Debt Finance – CTXETG http://ctxetg.com/ Tue, 22 Nov 2022 02:27:40 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://ctxetg.com/wp-content/uploads/2021/06/icon-150x150.png Debt Finance – CTXETG http://ctxetg.com/ 32 32 How two teachers wiped out over $53,000 https://ctxetg.com/how-two-teachers-wiped-out-over-53000/ Tue, 22 Nov 2022 02:10:51 +0000 https://ctxetg.com/how-two-teachers-wiped-out-over-53000/ In this series, NerdWallet sheds light on people’s debt repayment journeys. This month, Jae Bratton shares how she and her husband focused on erasing debt, fueled by the hope of starting a family. Jae Bratton Paid: Over $53,000 in 3 years My story of letting go of over $53,046 in debt over two teachers’ salaries […]]]>

In this series, NerdWallet sheds light on people’s debt repayment journeys. This month, Jae Bratton shares how she and her husband focused on erasing debt, fueled by the hope of starting a family.

Jae Bratton

Paid: Over $53,000 in 3 years

My story of letting go of over $53,046 in debt over two teachers’ salaries is one of pain, perseverance and cooperation. But it’s also a lot of love. My husband and I started paying off our debts shortly after we got married in 2016, and we made the final payment three years later, just before our son was born.

I was adamant that we wouldn’t start a family until we got rid of the debt. Rumor has it that kids are expensive, so I wanted to free up space in our budget for the inevitable medical bills, childcare, and college funds.

This rumor turned out to be a chilling fact.

Our four main strategies provide a roadmap for others working towards financial independence.

1. Create a battle plan

Debt is an adversary, a monster to be defeated before you can move on to the next level. This requires a well thought out plan of attack.

First, we gauged our opponent by identifying our debts and organizing them in a Google sheet. We had seven debts, including student loans, two car loans, a home improvement loan, and the remaining balance on my engagement ring. As each debt was conquered, I removed it from the spreadsheet, and oh, the satisfaction.

We chose the debt snowball payment method, where you focus all the extra payment money on the smaller debt while continuing to pay minimums on the others. I needed a few quick wins to stay motivated before tackling bigger and more daunting sales. We cleared our smallest debt in the first three months, $926.

Do not panic if you prefer the avalanche method, which attacks the most important debt first. Simply choosing one that suits your lifestyle and personality is more important than the approach. Snowball and avalanche are just two different paths to the same result.

2. Coherent budget

After listing the debts and deciding on a strategy, we drew up a budget every month. First, we calculated our combined income. At the start of our debt-free journey in August 2016, my husband and I brought home $4,694 a month. By subtracting mandatory expenses such as mortgage and utilities, groceries, and minimum debt payment, we knew how much money we had for additional debt payment.

Some months we paid the minimum on the debts and that was it. Then, when the money was more plentiful, we made additional payments, some months up to $3,500. In both cases, the budget determined how we spent every dollar and kept us disciplined. Did we stick to the budget each month? Absolutely not. But every month we tried. And when this month ended, we started again, with the aim of doing better than the previous one.

There are many budgeting strategies, tools, and apps that can help you write and stick to a budget. Pen and paper work well too. (My budgets were on sticky notes and dry erase boards.) Whether you prefer the 50/30/20 budget or like to fill cash envelopes, know that any budget is better than none. Without it, you risk forgetting bills, running out of money before payday, and delaying your debt repayment date.

3. Earn or find extra money to pay off your debts faster

Send extra money to debt

Most of the big cash inflows left our bank account before we were tempted to spend it: tax refunds, work bonuses, and earnings from second jobs. For example, my husband received an allowance to coach basketball, and I taught at the summer school. We both sacrificed time to earn more money, but somehow I got it back with interest: now I can be with my son after my working day is over rather than changing of work. This time spent with him is truly priceless.

Increase your income

I spent two years getting a professional certification which increased my salary by 12%, increasing my take home pay by $250. At that time, my car loan was $223 per month, so it was like an extra payment for the car.

Many jobs reward employees for adding certifications or credentials. If not, consider negotiating a raise or looking for a better paying job.

Adjust withholding tax, if necessary

If you receive a refund after filing your taxes, that means too much of your paycheck is going to the IRS, without interest. Of course, that money is eventually returned in one lump sum, but you receive smaller paychecks throughout the year.

After I got married, I filed a new Form W-4 to change my filing status from “single” to “married filing jointly.” At the same time, I adjusted my withholding after using the IRS withholding estimate tool. This increased my take home pay by $269.

4. Reduce expenses

“Just skip the daily trip to Starbucks.” This advice has become a cliché. But paying off thousands of debts requires bolder steps — and more painful sacrifices — than letting the slats go. So here’s what I did instead.

Charitable donations suspended

Some people will disagree with my decision to eliminate donations during debt repayment. When to give, how much and to whom are very personal choices. For my husband and I, briefly suspending charitable donations worked. You decide if it’s right for you.

lean lived

Reducing or eliminating expenses is inevitable if you are trying to pay off your debts. The good news: there are countless ways to do this. Check your bank and credit card statements and look for discount opportunities. Here are some ways we’ve lowered our cost of living:

  • My husband found a job closer to home, reducing his 31 mile commute to 6 miles and saving on gas.

  • We waited a year to take our honeymoon, which was mostly paid for with cash wedding gifts.

  • We saved as much as possible: I started shopping at a cheaper supermarket. My husband, an avid bowler, suspended play in one league to save about $20 a week in fees. He even switched to a cheaper brand of razor.

5. Save strategically

I have consistently built up my family’s emergency fund, topping the $1,000 that some say is enough for those unloading their debts.

This decision indeed delayed our debt-free date, but on the other hand, a healthy emergency fund gave me an invaluable financial cushion and peace of mind. I knew I could cover expenses in a financial emergency without going into debt again.

Imagine your life after debt

Fuel yourself for the debt repayment journey by imagining life after.

I felt light and a deep sense of accomplishment when I submitted the last debt payment in 2019. For three years I was so focused on our journey. I alternated between regretting financial mistakes and moping about things I couldn’t afford. After paying off $53,000 in debt, I looked outward and started giving back to causes and giving to others. Even better, I was free to start a family.

Photo courtesy of Jae Bratton.

More from NerdWallet

Jae Bratton writes for NerdWallet. Email: jbratton@nerdwallet.com.

The article How I Ditched Debt: How Two Teachers Wiped Out More Than $53,000 originally appeared on NerdWallet.

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Two Communities Find a Cure for Medical Debt: Pandemic Recovery Funds https://ctxetg.com/two-communities-find-a-cure-for-medical-debt-pandemic-recovery-funds/ Sat, 19 Nov 2022 16:13:21 +0000 https://ctxetg.com/two-communities-find-a-cure-for-medical-debt-pandemic-recovery-funds/ Local governments in Ohio and Illinois are using American Rescue Plan Act money to provide relief to residents struggling with medical debt by partnering with an organization that buys out debt and wipes the slate clean for the debtors. It’s a strategy that proponents say could be replicated across the country to help solve a […]]]>

Local governments in Ohio and Illinois are using American Rescue Plan Act money to provide relief to residents struggling with medical debt by partnering with an organization that buys out debt and wipes the slate clean for the debtors.

It’s a strategy that proponents say could be replicated across the country to help solve a multi-billion dollar problem.

On Nov. 9, the Toledo, Ohio City Council passed a measure to erase medical debt for eligible residents using $800,000 allocated to the city through the American Rescue Plan Act (ARPA) , a federal law signed by President Joe Biden in March 2021 that aimed to help the country recover from the economic pain caused by the COVID-19 pandemic.

Lucas County commissioners, of which Toledo is a part, also announcement they would also contribute $800,000 in ARPA funds. The combined $1.6 million will go to RIP Medical Debt, a New York-based nonprofit, which buys medical debt from hospitals in batches at a price far below the actual debt, allowing the money to ‘go further. This means that $190-240 million of community member debt will be eliminated, according Michele Grim, member of the Toledo city council who defended the proposal. RIP Medical Debt only has an estimate at this time as the organization will not know the exact amount until they reach agreements with local hospitals.

Residents must earn a household income below four times the federal poverty level, which which goes from $13,590 for a one-person household to $46,630 for an eight-person household for the majority of states, and have medical debt greater than 5% of their income to qualify.

Grim, a Democrat and newly elected member of the Ohio Statehouse, said she would consider bringing a similar proposal to the Legislative Assembly.

I would like to explore that in the House. Medical debt is a crisis for everyone and would help the economic recovery of many Ohioans,” she said in an email to States Newsroom.

“I’ve had several local governments seek to do the same thing,” Grim said. “Hopefully they can take the Toledo model and roll it out nationally. Washington DC doesn’t have a plan to eliminate medical debt, but Toledo, Ohio does.

Many Americans have medical debt, and it can take a toll on their finances. According to a Kaiser Family Foundation Report published in June, 4 in 10 adults in the United States have some kind of medical debt, and 1 in 5 of those with health care debt do not think they will ever be able to repay their debt.

The Consumer Financial Protection Bureau (CFPB) estimates the total amount of medical debt in the United States at $81 billion based on data from credit reporting agencies, but acknowledges that its total is likely an underestimate because “all medical debt in collection are not provided to consumer review companies”.

A Kaiser Family Foundation analysis of Census Bureau survey data on income and program participation put the total much higher — at $195 billion, including people who had more than $250 in debt. medical.

Medical debt is also more common in certain areas of the country, according to the CFPB, particularly in the South East and South West. For example, about 22% of Louisiana’s population has medical debt, compared to 2.25% in Minnesota, according to the CFPB report. A 2021 study which analyzed consumer credit reports from 2009 to 2020 found that medical debt was most prevalent in low-income communities in the South.

In some cases, medical bills have driven people out of business. A study published by the American Journal of Public Health in 2019 showed that 66.5% bankruptcies were either because a person’s illness affected his ability to work or because his medical care was exorbitant.

Grim said she was inspired to do something about medical debt after seeing what Cook County, Illinois had done to relieve its residents of medical debt. In July, Cook County Council unanimously approved expenses $12 million funds from ARPA to effectively get rid of $1 billion in medical debt. Grim said she modeled Toledo’s plan on Cook County’s.

Allison Sesso, president of RIP Medical Debt, said more local governments have reached out to the group to use ARPA funds to erase medical debt after learning about Toledo and Cook County’s efforts.

“I think it was sort of a no-brainer for anyone focused on health equity and recovery, post-COVID, on their communities to get rid of this burden of medical debt from people as quickly as possible. “, she said.

RIP Medical Debt was founded in 2014 by Craig Antico and Jerry Ashton, who are former debt collection managers. Sesso said the pandemic has brought renewed attention to medical debt and issues with the broader US healthcare system.

“Part of the equation when you think as a policy maker in terms of solving these problems for individuals is that we see an increase in the cost of living, all this inflation and all these other things that make more and more harder for families to make ends meet,” she said. “…It’s an American experience for you to go to a health care provider and think about how you’re going to fund those And even if you can put yourself on a payment plan and it doesn’t turn into debt, it still means you’re doing it at great cost.

Brady Chalmers, administrative analyst in the office of Cook County Council Chairman Toni Preckwinkle, said Preckwinkle took this approach because she wanted to focus on measures to reduce poverty and promote public health. RIP Medical Debt was the organization that seemed best positioned to implement this policy at the scale that Cook County needed. Chalmers added that one of the benefits of the action is knowing how high the money can go when it costs pennies on the dollar to buy the debt.

“A $12 million purchase of $1 billion in debt is a pretty good hit for taxpayers’ money,” he said.

Chalmers said it might make it a bit easier for people to advance economically.

“Hopefully they will get an improvement in their credit ratings and that will give them access to financial tools that they otherwise wouldn’t have,” he said. “We also want them to feel comfortable with the hospital system. We don’t want to live in a world where people have to choose between renting and going to the doctor when they need both because they have old debts. This allows us to free these people from this burden.

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Argentina’s Cenbank debt poses ‘systemic risk’ to financial sector, Moody’s says https://ctxetg.com/argentinas-cenbank-debt-poses-systemic-risk-to-financial-sector-moodys-says/ Wed, 16 Nov 2022 18:12:00 +0000 https://ctxetg.com/argentinas-cenbank-debt-poses-systemic-risk-to-financial-sector-moodys-says/ Nov 16 (Reuters) – Argentina’s rising central bank debt poses a risk to the country’s monetary stability, ratings agency Moody’s said on Wednesday, adding it could fuel further inflation and worsen any exchange rate shock if savers flee the local peso. In this scenario, Moody’s warned, authorities could even freeze peso deposits, an extreme measure […]]]>

Nov 16 (Reuters) – Argentina’s rising central bank debt poses a risk to the country’s monetary stability, ratings agency Moody’s said on Wednesday, adding it could fuel further inflation and worsen any exchange rate shock if savers flee the local peso.

In this scenario, Moody’s warned, authorities could even freeze peso deposits, an extreme measure reminiscent of the infamous “corralito” restrictions during the 2001 crisis that were intended to prevent a run on banks.

“With the amount of pesos the central bank and the government have, they may conclude they have no choice but to limit access,” Moody’s analyst Gabriel Torres said during an interview. a webinar.

“Argentina haven’t been in this situation for a while, but they have in the past,” he added.

In a report, Moody’s said the central bank’s interest-bearing debt had risen significantly to GDP over the past two years, while its ratio to base money was now over 200%.

“The ratio to base money is comparable to that seen in the late 1980s, a period that included a hyperinflationary episode,” he added.

The entity stated that there are refinancing risks related to local currency debt, of which 64% matures in less than a year and 70% is indexed to inflation, which is currently 88% by year and should reach 100% this year. .

“Because inflation is in the 100% range, a sudden shock to the exchange rate could lead authorities to consider freezing bank deposits and peso-denominated savings accounts to limit additional pressures on the exchange rate,” the report said.

“Argentinian banks’ exposure to government and central bank debt – mostly denominated in local currency – has recently increased and poses systemic risks to the financial sector.”

Reuters Charts

Report by Valentine Hilaire; Editing by Chizu Nomiyama

Our standards: The Thomson Reuters Trust Principles.

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Westpac’s standout division says bank debt is back in fashion https://ctxetg.com/westpacs-standout-division-says-bank-debt-is-back-in-fashion/ Mon, 14 Nov 2022 04:39:00 +0000 https://ctxetg.com/westpacs-standout-division-says-bank-debt-is-back-in-fashion/ “As a result, they are using their bank facilities to fund their operations.” Mr Miller said the trend should reverse with the plateau in interest rates, but in the meantime companies are reluctant to take on expensive debt and are looking to shorter-term bank debt to give them relief. flexibility. “It was a very interesting […]]]>

“As a result, they are using their bank facilities to fund their operations.”

Mr Miller said the trend should reverse with the plateau in interest rates, but in the meantime companies are reluctant to take on expensive debt and are looking to shorter-term bank debt to give them relief. flexibility.

“It was a very interesting year with the changing outlook for interest rates and the cost of money, and then there were bouts of volatility where the markets just didn’t open,” he said. -he declares.

Businesses affected by COVID-19

“It will probably last a good 12 months and so it will be early next year when conditions become less volatile. Then you’ll see a lot more of that corporate debt obtained from the capital market and less from the banking market.

While the big four banks reported strong credit quality and mostly took over provisions for bad debts, Miller said companies that were struggling before the COVID-19 pandemic should find it more difficult to as liquidity declines.

“Now that we are coming out of the pandemic, businesses that were challenged or struggling before COVID are really challenged. Liquidity is less available and as rates rise, and more importantly, as trading conditions are hit by cost inflation, it really impacts businesses that were struggling before the inflationary metrics that we have “, did he declare.

But he said the overall outlook remained positive and more M&A activity should follow as good companies can still access credit relatively easily.

“It’s still quite positive in Australian business. There are still a lot of people who worry about the outlook, but they are still investing in their businesses, and we’ve seen that with Origin Energy. [takeover bid] there are still some interesting mergers and acquisitions that can be pursued,” Miller said.

“For the strongest companies with the strongest balance sheets, we are now entering an environment where valuations have come back, and the strongest companies can fund and raise capital in this environment and seize some of the opportunities that now have a sense because valuations have changed, and they have changed more than the cost of capital for the solid business has changed.

Miller also warned that while rates had risen rapidly, taking many companies by surprise, the cost of funds was normalizing after a period of exceptionally low yields.

“It’s not like we’re in the middle of a really crazy and very, very expensive level of debt. But it went faster than people thought in terms of getting back to the levels we saw today,” he said.

“I think we all expected these levels in the future, but probably not in the first 12 months post COVID. We would have thought more likely in the first two years after COVID.

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Joe Biden’s student debt relief package blocked by US judge https://ctxetg.com/joe-bidens-student-debt-relief-package-blocked-by-us-judge/ Fri, 11 Nov 2022 02:50:12 +0000 https://ctxetg.com/joe-bidens-student-debt-relief-package-blocked-by-us-judge/ A US federal judge has blocked Joe Biden’s plan to write off thousands of dollars in student loan debt for millions of Americans, dealing a blow to a White House policy targeting a major concern among young voters. In an order issued Thursday, Mark Pittman, a North Texas District Court judge, ruled that Biden’s plan […]]]>

A US federal judge has blocked Joe Biden’s plan to write off thousands of dollars in student loan debt for millions of Americans, dealing a blow to a White House policy targeting a major concern among young voters.

In an order issued Thursday, Mark Pittman, a North Texas District Court judge, ruled that Biden’s plan to forgive student loan debt was “unlawful.”

Pittman, who was appointed by former President Donald Trump, said the program was “either one of the greatest delegations of legislative power to the executive or one of the greatest exercises of legislative power without authority.” of Congress in the history of the United States”. .

A spokesman for the US Department of Justice said the government would appeal the decision.

“For the 26 million borrowers who have already provided the Ministry of Education with the information needed to be considered for debt relief – 16 million of whom have already been approved for debt relief – the Ministry will retain their information so that we can quickly process their relief once we win. in court,” White House spokeswoman Karine Jean-Pierre said in a statement.

“We will never stop fighting for the hardworking Americans who need it most – no matter how many roadblocks our adversaries and special interests try to put in our way,” she added. .

The decision comes as the Democratic Party celebrates a stronger-than-expected performance in Tuesday’s midterm elections, when a crushing Republican “red wave” predicted by pollsters failed to materialize. Young voters turned out in force, helping boost Democrats in some key races, and activists said student debt relief was one of many issues motivating them.

The plan proposed by the Biden administration would eliminate up to $10,000 in debt for people earning up to $125,000. The nonpartisan Congressional Budget Office estimated it would cost more than $400 billion.

Elaine Parker, president of the Job Creators Network Foundation, the organization that filed the lawsuit in Texas on behalf of the plaintiffs, said in a statement that the court “correctly ruled” in their favor and that the decision “protects the rule of law”. Job Creators Network was founded by Republican donor Bernie Marcus.

The case in Texas stems from a challenge brought against the US Department of Education by two people who attended universities in that state. The plaintiffs argued the debt cancellation program violated U.S. law because the government agency made ‘arbitrary decisions’ on issues including which people – as well as the type and amount of debt – would be included in the program, without seeking public comment.

One plaintiff, Myra Brown, said she was excluded from the initiative because it does not apply to commercially held loans that are not in default, while another, Alexander Taylor, was not eligible for complete debt cancellation because he did not receive a federal grant. which is generally granted to needy students. Taylor argued it was ‘unfair’ that her debt forgiveness calculation was based on her parents’ financial situation years ago.

“If the Department is going to seek cancellation of the debt, the plaintiffs believe that their student loan debt should also be cancelled,” the complaint states.

The case is part of a series of legal challenges brought against Biden’s program, which drew cheers from progressive Democrats when it was announced in August. Republicans and some moderate Democrats have said they fear it could potentially exacerbate inflation.

Additional reporting by Kiran Stacey in Washington

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CANADA’S FX DEBT – Canadian Dollar Posts Biggest Gain in 12 Years as Employment Rises https://ctxetg.com/canadas-fx-debt-canadian-dollar-posts-biggest-gain-in-12-years-as-employment-rises/ Fri, 04 Nov 2022 20:43:07 +0000 https://ctxetg.com/canadas-fx-debt-canadian-dollar-posts-biggest-gain-in-12-years-as-employment-rises/ (Adds analyst commentary and details throughout; updates prices) * The Canadian dollar appreciates 2% against the greenback * Touch its highest level since September 23 at 1.3470 * US oil price settles 5% higher * 10-year yield hits 10-day high By Fergal Smith TORONTO, Nov 4 (Reuters) – The Canadian dollar strengthened the most in […]]]>

(Adds analyst commentary and details throughout; updates prices)

*

The Canadian dollar appreciates 2% against the greenback

*

Touch its highest level since September 23 at 1.3470

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US oil price settles 5% higher

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10-year yield hits 10-day high

By Fergal Smith

TORONTO, Nov 4 (Reuters) – The Canadian dollar strengthened the most in 12 years against its U.S. counterpart on Friday as oil prices jumped and domestic employment data bolstered bets for another larger than normal interest rate hike by the Bank of Canada next month.

The Canadian economy added 108,300 jobs in October, easily beating forecasts of 10,000 new jobs, with the meteoric rise entirely in full-time work.

Money markets see a 65% chance that the Bank of Canada will raise its benchmark interest rate by half a percentage point in its next policy announcement on Dec. 7, up from around 50% before the data.

The United States also added more jobs than expected last month, but the US dollar did not benefit.

It fell against a basket of major currencies as the price of oil, one of Canada’s top exports, surged as reports that China may ease its tough anti-COVID measures boosted investor sentiment.

“Discussion of China’s COVID policy changes has brightened the global growth outlook, overloading commodities,” said Michael Goshko, senior market analyst at Convera Canada.

U.S. crude prices settled up 5% to $92.61 a barrel, while the Canadian dollar rose 2% to 1.3475 per greenback, or 74.21 US cents, its strongest progress since May 2010.

The currency touched its highest intraday level since September 23 at 1.3470. For the week, it was up 0.9%.

Government of Canada bond yields rose across the curve. The 10-year hit its highest since October 25 at 3.549% before falling to 3.520%, up 10.6 basis points on the day. (Reporting by Fergal Smith; Editing by Kirsten Donovan and Deepa Babington)

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IPO: four cos should be made public next week; seeks to raise more than Rs 4,500 cr https://ctxetg.com/ipo-four-cos-should-be-made-public-next-week-seeks-to-raise-more-than-rs-4500-cr/ Sun, 30 Oct 2022 07:38:00 +0000 https://ctxetg.com/ipo-four-cos-should-be-made-public-next-week-seeks-to-raise-more-than-rs-4500-cr/ The primary market is heading for a busy period, with four companies, including Global Health Ltd, which operates hospitals under the Medanta brand, and microfinance lender Fusion Micro Finance Ltd, lining up their IPOs next week. The other two companies with IPOs set to open are DCX Systems, a manufacturer of cables and wire harnesses, […]]]>
The primary market is heading for a busy period, with four companies, including Global Health Ltd, which operates hospitals under the Medanta brand, and microfinance lender Fusion Micro Finance Ltd, lining up their IPOs next week. The other two companies with IPOs set to open are DCX Systems, a manufacturer of cables and wire harnesses, and Bikaji Foods International.

Together, these four companies are expected to fetch more than Rs 4,500 crore from IPOs, sources in the investment bank say.

Apart from these, Uniparts India and Five Star Business Finance are expected to publish their respective IPOs in November, they added.

The initial sale of DCX Systems shares will open for public subscription on October 31 and will close on November 2, while that of Fusion Micro Finance will be open from November 2 to 4.

The IPOs of Global Health and Bikaji Foods will open for subscription on November 3 and close on November 7.

In 2022 so far, up to 22 companies have launched their IPOs to raise over Rs 44,000 crore. In 2021, 63 IPOs raised more than Rs 1.19 lakh crore, according to exchange data.

“Secondary market volatility has led to a weak IPO market in 2022 and it is expected to remain subdued going forward,” said Vinod Nair, head of research at .

However, investor response to the proposed IPOs has been decent due to the opportunity to invest in new ventures at attractive prices. This was also against the backdrop of high liquidity available from HNIs and retail investors looking for a quote gain, he said.

In the majority of cases, IPOs were also attractive to institutional investors wishing to invest in new, high-quality companies bringing diversification to programs, he added.

DCX Systems IPO includes new issue of capital shares worth Rs 400 crore and offer for sale (OFS) of capital shares up to Rs 100 crore by promoters NCBG Holdings Inc and VNG Technology.

The Bengaluru-based company has already raised Rs 225 crore from anchor investors. It has set a price range of Rs 197-207 per share for its issuance.

The proceeds from the new issue will be used for the payment of debt, the financing of working capital requirements, the investment in its wholly owned subsidiary Raneal Advanced Systems to finance its capital expenditures and general corporate purposes. .

Merger Micro Finance is seeking to raise Rs 1,104 crore from its IPO, which includes a new issue of capital shares worth Rs 600 crore and an offer for sale of 13,695,466 capital shares by promoters and existing shareholders.

Those selling shares in the SFO are — Devesh Sachdev, Mini Sachdev, Honey Rose Investment Ltd, Creation Investments Fusion, LLC, Oikocredit Ecumenical Development Co-operative Society UA and Global Financial Inclusion Fund.

The net proceeds from the new issue will be used to increase the capital base of the microfinance business. The company has set a price range of Rs 350-368 per share.

The Global Health IPO consists of a new issue of capital shares totaling Rs 500 crore and an OFS of up to 5.08 crore capital shares by Anant Investments, a subsidiary of private equity giant Carlyle Group, and Sunil Sachdeva (jointly with Suman Sachdeva).

The IPO price range has been set at Rs 319-336 per share and at the upper end of the price range, the company is expected to earn Rs 2,206 crore from the issuance.

Proceeds from the new issue will be used to pay debt and general corporate purposes.

Bikaji is aiming to mop up around Rs 1,000 crore from his initial sale of shares, investment banking sources have said.

Some shareholders of the Rajasthan-based company along with its promoters – Shiv Ratan Agarwal and Deepak Agarwal – will unload around 2.94 crores of shares through the SFO route.

The shares of the four companies will be listed on the BSE and the NSE.

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An Investor’s Guide to the Looming Debt Ceiling Fight https://ctxetg.com/an-investors-guide-to-the-looming-debt-ceiling-fight/ Thu, 27 Oct 2022 22:20:02 +0000 https://ctxetg.com/an-investors-guide-to-the-looming-debt-ceiling-fight/ Comment this story Comment The debt ceiling is one of those recurring issues in American politics that sometimes becomes a major concern. The ceiling has been raised, suspended or adjusted 28 times since 1993, usually with little drama. But there were major fights in 1995, 2011 and 2013 that led to prolonged government shutdowns and […]]]>

Comment

The debt ceiling is one of those recurring issues in American politics that sometimes becomes a major concern. The ceiling has been raised, suspended or adjusted 28 times since 1993, usually with little drama. But there were major fights in 1995, 2011 and 2013 that led to prolonged government shutdowns and fears that the United States might not meet its debt obligations. If Republicans take control of Congress in November’s midterm elections, some people are predicting another debt ceiling battle in early 2023. Financial markets were quick to ignore the effects of previous battles, but this time could be different.

The fundamental problem is that Congress likes spending and tax cuts, but dislikes debt. This leads to contradictory legislation: expenses and tax bills incompatible with the debt limits it sets. This is not a Democrat versus Republican question. Democrats in fiscally liberal countries can be reelected regardless of debt, and Republicans in fiscally conservative countries will never lose elections by opposing debt. It is the centrists of both parties who need the votes of the fiscal liberals and the conservatives. These are people who want more money from the government and people who are concerned about preserving the value of the money they already have. Moderate and conservative Democrats don’t want to be seen as reckless spenders forcing debt increases without bipartisan support, and moderate and liberal Republicans don’t want to be blamed for government shutdowns and market instability.

The usual assumption is that the center will hold. The cap (currently around $31.4 trillion, leaving $300 billion of wiggle room for borrowing) will eventually be raised or some other workaround found, but fiscal conservatives will get some concessions to cut spending or tighten fiscal rules. However, previous fights against the debt ceiling have taken place during times of economic prosperity, with rising stock prices and low inflation. Republicans emboldened by election success after criticizing Democratic spending may feel like they have a winning hand in forcing a rollback of the Biden administration’s costly policies — earning credit for taming inflation and protected the credit of the United States while showing that the Democrats are ineffective.

I am not a political analyst, so I have nothing more to say on this subject. My topic is the likely market reaction to a deadly fight. Will the possibility of a default send the US dollar and the bond market into meltdowns as almost happened (and may still happen) in the UK? Or will increased fiscal discipline in the US stabilize markets?

One clue is that treasury bill rates from mid-January 2023 to mid-April are up to 0.5% higher than you would expect given the earlier and later maturities. In other words, investors seem to be avoiding these bills. This is the likely time frame for a fight against the debt ceiling, although there are other possible reasons for the yield curve bump. Taken at face value, this suggests that investors are bracing for a significant possibility of major disruption, but not permanent damage. We will know more about this when the results of the November elections are known.

Any fight against the debt ceiling, or even talk of a fight, will drive up short-term Treasury rates and will also drive up other short-term dollar-denominated rates while lowering the value of the dollar. This will increase credit fears in the economy. It could fuel inflation by encouraging people to spend rather than hold dollars and make foreign goods more expensive. This could slow the economy by instilling fear and lowering stock prices.

The worst outcomes are a loss for fiscal conservatives, blunting their future power, or a dysfunctional deal that only complicates matters further and guarantees bigger future fights and continued instability. This could lead to a permanent increase in government borrowing costs, less confidence in the dollar and US credit, and increased debt with weaker controls. It could send the US down a path the UK could have narrowly avoided.

The best outcome, at least for the bond markets, would be agreement on a rational budget process with budget controls allowing Congress to choose and manage the level of debt, and allowing only spending and tax legislation consistent with the level. debt selected. The market is less concerned with the level of indebtedness than whether it is under control and whether it could be reduced if necessary. If the United States has the will to service the debt, no one doubts that it has the capacity. Of course, a perfect solution is unlikely.

The stakes will be much higher in 2023 than in previous debt ceiling fights. Debt and deficits are much larger. True, the 2022 budget deficit was half that of 2021, but it was equal to the largest non-Covid deficit in history, which was the year of the financial crisis of 2009. Moreover, deficits and debt Projected futures, not to mention unfunded budget deficits (mainly Medicare), are much higher than conventional ideas of fiscal prudence would allow. The economy is at least probably in a recession, stocks are in a bear market and inflation is high. If the situation is the same or worse at the start of 2023, we could be close to economic crisis even without the fights in Congress.

Crisis tends to bring out the best and the worst in people. It could provide the fuel for long-needed reforms, or the excuse for a damaging tightrope approach. I’m optimistic in that I think the economy should improve on its own, midterm results will be mixed enough to discourage grandstanding on both sides, and Congress will choose reason over mutually assured destruction. I’m optimistic because I’d rather be happy than afraid, not because I have good reason to hope.

More from Bloomberg Opinion:

• The debt crisis is on the Republican agenda for 2023: Matthew Yglesias

• Another absurd fight against the debt ceiling? No Thanks: Jonathan Bernstein

• Biden hurt, not helped, the economy: Allison Schrager

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

Aaron Brown is a former Managing Director and Head of Capital Markets Research at AQR Capital Management. He is the author of “The Poker Face of Wall Street”. He may have an interest in the areas he writes about.

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

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Inter: NOTICE TO MARKET UPDATES RELATING TO CORPORATE REORGANIZATION – REDUCTION OF SHARE CAPITAL AND REPAYMENT OF DEBT FINANCING – Form 6-K https://ctxetg.com/inter-notice-to-market-updates-relating-to-corporate-reorganization-reduction-of-share-capital-and-repayment-of-debt-financing-form-6-k/ Tue, 25 Oct 2022 10:03:06 +0000 https://ctxetg.com/inter-notice-to-market-updates-relating-to-corporate-reorganization-reduction-of-share-capital-and-repayment-of-debt-financing-form-6-k/ MARKET NOTICE CORPORATE REORGANIZATION UPDATES – SHARE CAPITAL REDUCTION AND DEBT REPAYMENT IINTER & CO, INC. (Nasdaq: INTR and B3: INBR32) (“Inter&Co“), indirect controlling shareholder of Banco Inter SA (“Inter“) and Inter Holding Financeira SA (“HoldEnd“), in accordance with the provisions of CVM rule no. 44, of August 23, 2021, in the context of the […]]]>

MARKET NOTICE

CORPORATE REORGANIZATION UPDATES –

SHARE CAPITAL REDUCTION AND DEBT REPAYMENT

IINTER & CO, INC. (Nasdaq: INTR and B3: INBR32) (“Inter&Co“), indirect controlling shareholder of Banco Inter SA (“Inter“) and Inter Holding Financeira SA (“HoldEnd“), in accordance with the provisions of CVM rule no. 44, of August 23, 2021, in the context of the social reorganization which transferred the shareholding of Inte to Inter&Co (“business organization“), announces the following to its shareholders and to the market.

The reduction of the share capital of Banco Inter SA by an amount of R$1,150,000,000.00 (“Reduction of share capital“) has been approved by the Central Bank of Brazil and completed. The proceeds received by HoldFin, the sole shareholder of Inter, as a result of the share capital reduction were applied to the payment of the debt financing entered into by HoldFin for finance structured cash as part of the Corporate Reorganization The share capital of Inter&Co (the listed entity) remains unchanged following this debt repayment.

Even after the share capital reduction, Banco Inter SA’s capital ratio remains above the market average and therefore the share capital reduction will not affect the bank’s expected growth.

Inter&Co will keep its shareholders and the market informed in accordance with applicable regulations. Additional information may be obtained from Inter’s Investor Relations Department by email (ri@bancointer.com.br), at Avenida Barbacena, No. 1219, Belo Horizonte, MG, or through the website Inter website (http://ri.bancointer.com.br).

Belo Horizonte, October 24, 2022.

SANTIAGO HORACIO STEL

Director of Strategy and Investor Relations

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“Paying for the rest of my life. Student loan debt is crushing an entire generation https://ctxetg.com/paying-for-the-rest-of-my-life-student-loan-debt-is-crushing-an-entire-generation/ Sat, 22 Oct 2022 12:00:10 +0000 https://ctxetg.com/paying-for-the-rest-of-my-life-student-loan-debt-is-crushing-an-entire-generation/ After graduating from Syracuse University in 2009, Nick Shekeryk was facing a total of $93,000 in student debt. Then, last year, he did something tens of millions of borrowers of his generation couldn’t: he paid it all back. His student loan path had been anything but smooth so far. For more than a decade, due […]]]>

After graduating from Syracuse University in 2009, Nick Shekeryk was facing a total of $93,000 in student debt.

Then, last year, he did something tens of millions of borrowers of his generation couldn’t: he paid it all back.

His student loan path had been anything but smooth so far. For more than a decade, due to his high balance, monthly payments ate up a considerable portion of his budget. Due to the interest on the loan, he could barely dent his principal and could not put money aside to save or invest. The debt burden affected his relationships, preventing him from planning for the future. “I was ready to deal with it for the rest of my life,” Shekeryk said.

Well into their adult lives, millennials find it impossible to meet the financial goals of their parents or grandparents. A 2018 study published by the Center for Household Financial Stability found that people born in the 1980s are at the greatest risk of becoming the “lost generation” for accumulating wealth. Young adults today face declining mobility, decades of stagnant wages, and broader economic uncertainty. Millennials also have the highest debt burden, making them particularly vulnerable to financial instability.

After meeting with a financial adviser in 2020, Shekeryk and his wife decided to take advantage of the pandemic-era pause on student loan interest and payments, and threw away every spare penny to bring the balance down to zero. “I’m lucky enough to make enough money in a two-income household that we can do this,” said Shekeryk, now 37. “We didn’t have kids yet, some people don’t have the same luxury.”

Student loan debt hinders financial stability

In 2021, there were nearly 45 million student borrowers in the United States, with an average debt per borrower of over $31,000. While the White House recent student debt cancellation plan was welcomed by many, for other borrowers struggling with high monthly payments and bloated balances, partial relief barely makes a dent.

On average, tuition fees tend to increase by around 8% per year, according to Finaid, which means that the total cost of a university education doubles every nine years. The dramatic increase in debt due to the costs of higher education is having a profound collective impact on today’s young adults, both economically and socially, creating a widening wealth gap compared to previous generations.

According to Anya Kamenetz, author of the 2006 book Generation Debt, student loan debt is “a significant headwind” for millennials, who range in age from their mid-20s to early 40s. Student loan debt undermines prospects for wealth creation and means “waiting longer to marry and have children, making people less likely to own homes, start businesses, or leave their hometowns,” Kamenetz said.

Plus, because the job market as a whole is more volatile, earning a four-year college degree doesn’t offer the same job stability as it did a generation ago, according to Natasha Quadlin, associate professor in sociology at the University of California. , Los Angeles. While it can still open doors and increase career opportunities, there is no guarantee that a college degree will lead to a reliable income unlike older generations.

Moreover, university degrees do not help reduce the income gap between workers of different racial and ethnic backgrounds. In fact, the disproportionate debt black students incur to fund their education reinforces the racial wealth gap, according to the Brookings Institution.

Another factor in the millennial wealth gap is the fact that younger generations face higher health care expenses and rising costs of living while earning significantly less. A 2019 report by think tank New America showed that the median earnings of workers aged 18 to 34 were 20% lower than those of the baby boomer generation at the same age. The study noted that “Millennial families feel burdened with debt, disillusioned with the erosion of the social contract, and frustrated that the promise of the American Dream and financial stability seem out of reach.”

And now, many households are facing two generations of student debt – Gen Y parents and their older Gen Z children. According to Kamenetz, this could lead to new challenges, with more students” trading” on their dreams, attending community college or trade school, or taking longer to graduate.

A debt that seems eternal

Student debt has hampered the long-term goals of Jess Meoni, a 32-year-old graphic designer from Scranton, Pennsylvania. Meoni earned her undergraduate and graduate degrees from Marywood University and racked up a total of $50,000 in debt — and that after receiving scholarships and tuition to work on campus.

Because her parents didn’t go to college, Meoni didn’t have much guidance on how to pay for her education. Still, she felt she had a good idea of ​​how much debt she was taking on to go to school and believed it was necessary to achieve her career goals. “I was not oblivious to the costs,” she said. “However, I was worried about other things at the time. I wanted to be a graphic designer and thought I couldn’t find a job without a bachelor’s degree.”

Portrait of Jess Meoni

Jess Meoni

Like Meoni, students graduating from high school today often feel they have no choice but to pay the sticker price for a four-year degree because it seems like the only path to a job. viable. Yet, because these borrowers are young, they cannot always assess the total financial burden they bear for decades in their adult lives. Being responsible for regular monthly payments of hundreds of dollars or using a large percentage of net income to pay off debts isn’t always tangible for an 18-year-old.

Combine that with the fact that students live in a competitive environment, often encouraged by their parents and guidance counselors to attend the most expensive, top-ranked university. “You have this dynamic of families and students pushing for more of everything and then the family wondering how they’re going to pay for it,” said Jennifer Finetti, director of student advocacy at ScholarshipOwl, an education technology platform. .

Today, Meoni is chipping away at the remaining balance of her $27,000 student loan, paying around $500 a month — more than her minimum, but less than she’d like to pay. “At this rate, it will take a few more years to pay off,” she said. But, like other millennials, she is simultaneously paying off a car loan and credit card debt.

Meoni’s student debt has forced her to set aside some of her biggest life goals. “I really don’t think I’ll ever buy a house,” she said, noting her aversion to taking out other loans. But sometimes Meoni thinks otherwise. Since she will be repay the debt for the rest of his life anyway, why not get more?

Rethinking the way we think about higher education

Both Shekeryk and Meoni said they would likely do things differently if they could go back in time, such as attending community college for a few years to save on tuition. But Finetti noted how an affordable route doesn’t always seem like an option, given the societal stigma surrounding community college. In fact, enrollment in two-year colleges has declined significantly in recent years, accounting for more than half of undergraduate enrollment losses since the pandemic.

“The bottom line is that students should focus on an affordable path to college,” Finetti said. While President Joe Biden endorsed in August widespread student loan forgiveness of $10,000 or $20,000 for borrowers, Finetti noted that this is unlikely to happen again in the future. Additionally, this measure only provides relief for student loans issued before June 30, 2022, so future loans are not eligible.

What can be done to tackle the growing wealth gap rooted in student debt? Ultimately, Finetti said the only thing parents and students can do is explore all of their options and be realistic about the impact student loans have on their family’s financial future.

But that’s not always enough. Even with a hands-on approach, Finetti noted that “it’s often much more expensive than expected.”

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