Debt Finance – CTXETG http://ctxetg.com/ Thu, 07 Oct 2021 13:06:37 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://ctxetg.com/wp-content/uploads/2021/06/icon-150x150.png Debt Finance – CTXETG http://ctxetg.com/ 32 32 US STOCKS-Wall St to rebound at open as debt ceiling, inflation worries cool https://ctxetg.com/us-stocks-wall-st-to-rebound-at-open-as-debt-ceiling-inflation-worries-cool/ https://ctxetg.com/us-stocks-wall-st-to-rebound-at-open-as-debt-ceiling-inflation-worries-cool/#respond Thu, 07 Oct 2021 12:52:42 +0000 https://ctxetg.com/us-stocks-wall-st-to-rebound-at-open-as-debt-ceiling-inflation-worries-cool/ (For a live Reuters blog on the US, UK and EU stock markets, click LIVE / or type LIVE / in a news window.) * High growth stocks lead the gains; energy stocks are falling * Fall in weekly jobless claims in the United States; layoffs increase in seven. * Futures up: Dow 0.89%, S&P […]]]>

(For a live Reuters blog on the US, UK and EU stock markets, click LIVE / or type LIVE / in a news window.)

* High growth stocks lead the gains; energy stocks are falling

* Fall in weekly jobless claims in the United States; layoffs increase in seven.

* Futures up: Dow 0.89%, S&P 0.93%, Nasdaq 1.10% (adds comments, bullets, updates prices throughout)

By Shreyashi Sanyal

Oct. 7 (Reuters) – U.S. stocks were expected to open higher on Thursday after a temporary deadlock on the debt ceiling in Congress allayed fears of a possible public debt default, while ‘A drop in oil prices has allayed fears of higher inflation.

Senior U.S. Senate Republican Mitch McConnell on Wednesday launched a plan to support an extension of the federal debt ceiling through December, potentially avoiding a historic default. Democrats and Republicans in Congress were scheduled to continue negotiations on Thursday.

“I didn’t think there would actually be a default, it’s a low probability, high severity possibility. And since this has been taken off the market, I’m not surprised to see this rebound in futures. “said Greg Swenson. , founding partner of Brigg Macadam.

High growth stocks were back – Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Inc rose 1.0% to 1.2% amid falling benchmark 10-year US Treasury yield on Thursday .

“I am not worried about the short term markets and it is advisable to buy bears,” Swenson said.

European and Asian stocks rose earlier in the day after cooling oil and gas prices relieved investors worried about soaring inflation. US energy stocks, including Exxon Mobil Corp, Marathon Petroleum Corp and APA Corp, led declines with declines between 0.2% and 0.5%.

Data showed that the number of Americans filing new jobless claims declined last week, but layoffs rose from a 24-year low in September.

The ADP national employment report released on Wednesday showed private payrolls increased by 568,000 jobs last month. Economists polled by Reuters predicted an increase of 428,000 jobs

This precedes the more comprehensive data on nonfarm wages expected on Friday. This should strengthen the case for slowing asset purchases by the Fed.

As of 8:40 a.m. ET, Dow e-minis were up 305 points, or 0.89%, S&P 500 e-minis were up 40.5 points, or 0.93%, and e-minis Nasdaq 100 were up 162.5 points, or 1.1%.

Levi Strauss & Co jumped 4.7% after the jeans maker topped third-quarter revenue and profit estimates, spurred by increased demand for jeans as people refreshed their wardrobes.

Snap Inc gained 2.1% after launching an in-app tool to educate users about the dangers of drugs.

Conagra Brands Inc rose 1.7%, beating quarterly revenue expectations after increasing the prices of its frozen meals and snacks. (Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty)


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US debt ceiling: a bad financial wind is blowing in Australia | Greg Jericho https://ctxetg.com/us-debt-ceiling-a-bad-financial-wind-is-blowing-in-australia-greg-jericho/ https://ctxetg.com/us-debt-ceiling-a-bad-financial-wind-is-blowing-in-australia-greg-jericho/#respond Thu, 07 Oct 2021 02:26:00 +0000 https://ctxetg.com/us-debt-ceiling-a-bad-financial-wind-is-blowing-in-australia-greg-jericho/ AAs Australia tiptoes out of the freezing waters of Covid and in the heat of the recovery, the United States threatens to send cold winds to us. But luckily America’s inherited stagflation fears are more often predicted than imagined. Despite China’s growth, one would have to be foolish to deny the hold America still has […]]]>

AAs Australia tiptoes out of the freezing waters of Covid and in the heat of the recovery, the United States threatens to send cold winds to us. But luckily America’s inherited stagflation fears are more often predicted than imagined.

Despite China’s growth, one would have to be foolish to deny the hold America still has over the global economy. Its economy remains about a third the size of China’s and is more than four times the size of the world’s third largest economy of Japan.

Almost 90% of all daily foreign exchange transactions involve the buying or selling of the U.S. dollar, and $ 5.8 billion of foreign exchange is exchanged each day, which is well over double the $ 2.1 billion. euros exchanged.

So when the US Congress begins a process that could see the US government default on its debt, it also tends to create a chilling effect outside its borders.

The current struggle for the US debt ceiling is a movie we’ve seen before.

In 2013 I did a live blog / ask me anything about the United States about to default on their debt because the Republican Party refused to raise the debt ceiling .

At the time, the crisis was avoided; and the general belief is that it will surely start again. But given that since 2013 the Republican Party has changed dramatically, you can never be sure.

If the United States does indeed run out of cash between October 15-18 (the date is a bit loose depending on tax revenues and daily payments), the impact on Australia will depend greatly on the severity of the impact in the United States and the rest of the world.

It can send a calamitous tsunami through the global financial system that triggers GFC 2.0, or investors could all take a deep breath and actually ignore it as best they can, because thinking the US dollar is no more. sure is too scary to consider. .

At the very least, our stock market would experience a drop – if only because everyone expected it.

It would also likely raise interest rates, as US government loans would be considered less secure and investors would therefore demand a higher interest rate.

We are already seeing this now, as the yield (or interest rate) on one-month US Treasury bonds is higher than that on one-year bonds.

Indeed, investors think it is riskier to borrow from the US government for a month than for a year:

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And this is also where we come to the other concern coming from America – high inflation and therefore also higher interest rates, which would stifle our recovery and create a repeat of the stagflation of the 1970s (high inflation , stagnant growth).

As with the fight against the debt ceiling, there is nothing new about this.

Many economists and politicians – especially those of a more conservative leaning – are still worried about rising inflation. Many predicted this during the GFC, but turned out to be completely wrong.

Inflation fears have been around most of this year. In April, I noted that we should calm down in the face of such fears, and to be honest, I don’t see much to change my mind.

You can understand why some are worried that rising inflation is hitting Australia, as the Consumer Price Index in the United States has risen 5.3% in the past 12 months.

This is relevant because Australian inflation is moving largely in line with that of the United States:

If the graph does not appear click here

And indeed, we saw a spike here with Australia’s CPI rising 3.8% year-over-year through June.

But as with our own numbers, America remains very much in the whirlpool of the pandemic.

When you compare the US Consumer Price Index with the Federal Reserve’s “truncated average” (a measure similar to the RBA’s own measure of “core inflation”), you see that what is happening now seems more transitory than real change:

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And median U.S. government bond yields remain well below previous levels and do not keep pace with the recent spike in inflation:

If the graph does not appear click here

The problem is unreal and uncertain at the moment. Interest rates are at record highs and the government continues to spend massive amounts of money on stimulus. Trying to discern the underlying state of the Australian economy – not to mention that of the United States which is also facing a default – becomes a bit like reading a tea leaf.

Of course, all the soothing words about our economic well-being disappear if we decide to see what happens when a global reserve currency fails.

But until that happens, we should refrain from predicting higher inflation, let alone stagnation, as much of the global economy remains in the weird and somewhat artificial state. of the pandemic.


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The debt ceiling: an obscure financial fiction that almost no other country deals with https://ctxetg.com/the-debt-ceiling-an-obscure-financial-fiction-that-almost-no-other-country-deals-with/ https://ctxetg.com/the-debt-ceiling-an-obscure-financial-fiction-that-almost-no-other-country-deals-with/#respond Wed, 06 Oct 2021 14:02:15 +0000 https://ctxetg.com/the-debt-ceiling-an-obscure-financial-fiction-that-almost-no-other-country-deals-with/ Well, we are on the precipice of another entirely self-created economic catastrophe. What’s new? This one, however, is almost ridiculously easy to avoid. Congress just needs to change the debt ceiling just like it has almost 100 times since World War II. The past is perhaps the best measure we have of what is likely […]]]>

Well, we are on the precipice of another entirely self-created economic catastrophe. What’s new? This one, however, is almost ridiculously easy to avoid. Congress just needs to change the debt ceiling just like it has almost 100 times since World War II.

The past is perhaps the best measure we have of what is likely to happen in the future. Yet just because something has happened 100 times in the past doesn’t necessarily mean it will happen again. Dinosaurs were doing very well for over a hundred million years before a large asteroid collapsed to make them disappear. So it probably wouldn’t hurt to know a little more about the debt ceiling and what is likely to happen if lawmakers don’t immediately step out of their backyard and do something about it.

The debt ceiling was first set at $ 11.5 billion in 1917. It was originally intended to simplify the issuance of US debt, because after its passage Congress no longer needed to approve each debt issue separately. In a word, the debt ceiling is the maximum dollar value that the US Treasury can borrow through the sale of bonds.

When first enacted, the debt ceiling seemed like a good idea, but as the U.S. economy continued to grow and became even more complex, the debt ceiling turned into a Partisan soapbox to stand on and hold the country hostage on every now and again. Failure to raise the debt ceiling to pay off outstanding obligations that the United States has already incurred would weaken the country’s credit rating and cause massive economic catastrophe. It is not good for the United States to default on its debt.

At present, the debt ceiling is $ 28.4 trillion. Congress has until Oct. 18 to raise the US debt ceiling to avoid the first US debt default. In addition to creating a crater for the economy as a whole, a failure to raise the debt ceiling would likely immediately result in delayed wages for U.S. troops, a suspension of Social Security benefits for some 50 million seniors, and soaring consumer lending rates. Not exactly the popular political results here.

Again, these are not new expenses. The debt ceiling represents the maximum that the United States can borrow, and this borrowing is intended to pay off obligations that the United States has already incurred. Even so, it’s hard to explain the nuances to the American people as they are so busy watching “Bachelor in Paradise” and inhaling Chick-fil-A, so Republicans are refusing to support any increase in the ceiling of the debt in order to portray Democrats as fiscally irresponsible for wanting to raise the debt ceiling and thus avoid economic collapse. This is not how it all works, as the increased debt ceiling now largely serves to keep paying for all the bullshit Donald Trump spent on American money. when he oversaw the third largest increase in the federal deficit in the history of the United States.

Nor is it a routine control of public spending. The oversight is supposed to happen when Congress passes a budget and the President promulgates it – the debt ceiling creates strange incentives later for a partisan posture on already passed laws. This is probably why almost no other country has a debt ceiling, with the notable exception of Denmark, which has a very high debt ceiling that it never reaches.

The Senate was put to the vote today on a Democratic proposal to suspend the debt ceiling until the end of 2022. This measure needs 60 votes to move forward, and the Senate is divided 50-50. So don’t hold your breath on this one.

It is likely that in the end, Congress will strive to raise or suspend the debt ceiling just in time, as it has done many times before. We really shouldn’t have to go through this whole song and dance every time, though. The United States seems to like torturing itself with obscure legal demands that hardly anyone else in the world apparently finds necessary. And you never know: one of those moments could finally be the big asteroid strike.


Jonathan Wolf is a litigator and author of Your Debt Free JD (affiliate link). He has taught legal writing, writes for a wide variety of publications, and has done both his job and his pleasure in having financial and scientific knowledge. Any opinions he expresses are probably pure gold, but are nonetheless his only and should not be attributed to any organization he is affiliated with. He wouldn’t want to share the credit anyway. He can be contacted at jon_wolf@hotmail.com.


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City Council cancels debate on $ 7.17 million impacts of budget 2022 across the board https://ctxetg.com/city-council-cancels-debate-on-7-17-million-impacts-of-budget-2022-across-the-board/ https://ctxetg.com/city-council-cancels-debate-on-7-17-million-impacts-of-budget-2022-across-the-board/#respond Wed, 06 Oct 2021 00:12:48 +0000 https://ctxetg.com/city-council-cancels-debate-on-7-17-million-impacts-of-budget-2022-across-the-board/ During today’s finance and administration meeting, Greater Sudbury City Council approved sending the 25 business cases presented to the 2022 Budget deliberations There is plenty of room for debate, but Greater Sudbury City Council chose not to do so today, sending the 25 business cases presented in committee to the 2022 Budget deliberations. Today’s finance […]]]>

During today’s finance and administration meeting, Greater Sudbury City Council approved sending the 25 business cases presented to the 2022 Budget deliberations

There is plenty of room for debate, but Greater Sudbury City Council chose not to do so today, sending the 25 business cases presented in committee to the 2022 Budget deliberations.

Today’s finance and administration committee meeting was intended to serve as an early ‘checkpoint’ on business cases to see if they are worth including in the 2022 draft budget documents. , which will be discussed in a series of meetings starting on November 29.

Thus describes the president of the committee and the municipal council of the 7th district. Mike Jakubo opening the afternoon meeting, where 25 business cases totaling $ 7.17 million in potential impacts on the 2022 budget were discussed.

The $ 7.17 million price tag is paltry relative to actual financial demand, with some budget items relying on proposed debt financing paid over several years to make this a reality.

A dual-surface multi-use sports complex proposed for Hanmer is one such project and would have a total cost of $ 29.2 million, including a 2022 budget impact of $ 584,520.

“It will be difficult to change my mind that many of these business cases should not be approved as we go along,” Ward 8 Coun. Al Sizer said at the start of the meeting, after prompting the city’s director of financial planning and budgeting, Steve Facey, to describe some financial realities.

“Some of the business cases are suggested will be funded or need to be funded through debt financing… and we already have approximately $ 100 million in debt that has not been guaranteed,” Sizer said – a point supported by Facey.

There was $ 43 million of road and bridge works included in the 2020 and 2021 capital budgets with unsecured debt, as well as $ 55 million for the Pioneer Manor redevelopment project.

Further, Sizer said, “Our reserves are precariously low, so funding one-off initiatives from our reserves while that fixes this problem for that year, it certainly puts us in a more precarious position if we have any kind. major disaster or problem in our community.

This is also a point that Facey corroborated, noting that reserve levels are considered low “when you look at other comparators”, and that the city has a permanent funding gap of $ 100 million per year. which it needs to keep the city’s assets in their current state.

Although district 1 of the county. Mark Signoretti said that while it was good to hear last week that the City of Greater Sudbury has received another AA credit rating from S&P Global, residents are not very interested.

“The comments I received from my constituents were, ‘We don’t care about your credit rating, we care how much money you take out of our pocket each month for property taxes,” “he said. he relayed.

At its June 22 finance and administration meeting, the city council asked staff to prepare a 2022 budget proposal that would include a property tax increase of no more than three percent.

The items listed in the business cases will not be part of that base budget, Facey clarified at today’s meeting.

If the 25 business cases presented today were approved in the final budget using the funding mechanisms proposed therein, they alone would result in an increase in the tax levy of 2.4%.

Of the proposed projects, Sizer said around 19 should not even be considered this year “in light of the economic conditions we face.”

“Each of the business cases has merit. If I had my druthers I would support them all, but unfortunately the reality is not here.

Business cases, in addition to the 25 presented today, will also be included in deliberations on the 2022 budget, including those approved by council in recent weeks and the business cases approved at the city council meeting. October 12.

The municipal administration’s draft budget is expected to be released on November 2 and will lay the groundwork for budget deliberations that begin on November 29.

Tyler Clarke covers City Hall and Political Affairs for Sudbury.com.


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SREI Infra and Equipment Finance have debts over 29,000 crore https://ctxetg.com/srei-infra-and-equipment-finance-have-debts-over-29000-crore/ https://ctxetg.com/srei-infra-and-equipment-finance-have-debts-over-29000-crore/#respond Tue, 05 Oct 2021 08:30:26 +0000 https://ctxetg.com/srei-infra-and-equipment-finance-have-debts-over-29000-crore/ SREI Resolution Infrastructure Finance and SREI Equipment Finance have debt obligations over 29,000 crore with bank facilities over ₹ 28,000 crore. According to CARE Ratings’ most recent rating in March this year, SREI Equipment Finance has long-term and short-term banking facilities of 16,912.21 crore, non-convertible debentures of just over 352 crore, Unsecured Tier II NCDs […]]]>

SREI Resolution Infrastructure Finance and SREI Equipment Finance have debt obligations over 29,000 crore with bank facilities over ₹ 28,000 crore.

According to CARE Ratings’ most recent rating in March this year, SREI Equipment Finance has long-term and short-term banking facilities of 16,912.21 crore, non-convertible debentures of just over 352 crore, Unsecured Tier II NCDs of ₹ 109.8 crore and perpetual debt of ₹ 37.5 crore.

RBI replaces boards of two indebted Srei companies

Likewise, in March of this year, SREI Infrastructure Finance had short and long term bank facilities of 11,117.71 crore, long term infrastructure bonds of 20.22 crore, NCD of 95.9 Level II unsecured subordinated NCD and crores of 594.51 crore. .

According to an Acuite Ratings report in March, Srei Equipment Finance had MNTs of 3,492.45 crore.

CARE Ratings and Acuite have revised their ratings for SREI companies.

According to sources, UCO Bank, Punjab National Bank and State Bank of India are among the most exposed to the two companies.

SREI Infrastructure Finance Ltd stuck in 5% bottom circuit as RBI replaces co board of directors

However, most banks have provisioned their exposure to both companies.

The Reserve Bank of India had, on October 4, replaced the boards of directors of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), paving the way for their resolution.

He also appointed Rajneesh Sharma, former Managing Director of Bank of Baroda, as a corporate director under section 45-IE (2) of the RBI Act.

On Tuesday, SREI Infrastructure Finance was down 5% to 8.17 each against BSE.

The impact of the Covid

Hemant Kanoria, former chairman of SREI Infrastructure Finance, said in the annual report that the company mainly relies on borrowing from banks and other lenders for the deployment of funds towards financing the creation of assets. The Covid pandemic has had a negative effect on its customers, which has affected cash flow, resulting in muted collections, he said.

The company had also reduced its infrastructure portfolio and realigned the equipment financing business to current regulations, but it was “derailed” to some extent by the pandemic.


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CASH-Yields rise as market considers debt ceiling and jobs data https://ctxetg.com/cash-yields-rise-as-market-considers-debt-ceiling-and-jobs-data/ https://ctxetg.com/cash-yields-rise-as-market-considers-debt-ceiling-and-jobs-data/#respond Mon, 04 Oct 2021 14:40:05 +0000 https://ctxetg.com/cash-yields-rise-as-market-considers-debt-ceiling-and-jobs-data/ By Karen Pierog CHICAGO, October 4 (Reuters) – U.S. Treasury yields rose on Monday as the market worried about the absence of a debt ceiling in the U.S. Congress and eagerly awaited the release later this week employment data, which could set the stage for lower Federal Reserve asset purchases. The benchmark 10-year yield, which […]]]>

By Karen Pierog CHICAGO, October 4 (Reuters) – U.S. Treasury yields rose on Monday as the market worried about the absence of a debt ceiling in the U.S. Congress and eagerly awaited the release later this week employment data, which could set the stage for lower Federal Reserve asset purchases. The benchmark 10-year yield, which reached its highest level since June at 1.567% last week, last increased 2.4 basis points to 1.491%. Yields at the shorter end of the curve remained elevated as the US Treasury on October 18 considered it could run out of liquidity, potentially leading to default, with no debt ceiling resolution. The yield on one-month Treasury bills, which climbed to 0.1240% on Friday, peaked at 0.112% on Monday. Republicans have so far refused to help Democrats, who control Congress and the White House, suspend or increase the debt ceiling after its two-year suspension ends in late July. George Goncalves, head of US macro strategy at MUFG in New York City, said with a debt ceiling showdown looming, the market is still facing higher yields from last week. “Until proven otherwise, people are going to be on the defensive because the weaker longs that took these positions during the rate trading between August and early September, they’re underwater and I don’t think any the world will be able to implement this positioning in a matter of a week, “he said. The market’s primary focus is on Friday’s September jobs report. Fed Chairman Jerome Powell said the central bank could start cutting its $ 120 billion monthly bond purchases in November as long as U.S. job growth through September is “reasonably strong”. Gonçalves said the market is bracing for a decent jobs report that would meet the Fed’s criteria for the cut. “It must be a really incredible number to get us out of the peak (in the 10-year Treasury yield) that we saw last week,” he added. The yield on five-year bonds, more sensitive to intermediate interest rate hikes, last increased 1.6 basis points to 0.949%. A closely watched part of the yield curve that measures the spread between two-year and ten-year Treasury bill yields was 1.68 basis points steeper at 121.44 basis points. October 4 Monday 10:23 a.m. New York / 1423 GMT Price Current net yield% Change (bp) Three-month bills 0.0375 0.038 0.000 Six-month bills 0.05 0.0507 0.000 Two-year note 99-241 / 256 0.2796 0.016 Three-year note 99 -160/256 0.5034 0.018 5-year bond 99-164 / 256 0.949 0.016 7-year bond 99-204 / 256 1.2805 0.020 10-year bond 97-204 / 256 1.491 0.024 Bond 20-year 95-204 / 256 2.0076 0.027 30-year bond 98-128 / 256 2.0675 0.028 SPREADS DOLLAR SWAP Last (bps) Net change (bps) 2-year US dollar swap 9.50 -1.25 spread swap 3-year US dollar 13.50 -0.75 5-year US dollar swap spread 8.00 -0.75 10-year US dollar swap spread 1.00 -0.50 30-year US dollar swap spread -26.75 – 0.25 spread (Reporting by Karen Pierog; Editing by Dan Grebler)


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Durbin says GOP is playing ‘loaded gun’ on US debt limit https://ctxetg.com/durbin-says-gop-is-playing-loaded-gun-on-us-debt-limit/ https://ctxetg.com/durbin-says-gop-is-playing-loaded-gun-on-us-debt-limit/#respond Sun, 03 Oct 2021 15:15:12 +0000 https://ctxetg.com/durbin-says-gop-is-playing-loaded-gun-on-us-debt-limit/ (Bloomberg) – Senate Majority Whip Dick Durbin has accused Republican Leader Mitch McConnell of “playing games with a loaded gun” by threatening to obstruct a suspension of the U.S. debt ceiling, saying the Democrats are ready to pass the measure themselves. Bloomberg’s Most Read “We’re going to get there,” Durbin, an Illinois Democrat, said Sunday […]]]>

(Bloomberg) – Senate Majority Whip Dick Durbin has accused Republican Leader Mitch McConnell of “playing games with a loaded gun” by threatening to obstruct a suspension of the U.S. debt ceiling, saying the Democrats are ready to pass the measure themselves.

Bloomberg’s Most Read

“We’re going to get there,” Durbin, an Illinois Democrat, said Sunday on CNN’s “State of the Union.” “And we’ll do it responsibly and deal with it when we get back next week.”

Treasury Secretary Janet Yellen said last week that U.S. government liquidity would be depleted around October 18, underscoring the market risk associated with the political deadlock in Washington. President Joe Biden said on Saturday it would be “unreasonable” if Republicans blocked a debt limit vote in the equally divided Senate.

Legislation passed by the United States House would suspend the federal debt limit until December 2022.

With Senate Majority Leader Chuck Schumer calling on Republicans to let Democrats erase the measure with just 51 votes, McConnell is expected to step aside, Durbin said. The senatorial minority leader “is wrong” if he thinks he will score political points with his position, he said.

“Let’s do it by a majority vote, by a Democratic vote,” Durbin said. “We will accept this responsibility. “

Bloomberg Businessweek Most Read

© 2021 Bloomberg LP


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Why 0% finance offers don’t always make sense https://ctxetg.com/why-0-finance-offers-dont-always-make-sense/ https://ctxetg.com/why-0-finance-offers-dont-always-make-sense/#respond Sat, 02 Oct 2021 16:00:38 +0000 https://ctxetg.com/why-0-finance-offers-dont-always-make-sense/ Recently my house air conditioning system decided to fail, without warning, around the hottest day of the year. Since the system was older, fixing it didn’t make sense for my personal finances. I was pretty much forced to replace it with a new model – at a price of around $ 7,000. I was really, […]]]>

Recently my house air conditioning system decided to fail, without warning, around the hottest day of the year. Since the system was older, fixing it didn’t make sense for my personal finances. I was pretty much forced to replace it with a new model – at a price of around $ 7,000. I was really, really unhappy.

Fortunately, I had the $ 7,000 available in my savings account to cover this expense. I make a point of saving money for emergencies because as a homeowner I know costly repairs can happen at any time.

I almost didn’t withdraw my savings because the air conditioning company offered me a deal that looked good: finance my new air conditioner at 0% over 24 months. With this offer, I could have accepted a monthly payment of around $ 300, which my incoming paychecks could cover without drawing on my savings. And since this was a 0% financing offer, I told myself that I had nothing to lose.

In the end, I paid for the replacement of my air conditioning system using the money from my savings. Here’s why.

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The capture with 0% funding

You might assume that 0% finance offers sound too good to be true. But for the most part, they are completely legitimate. It’s not uncommon to receive these offers to finance a purchase, whether it’s furniture, a new car, or a home repair.

But before signing up for a 0% finance offer, it pays to ask a key question: is there a discount for paying directly?

Often times, when companies offer 0% financing on an item or service, they factor the cost of the financing into the quote for the job. I was quoted about $ 7,200 to replace my air conditioner at first, but that $ 7,200 assumed I would fund the replacement unit.

When I requested a discount for not financing my air conditioner, the quote fell to about $ 6,900. It is still a lot of money. But since I had money in my savings account, and withdrawing that money wouldn’t deplete my emergency fund, I thought it made more sense to pay for my air conditioner up front and save the $ 300.

It does not mean that you always get a discount if you forgo 0% financing and pay in one lump sum. But in some cases, you will get some savings by paying directly. And that’s why 0% finance offers don’t always make sense.

If you don’t have money in savings to cover a given expense, or if you want to keep more cash (i.e. make sure you have enough cash), then financing offers at 0% is often a good way to go. Say you are looking to buy furniture worth $ 5,000 and can finance it at 0% over two years. If you only have $ 7,000 in your savings account, you should probably take out the Funding Agreement. If you don’t, you will end up with only $ 2,000 in the bank to cover unforeseen expenses.

But if in this example you have $ 25,000 in savings, you might want to pay for your furniture directly if you can get a discount. In that case, you’ll still have $ 20,000 in cash, and if that’s enough to cover at least three full months of living expenses, you don’t have to worry about withdrawing $ 5,000.

In my case, I’m glad I asked to prepay for my air conditioner in exchange for a small discount. Although I was unhappy with the expense, saving a little bit of money made me feel better about the big picture.


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Poor countries shouldn’t be forced into debt to tackle the climate crisis | The Secret Negotiator https://ctxetg.com/poor-countries-shouldnt-be-forced-into-debt-to-tackle-the-climate-crisis-the-secret-negotiator/ https://ctxetg.com/poor-countries-shouldnt-be-forced-into-debt-to-tackle-the-climate-crisis-the-secret-negotiator/#respond Sat, 02 Oct 2021 07:00:00 +0000 https://ctxetg.com/poor-countries-shouldnt-be-forced-into-debt-to-tackle-the-climate-crisis-the-secret-negotiator/ OOne of the biggest issues at Cop26 is climate finance, the finance that is supposed to be provided by the rich world to developing countries to help us reduce greenhouse gas emissions and adapt to it. impact of the climate crisis. Back at the Copenhagen Cop in 2009, we were promised at least $ 100 […]]]>

OOne of the biggest issues at Cop26 is climate finance, the finance that is supposed to be provided by the rich world to developing countries to help us reduce greenhouse gas emissions and adapt to it. impact of the climate crisis.

Back at the Copenhagen Cop in 2009, we were promised at least $ 100 billion (£ 74 billion) per year in climate finance by 2020 and each year thereafter until at least 2025. But that goal was missed. Recently we saw an OECD report that found that in 2019 only around $ 80 billion was provided.

These kinds of sums may seem small compared to what big countries are spending on Covid, but they would make a huge difference to us on the ground. The extreme weather conditions seen around the world over the past year follow years of hurricanes, tropical storms, floods, droughts and all manner of damage caused by global warming, as has clearly indicated the Intergovernmental Panel on Climate Change.

Keep in mind that this promised climate finance is on top of what developing countries are spending on climate themselves. An increasing proportion of national budgets are used to deal with the effects of the climate crisis, such as dealing with natural disasters or repairing damage.

We understand that developed countries are busy putting their own economies in order after Covid, and that’s why we didn’t have much progress on climate finance before this COP. But $ 100 billion is a drop in the ocean, and that number is not the only story here: the money is not distributed evenly.

Larger developing countries take most of the available funds. They can easily attract finance and have infrastructure and renewable energy projects, such as wind and solar farms, that require investment and generate profits, which investors appreciate.

But for us, who are nano-emitters on a global scale, reducing emissions is not a priority. Adaptation is.

Worse yet, much of the money comes in the form of loans, not grants – about two-thirds of climate finance is loans. This creates a climate debt trap. We are already in a debt trap because of Covid, and it is getting worse. How do you expect us to take more loans, get even deeper into debt, for something we didn’t cause in the first place?

UN Secretary-General António Guterres has called for 50% of climate finance to go to adaptation, which would benefit us and ensure that more money is spent with the least developed countries, not just the least developed countries. middle-income countries.

Here’s another idea: developed countries could agree to debt-for-adaptation swaps. So instead of developed countries insisting that we repay our current hard currency loans, which is difficult for us, these repayments could be converted into local currency and spent locally for adaptation. This would stimulate our economy, save us from having to raise hard currencies to repay loans, and allow us to better withstand extreme weather conditions. This idea was put forward by Germany and we hope that other countries will take it up.


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AIP buys Gupta’s aluminum smelter in Dunkirk after payment default https://ctxetg.com/aip-buys-guptas-aluminum-smelter-in-dunkirk-after-payment-default/ https://ctxetg.com/aip-buys-guptas-aluminum-smelter-in-dunkirk-after-payment-default/#respond Fri, 01 Oct 2021 19:24:00 +0000 https://ctxetg.com/aip-buys-guptas-aluminum-smelter-in-dunkirk-after-payment-default/ The GFG Alliance flag flies following a £ 330million deal to buy Britain’s last aluminum smelter at Fort William Lochaber, Scotland, Britain on December 19, 2016. REUTERS / Russell Cheyne / File Photo LONDON, Oct. 1 (Reuters) – Buyout firm American Industrial Partners said on Friday it had acquired ownership of an aluminum smelter in […]]]>

The GFG Alliance flag flies following a £ 330million deal to buy Britain’s last aluminum smelter at Fort William Lochaber, Scotland, Britain on December 19, 2016. REUTERS / Russell Cheyne / File Photo

LONDON, Oct. 1 (Reuters) – Buyout firm American Industrial Partners said on Friday it had acquired ownership of an aluminum smelter in France after default on a GFG Alliance unit owned by the commodities mogul Sanjeev Gupta.

GFG, however, said it would fight against the takeover of the Dunkirk smelter, Europe’s largest primary aluminum producer.

GFG has been under pressure to find refinancing for its network of cash-strapped steel, aluminum and energy companies after supply chain finance firm Greensill filed for bankruptcy in March .

AIP said in a statement that the acquisition took place after the foreclosure of shares that had been pledged to AIP under mezzanine financing deals.

In July, GFG announced that it had reached an agreement with the commodities group Glencore (GLEN.L) to refinance the debt of its aluminum unit after the collapse of GFG’s main lender. Read more

GFG said in a statement that it had offered to repay the debt to AIP.

“AIP used his loan instead …

Glencore declined to comment.

AIP said the transfer of ownership was approved by French authorities and complied with European Union merger regulations.

“The purchase price (…) will be determined in due course by an independent appraisal,” the statement said.

French economy and industry ministers said they welcomed the prospect of stable ownership and the AIP’s commitments to maintain capacity at Dunkirk.

“This development, if it were to be finalized, would allow a positive outcome for the company and all of its staff,” said Bruno Le Maire and Agnès Pannier-Runacher in a press release.

AIP said it will continue to retain the current leadership of the foundry and that no disruption is expected.

“AIP expects to provide additional capital to support the business in the future,” he added.

The Dunkirk operation produced 284,000 tonnes of aluminum and employed 550 people in 2018. More recent data was not available.

Reporting by Eric Onstad, additional reporting by Gus Trompiz; Editing by Louise Heavens, William Maclean

Our Standards: The Thomson Reuters Trust Principles.


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