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Princess Leonor of Spain, 15, arrives for confirmation in Madrid

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Princess Leonor of Spain cut an elegant figure as she arrived alongside her family for her confirmation in Madrid, Spain today.

The young princess, 15, a student at Santa Maria de los Rosales school, opted for a royal blue dress which she coordinated with a pair of nude beige pumps, and wore a navy blue mask that complies with the regulations on coronaviruses.

The royal, who was joined by her sister Princess Sofia and her parents King Felipe, 52, and Queen Letizia, 48, is confirmed at the Parroquia de la Asunción de Nuestra Señora de Aravaca, who is the same church where she made her first communion in 2015.

The teenager, who turns 16 in October, will study from September at the famous UWC Atlantic College, based at St Donat’s Castle in 12th century Wales.

Princess Leonor of Spain cut an elegant figure as she arrived alongside her family for her confirmation in Madrid, Spain today. Pictured are Princess Leonor, King Felipe VI of Spain, Queen Letizia of Spain and Princess Sofia

The 15-year-old princess, a student at Santa Maria de los Rosales school, opted for a royal blue dress that she coordinated with a pair of nude beige pumps.  In the photo, with her younger sister Infanta Sofía, 13 (far right)

The 15-year-old princess, a student at Santa Maria de los Rosales school, opted for a royal blue dress that she coordinated with a pair of nude beige pumps. In the photo, with her younger sister Infanta Sofía, 13 (far right)

Princess Leonor wore her shoulder-length blonde locks and opted for no jewelry, while her younger sister, Infanta Sofía, 13, opted for a floral dress and wore her hair in loose curls that cascaded over his shoulders.

Meanwhile, their mother, Queen Letizia, effortlessly donned a monochrome ensemble, pairing a white blouse with sleek black pants.

While Princess Leonor will be joined by her classmates, due to COVID-19, only parents and siblings of confirmed students are allowed to attend the service in Madrid, Hola! reports.

In September, Princess Leonor will begin her two-year course at the boarding school, where her parents will personally bear the cost of the course of £ 67,000.

The most recent former royal pupil was Princess Elisabeth of Belgium, 19, daughter of King Philippe and Queen Mathilde, who enrolled in 2018 but had to cut her time in college due to the Covid pandemic -19, and continued his education online from home.

The school, for students aged 16 to 19, says it seeks to “inspire change makers” who want to work for the common good.

The royal is confirmed at the Parroquia de la Asunción de Nuestra Señora de Aravaca, which is the same church where she made her First Communion in 2015. In the photo, with her father, King Felipe VI of Spain

The royal is confirmed at the Parroquia de la Asunción de Nuestra Señora de Aravaca, which is the same church where she made her First Communion in 2015. In the photo, with her father, King Felipe VI of Spain

Queen Letizia of Spain donned a monochrome ensemble, pairing a white blouse with sleek black pants.  Pictured are Princess Leonor, King Felipe VI of Spain, Queen Letizia of Spain and Princess Sofia arrive for Princess Leonor's confirmation

Queen Letizia of Spain donned a monochrome ensemble, pairing a white blouse with sleek black pants. Pictured are Princess Leonor, King Felipe VI of Spain, Queen Letizia of Spain and Princess Sofia arrive for Princess Leonor’s confirmation

He is looking for students who “can navigate the complexity of life and (reach) beyond easy answers,” the school’s website said.

The royal family’s statement noted the school’s “open and critical approach”. The school says it welcomes students from around 150 countries.

Princess Leonor was granted admission to the school anonymously, passing several tests before being accepted, the royal household said.

The United World College Movement includes 18 schools around the world, according to the website.

Leonor, who already speaks five languages, became his illustrious “right-hand daughter” father, discharging his royal duties with “enormous eagerness,” according to Felipe.

Growing up in the limelight since her father inherited the throne from King Juan Carlos in 2014, she has learned to keep calm under pressure and has already adopted the refined style of her royal mother, Queen Letizia.

Much like her father, who first spoke publicly as a young prince in 1981, she gave her first public speech at just 13 at an event marking the 40th anniversary of Spain’s constitution in 2018.

Leonor will study a selection of subjects, including core courses such as biology, chemistry, economics, English literature, geography, history, mathematics and physics.

In September, Princess Leonor will begin her two-year course at the boarding school, where her parents will personally bear the cost of the course of £ 67,000.  Pictured are Princess Leonor, King Felipe VI of Spain, Queen Letizia of Spain and Princess Sofia

In September, Princess Leonor will begin her two-year course at the boarding school, where her parents will personally bear the cost of the course of £ 67,000. Pictured are Princess Leonor, King Felipe VI of Spain, Queen Letizia of Spain and Princess Sofia

It will also have a wide choice of electives to choose from, including design technology, visual arts, film studies, music, and global politics.

Passionate linguist Leonor, who gave an impressive speech in four languages ​​in 2019 at an event in Barcelona in 2019 on her second official release, will also be able to study foreign languages ​​and literature at her leisure.

Literary options at the College range from English and French literature to Czech, Russian, Tibetan, Swedish and Urdu literature.

A stay at the College of the Atlantic will also help Leonor to make international friends and learn about different cultures, in keeping with the institution’s motto of promoting “mutual understanding” among their 350 students.

Nicknamed the “Hippie Hogwarts,” the boarding school counts Queen and Queen Noor of Jordan as its current co-chairs and encourages international cooperation from students from all walks of life.

In 2018, The Times reported that students were discouraged from showing off their wealth with expensive gadgets and were also likely to hang out with “West African refugees” and “California hippies.”

Princess Leonor wore her shoulder-length blonde locks and opted for no jewelry, while her younger sister, Infanta Sofía, 13, opted for a floral dress and wore her hair in loose curls that cascaded over his shoulders.  Pictured are King Felipe VI of Spain, Princess Leonor, Princess Sofia and Queen Letizia

Princess Leonor wore her shoulder-length blonde locks and opted for no jewelry, while her younger sister, Infanta Sofía, 13, opted for a floral dress and wore her hair in loose curls that cascaded over his shoulders. Pictured are King Felipe VI of Spain, Princess Leonor, Princess Sofia and Queen Letizia

Founded in 1962 by German educator Kurt Hahn, he believed that his approach to education, for students aged 16 to 19, could lead to faster resolution of international conflicts, a philosophy that is still carried by the establishment that aims to “promote mutual understanding”.

He has also seen a growing list of members of the international royal family sitting on the benches of St Donat Castle over the years.

King Willem-Alexander, King of the Netherlands, studied at the College from 1983 to 1985 and obtained an International Baccalaureate before performing his military service and studying history at the University of Leiden from 1987 .

Princess Raiyah of Jordan, daughter of King Hussein of Jordan and Queen Noor, also attended her institution as a teenager before studying Japanese as an undergraduate at the University of Edinburgh.

King Felip VI also attended international high school as a teenager, although he attended Lakefield College School in Canada rather than Wales. He then returned to Spain to study law at the Autonomous University of Madrid.


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What Every Student Loan Borrower Should Know About The New Relief Law

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The tax code provides for several exceptions to this logical treatment, one of which concerns student loans. If the loan requires a student to work “for a certain period of time in certain occupations” in exchange for “paying off the loan,” then that paid debt is excluded from taxable income. A similar exception applies to students who work for public interest organizations such as public defender’s offices or non-profit hospitals for at least ten years. But apart from these two situations, when a student loan is canceled, the released balance is generally taxable.

The new provision concerns so-called “income-based repayment” student loans that require a person to pay amounts based on their annual income for twenty or twenty-five years, depending on the specific program involved. After this time, any remaining loan balance is canceled. Prior to the adoption of this new provision, the remaining loan balance was taxable in the year the loan was canceled. The new provision, however, makes the forgiven loan balance tax-exempt if the forgiveness occurs between 2021 and 2025.

This arrangement is remarkable for three distinct reasons. First, while all other payments and tax credits included in the American Rescue Plan Act only apply to 2021, this provision applies for a full five years. Second, there is no dollar limit on the amount of forgiven debt that can be considered tax-free income. And third, there is no income limit for taxpayers who can avail themselves of this provision, unlike the other benefits provided for in the new law.

This new provision is a huge benefit to taxpayers who complete their required payback period within the five-year term of this provision, and other student borrowers may hope that this provision could be extended beyond 2025. Although the new The law does not cancel any student loans, it could foreshadow more important changes to come.

Richard L. Kaplan holds the Guy Raymond Jones Chair in Law at the University of Illinois College of Law at Urbana-Champaign.


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Billionaire Kanye West’s Yeezy Received Multi-Million Dollar PPP Loan

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TOP LINE

On his heels announcement running for president, documents reveal that billionaire Kanye West’s fashion company Yeezy has received more than $ 2 million through the Paycheck Protection Program (PPP) – he owns 100% of the company that Forbes estimates close to $ 1.3 billion in 2019.

HIGHLIGHTS

Yeezy received between $ 2 million and $ 5 million through the PPP and said he saved 106 jobs, according to a report disclosed Monday by the Small Business Administration (SBA) of the US Treasury.

The US Treasury released the names of companies that received P3 loans over $ 150,000 after Democrats, government watchdogs and media required more transparency.

ASB noted that loans over $ 150,000 represent almost three-quarters of the total amount of loans approved, but that 87% of businesses received loans below this amount and the average is $ 107,000.

Other companies linked to the Trump administration I have money this tour, including the family business of Transportation Secretary Elaine Chao, Foremost Maritime and Joseph Kushner Hebrew Academy in New Jersey, named after Trump’s son-in-law and Councilor Jared Kushner’s grandfather.

key background

The PPP was created under the $ 2.2 trillion CARES law, enacted by Trump in late March. Saturday, Trump signed in law a bill to extend the PPP for another five weeks, just three days after it expires.

chief critic

Treasury Secretary Steven Mnuchin hinted last month that the Trump administration would not disclose the names of the companies because it considered the loan information to be owner and confidential to business owners. The Treasury and the SBA later noted they would publish the names and data of businesses with loans of $ 150,000 or more.

further reading

Trump administration releases list of companies that received most money from small business bailout loans (CNBC)

Trump signs PPP extension bill – giving small businesses 5 extra weeks (Forbes)

Elon Musk and Kim Kardashian back Kanye West’s candidacy for president (Forbes)

Kanye West is now officially a billionaire (and he Truly Wants the world to know (Forbes)

Disclosure: Forbes Media LLC confirmed on July 6, 2020 that it received a Paycheck Protection Program loan of $ 5-10 million on April 15.


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Buy cash or get a mortgage?

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Many homebuyers use a mortgage to buy a home, but there are those who are fortunate enough to be able to pay in cash – and in today’s booming real estate market, cash buyers have a lot more leverage. Is buying a house with cash the best financial decision? If you weigh the pros and cons of buying a home for cash versus getting a mortgage, here are the main points to consider.

When should you consider paying cash for a house?

A single cash offer could be profitable in several ways. Here are a few reasons to consider making one:

To beat other buyers

In today’s market, sellers favor cash offers because they will be able to close the sale faster and without the risk of seeing the deal collapse if a mortgage approval does not go through as planned.

To speed up the process

Paying cash can also simplify the home buying process. There’s no loan application, underwriting, or approval, so you’ll save yourself the potential headaches and stress of dealing with a lender, and you might not have to wait that long. to conclude.

To ignore the upfront fees

If you have the funds, paying cash for a house definitely saves you money, since you won’t have to pay the costs associated with a mortgage. Origination fees, evaluation fees and others closing costs can total several thousand dollars.

To reduce your costs in the long run

Without a loan, you also won’t be spending money each month on interest charges, which add up to the typical 30-year mortgage.

“You don’t have a mortgage payment and paying cash gives you the actual opportunity cost of the mortgage,” says Leon LaBrecque, director of growth and certified financial planner at Sequoia Financial Group in Troy, Michigan. “Not having a 2.875% mortgage is like earning 2.875%.”

When should you consider getting a mortgage?

The question is not simply “Can you buy a house with cash?” ” although. It’s important to ask yourself if you should be spending all that money up front. Here are some of the benefits of borrowing a mortgage instead of using your own funds to buy a home:

To earn more than what you save

A compelling reason to consider getting a mortgage is historically low interest rate. Currently, the benchmark 30-year fixed-rate mortgage is 3,000%, according to Bankrate’s survey of domestic lenders. Locking in a low fixed rate on a 30-year mortgage helps you free up money for other purposes, like a mortgage. emergency fund, investments or the financing of your retirement accounts.

To reduce your tax bill

If you normally itemize deductions on your tax return, getting a mortgage can reduce what you owe because mortgage interest is tax deductible. This can be very important for high earners who typically retail and want to maximize their deductions.

To build credit

Having debt is not necessarily a bad thing. Have a mortgage gives you the chance to make those regular payments that make you look great in the eyes of the major credit reporting agencies. In the long run, managing your mortgage debt on a regular basis can help improve your credit score.

“Mortgage debt is good debt because it is about an asset that appreciates, not an asset that depreciates like a car or a boat,” says Allan Moskowitz, a certified financial planner at Transformative Wealth Management in El Cerrito, in California.

Considerations to Consider When Deciding to Buy a Home with Cash or a Mortgage

When considering buying a home with cash, ask yourself these questions to help guide your thinking:

1. What is the state of the housing market?

If you really want to secure this home, keep in mind that another buyer might feel the same way. If so, an all-cash offer can make all the difference. A recent report Real Estate Brokerage Redfin has found that making an all-cash offer improves the odds of winning a auction war by 290 percent.

2. How much more will you pay with a mortgage?

Suppose you want to buy a house for $ 360,000, making a 20% payment of $ 72,000 for a 30-year mortgage for the remaining $ 288,000, with a fixed interest rate of 3%. The closing costs are typically 2% to 4% of the loan principal, so in this case, that’s between $ 5,760 and $ 11,520.

Using Bankrate Mortgage Calculator, at the end of the loan term, you can estimate that you will pay a total of approximately $ 149,167 in interest. By adding your total interest to your closing costs, you will end up paying an additional $ 154,927 to $ 160,687 over a 30-year period.

This cost could be offset to some extent if you are a taxpayer who itemizes deductions on your return. You could get tax savings every year if you are able to deduct your mortgage interest payments. If you are married, you can deduct interest up to $ 750,000 from qualifying home loans. If you are married and file separately, this limit is halved to $ 375,000. If you are planning to buy a house with cash or take out a mortgage, you can use Bankrate’s mortgage interest tax deduction calculator to understand how a mortgage will impact what you owe.

3. How much money will you have left if you pay cash?

If you are paying cash for a house, you might feel good knowing that you won’t have bills for your mortgage, but make sure you don’t stretch your finances too much to achieve this. You will still need to have an emergency fund in place, and you will need enough money to cover home maintenance and repairs. You’ll also want to make sure that your cash purchase doesn’t impact saving for retirement or other overall expenses.

At the end of the line

Ultimately, the competition between buying a home with cash and a mortgage depends on your overall financial situation, not just the home itself.

Buying cash to save on mortgage interest might not be the best choice if you would otherwise be able to invest the money, in the stock market or elsewhere, for a higher return. If you can lock in a mortgage at today’s low rates, you can take advantage of the lender’s money to purchase your home.

Getting a mortgage can offer great financial flexibility by keeping more of your cash to use in an emergency – but, for retirees or those who want to be debt-free, buying cash can offer certainty. and security difficult to implement. price on. Whatever your age or financial situation, paying with cash gives you the peace of mind that you are not in debt on your most important asset: your home.

If you decide to buy your home with a mortgage, you can easily compare mortgage lenders and offers on Bankrate. Whether you’re looking for a 15-year or 30-year mortgage, you can compare rates from lenders in your area, along with estimated closing costs, to find out the true cost of financing your home.

Learn more:


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Here’s how the small business loan program went wrong in just 4 weeks

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Trish Pugh started a trucking business in Ohio with her husband in 2015. Even for a small business, it’s small – they had two drivers, including her husband, until they let go of one. cause of the coronavirus crisis.

And so, his company applied for a loan under the $ 349 billion first round of the Paycheck Protection Program, which the federal government put in place to save small businesses.

It didn’t go well.

First, there was confusion between her, her banker, and the Small Business Administration over the forms needed to apply. And then, once she did, she soon found out that she had missed the money.

“I click on this website and it tells me I have to reapply when more funds are available. I was devastated,” she said.

Not only did that first pot of PPP money run out in 13 days, freelancers like Pugh were only able to apply for a week. after the program opened. This puts them far behind other companies in the first come, first served program.

“We’re basically preparing to lose everything, and it’s really sad because we did it on our own at the start,” Pugh said as she prepared to apply for the second round of the program, which features funding of $ 321 billion. “Now that we need help, we cannot get help.”

Pugh has since informed NPR that she ended up getting a loan of just over $ 10,000. It will help her, but she doesn’t know how long it will keep her business running.

Frustrations like Pugh’s have been common since the launch of the Small Business Rescue Program. But his experience was only part of the problems that plagued the PPP in the first round when the program ran out of money and also the faltering start of the second round. Here is a list:

Some not-so-small businesses, like Shake Shack, have obtained loans

The PPP was created to allow any business with less than 500 employees to obtain loans. But several large companies that operate with fewer employees in separate locations, under a franchise model, have also applied for and received loans. Shake Shack, for example, employs nearly 8,000 people at its 189 US restaurants, but only about 45 at each site.

So the chain applied for and got a $ 10million loan from the SBA, causing public outcry, especially after building up evidence that many small restaurants in need of the cash were unable to obtain. loans. Shake Shack quickly returned the money. The company, which has $ 104 million in cash and cash flow, said he obtained other loans to cover the money allegedly coming from the SBA.

Likewise, the chain of steakhouses Ruth’s Chris Steak House, which has approximately 5,700 employees, received a total of $ 20 million and also returned it.

The LA Lakers also got a loan

Then there were other organizations that are not quite what most people would call a small business. As the Los Angeles Lakers basketball team, the eighth most valuable sports team in the world, valued at an estimated $ 3.7 billion, according to Forbes.

But the Lakers applied and received a $ 4.6 million small business loan. Once again, after media coverage, the Lakers decided to return it.

“Once we found out that the program funds had run out, we repaid the loan so that financial support was directed to those who need it most,” the team said in a statement.

Shortly after public outrage over well-known large corporations escalated, the SBA announced it would take a closer look at PPP loan applications over $ 2 million.

Banks raised $ 10 billion, just in fees

Another big beneficiary of the small business loan program: the banks.

Even though tens of thousands of small businesses were excluded from the program, banks have incurred more than $ 10 billion in fees, according to an NPR analysis of financial records.

SBA guaranteed loans carry very little risk and banks were happy to hand out larger loan amounts, resulting in higher fees.

Much of the money was spent on successful businesses, not struggling

Big business, as we now know, got loans. Now, it looks like businesses haven’t had to struggle to get a loan either.

Chembio diagnosis, a Long Island, NY-based company that manufactures infectious disease tests, has secured nearly $ 3 million from the program.

It was exactly the kind of cash injection the business needed to grow. “In order for us to be able to increase our manufacturing capabilities, we thought having this additional amount or loan would be very helpful,” said Gail Page, Chembio board member and former interim CEO.

The problem is, the program was not designed to help businesses grow. It was meant to save small businesses, nonprofits, and the self-employed who struggled to make their payroll or pay for benefits and utilities.

Some small businesses say loans have too many chains

Business owners lucky enough to get the financing said the money kept their businesses afloat. However, some owners also said The PPP rules do not allow them to use the money in the way they consider best.

Among their biggest complaints: 75% of the amount given back on loans must be spent on payroll. The rest can only be spent on a few categories: rent, mortgage interest, or utilities.

But with many businesses unable to reopen, owners are wondering how to spend so much on wages when they have little to no work for their employees.

“I understand in principle that this encourages us to get people back to work,” said Christian Piatt, co-owner of Brew Drinkery in Granbury, Texas. “But in practice, when you have a retail storefront that is not licensed by local authorities to operate as we did before, there should be some consideration to take that into account.”

Will the loans have to be repaid or will they be canceled?

To further complicate all of this, some businesses and finance professionals are unsure whether loans will need to be repaid or canceled. They were waiting for more details from the SBA on how forgiveness works.

“In some ways they really put these small businesses in a very compromising position because they could end up in a situation where they would spend money to get people back on the payroll which ultimately will not be forgiven. the end, ”said Don Stevens, managing partner of private client services at the accounting firm CohnReznick.

It is important that businesses understand all of this quickly. Forgiveness calculations will be based on how businesses spend their money within eight weeks of receiving it. The program opened on April 3, so there are about four weeks left before the first companies have to report their expenses to the SBA.

And just when you think things couldn’t be worse the site has crashed the first day of the reopening of the second round of financing, April 27.

Copyright 2021 NPR. To learn more, visit https://www.npr.org.


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What is a combined loan-to-value ratio?

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The combined loan-to-value ratio (CLTV) is a calculation used by mortgage and loan professionals to determine the total percentage of a homeowner’s property that is encumbered with liens. The CLTV ratio is determined by adding the balances of all outstanding loans and dividing by the current market value of the property. For example, a property with a first mortgage balance of $ 300,000, a second mortgage balance of $ 100,000 and a value of $ 500,000 has a CLTV ratio of 80%.

Lenders use the CLTV ratio along with a handful of other calculations, such as the debt to income ratio and the standard loan-to-value ratio (LTV), to assess the risk of granting a loan to a borrower. The CLTV ratio differs from the standard LTV ratio because the latter only compares the balance of a loan to the value of the property. In the example above, the property has an LTV ratio of 60%, which is obtained by dividing only the balance of the first mortgage by the value of the property.

Many economists attribute the relaxation of CLTV standards to the seizure crisis that plagued the United States in the late 2000s, among other factors. Beginning in the 1990s and especially in the early and mid-2000s, homebuyers frequently took out a second mortgage at the time of purchase instead of making down payments. Lenders, keen not to lose these clients’ businesses to competitors, have agreed to such terms despite the increased risk.

Before the real estate bubble that spread from the late 1990s to the mid-2000s, it was common practice for homebuyers to make down payments totaling at least 20% of the purchase price. Most lenders have kept clients within these parameters by capping the LTV at 80%. When the bubble started to heat up, many of those same companies took steps to allow customers to bypass the 20% bet. Some lenders have raised LTV caps or removed them altogether, offering mortgages with down payments of 5% or less, while others have kept LTV requirements in place but raised CLTV caps, often to 100. %. This maneuver allowed clients to take out second mortgages to finance their 20% down payment.

The foreclosure peak from 2008 underscored why CLTV is important. Having the skin in the game, such as an initial down payment of $ 100,000 for a $ 500,000 home, provides the homeowner with a powerful incentive to maintain their mortgage payments. If the bank forecloses, he loses not only his house but also the pile of money he paid to close. Requiring equity in the property also insulates lenders from falling property prices. If a property is valued at $ 500,000 and the total of the liens amount to $ 400,000, the property can lose up to 20% of its value without any lien holder receiving a short payment upon termination. a foreclosure auction.


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Loan funds attract new money as interest rates rise

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State Street Corp Updates

Investors have invested more money in bank loan funds over the past week than at any time in more than a year as rising interest rates have increased the attractiveness of fixed income assets. variable compared to traditional bonds.

Loan funds posted net inflows of $ 925 million in the week to Wednesday, the largest in 55 weeks, according to EPFR Global.

The flows came the same week the benchmark 10-year Treasury yield hit a seven-year high above 3%, and after short-term rates rose sharply this year, in line with rate hike expectations. from the Federal Reserve.

Loans generally pay a variable rate, which increases with the underlying rates. In contrast, rising rates erode the value of fixed-rate securities.

Funds that invest in high yield bonds, which pay a fixed rate, suffered outflows of $ 1.3 billion last week, the EPFR said.

“We’ve certainly seen a lot of interest,” said Matthew Bartolini, head of SPDR Americas research at State Street Global Advisors, citing “the rising rate environment, particularly on the short end of the curve where the [Federal Reserve] has a lot of influence ”.

The US central bank has been raising short-term rates since December 2015, but the pace has picked up over the past year and a half, pushing short-term rates higher. The US three-month Libor rose to 2.33% from 1.45% at the same date last year. Interest on bank loans is usually tied to Libor.

Bank loans tend to take priority over other forms of borrowing, which puts them at the top of the pecking order for payments in the event of a business failure. But these investments are not without risk, especially in times of high demand.

“We have been optimistic, but we are starting to get more cautious,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors. “There were a lot of new issues in the first quarter. The problem when borrowers take on more variable rate debt as a percentage of their total liabilities is that it accelerates their inability to pay that variable rate coupon.

The value of the US leveraged loan market broke the $ 1 billion mark for the first time in recent weeks, raising concerns in some quarters. Lending standards can deteriorate when demand is strong, and so-called light covenants, which offer less protection to investors, accounted for 80% of the total issued in April, according to S&P Global.

Elsewhere in EPFR data, which covers the week ended Wednesday, funds investing in Chinese stocks have attracted $ 545 million in new cash, eight straight weeks of net inflows. This is the longest streak since the first quarter of 2013.

Funds that buy stocks in the Greater China region, which includes Hong Kong and Taiwan as well as the mainland, have attracted more than $ 300 million, the most since June 2015.

Investors said enthusiasm for the Chinese economy and the inclusion of domestic Chinese equities, known as A-shares, in the MSCI Emerging Markets benchmark next month outweighed concerns about trade tensions with the United States.

US equity funds also had a good week, with net inflows of $ 8.8 billion, a nine-week high, while emerging market bond funds remained under pressure. Net repurchases of the latter amounted to $ 1.27 billion.


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Who benefits from the student loan forgiveness? It is complicated

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The Department of Education (DOE) has given the more than 40 million Americans who have direct federal loans and PLUS loans an extra month of respite. The forbearance extension, the pause in the accumulation of interest and the suspension of collection activities will run until January 31, 2021.

Jill schlesinger

The decision should help borrowers prepare for the future. Although President-elect Joe Biden has not pledged to take any specific action on student loans, he is expected to continue to freeze payments and interest before considering his campaign politics education loan goals, which included : assistance for undergraduate borrowers earning $ 25,000 or less; automatic enrollment in the income-based repayment program, with the option to opt out if borrowers so wish; and changes to the taxation of debt forgiveness. The Biden plan also envisioned canceling up to $ 10,000 in debt for students working in national or community service.

The idea of ​​a wider student loan forgiveness always sounds like a great concept, but is it? The recent Federal Reserve Survey of Consumer Finances (FCS) noted that the nearly $ 1.6 trillion in student debt continued to be the largest source, in terms of dollars, of non-mortgage debt owed by American families. This fact might lead you to think: let’s get rid of it. But critics argue it would favor the wealthier people. The Fed’s investigation highlighted the problem, which became a flashpoint in the conversation: “Student debt has historically been disproportionately held by high-income families, which can likely support their families. loan repayments. Indeed, in each survey, more than half of outstanding student debt belonged to the top 40% of the income distribution, and the bottom quintile never held more than 14% of debt.

Researchers Sylvain Catherine, from the Wharton School of Business at the University of Pennsylvania, and Constantine Yannelis, from the Booth School of Business at the University of Chicago attempted to address the problem in a recent working paper. They found that “forgiveness would benefit the top decile just as much as it did the bottom three deciles combined” and “blacks and Hispanics would also benefit much less than the sales suggest.” And of course, canceling student debt wouldn’t benefit millions of Americans who didn’t go to college at all.

Hal Singer and Shaoul Sussman refute the argument that student debt cancellation is regressive in the American Prospect, saying it would “further reduce the student debt burden for low-income indebted households. In other words, low-income households would get the greatest relief in relation to their income. “

A closer look at the numbers strengthens the case for capping student loan forgiveness at a lower level. The Brookings Institution has found that “a very small fraction of all student loan borrowers have very large loans. Six percent of borrowers have more than $ 100,000 in debt, ”which represents about one-third of outstanding debt. “At the other extreme, 18% of borrowers have less than $ 5,000 in student debt. They collectively owe 1% of the outstanding debt.

While borrowers are likely to be relieved, is forgiveness the best way to stimulate economic activity? Jason Furman, former chief economist to President Obama, is not so sure. He tweeted: “I see very little overall help in this.” The singer and Sussman don’t buy it. They cite research from the Federal Reserve Bank of New York that shows student borrowers refrain from buying homes or cars because of their debt load. Without the debt anvil hanging over them, they might be able to participate more fully in the economy.

Where is this taking us? There are no simple answers, but I hope the post-COVID country is focusing its energy on how to fix the failing higher education system, root and branch, not just the associated loan programs. to diplomas.

Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she accepts comments and questions at [email protected] Check out his website at www.jillonmoney.com.


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US Small Businesses To Get More Money With Pandemic Loan Program Reopened By Reuters

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© Reuters. FILE PHOTO: Chinese restaurant and barber shop in Harlem closed,

By Michelle Price and Pete Schroeder

WASHINGTON (Reuters) – The U.S. government was scheduled to reopen its pandemic small business assistance program on Monday with $ 284 billion in new funding and overhauled rules that aim to provide cash to businesses most in need while eliminating fraud and abuse.

The Small Business Administration (SBA) announced Friday that it will launch a third round of the Paycheck Protection Program (PPP) this week, starting with small community financial institutions on Monday and larger lenders in the coming days.

By prioritizing small lenders, the SBA hopes to respond to criticism from lawmakers that minority and female-owned businesses did not get enough money in the first two PPP rounds last year by compared to large companies.

Administration officials told reporters on Friday they expected sufficient funds to meet demand.

Under the program, lenders on behalf of the government distribute loans that can be canceled provided the money is spent on eligible costs, such as payroll and rent. To date, the PPP has distributed $ 525 billion through more than 5 million loans.

Congress authorized the new funds last month as part of another pandemic stimulus package that also relaxed P3 rules on who can get money and what it can be spent on.

Among the main changes, companies that took cash in the first two rounds will be granted a second PPP loan on the condition that they can show a 25% impact on their revenue. To address concerns about fraud, the SBA is also introducing new due diligence checks.

For details on program changes, see FACTBOX [L1N2JJ2XB].

While lenders say the changes are positive, some fear they may cause initial problems, especially since the updated application forms and SBA guidelines were not released until Friday.

“It’s great but it’s really complicated,” said Dan O’Malley, CEO of Numerated, which provides PPP loan processing software.

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Restaurant industry calls for changes to small business loan program

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The restaurant industry is calling on Congress to make changes to the Paycheck Protection Program (PPP), as well as provide additional funding to help struggling businesses during the coronavirus pandemic.

The National Restaurant Association wrote to congressional leaders on Thursday asking for revised loan restrictions so restaurants can spend 50% or more of loans on non-salary expenses, up from the currently prescribed 25%.

The group also called for a flexible schedule for using the loans, including extending the eight-week period to use the loan and allowing restaurants to have at least 90 days from their full reopening to rehire employees.

“A growing number of restaurateurs are concluding that the PPP is not going to prevent them from permanently shutting down operations in local communities,” wrote Sean Kennedy, executive vice president of public affairs for the group.

The Senate and the administration are negotiate a deal provide an additional $ 250 billion to the $ 349 billion program that the Department of the Treasury and the Small Business Administration (SBA) deployed applications for the last week.

The letter also calls on businesses applying for loan forgiveness to be allowed to defer payroll taxes due this year over the next two years, loan forgiveness exemptions for restaurants that cannot retain employees, insurance that nonprofits can get loans, deferred tax payments, better access to disaster loans, and improvements to the employee retention tax credit.

“The severity of this pandemic has made it clear that restaurants will remain closed – or severely reduced in service – much longer than originally planned. Once “normal” operations resume, virtually every restaurant in this country, from the favorite restaurant to the local icon, will be a virtual startup in desperate need of money, ”Kennedy wrote.

Kenny called the impact on the industry “devastating” and said that in the first three weeks of the shutdown 3 million jobs were lost and 15% of American restaurants have closed permanently or are likely to shut down. do so over the next two weeks. The group predicts that revenue losses in March and April will be around $ 100 billion.

“The principle of PPP is an important first step for restaurants surviving this crisis, but there are warning signs that it is not providing the relief our industry desperately needs,” Kennedy wrote. “The PPP is funded at $ 349 billion, and we expect lenders to hit that cap shortly.”


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