Monte Paschi posts worse than expected loss as bad loan charges rise – Yahoo Finance
(MBI) unit to help hedge against losses on a collateralized loan obligation backed by the two insurers. Radian is the second insurer, behind MBIA Insurance Corp., on a guarantee of about $377 million on a CLO called Zohar thats backed by loans to smaller companies. Radian purchased half of the protection in August 2013 and the rest in June, Chief Risk Officer Derek Brummer said today in an interview, after his Philadelphia-based firm disclosed the hedge on a conference call with analysts. We think theres certainly a risk of them defaulting, given their structured-finance portfolio, and also quite frankly their exposure to the transaction, Brummer said of MBIA by phone. Radian Assets overall book is very strong, so were in a position to take actions such as reasonably hedge a risk like this. The MBIA insurance unit was hobbled in the financial crisis by losses tied to soured mortgages. After being stripped of its top credit rating and cut to junk, the company was shut out of the business of guaranteeing bonds amid doubts about its ability to meet its obligations. Credit-default swaps that would pay out if MBIA Insurance fails to meet its obligations in the next three years have climbed to 8.28 percentage points upfront today from 3.23 percentage points in June, according to data provider CMA. That means it would cost $828,000 initially to protect $10 million of obligations through September 2017, in addition to $500,000 a year. The contracts are down from as high as 48 percentage points in November 2012 as the company settled claims on some of the most toxic debt it guaranteed.
Puedes ver la version sin traducir en http://www.bloomberg.com/news/2014-08-07/radian-adds-default-protection-on-mbia-to-hedge-loan-risk.html
5 Steps to Successful Small Business Loan Approval – Yahoo Finance
Please enter your Phone Number. Send Thanks! A link has been sent. Done Compare Brokers 5 Steps to Successful Small Business Loan Approval As the economic outlook improves for small business professionals, Advantage Capital Business Loans simplifies the financing process with 5 simple steps to loan approval Advantage Capital Business Loans 18 minutes ago 0 shares Content preferences Done LOS ANGELES, Aug. 7, 2014 /PRNewswire/ –The New York Times reports that small businesses are finding it easier to get the funding they need to grow their businesses and lender Advantage Capital Business Loans has noticed the trend as well. “It’s actually a really great time to access small-business capital,” says Keri Gohman, executive vice president and Capital One’s head of small-business banking. “Rates are low and banks are also feeling the economic recovery”. However, many analysts suggest it’s a bit too early for optimism. After all, even though small business loan approval at large banks reached 20%, up 9% from a year ago this past June, data from Biz2Credit shows that lending is still significantly down from pre-recession levels. This suggests that the climate at these large, traditional institutions still favors lending to large, multi-national corporations with little perceived risk over loans to smaller firms.
Puedes ver la version sin traducir en http://finance.yahoo.com/news/5-steps-successful-small-business-003000371.html
7 Ways To Deal With Bad Credit When Renting – Forbes
Beijing has been counting on consumption and a services sector dominated by private firms to take up the slack as it aims to cut industrial overcapacity and China’s over-reliance on large state-financed investment projects. While manufacturing and exports have been improving in recent months, a surprisingly weak service sector survey this week cast doubt on market assumptions that the world’s second-largest economy would stabilize this year around Beijing’s 7.5 percent growth target. WRONG RATIOS The average bad-loan ratio for Chinese commercial banks reached a three-year high of 1.08 percent at the end of June, above the regulator’s 1 percent red line, but still below most analysts’ estimates which range as high as 5 percent. Bankers and analysts expect bad debts to rise further as the slowing economy makes it harder to repay loans taken out during the Beijing-orchestrated lending binge to soften the impact of the global financial crisis and there are signs this rise could be faster than banks may have anticipated only a few months ago. Chinese firms remain under intense credit pressure, with strong demand for short-term debt, including high-yielding shadow banking instruments like bankers acceptance notes. ASSESSING THE DAMAGE Sources told Reuters BoCom’s management had grown increasingly concerned about a potential surge in bad loans in some regions in mid-July. In response, it set up teams to assess the situation in Zhejiang, Shandong, Fujian, Hubei and Guangdong provinces, according to two people with direct knowledge of the matter and an internal document reviewed by Reuters. Each team was assigned different tasks, such as checking borrowers’ assets, data collection and drafting tailor-made recovery plans for troubled borrowers, the document showed. Increased attention to bad debts and loan recovery should ensure banks maximize the value of their loan books. They have been selling off bad debts cheaply but major lenders now want to recover as many of them as possible.
Puedes ver la version sin traducir en http://news.yahoo.com/chinese-banks-serious-risk-bad-debts-swell-210957802–sector.html
Fitch to Rate South Carolina Student Loan Corp, 2014 Series; Presale Issued – Yahoo Finance
A link has been sent. Done Monte Paschi posts worse than expected loss as bad loan charges rise 4 hours ago Done By Silvia Aloisi and Stefano Bernabei MILAN (Reuters) – Italy’s third biggest bank, Monte dei Paschi di Siena (BMPS.MI), posted a worse-than-expected loss in the second quarter as charges on souring loans rose, underlining the challenges the bailed-out lender still faces to turn itself around. The bank, which received 4.1 billion euros (3.25 billion) in state aid last year, said the net loss in the three months between April and June stood at 178.9 million euros. That compared with an average forecast for a 57.5 million euros loss in a Reuters poll of eight analysts where the range of estimates went from a loss of 150 million euros to a profit of 15 million euros. It was the bank’s ninth consecutive quarterly loss. Net impairment losses on loans stood at around 1.2 billion euros in the first half, up 17.4 percent on a year earlier, bucking a declining trend seen by bigger domestic rivals Intesa Sanpaolo (ISP.MI) and UniCredit (CRDI.MI). Loan loss charges rose 53.5 percent quarter on quarter – with the bank saying this was due to the “transition of impaired loans to higher risk positions” and also “revised estimates of losses on certain non-performing loans”. Bad loans are the major problem for Italian banks ahead of a pan-European review of lenders’ assets and they are a major troublespot for Monte dei Paschi in particular because it has the highest proportion of soured loans among Italian lenders. Official figures released on Wednesday showed Italy unexpectedly slid into recession for the third time since 2008 in the second quarter, making it even harder for banks to keep a lid on bad debts.
Puedes ver la version sin traducir en http://finance.yahoo.com/news/monte-paschi-posts-worse-expected-184016794.html
Chinese banks get serious about risk of bad debts swell – Yahoo News
Be Honest and Show Progress Sometimes, bad credit isnt a reflection of bad money management. You may have lost your job, suffered from medical problems or experienced another financial setback that was out of your control. If this is the case, be upfront about itbefore the landlord even runs your credit check. Your willingness to admit and own up to your bad credit is a point in your favor. It also helps to be able to demonstrate the steps youve taken, and are currently taking, to fix the problem. This will show the landlord youre responsible and committed, even if your credit isnt perfect. 3. Pay in Advance or Increase Your Security Deposit Bad credit makes landlords nervous because it indicates you might default on the rent. By paying a month or more in advance or offering a two-month security deposit, you can alleviate their concerns. Not only does this show your commitment, it also provides them with extra cash that can cover some of the losses and damages, should you skip out on the rent. (Which, of course, you wont.) 4.
Puedes ver la version sin traducir en http://www.forbes.com/sites/trulia/2014/08/07/7-ways-to-deal-with-bad-credit-when-renting/?ss=personalfinance
All servicers have demonstrated adequate servicing capabilities. RATING SENSITIVITIES Since FFELP student loan ABS rely on the U.S. government to reimburse defaults, ‘AAAsf’ FFELP ABS ratings will likely move in tandem with the ‘AAA’ U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch’s published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades. Key Rating Drivers and Rating Sensitivities are further described in the pre-sale report titled ‘South Carolina Student Loan Corporation, 2014 Series’, dated August 4, 2014, available on www.fitchratings.com , or by clicking on the link.
Puedes ver la version sin traducir en http://finance.yahoo.com/news/fitch-rate-south-carolina-student-200700943.html