NEW YORK (Reuters) - General Electric Co will invest more heavily in junk bonds, private equity and other high-yield investments to boost returns at its ailing insurance business, company executives said on Thursday. FILE PHOTO: The logo of U.S. conglomerate General Electric is pictured at the company's site of its energy branch in Belfort, France, February 5, 2019. REUTERS/Vincent Kessler Seeking to calm investors about its insurance liabilities, GE said its insurance investments are too conservative compared with competitors. The change will allow for better returns that help reduce the amount of reserves it must set aside for claims, Anthony Grandolfo, the chief investment officer of GE’s insurance business, told analysts on a conference call. Asked about increased risk, he said GE was still being prudent. “We’re starting from a point where we think (the portfolio) is quite conservative and we expect to continue to maintain a portfolio that is quite … [Read more...] about GE seeks better insurance returns in junk bonds, other risk assets
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BDO Unibank raises P35B from fixed-rate bond offerBDO Unibank Inc. has raised P35 billion from a rapid book-building process for its fixed-rate bonds to be issued on February 11, claiming it to be biggest single-peso bond issuance ever made by a Philippine bank. In a disclosure on Monday, the Sy-led lender said the bonds had “a tenor of 1.5 years and bear a coupon rate of 6.42 percent, representing a 25-bps (basis-point) spread over the Bloomberg Valuation Service or BVAL benchmark.” “Interest will be paid quarterly, calculated on a 30/360 count basis,” it added. Proceeds shall be used to support BDO’s business expansion and diversification of funding sources, according to the bank. Standard Chartered Bank served as the issuance’s sole arranger and bookrunner; while BDO Capital and Investment Corp., BDO Private Bank Inc. and BDO acted as the selling agents.The bonds are part of the P100-billion peso bond program that the bank announced in August … [Read more...] about BDO Unibank raises P35B from fixed-rate bond offer
By Ben Eisen WSJ Wed., Jan. 23, 2019 Aryanna Hering didn’t have pay stubs or tax forms to document her income when she shopped around for a mortgage last year—a problem that made it tough for her to get a loan. But the nursing student who works part time providing home care for children and the elderly eventually hit pay dirt: For a roughly $610,000 home loan, a mortgage company let her verify her earnings with 12 months of bank statements and letters from clients. Ms. Hering’s case highlights how a flavor of mortgage once panned for its role in the housing meltdown a decade ago is making a comeback. These loans, aimed at buyers with unusual circumstances such as those who can’t provide the standard proofs of income, are growing rapidly even as rising interest rates and higher home prices crimp demand for mortgages. Lenders issued $34 billion worth of these unconventional mortgages in the first three quarters of 2018, a 24% increase from the … [Read more...] about No Pay Stub? No Problem. Unconventional Mortgages Make a Comeback
Hanoi 3rd in JLL's City Momentum Index The Asia-Pacific is home to 19 of the top 20 cities on the sixth City Momentum Index published by JLL, highlighting the continuing shift of fast urban growth from the West to the East. Overall, Indian and Chinese cities dominate the rankings, accounting for three quarters of the top 20. Leading the pack are Bengaluru and Hyderabad in India, with Hanoi third. “Asia continues to show strong momentum, with cities that are successfully expanding their innovation economy punching above their weight in terms of attracting capital, companies, and people,” said Mr. Jeremy Kelly, Director of Global Research at JLL. “It’s clear that the tech sector is a key driver of both real estate and economic momentum - driven by large technology firms as well as dynamic startups in cities like Bengaluru, Hyderabad, Ho Chi Minh City and Shenzhen.” Although the global economic cycle is in its late stages, there are still many cities in the … [Read more...] about BUSINESS NEWS IN BRIEF 19/1
General tax amnesty: To avail or not to avail?It is now clear that the proposed Tax Amnesty Act (TAA) will be passed soon. The report of the Bicameral Conference Committee which harmonized the provisions of the tax amnesty bills (House Bill Nos. 4814 and 8554 and Senate Bill No. 2059 [SB 2059]) has gotten the nod of both the Senate and the House of Representatives. Thus, the bill is in the final stages of enrollment and signature. The question to many taxpayers now is whether or not they should avail of the general tax amnesty (GTA). Prudence dictates that any decision to avail of the GTA should be based on a thorough and well-thought-out cost-benefit analysis. As a guide, we discuss these major costs and benefits of the GTA. Cost Cost of the GTA tax – The proposed and harmonized TAA adopted the general amnesty tax calculation proposed by both the Senate and the Lower House. It thus gives the taxpayers the option of paying a general amnesty tax calculated at 2 percent of total … [Read more...] about General tax amnesty: To avail or not to avail?