.5x long-term benefits. “Given the group’s recent weakness, we expect the shares to trade well during the reporting season,” he said.

That kind of sentiment makes it hard to get excited about investing in the sector, even though it may be one of the safest areas to park funds as the economy slows. The Fed’s stress test showed banks were able to weather a hypothetical downturn far worse than the real one economists fear.

Banks seem cheap, with many transactions around book value. The dividend yield on the KBE is a respectable 2.1%, while

JPMorgan Chase

(JPM) and


(C) have yields well above 3%.

JPMorgan and Morgan Stanley (MS) release their results on Thursday. Numbers of

Wells Fargo

(WFC) and Citigroup are expected on Friday. Here are four areas Wall Street will be watching:

Net interest income up: Banks are one of the few beneficiaries of rising interest rates, as they allow lenders to earn a wider spread between the interest they receive from loans and what they pay for deposits. Wells Fargo analyst Mike Mayo recently wrote that he expects banks to post “the best NII growth in four decades over the next 6 quarters” thanks to a combination of rising interest rates and increased commercial lending.

Less fee revenue: While investors may be excited about the uptick in net interest income, lower fees will likely partially offset the benefit. Rising interest rates lead to a decrease in the number of mortgage loans, a major source of costs. Higher rates also make it more expensive for companies to borrow for acquisitions, meaning larger lenders are likely to see a slowdown in investment banking activity. Even wealth management, a typical bright spot for bank earnings, could see weaker fee income, according to Baird analyst George.

Trading can be surprisingly strong: Recent market volatility hasn’t been good for most investors, but as viewers of the 1983 classic Stock exchanges learned, brokers receive commissions regardless of how a trade goes. George said he expects banks to see a 5% year-over-year increase in fixed income trading volume and a 10% increase in equity trading.

The big picture: As is often the case with profits, the outlook matters as much, if not more, than the results shown. This is especially true for banks because the behavior of their customers gives them a clearer picture of the health of the economy.

So far, big bank executives acknowledge that a downturn is coming, but they are mixed about its severity. At a conference last month, JPMorgan CEO Jamie Dimon warned of a “hurricane,” while

Bank of America

CEO Brian Moynihan seemed less worried, saying “we’re still ready…we have no choice.”

Write to Carleton English at [email protected]

Inflation, gas prices and interest rates are on the rise. Here’s how to prepare yourself financially for the tough times ahead


Financially, times are pretty tough – and they aren’t expected to improve anytime soon.

Reserve Bank Governor Philip Lowe said a recession was not expected in Australia. Others think there is a chance that we will be hit by a short recession next year.

But one thing is certain right now: millions of Australians are hurting because of the rising cost of living.

So how can we prepare for the tough financial times ahead? We asked three experts.

First of all, you need to know that you are not alone

Before we get into the nitty-gritty, Deb Shroot, financial adviser at the National Debt Helpline, says that no matter how bad things get financially, there are always options. Even when things look really bad.

“If you talk to a financial advisor, there are always options,” she says.

Basically, financial advisors are professionals who help people in financial difficulty and their services are non-judgmental, free, independent and confidential.

“The options may not all be desirable, however, we can tell you about all the pros and cons,” Ms. Shroot says.

“Then you can decide what the next best step is for you.”

She says it’s important not to wait to ask for help.

“The sooner you commit to getting help, the more options you have available to you.”

She says people from all walks of life started asking for help in greater numbers following the increase in petrol prices in February.

“So we are contacted from all walks of life, people in very different situations,” she says.

Start preparing now, if you haven’t already.

According to financial planner Olivia Maragna of Aspire Retire, you should take the lead with your finances as soon as possible.

She says it’s one of the best ways to avoid future pain.

It’s because it’s easy for things to get out of control before people take steps to get their finances under control.

“People – who aren’t necessarily in denial because they know it’s getting worse – are putting it off before actually tackling the problem,” Ms Maragna said.

“You don’t want to be in a position where you have to do something.”

Financial advisers say there are always options, no matter how bad things look.(Pexels: Liza Summer)

Talk to your bank about your mortgage payments

Ms Maragna says mortgage holders should talk to their bank and negotiate a lower rate if they feel pressure from rising interest rates.

She says clients recently managed to get their interest rate lowered by 0.4%.

“I’ve found that out of the times when clients did that, they got a better interest rate, at least a good 0.4% drop in their interest rate,” Ms. Maragna said.

“It’s not changing banks, it’s just asking for a better rate.”

She said those with mortgages should also contact their bank if they are struggling to make repayments.

“Banks usually have processes for people in financial difficulty,” she says.

“They’ll just go through the process with you, maybe put you on a payment plan or help you with interest rates or things like that.”

Writing down your budget can help you feel in control

It might be tempting to put it off for a few months, but organize your budget can make you feel like you’re in control.

That’s according to Di Johnson, a personal finance professor at Griffith University.

“Spending planning, documenting expenses and debts can help build a sense of control,” says Dr. Johnson.

“Writing down your current expenses in terms of daily household expenses and all mortgage debt, personal loans, credit cards, buy now pay later, payday loans, loans from friends and family – can help plan simply by documenting it, to see what is already covered and the priorities for snacking on others.”

See what you can reduce

Once all of your expenses are listed in your budget, Maragna says it’s a good idea to go over each item and look for a better deal.

This includes services such as electricity, internet, gas and subscriptions, including streaming services and gym memberships.

Don’t wait for interest rates to rise, it is about asking “where can we really reduce? ” said Ms. Maragna.

“Check health insurance, see what you can reduce or reduce. Call each service provider to see what you can reduce.

“There doesn’t seem to be any relief any time soon. This is something for the next six to 12 months that we should consider the new normal.

Look at every dollar that comes out the door.”

Divide large payments into regular installments

“Smoothing out” larger annual payments like car registration or insurance and setting up monthly direct debits can give you a clearer picture of your finances, Maragna says.

Dr. Johnson agrees. She says it also relieves the mental load of regular expenses.

“So you can think more clearly about larger goals,” she says.

Find more income through odd jobs and second-hand sales

Reducing expenses is fine. But in more difficult times, people have to resort to seeking additional income.

“I think people really have to, you know, look beyond what you normally would in tough times,” Ms Maragna said.

She said selling available second-hand items was a good way to earn “a few extra bucks.”

And then there is the search for higher paying work, especially through online platforms and applications.

“Even the gig economy, so in terms of people wanting extra money,” she said.

“You know, you can jump on a lot of these platforms now and do weekend jobs and earn a few hundred extra dollars a weekend.

“So I think people just need to explore all the options to try to stay ahead. Because, like I said, we’re not at the end of the bad times, there’s still more of pain to come. It must be think outside the box.”

Getting into debt is not the solution

Going into debt to make up for budget shortfalls is one of the most common ways people get into financial trouble, Shroot says.

“For example, someone might not be able to pay their electricity bill, so they might take out a loan. We usually see which triggers what is called a spiral of debt,” she says.

“Chances are you won’t be able to repay that.

But when you have starving kids, need to keep the internet on for homework or need gas to get to work, Ms Shroot says it can be easy to ignore the dangers of taking on more debt. .

“If you need to feed your child, you will do whatever it takes to do so, even if there are consequences along the way,” she said.

“So I guess our message for this is to ask for help because there is emergency relief.”

She says every state and territory has emergency relief programs.

“Where people can access fruits and other goodies to meet those basic needs,” she says.

The savings are significant. Although it’s easier said than done

It would be great if everyone could snap their fingers and have a healthy savings account.

But having free cash is essential to manage uncertain financial timesexplains Dr. Johnson.

“While it’s easy to say ‘ideally have a savings buffer for three to six months of expenses’, we know that’s not always realistic,” says Dr Johnson.

“Many people have faced cost of living pressure for years, some for decades, and while average household savings are on the rise, there is a big difference between income and wealth equality. in Australia.”

Lady holding a wallet with 20 dollar bills.
It may seem like a luxury to many, but having a three-month savings buffer of living expenses can be a big help.(ABC News: Jessica Hinchliffe)

Ms Shroot says a three-month savings buffer is good general advice, adding that many people who contact financial advisers have recently experienced an unexpected change in circumstances.

“You’ll definitely fare a lot better because you don’t know when those moments are going to happen,” she says.

“The general advice is that it would be good to have three months of expenses, knowing that some people cannot afford to put money aside and live only from check to check.

“So it could, it could be really difficult. We don’t want people to feel bad about themselves or a failure if they are unable to do this.”

Talking to someone about your financial difficulties can help

Ms Shroot says it can be difficult to talk openly about your personal finances, especially when times are tough.

However, she says talking about it can relieve some mental burden.

“Some people feel a sense of failure if they are unable to support their families or ask for help with money,” she says.

“So even just unburdening yourself for your mental well-being, it’s highly unlikely that you won’t feel better after talking to a financial advisor.”

“Talk to a financial advisor, we’re free, independent and confidential. Even if it’s just an idea, we’re always happy to listen and even help people think about money. “

This article contains general information only. You should consider obtaining independent professional advice based on your particular circumstances.

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The ATO warns that you cannot claim more at tax time to help with the cost of living.

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Fair value estimate from Gartner, Inc. (NYSE: IT)


Does July’s Gartner, Inc. (NYSE: IT) Stock Price Reflect What It’s Really Worth? Today we are going to estimate the intrinsic value of the stock by estimating the future cash flows of the company 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.

Businesses can be valued in many ways, which is why we emphasize that a DCF is not perfect for all situations. If you want to know more about discounted cash flow, the rationale for this calculation can be read in detail in the Simply Wall St analysis template.

Discover our latest analysis for Gartner

Is Gartner correctly 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”. 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.

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) $986.1 million $1.18 billion $1.19 billion $1.20 billion $1.22 billion $1.24 billion $1.26 billion $1.28 billion $1.30 billion $1.32 billion
Growth rate estimate Source Analyst x2 Analyst x1 Is at 0.61% Is at 1.01% Is at 1.29% Is at 1.48% Is at 1.62% Is at 1.72% Is at 1.78% Is at 1.83%
Present value (in millions of dollars) discounted at 6.5% $926 $1,000 $985 $934 $889 $847 $808 $771 $737 $705

(“East” = FCF growth rate estimated by Simply Wall St)
10-year discounted cash flow (PVCF) = $8.6 billion

We now need to calculate the terminal value, which represents all future cash flows after this ten-year period. 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 (1.9%) 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 6.5%.

Terminal value (TV)= FCF2032 × (1 + g) ÷ (r – g) = $1.3 billion × (1 + 1.9%) ÷ (6.5%–1.9%) = $30 billion

Present value of terminal value (PVTV)= TV / (1 + r)ten= $30 billion ÷ (1 + 6.5%)ten= $16 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 $24 billion. In the last step, we divide the equity value by the number of shares outstanding. Compared to the current share price of $243, the company appears to be about fair value at a 20% discount to the current share price. Remember though that this is only a rough estimate, and like any complex formula – trash in, trash out.

NYSE: Discounted IT Cash Flow July 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 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 Gartner 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 6.5%, which is based on a leveraged beta of 1.079. 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 many factors you need to assess for a business. 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. If a company grows at a different rate, or if its cost of equity or risk-free rate changes sharply, output may be very different. For Gartner, we’ve rounded up three essentials you should dig into:

  1. Risks: For example, we have identified 4 warning signs for Gartner (1 is a little worrying) you should be aware.
  2. Future earnings: How does the growth rate of IT 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 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. The Simply Wall St app performs a discounted cash flow valuation for every stock on the NYSE 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.

Foreign investment drops 81%, interest rates rise


Capital imports into Nigeria fell by 81.46% ($6.91 billion), from $8.49 billion in the first quarter of 2019 to $1.57 billion in the corresponding quarter of 2022, according to Bureau data National Statistics.

Based on the BNS reports on the import of Nigerian capital for the first quarters of 2019, 2020, 2021 and 2022, there has been a steady decline in capital inflows into the country.

Total capital inflows decreased by 31.01% from $8.49 billion in the first quarter of 2019 to $5.85 billion in the first quarter of 2020; it fell 67.45% to $1.91 billion in the first quarter of 2021; and fell a further 17.46% to $1.57 billion in the first quarter of 2022.

According to the country’s statistical agency, data on capital imports are obtained from the Central Bank of Nigeria and include imported physical capital, such as equipment, and import of financial capital.

He explained that it was divided into three major investment categories: foreign direct investment, portfolio investment and other investment.

In the first quarter of 2019, the largest amount of capital imported into the country came from portfolio investments. The banking sector led inflows this quarter and the UK was the source of most inflows. In the first quarter of 2020, portfolio investment continued to dominate inflows, while banking and the UK also maintained their respective leading positions.

In the first quarter of 2021 and the first quarter of 2022, portfolio investment drove most capital inflows into the country, while banks reaped the most and the UK provided the most.

During a recent monetary policy committee, CBN Governor Godwin Emefiele revealed that a poor domestic investment climate is impacting capital inflows into the country.

He said: “Net FDI was very weak as there was a substantial reversal in FDI flows from the country in the fourth quarter of 2021.

“This bad trend is apparently due to the unconducive domestic investment climate which seems to be deteriorating. In February 2022, these inflows amounted to $17.6 billion compared to $66.4 billion in February 2021, the highest since December 2020.

“Risk factors include heightened uncertainty surrounding the inflation outlook in advanced economies, uncertainty over the US Fed’s cutback plans, regulatory developments in China and its systemic risk related to the housing market, and the Uncertainty regarding the Russian-Ukrainian war and the resulting sanctions imposed on Russia These factors weighed on investor sentiment.

In its recent report “Nigeria Development Update (June 2022): The Continuing Urgency of Business Unusual”, the World Bank revealed that rising global interest rates will lead to more net portfolio outflows in 2022, resulting in lower capital overall. import.

He said, “With rising global interest rates, Nigeria is likely to experience net portfolio outflows in 2022. PEI inflows increased significantly in 2021, exceeding $6 billion (1.4% of GDP ).

“This follows a significant decline in 2020 following the COVID-19 pandemic, when net outflows reached $3.6 billion (0.8% of GDP). However, with interest rates continuing to rise in the United States and other advanced economies due to rising inflation, net portfolio inflows in Nigeria are expected to fall to less than 1% of GDP in 2022. The pre-election environment should also add to portfolio investor hesitancy, keeping net inflows low.

The World Bank added that FDI is essential for economic growth as it helps increase productivity, innovation and technology transfer. He said that FDI supports the diversification of the economy and helps domestic companies to export more.

Commenting, Olalekan Aworinde, Associate Professor of Economics at Pan-Atlantic University, said: “If there is an increase in interest rates in developed markets, FDI inflows into developing economies will fall.

“This is because investors will always want to go to environments where they will have high returns on investment. Once US interest rates rise, the inflow of FDI into African and developing countries will decline.

Cowry Assets Managing Director Johnson Chukwu added: “It has already come down mainly because when interest rates rise in advanced economies, investors who arbitrated (i.e. borrowed cheaply to invest in emerging markets at a higher price). yield) will not be able to make the arbitrary opportunity disappear.

“For example, if the interest rate is 2% in America, you can borrow at that rate and go into an emerging economy and invest at a higher percentage. Even taking into account the depreciation of the local currency, it there would always be returns.

“Once rates start to rise, the possibility of arbitrage is almost eliminated because equilibrium would be almost reached. Because the return they will get from investing at home will be almost the same as that of emerging economies, they will not have the motivation to invest abroad.

“A lot of portfolio investors have already left. We won’t see as many outflows anymore, but we would see a reduction in inflows since the arbitrage gain window has closed.

Celestial Farms dispute leaves worried parents confused after brutal farm school day crash


JACKSONVILLE, Florida. –As the I-TEAM continues to dig into a battle involving the fate of Celestial Farms Animal Rescue on Jacksonville’s Northside, the parents have reached out to News4JAX about the aftermath of the ongoing spat.

Celestial Farms, a local non-profit farm, animal sanctuary and education center, was scheduled to hold a “Farm School Day” on Wednesday, but the farm is currently closed to the public and its future remains uncertain due to a dispute over finances.

Parents who paid the $10 for their children to attend the event to learn about the 200 animals on the farm said they saw a message on Sunday confirming the farm school day was still in course, and received an appointment reminder the day before the event — only to be turned away from a locked door at the property on Wednesday.

A d

“We were supposed to go out for the farm school day and take our kids there to learn about the trees. And we arrived and the door was locked. We had already paid our fees. We sat there for over 30 minutes and no one came to the door, and a neighbor came out to tell us they were closed,” said a relative, who asked not to be identified.

Celestial Farms is home to approximately 200 rescued farm animals, horses, pigs and goats. Now the farm is at the center of an ongoing dispute, and many of the nonprofit’s board members aren’t even allowed on the property as new and old management clash. accuse each other of mismanagement of funds.

Related: I-TEAM: Celestial Farms future uncertain amid legal battles between staff | Celestial Farms is asking for help from the community to ‘secure the future of the farm’

A d

The News4JAX parent who News4JAX spoke to on Saturday said that was what she was most concerned about – where her money was going – not that she had lost the $10.

She said she was aware of the ongoing dispute, but learned that the event she had paid for would still occur.

“We had heard they were closed, but they did send us a confirmation though, along with an email saying they were open for Farm School Days,” the parent said.

Staff members said it was unclear why these notifications were still being sent.

The parents then received an email from Celestial Farms which read in part: ‘…we are unable to process refunds at this time due to the locking of all financial accounts by the former Executive Director’ (i.e. the current president, Veronica Pasciuto).

The farm has been in Pasciuto’s family for 20 years and she accuses current executive director Rory Malloy of failing to pay a $300,000 balloon mortgage payment she says she accepted.

A d

“We pretty much lost our money and now they’re telling us we can’t get a refund so it feels like we’ve been lied to,” the parent said.

Malloy said that according to the planner, the money will go to PayPal.

Pasciuto said parents can request a refund through their PayPal account that was used to purchase the tickets or they can contact her at [email protected]

Malloy said that to prevent future payments, they took down the website and removed the ability to book events.

Ongoing litigation

Malloy told News4JAX that he took on the role of executive director in September 2021. He said that during this time the farm was in very bad shape as COVID crushed it financially.

“For over a year, that’s been my life,” Malloy said. “Not only the animals, but the people there have been my family.”

Malloy said his position replaces Pasciuto and he has eight months to pay off the nearly $300,000 mortgage payment due June 29. In April, the farms created a GoFundMe account hoping to make the mortgage payment.

A d

“Our current goal is to fully purchase the property with the upcoming lump sum payment,” said the GoFundMe said. “This will ensure the future of the farm, a home for all these rescued animals and a space for the community to come together. Our deadline is June 29, 2022.”

With over 500 people donating, the GoFundMe has raised over $30,000.

Now Pasciuto is calling out to employees on social media. According to her Facebook post, she agreed to sell the property to Malloy for $600,000. Celestial Farms employees accuse Pasciuto of wanting to walk away with the money.

Pasciuto said on Facebook that Malloy had not paid her. In an email sent to Malloy’s lawyer in May, Pasciuto asked for proof of an outstanding loan by the end of the month.

Cellphone video showed a moving truck showing up at the farm last Saturday. Malloy said he noticed a laptop missing, the door locked, and account passwords changed.

A d

The next day, he and his colleagues received letters of dismissal. The letter accuses them of “aiding and abetting the theft of all office files, donations and the website.”

He also said they had locked the board and the president of all accounts.

The letter reads in part: “Due to this behavior and wasting 8 months in being able to obtain funding for the lump sum payment, we will have to close this location of our organization.”

Celestial Farms employees said they did not misuse the money.

“All we’ve done is what’s good for the animals,” Malloy said. “We didn’t try to take personal advantage of it.”

Malloy told News4JAX he no longer has access to donation accounts and the status of the GoFundMe money is unclear.

Both parties said they were considering taking legal action.

Malloy said in regards to animals – only one employee is currently allowed on the property to check on animals and said he doesn’t know how they are doing.

A d

Emails obtained by News4JAX show Pasciuto plans to move the animals to Georgia.

Copyright 2022 by WJXT News4JAX – All Rights Reserved.

Mortgage rates could continue to climb in July


(NerdWallet) – Mortgage rates are expected to rise in July, extending a seven-month streak.

The same factors could push them even higher in July and over the next few months. Rates will stop rising one day, but probably not this summer or fall.

Inflation is driving interest rates higher

Higher interest rates tend to accompany high inflation, and prices have risen at an annual rate above 8% for three consecutive months. The consumer price index stood at 8.6% in May (latest data available).

The price of silver goes up in times of high inflation, as are the prices of bacon and eggs. The higher price of money manifests itself in the form of higher interest rates. To make a profit, lenders raise rates on all types of loans, including mortgages.

As long as inflation remains high, mortgage rates are likely to rise. Expect that to be the case in July.

The role of the Fed in the rate hike

As lenders raise interest rates to stay profitable, Federal Reserve pushes interest rates higher, too. But the Fed is a government agency, so it didn’t raise rates in search of corporate profit. Instead, it tries to lower the rate of inflation.

When it costs more to borrow, consumers spend less money, which dampens inflationary pressures. This is why the Fed is raising interest rates.

The Fed has raised the short-term fed funds rate by 1.5 percentage points so far this year, and members of the rate-setting committee have indicated they plan to raise it by at least 1, 5 percentage points higher by the end of 2022. In fact, they may go another 1.75 or 2 percentage points.

Although the Fed’s rate hike campaign has yet to bring the inflation rate down, rate policy has worked as expected in other ways. Household spending slowed sharply in May, according to the Bureau of Economic Analysis. Spending rose 0.2% in May, compared to 0.6% in April.

And fewer people are buying homes. This is an indirect objective of the Fed, because when the housing market cools, house prices will not rise as quickly.

A sudden slowdown

Fewer people are buying homes because rising mortgage rates and prices are making housing less affordable. Sales slowed considerably when mortgage rates rose sharply.

As home sales slow, the number of homes on the market accumulates. In the week ending June 25, there were 25% more homes on the market than the same week a year earlier, according to data from Realtor.com. Accentuating this turning point in the market, the number of price cuts on listed houses almost doubled over the same period.

If the housing downturn turns into a real downturn, it’s possible that lenders will cut mortgage rates to attract fewer borrowers — to earn the same slice of a shrunken pie. If the forecast of a mortgage rate hike in July turns out to be wrong, that’s the most likely reason: a slump in home sales leading to price competition among mortgage lenders.

What happened in June

The average 30-year fixed-rate mortgage rate averaged 5.66% in June, compared to an average of 5.32% in May. The monthly average rate has increased every month since November.

At the beginning of June, I predicted that mortgage rates would be volatile and that the average 30-year fixed rate would be higher in the last week of June than the last week of May. Both predictions were correct. I correctly predicted five months in a row, and nine of the last 12.

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The ‘Mouvement BE’ summer art camp celebrates its first anniversary


A local arts summer camp for young people has doubled in size in just one year. The Movement BE camp runs programs in its College Area building at 68th and El Cajon Blvd.

SAN DIEGO — “When I say movement, you say be,” shouted Movement BE program founder Nate Howard during summer camp’s “Fun Friday” event.

The Movement BE association’s summer camp is in its second year.

Last summer, the group hosted the grand opening of the old payday loans building at 68th and El Cajon.

“A lot has changed, it was an abandoned building, and we turned it into a center for young people,” said Howard, who is himself a professional poet, having recorded songs with rap artists Ty Dolla $ign and Kendrick Lamar.

Young minds at summer camp focus on creative writing, art, and poetry. The group of children ages 4 to 11 recites positional affirmations, such as “I’m happy.”

It’s 8-year-old Kayionnie Evans Nash’s first year at Movement BE summer camp.

“I’ve never been to a summer camp that had everything before, it’s really cool here,” Evans Nash said.

Evans Nash wants to be a police officer or a firefighter when she grows up, and says this camp exposes her to creative ideas.

“Sometimes I really don’t want to be stuck at home all day. Here I see more adults and it’s more fun,” Evans Nash said.

In one year, the size of the summer camp has more than doubled to over 70 children each week.

Natalie Lopez was part of the camp last year as a former young foster and is now a staff member.

“This place is actually the best place I’ve ever been to, unlike others this place has equality. It has all types of races, ages,” said Lopez, who serves as an illustrator .

Lopez loves diversity and says camp is a safe place that feels like home and motivates her.

“They’ll leave with confidence, let’s be honest because here they give you a ton of confidence,” Lopez said.

The older ones from college and high school get together on Tuesdays and Thursdays for Movement BE’s “Hip Hop and Pizza” sessions. The camp is free for all San Diego Unified students and is funded by the San Diego Foundation.

Nate Howard, who is himself the new father of a 4-month-old baby girl named Ozara, which means “wealth”, says he hopes the camp will continue to grow.

“To empower them to realize that I’m beautiful, powerful, intelligent and to make them understand the power of their words and the way they tell their story is our whole message,” Howard said.

The Movement BE summer camp runs until August 26th. Then, the non-profit organization will organize an after-school program and family days on Saturdays.

RELATED: ‘Movement BE’ Youth Center Gets New Home

WATCH RELATED: ‘Movement BE’ youth center gets new home (July 2021)

HEALTHCARE TRUST OF AMERICA, INC. : Other Events, Financial Statements and Exhibits (Form 8-K)


Section 8.01 Other Events.

As previously disclosed and reported in the Current Report on Form 8-K filed on
February 28, 2022 with the U.S. Securities and Exchange Commission (the "SEC"),
Healthcare Realty Trust Incorporated, a Maryland corporation (the "Company" or
"HR"), entered into a definitive Agreement and Plan of Merger (the "Merger
Agreement"), dated as of February 28, 2022, with Healthcare Trust of America,
Inc., a Maryland corporation ("HTA"), Healthcare Trust of America Holdings, LP,
a Delaware limited partnership ("HTA OP"), and HR Acquisition 2, LLC, a Maryland
limited liability company ("Merger Sub"), to effect a strategic business
combination of the two companies to be led by the HR management team.

On June 10, 2022, the Company filed with the SEC a definitive proxy statement in
connection with the Merger (the "Definitive Proxy Statement"). As disclosed in
the Definitive Proxy Statement, as of June 10, 2022, three purported
stockholders of HR had filed actions in the United States District Court for the
Eastern District of New York (the "Preliminary HR Proxy Complaints"), captioned
Irvin v. Healthcare Realty Trust Incorporated, Case No. 1:22CV02806 (E.D.N.Y.),
Hopkins v. Healthcare Realty Trust, Inc., Case No. 1:22cv-02916 (E.D.N.Y.) and
Justice v. Healthcare Realty Trust Incorporated, Case No. 1:22-cv-03041
(E.D.N.Y.), alleging that a preliminary version of the proxy statement filed
with the SEC as part of HTA's Registration Statement on Form S-4 filed on May 2,
2022 (the "Preliminary Proxy Statement") was materially incomplete, false or
misleading in certain respects, thereby allegedly violating Sections 14(a) and
20(a) of the Exchange Act (15 U.S.C. § § 78n(a), 78t(a)), and SEC Rule 14a-9 (17
C.F.R. § 240.14a-9) or 17 C.F.R. § 244.100 promulgated thereunder.

In addition, as disclosed in the Definitive Proxy Statement, as of June 10,
2022, two purported stockholders of HTA had filed actions in the United States
District Court for the Southern District of New York (the "Preliminary HTA Proxy
Complaints," and together with the Preliminary HR Proxy Complaints, the
"Preliminary Proxy Complaints"), captioned Stein v. Healthcare Trust of America,
Inc., Case No. No. 1:22cv-03703 (S.D.N.Y.), and Tiso v. Healthcare Trust of
America, Inc., Case No. 1:22CV03804 (S.D.N.Y.), alleging that the Registration
Statement on Form S-4 filed by HTA with the SEC on May 2, 2022, and which
included the Preliminary Proxy Statement, was materially incomplete, false or
misleading in certain respects, thereby allegedly violating Sections 14(a) and
20(a) of the Exchange Act (15 U.S.C. § § 78n(a), 78t(a)), and SEC Rule 14a-9 (17
C.F.R. § 240.14a-9) or 17 C.F.R. § 244.100 promulgated thereunder.

Following the filing of the Definitive Proxy Statement and prior to the filing
of this Current Report on Form 8-K, two additional complaints have been filed as
individual actions in United States District Courts (the "Definitive Proxy
Complaints" and, collectively, with the Preliminary Proxy Complaints, the
"Complaints"). One Definitive Proxy Complaint has been filed in the United
States District Court for the Southern District of New York, captioned Carlisle
v. Healthcare Realty Trust Incorporated, Case No. 1:22-cv-05313 (S.D.N.Y.).
Another Definitive Proxy Complaint has been filed in the United States District
Court for the Eastern District of New York, captioned Johnson v. Healthcare
Trust of America, Inc., Case No. 1:22-cv-03692 (E.D.N.Y.).

The Definitive Proxy Complaints generally allege that the Definitive Proxy
Statement failed to disclose material information in connection with the Merger
and that, as a result, the Definitive Proxy Statement is materially misleading
in violation of Section 14(a) and Section 20(a) of the Exchange Act.

Each of the Complaints seeks, among other things, to enjoin HTA or the Company,
as applicable, from consummating the Merger or, in the alternative, rescission
of the Merger or damages. Additional lawsuits arising out of the Merger may also
be filed in the future.

HTA and the Company believe that the claims asserted in the Complaints are
without merit and that no supplemental disclosure is required under applicable
law. However, in order to avoid the risk of the above captioned actions delaying
or adversely affecting the Merger, to alleviate the costs, risks and
uncertainties inherent in litigation, to provide additional information to its
stockholders, and without admitting any liability or wrongdoing, HTA has
determined voluntarily to supplement the Definitive Proxy Statement as described
in this supplemental disclosure. Nothing in this Current Report on Form 8-K
shall be deemed an admission of the legal necessity or materiality under
applicable laws of any of the disclosures set forth herein.

These supplemental disclosures will not affect the merger consideration to be
paid to stockholders of HTA in connection with the Merger or the timing of the
special meeting of HTA's stockholders, which will be held in a virtual-only
format on July 15, 2022, at 10:00 a.m., Pacific Time.

Additional Disclosures

The additional disclosures herein supplement the disclosures contained in, and
should be read in conjunction with, the Definitive Proxy Statement, which should
be read in its entirety. To the extent that information in this supplemental
disclosure differs from, or updates information contained in, the Definitive
Proxy Statement, the information in this supplemental disclosure shall supersede
or supplement the information in the Definitive Proxy Statement. All page
references used herein refer to pages in the Definitive Proxy Statement before
any additions or deletions resulting from the supplemental disclosures.
Capitalized terms used herein, but not otherwise defined, shall have the
meanings ascribed to such terms in the Definitive Proxy Statement. Underlined
and bolded text shows text being added to a referenced disclosure in the
Definitive Proxy Statement.

The section of the definitive proxy statement entitled “The Merger-Opinion of the Company Financial Advisor-Public Trading Multiples” is amended and supplemented as follows:

The Definitive Proxy Statement is hereby revised to include the following table between the third and fourth paragraphs on page 61:

The P/2022E FFO and Implied Capitalization Rate for each selected company are as

                                        P/2022E FFO    Implied Capitalization Rate
Healthcare Trust of America, Inc.          16.2x                  5.5%
Healthcare Trust of America, Inc.(1)       15.5x                  5.6%
Healthcare Realty Trust Incorporated       16.6x                  5.6%
Physicians Realty Trust                    15.1x                  5.8%
MOB-focused Average(2)                     15.9x                  5.7%

(1) From August 3, 2021the trading day immediately preceding the date of the public announcement of the resignation of the Chief Executive Officer of the Company.

(2) Includes Healthcare Realty Trust Incorporated and the Physicians Building Trust.

The section of the Definitive Proxy Statement entitled "The Merger-Opinion of
the Company Financial Advisor- Selected Transaction Analysis" is amended and
supplemented as follows:

The Definitive Proxy Statement is hereby revised to include the following as the
last paragraph on Page 61 and the first, second, third and fourth paragraphs on
Page 62:

Using publicly available information, J.P. Morgan examined selected transactions
involving businesses which J.P. Morgan judged to be sufficiently analogous to
the Company's business (or aspects thereof).

None of the selected transactions reviewed was identical to the proposed Merger.
However, the selected transactions were chosen because certain aspects of the
transactions, for purposes of J.P. Morgan's analysis, may be considered similar
to the proposed Merger. This analysis necessarily involves complex
considerations and judgments concerning differences in financial and operational
characteristics of the companies involved and other factors that could affect
the transactions differently than they would affect the proposed Merger.

Using publicly available information, J.P. Morgan calculated, for each selected
transaction, the ratio of the target portfolio's net operating income for the
forward twelve month period to the implied real estate value of the target
portfolio (the "Implied Acquisition Capitalization Rate"). The transactions
selected by J.P. Morgan for its analysis, and the Implied Acquisition
Capitalization Rate for each transaction, were as follows:

                                                                                                              Implied Acquisition
Announcement Date              Target                                  Acquiror                               Capitalization Rate
October 2021                   Landmark (MOB Portfolio)                Physicians Realty Trust                          4.9%
November 2019                  Hammes Partners (MOB Portfolio)         Welltower                                        5.3%
January 2019                   CNL (MOB Portfolio)                     Welltower                                        5.6%
May 2017                       Duke Realty (MOB Portfolio)             Healthcare Trust of America                      5.3%


Based on the results of this analysis, J.P. Morgan selected an Implied
Acquisition Capitalization Rate reference range for the Company of 4.9% - 5.6%.
After applying such range to the Company's projected same store net operating
income, the analysis indicated the following range of implied per share equity
value (rounded to the nearest $0.25) for Company Common Stock:

Implied value of equity per share

                                                               Low                                      High
Company Implied Acquisition Capitalization Rate               $29.75                                   $35.50

The range of implied per share equity value for Company Common Stock was
compared to (i) the closing price of Company Common Stock of $28.30 as of August
3, 2021, the trading day immediately preceding the date of the public
announcement of the resignation of the Company's chief executive officer, and
(ii) the closing price of Company Common Stock of $29.69 as of February 24,
2022, the trading day immediately preceding the date of The Wall Street Journal
article regarding the potential Merger.

The section of the Definitive Proxy Statement entitled "The Merger-Opinion of HR
Financial Advisor-Financial Analyses-Discounted Cash Flow Analysis" appearing on
page 69 is amended and restated as follows:

Updated cash flow analyses. Citi performed separate HR and Company discounted cash flow analyzes as described below.

HR. Citi performed a discounted cash flow analysis of HR by calculating the
estimated present value (as of December 31, 2021) of the standalone unlevered
free cash flows that HR was forecasted to generate during the fiscal years
ending December 31, 2022 through December 31, 2026 based on the HR Forecasts.
For purposes of this analysis, stock-based compensation was treated as a cash
expense. Citi calculated implied terminal values for HR by applying exit cap
rates ranging from 4.75% to 5.50% (selected based on Citi's professional
judgment and experience) to an estimated NOI (as approved by HR management) for
HR's terminal year (derived by applying a 3.0% growth rate to 2026E NOI as
reflected in the HR Forecasts and accounting for certain assumptions
attributable to acquisitions, dispositions and developments). The present values
(as of December 31, 2021) of the cash flows and terminal values were then
calculated using a selected range of discount rates of 7.21% to 8.02% (derived
from a weighted average cost of capital calculation for HR by Citi based on its
professional judgment and experience). This analysis indicated an approximate
implied per share equity value reference range for HR of $27.86 to $37.63.

The Company. Citi performed a discounted cash flow analysis of the Company by
calculating the estimated present value (as of December 31, 2021) of the
standalone unlevered free cash flows that the Company was forecasted to generate
during the fiscal years ending December 31, 2022 through December 31, 2026 based
on the Company Forecasts. For purposes of this analysis, stock-based
compensation was treated as a cash expense. Citi calculated implied terminal
values for the Company by applying exit cap rates ranging from 4.75% to 5.50%
(selected based on Citi's professional judgment and experience) to an estimated
NOI (as approved by HR management) for the Company's terminal year (derived by
applying a 3.0% growth rate to 2026E NOI as reflected in the Company Forecasts
and accounting for certain assumptions attributable to acquisitions,
dispositions and developments). The present values (as of December 31, 2021) of
the cash flows and terminal values were then calculated using a selected range
of discount rates of 7.00% to 7.78% (derived from a weighted average cost of
capital calculation for the Company by Citi based on its professional judgment
and experience). This analysis indicated an approximate implied per share equity
value reference range for the Company of $28.51 to $36.49.

After adjusting implied values for the Company to account for the Special
Distribution, Citi utilized the implied per share equity value reference ranges
derived for HR and the Company to derive the following approximate implied
exchange ratio reference range, as compared to the exchange ratio provided in
the Merger pursuant to the Merger Agreement:

             Implied Exchange Ratio Reference Range       Exchange Ratio
             0.880x - 1.589x                                        1.0000x

Some additional information

Citi also observed certain additional information that was not considered part of its financial analyzes with respect to its opinion, but was noted for informational purposes, including the following:

————————————————– ——————————

•historical closing prices of HR Common Stock and Company Common Stock during
the 52-week period ended February 25, 2022, which (a) reflected a closing sale
price of HR Common Stock on February 24, 2022 (the last trading day prior to
public media speculation about a potential transaction) of $30.26 and indicated
. . .

Item 9.01   Financial Statements and Exhibits.

(d) Exhibits. 104 Cover page interactive data file (embedded in Inline XBRL document)

————————————————– ——————————

© Edgar Online, source Previews

Strong U.S. jobs report could mean more interest rate hikes to come, UNC professor says


CHAPEL HILL – The latest US jobs data showed the US economy added 372,000 jobs in June, beating analysts’ expectations.

The report, from the US Bureau of Labor Statistics, also showed that the unemployment rate in the country remained unchanged at 3.6%.

“We’ve had a hell of a report,” said Christian Lundblad, Richard Levin Professor Emeritus of Finance at the University of North Carolina at Chapel Hill, at a Friday morning press conference.

“Strong growth with an increase of 372,000 jobs for the last month just ended, well above market expectations,” Lundblad said.

And while, on the net, it’s a solid report, Lundblad said, “we’re here this morning yearning for more clarity.”

This is because the US economy is showing a very strong labor market report, suggesting a lot of strength, but at the same time there are other economic metrics such as inflationary pressures and consumer sentiment that we are feeling all, Lundblad said.

Friday’s jobs report could be telling as recession worries mount

Not a recession?

The review of the last month of employment data, which exceeded previous expectations, suggests that the US economy is not currently in recession, said Dr Anne York, professor of economics and program director at the Meredith College, in an interview with WRAL TechWire on Friday Mornings.

“If we just look at jobs data, nobody can say we’re in a recession,” York said. “We have always had very strong growth in the number of non-farm wage earners of 372,000 jobs added to the economy and near a historically low unemployment rate of 3.6%. ”

And there has been growth in every industry except government jobs, York noted.

In addition, York said, the latest job vacancies and labor turnover survey, released earlier this week, showed there were 11.3 million job vacancies. in May, ie 1.9 jobs for each job seeker, and historically low levels of layoffs. This data, York also said, “shows a strong labor market.”

But, there are other indicators that the U.S. economy could be in recession, including the decline in second-quarter GDP growth and future expectations, Lundblad said.

Big jobs surprise: US adds 372,000 in June despite recession fears

Back to pre-COVID levels?

Employment has returned to pre-COVID levels, Lundblad said, while noting that job markets have changed over the past two and a half years.

“Employment still remains slightly below where we were, some sectors have exceeded it, others have not,” Lundblad said. “It doesn’t look like a dire situation, despite the fact that we’re all grappling with the inflation we’re all feeling and economic declines in other dimensions.”

But what Lundblad said of interest in the latest month of jobs data is not just the overall level of unemployment, which remained unchanged at 3.6%, but the rate of people working but feeling underemployed. employed.

These are people who work part-time and might prefer to work full-time, Lundblad explained. “But again, over there, we’re basically hitting record highs.”

Coming recession? No, it may already be here – an NCSU economist explains why

And another measure of the labor market is the participation rate of prime-age workers, which has returned, for the most part, to pre-COVID levels, Lundblad said.

“There are, however, many Americans who have retired and are not coming back,” Lundblad said.

But aggregate labor force participation data remains an indicator that can be important to track, York said. That’s because overall, York said, “we have even fewer people working or looking for work than before the pandemic.”

Even then, employers of all sizes, from small businesses to Fortune 100 companies, continue to post job openings. Yet the latest job posting data is not uniform across the economy as there may be a shift in the balance of power between tech workers and tech companies as some indicated a slowdown in hiring, including Meta.

“While it’s good for workers to have a strong job market, it can be an inflationary force in the economy,” York said.

Through a turbulent labor market, job opportunities abound in the Triangle

Inflation and response

If inflationary pressures continue, the Federal Reserve will continue to act aggressively to counter them, Lundblad said, noting that strong labor market data from the economy could allow for a more aggressive response to curb inflation.

“As a testament to the strength of the labor market,” Lundblad said, “hourly wages are above historical average trends.”

But real wages, measured by adjusting wages for inflation, don’t move as quickly and in some cases, and in some industries, may actually decline, Lundblad said.

“A really complicated environment,” Lundblad said. “If this puts pressure on inflation, the Fed will have to act.”

And another three-quarters of a percentage point hike in the federal funds rate isn’t out of the question, Lundblad said. “The Fed won’t necessarily back down,” he added.

Triangle’s vibrant economy – nearly 50,000 open positions – a buffer in the event of a recession

Purdue Pharma’s proposed settlement in Canada for opioid harm is paltry and won’t prevent future crises


On June 29, the federal and provincial governments of Canada concluded a proposal $150 million settlement with Purdue Pharma Canada, makers of OxyContin, an opioid painkiller. The settlement seeks to recover health care costs related to the adverse effects of the sale and marketing of OxyContin.

While this is the largest settlement of a government health care claim in Canadian history, it is also a paltry amount compared to the approximate amount US$6 billion that Purdue will pay in the United States. A Canadian colony equivalent in population would have been closer to C$900 million.

Until this $150 million fine, there is no evidence that a pharmaceutical company has ever been fined for promoting one of its prescription drugs in Canada. Despite documented illegal drug promotion in the United States, Health Canada has not investigated whether such practices are also present in Canada. An example was the distribution of 15,000 copies of a video in the United States claiming, without any justification, that opioids were addictive in less than 1 in 100 patients.

When asked why, agency officials responded that Health Canada “has not been made aware of any similar issues specific to Canada and has not received any complaints”.

Regulatory gaps

However, the focus on financial regulations at the expense of regulatory change is equally concerning.

Since the emergence of the opioid crisis, researchers and journalists have identified a series of strategies and policy loopholes that companies have taken advantage of to promote their products. These included:

Despite this knowledge, almost all of these strategies remain completely legal.

Funding Transparency

Protesters outside a Boston, Massachusetts courthouse in 2019 during a lawsuit against Purdue Pharma for its role in the nation’s drug epidemic. The company’s US settlements for the lawsuits against OxyContin total approximately US$6 billion.
(AP Photo/Charles Krupa)

Transparency surrounding pharmaceutical funding for health care professionals and not-for-profit organizations remains virtually non-existent in Canada. The United States adopted the Sunshine Law on Physician Payments in 2010 demanding transparency in financial relationships between physicians and the healthcare industry. However, such a system of transparency does not exist in Canada.

In fact, the federal government has explicitly rejected the establishment of a similar mechanism. The only attempt to do so in Ontario was completed in 2018 when Doug Ford’s Progressive Conservatives came to power. Such a system would have greatly increased transparency regarding the types of physician payments that directly influenced opioid prescribing patterns.

Financing medical training

Pharmaceutical companies are still permit to fund groups organizing accredited medical education events for Canadian physicians. It is despite significant evidence that industry funding leads to bias in prescribing and little improvement in prescribing.

This type of funded “medical training” was one of the main ways Purdue Pharma and other companies were able to convince healthcare professionals of the benefits of their products, while minimizing the overall risk of product addiction.

There is little evidence that removing industry funding would create an information gap, and it is likely to significantly reduce the overall influence of industry on the profession. Yet the federal government has often done little to use these practices to ensure proper prescribing and use of drugs, which puts it at odds with governments in many other countries. rich industrialized countries.

Product Monographs

White tablets scattered on a black background
Since the emergence of the opioid crisis, researchers and journalists have identified a series of strategies and policy loopholes that companies have taken advantage of to promote their products.
(AP Photo/Keith Srakocic)

Canadian regulators have revealed little about how they plan to reduce industry influence over product monographs, which provide doctors with detailed information about specific drugs.

Health Canada says that a product monograph should be a “factual and scientific document about a drug product…devoid of promotional material”.

Despite this, the original Canadian product monograph for Oxycontin in 1996 recommended increased use of the product for “Revolutionary Paina term that previously appeared in Oxycontin advertisements. In addition, the product monograph provided that no maximum recommended dosemeaning there was no upper dose threshold for OxyContin when it was marketed.

Despite this, there has been no formal investigation into how this scientific paper could be so significantly affected by industry interests, or how to prevent a similar influence from happening again.

Gifts to Healthcare Professionals

The pharmaceutical industry continues to offer non-research related transfers to healthcare professionals. These transfers include food and beverage donations, all-expenses-paid travel for conferences and marketing-related consultations. Still, this form of financing has been used repeatedly by opioid manufacturers to influence medical professionals, with companies even taking them to exotic locations to listen to “key opinion leaders” talk about the benefits of Oxycontin and other opioids.

Despite virtually no justification for the “educational” value of these events, such financial transfers continue today. In 2020, 10 of the 47 pharmaceutical companies that are members of Innovative Medicines Canada, the organization that represents the pharmaceutical industry, spent more than $28 million on fees and travel for health care providers.

The settlement with Purdue Pharma Canada is frustrating over the billions in health care costs of the opioid crisis. But that shouldn’t distract from the bigger problem either: despite many lessons learned from the crisis, very little regulatory change has been made in Canada since.

Unless something drastically changes the way the pharmaceutical industry is regulated, there’s little reason to assume a similar crisis won’t happen again.

Global Asset Allocation Team Market Update – July 2022 – Fiera Capital Corporation


General | Jul 7, 2022

The first half of 2022 ended on a disastrous note, as growing fears of recession stemming from central bankers’ efforts to tackle high inflation for decades spilled over into financial markets. Equity and fixed income markets have experienced notable weakness this year, leaving little room to hide as macro risks escalated.

Executive Chairman of the Board

Photo Market Update by Candice Bangsund

Vice President and Portfolio Manager, Global Asset Allocation

Global equity markets fell sharply in June as investors’ attention shifted away from persistently high inflation and towards deteriorating prospects for the global economy and corporate earnings. The MSCI All Country World fell 9%, with steep losses recorded across all regional benchmarks. For 2022, the global benchmark is down 21% as asset prices fell victim to rapid monetary policy tightening.

Fixed income markets also generated negative results in June as global central banks signaled the need for more aggressive tightening to rein in creeping cost pressures. Yield curves flattened, with short-term interest rates rising more than their longer-term counterparts on speculation that policymakers may not be able to avoid a hard landing. The Federal Reserve is moving ‘quickly’ to tackle the highest inflation in 40 years and raised interest rates by 75 basis points last month, while President Powell openly endorsed a rate hike well in restrictive terrain – a strategy that has often resulted in an economic downturn. The Bank of Canada also continues to continue its accelerated path to higher rates to keep inflation from catching up with expectations. As the economy moves towards excess demand and inflation expectations strengthen, the Bank of Canada has promised to take “strong” action, including the possibility of an outsized 75 basis point move in July. .

The US dollar extended its relentless advance alongside the sharp rise in Treasury yields and safe-haven flows that supported the greenback. In contrast, the yen has seen a steady decline, with the Bank of Japan the only major central bank to push back on the global tightening campaign – while the Canadian dollar has stumbled alongside the monthly decline in oil prices and a US dollar usually dynamic. .

In commodity markets, oil posted its first monthly decline since November as growing fears of an economic slowdown overshadowed the rapid tightening in energy markets. Gold fell for a third consecutive month as investors weighed the prospect of sharp rate hikes that will eventually dampen the appeal of the non-interest-bearing metal, while copper fell to a 17-month low due to Growing fears of a global economic slowdown have dampened the outlook for demand for industrial metals.


Financially stressed? Join the club Here are 3 tips for…


(MENAFN – ValueWalk)

A perfect storm of world events naturally triggers financial stress for the vast majority of Americans. In a recent survey by the American Psychological Association, more than 80% of American adults reported feeling increased financial stress due to:

  • Higher inflation (87%)
  • Persistent supply chain issues caused by the pandemic (81%)
  • Global uncertainty due to the war in Ukraine (81%)

Moreover, the difficulties associated with the pandemic – including poor health, loss of loved ones, difficult work and family situations, isolation and inconvenience – have affected the entire nation and the world. In the United States, 63% of respondents said COVID-19 had changed their lives forever.

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Contents To display

  • 1. Tips to reduce your financial stress

  • 2. Structure – and stick to – a budget

  • 3. Be strategic and create a debt repayment plan

  • 4. Prioritize saving money

Tips to reduce your financial stress

The financial toll of stressed employees has also had an impact on businesses. A survey conducted by PwC found that 34% of employees across multiple industries said money worries in the past year had had a major to severe impact on their mental health; 18% said it hurt their productivity at work; 38% of employees under financial stress said they were looking for a new job; and 37% had used payday loans in the past year.

The obvious question in the wake of all this increased financial stress is, how can you reduce it?

Structure – and stick to – a budget

It’s an alarming number: By early 2022, nearly two-thirds of the US population was living paycheck to paycheck. Soaring inflation is certainly a factor, but the end result for many individuals and families struggling financially is that they 1) don’t have a budget, or 2) if they do, they don’t. don’t stick to it. Financial stress is often caused by a mismatch between the money you spend and the money coming in.

Build a budget that matches your monthly income and expenses — the latter includes all monthly bills and debt — then use an expense tracker to learn more about your spending habits. All of this information will help you identify ways to reduce your expenses, starting with eliminating more non-essential expenses.

Be strategic and create a debt repayment plan

Growing debts or barely paying them off each month strangles us financially, reducing disposable income and the amount of money you can save. So come up with a workable plan to get rid of your debt.

Rank your debts in the order in which you want to pay them off. Paying off the smaller credit card or loan first gives you the satisfaction of crossing one off your list and building momentum. Or you could pay off debts with higher interest rates first, such as credit cards. Getting high-interest debt paid off as soon as possible saves you the most money in the long run.

Focus on paying off one debt at a time, allocating the extra money saved from restructuring your budget to the first debt you try to eliminate. When you focus on paying off one debt at a time, you are able to pay off the debt faster because more of the money will go directly to the principal balance and less will be spent paying interest.

Focus on saving money

Things we can’t control tend to worry us. Knowing what you can control and taking appropriate action can reduce your stress. A good example of taking advantage of what you can control is sticking to a consistent savings plan. Saving will give you a sense of accomplishment and comfort. As you accumulate savings, you’ll know the money is set aside in case you need it.

It is important to understand this: paying off your debt, and eventually eliminating it, will have a direct impact on the amount and quality of your savings in the short and long term. Everyone needs an emergency fund. Ideally, if you have the money and the discipline, you will develop a two-pronged savings approach that puts money into an emergency savings account every two weeks and into a long-term savings account. term, such as an IRA, 401(k) or high-yield savings account.

Once you’ve built up your emergency fund significantly, you can consider putting some of it in a certificate of deposit, which offers a guaranteed rate of return that’s typically higher than traditional savings accounts.

Financial stress can seem overwhelming and unmanageable if you have no measures in place. Keep it simple, be honest about what’s causing the stress, and stay positive knowing that making small changes here and there can make big differences over time.

About John L. Savarino

John L. Savarino is a Representative Investment Advisor for Rooted Wealth Advisors. Savarino has passed his Series 65 Uniform Investment Advisor Law Exam and hosts a YouTube financial show, Talking Money.

Updated on July 6, 2022 at 2:33 p.m.


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Nouveau Monde publishes a feasibility study for the Matawanie mine and the Bécancour battery plant


New World Graphite (TSXV: NOU; NYSE: NMG) has released an integrated feasibility study for its Matawinie mining project and The Bécancour battery materials plant, both in Quebec, which reported capital expenditures higher than expected by BMO analysts.

The projects are located within a radius of 150 km from Montreal.

According to the latest study, the Matawinie mining project should produce an average of 103,328 tons of graphite concentrate annually over 25 years, with initial investments of $481 million. At a discount rate of 8%, Matawinie would generate an after-tax net present value (NPV) of $571 million and an after-tax internal rate of return (IRR) of 22.2%.

The Bécancour Battery Materials Plant is expected to produce 42,616 tonnes of anode material, 3,007 tonnes of purified jumbo flakes and 18,384 tonnes of fine flake by-products on average each year. The plant’s initial capital is expected to be approximately $923 million. At a discount rate of 8%, the project would generate an after-tax NPV of $1.01 billion and an after-tax IRR of 20.4%

“Market trends have accelerated over the past few months and as inflation and logistical turbulence present a more challenging environment, we have demonstrated our graphite expertise, advanced manufacturing capability and complex project management skills. to execute our vision,” said Arne H Frandsen, company president. in a press release.


Mortgage interest rates today for July 6, 2022: rates have fallen


A few major mortgage rates fell today. There was a significant drop in 30-year fixed mortgage rates and 15-year fixed rates. Average 5/1 adjustable rate mortgage rates also fell.

Mortgage rates have risen fairly steadily since the start of this year and are expected to continue to climb throughout 2022. Of course, interest rates are dynamic and unpredictable – at least on a daily or weekly basis – as they respond to a wide variety of economic factors. Currently, two of these factors – inflation and the federal funds rate – are particularly influential. The Federal Reserve has already raised interest rates three times this year and has signaled its intention to raise them again to contain inflation. This will almost certainly mean higher mortgage rates and, for potential borrowers, higher monthly mortgage payments. As such, homebuyers may have a better chance of securing a lower mortgage interest rate sooner rather than later. It’s always a good idea to interview several lenders to compare rates and fees to find the best mortgage for your particular situation.

30 Year Fixed Rate Mortgages

The average 30-year fixed mortgage rate is 5.57%, down 34 basis points from a week ago. (One basis point equals 0.01%.) The most commonly used loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will generally have a higher interest rate than a 15-year fixed rate mortgage, but also a lower monthly payment. Although you’ll pay more interest over time – you’re paying off your loan over a longer period – if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed rate mortgages

The average rate for a 15-year fixed mortgage is 4.84%, down 30 basis points from the same period last week. You will definitely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will generally be the best deal, if you can afford the monthly payments. You will generally get a lower interest rate and pay less interest in total because you are paying off your mortgage much faster.

5/1 Adjustable Rate Mortgages

A 5/1 ARM has an average rate of 4.26%, down 2 basis points from the same time last week. For the first five years, you’ll typically get a lower interest rate with a 5/1 variable rate mortgage compared to a 30-year fixed mortgage. However, you might end up paying more after this time, depending on the terms of your loan and how the rate moves with the market rate. If you plan to sell or refinance your home before the rate changes, an adjustable rate mortgage might be right for you. Otherwise, market fluctuations could significantly increase your interest rate.

Mortgage Rate Trends

Although mortgage rates were historically low at the start of 2022, they have been rising fairly steadily since then. The reason: The Federal Reserve raised interest rates 0.75 percentage points this month alone — the biggest rate hike since 1994 — in a bid to rein in record inflation. Generally, when inflation is low, mortgage rates tend to be lower. When inflation is high, rates tend to be higher.

Although the Fed does not directly set mortgage rates, central bank policy actions influence how much you pay to fund your home loan. And the Fed has signaled that it will continue to raise rates this year. So if you’re looking to buy a home in 2022, expect mortgage rates to rise as the year progresses.

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track these daily rates. This table summarizes the average rates offered by lenders across the country:

Average Mortgage Interest Rates

Product Assess Last week To change
30 years fixed 5.57% 5.91% -0.34
15 years fixed 4.84% 5.14% -0.30
30-year jumbo mortgage rate 5.50% 5.89% -0.39
30-year mortgage refinance rate 5.52% 5.89% -0.37

Rates as of July 6, 2022.

How to Find Custom Mortgage Rates

You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. In order to find the best home loan, you will need to consider your current goals and finances. Things that affect the mortgage interest rate you might get include: your credit score, your down payment, your loan-to-value ratio, and your debt-to-income ratio. Typically, you want a good credit score, higher down payment, lower DTI, and lower LTV to get a lower interest rate. Along with the mortgage interest rate, other factors including closing costs, fees, discount points, and taxes may also factor into the cost of your home. Be sure to speak with a variety of lenders — like local and national banks, credit unions, and online lenders — and a comparison store to find the best loan for you.

How does the loan term affect my mortgage?

When choosing a mortgage, remember to consider the length of the loan or the payment schedule. The most commonly offered mortgage terms are 15 and 30 years, although you can also find 10, 20 and 40 year mortgages. Mortgages are further divided into fixed rate and variable rate mortgages. The interest rates for a fixed rate mortgage are the same throughout the life of the loan. For adjustable rate mortgages, interest rates are fixed for a number of years (usually five, seven or 10 years), then the rate adjusts annually based on the market interest rate.

When choosing between a fixed rate and variable rate mortgage, you need to think about how long you plan to stay in your home. For people planning to stay in a new home for the long term, fixed rate mortgages may be the best option. Fixed rate mortgages offer more stability over time compared to adjustable rate mortgages, but adjustable rate mortgages may offer lower interest rates initially. However, you might get a better deal with an adjustable rate mortgage if you only plan to keep your home for a few years. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. It’s important to do your research and know your own priorities when choosing a mortgage.

Fintech PayMongo Weans Philippines Buys Money Simplifying Digital Payments


Armed with new funding, payments fintech PayMongo is enabling small businesses in the Philippines to join the digital economy.

A A three-year-old Filipino fintech company is helping to digitize the country’s predominantly cash-based economy, one click at a time. Founded in 2019, Manila-based PayMongo has seen its user base and transaction volumes soar by tapping into the country’s vast pool of small merchants – from family-owned shops to independent fashion boutiques – who relied on in-person cash transactions before the pandemic.

Backed by investors including PayPal co-founder Peter Thiel and payments giant Stripe, PayMongo allows sellers to send payment links to customers, who can pay using a range of options, including credit cards and electronic wallets. It’s a “Stripe for the Philippines,” says CEO and co-founder Francis Plaza. Winner of the inaugural Forbes Asia 100 to Watch last year, PayMongo targets small and medium-sized businesses which, along with micro businesses, make up 99.5% of businesses in the Philippines, but remain underserved by traditional payment providers. “Our biggest competitor is traditional payments, like cash,” Plaza said in a video interview in March from Madrid, where he celebrated his 28th birthday.

In February, PayMongo raised $31 million in a Series B round, bringing its total funding to around $46 million. Founded in March 2019, it joined Y Combinator’s summer cohort later that year, becoming the first Filipino fintech to be selected by the US-based startup accelerator. After graduating, he earned $2.7 million in seed funding from San Francisco-based Global Founders Capital, Tinder co-founder Justin Mateen and Stripe. PayMongo then raised $12 million in a A-series tower led by Stripe in 2020, after which the company said it tripled its merchant base to over 10,000 businesses and quadrupled monthly transaction volumes. Plaza declined to disclose those numbers.

“Our biggest competitor is traditional payments, like cash.”

Plaza, which is eyeing expansion beyond the Philippine archipelago, credits each funding round with “changing the company’s narrative” by helping it roll out products for e-commerce platforms, such as Shopify and WooCommerce, and mobile apps.

“From the beginning, the biggest misconception that we had to actively educate outside investors on was the reality of the Philippine market,” says Plaza, 2020 Forbes 30 Under 30 Asia winner. they saw the Philippines as a small market,” he recalls, adding that “now they are the ones saying we should double down in the Philippines.” The country was the fastest growing digital market in Southeast Asia. Is in 2021, according to a report by Google, Temasek and Bain & Co. It projects the Philippines’ internet economy to more than double to $40 billion by 2025, from $17 billion in 2021.

Some of this growth will likely come from increased financial inclusion in a country where around ha