Share to Twitter Share to Linkedin The relentless pace of the Federal Reserve’s rate hikes are coming against a backdrop of large numbers of older adults struggling economically and taking on debt to make ends meet. Even before the pandemic, debt was growing among older households . And the pandemic hit older adults especially hard . They experienced outsized health and employment impacts and weren’t eligible for some of the more generous forms of pandemic relief, which focused on families with children at home. And even as the economy has rebounded, for many older adults, economic pressures continue. Last year, poverty rates for those over age 65 went up , while falling for other age groups. And it’s not only those at the very bottom of the economic ladder who are struggling. The share of people reporting difficulty paying regular expenses (things like groceries, rent, and healthcare) has nearly doubled over the last 12 months and now stands at 35% … [Read more...] about Older Adults And Debt: A Storm On The Horizon?
Debt and equity meaning
Share to Twitter Share to Linkedin Real estate tycoon Hui Ka Yan is pushing ahead with his ambitious plan to become the Elon Musk of China by ploughing billions of dollars into electric vehicles, but the venture looks increasingly risky as funding becomes scarce and China’s slowing economy weighs on his core property business. Hui was in Shenzhen on Wednesday to announce that Evergrande had reached an agreement with five global auto firms to jointly develop 15 new models, ranging from full-size luxury to midsize and compact sedans. “China is poised to become a world leader in the production of new energy vehicles,” Hui said in a press release. “The agreement allows Evergrande New Energy Vehicle Group to become a major force in this development.” Last week, Hui was in Italy meeting with executives from Pininfarina working on design proposals for a new model called Hengchi. He was also briefly in Germany this month, where he held a banquet for 60 … [Read more...] about Asia’s Former Richest Man Faces Debt Crunch While Chasing Electric Car Dream
Share to Twitter Share to Linkedin Hui Ka Yan attends Evergrande's earnings announcement at the JW Marriott in Admiralty on March 29, ... [+] 2016. Nora Tam/South China Morning Post via Getty Images Hui Ka Yan became Asia’s wealthiest person as his fortune was soaring to a peak of $45.3 billion in October 2017, but a large portion of those gains proved to be short lived. His fortune, which is based mostly on his stake in Hong Kong-listed Evergrande, has seesawed back down to its current level of $32.8 billion as the property developer was pushed in opposing directions by a series of share buybacks and dividends against pressure from short-sellers. Investors’ divergent views on Evergrande are attributed to the massive debt pile Hui built while accumulating the company’s land holdings and making investments in a variety of businesses that range from theme parks and a soccer club to hospitals and mineral water, although his latest plan to turn … [Read more...] about Asia’s Former Richest Man Pursues Debt-Fueled Quest To Take On Tesla
Share to Twitter Share to Linkedin Should you tap a reverse mortgage to access your home equity? (Shutterstock) Many Boomers today are facing an unpleasant future. Their golden years were supposed to be fun, relaxing and carefree, but now reality has set in, and they find themselves financially unprepared. Many didn’t save enough during their working years because they planned to sell their homes and live off the equity by moving to more affordable locales. The problem is that two-thirds of the average retiree’s net worth is in the form of home equity at a time when more are wanting to retire at home rather than selling and moving to Florida, Arizona or other warm climates. Many may be tempted to explore the reverse mortgage option as a way to increase their retirement income. Doing so means the elimination of a mortgage payment, assuming payments are still being made, and the ability to receive a portion of your homes equity. Reverse … [Read more...] about Reverse Mortgage: Should You Use Your Home Equity To Get More Retirement Income?
- A + A (Nov 24): The world’s biggest money manager is loading up on emerging-market debt again. BlackRock Inc’s head of emerging-market debt Amer Bisat has dropped his 2022 defensive view on the asset class because he sees a peak in US interest-rate hikes nearing and thinks distress in some countries won’t trigger a systemic crisis. He favours bonds from the likes of Mexico, Indonesia and potentially Poland. “A window for bullishness has opened up,” said Bisat in an interview in London. “It is not the time to be extremely defensive any more and it is not too early to deploy capital.” The change of call comes as risky assets have started to rally, and chimes with views from others on Wall Street such as Morgan Stanley. Both hard and local currency emerging-market bonds have climbed this month, paring double-digit losses this year. BlackRock was wary of emerging-market debt earlier this year due to countries’ large funding needs, especially after Russia’s war in … [Read more...] about BlackRock’s Bisat says now is time to buy emerging-market debt
From a toddler to a teenager to an adult, witnessing your child grow is a sight to behold. A parent’s love and care for their child knows no boundaries even as they turn independent. While your love as a parent doesn't need to change with your child’s age, how you plan to secure their future, financially, definitely requires transformation to match their life-stage. As your child grows, expenses related to upbringing, education, extracurricular activities, etc. also rise and your financial plan should reflect the same. This helps you keep your finances in order and also supports your child in fulfilling his/her dreams and goals. Also read | Zerodha boss Nithin Kamath, who started trading at the age of 17 , has some good advice for children and young adults To help you achieve the same, this Children’s Day, here is how you should undertake asset allocation based on your child’s life-stage. Decide investment goals based on your child’s life-stage There are two key phases … [Read more...] about Your child’s age is crucial when you start investing for future goals
Share to Twitter Share to Linkedin Lucia Waldner is CEO of Family Office at CC Trust Group , and former Head of Credit Suisse Research Institute. As investors anticipate a new set of opportunities and restraints in view of rising inflation and tightening financing conditions, confidence remains regarding the performance of private markets. As Morgan Stanley concludes in their recent investment outlook, private equity, venture capital, private credit, private real estate and infrastructure investments have historically overperformed public markets. Looking to hedge against high inflation, private equity strategies are attractive in multiple regards . Amid this year’s declines in both stocks and bonds, family offices have been among investor groups increasing their exposure to private markets, including debt, equity and real estate. A Wealth Of Experience The background for this development is quite intuitive, as private market holdings … [Read more...] about What’s Driving Family Offices More Toward Private Markets?
Share to Twitter Share to Linkedin Key Takeaways The meme stock craze doesn’t appear to be dying down anytime soon as GameStop saw wild swings again on October 31. GameStop wants to be the Amazon of gaming, but the company continues to struggle financially as soaring inflation continues to impact consumer spending. There are concerns over what the demand for video games will look like as consumers struggle with higher prices of everyday items. GME stock was once again in the news when trading was all over the place last Monday. GameStop became known for the meme stock mania back in January 2021, and it looks like these meme stock rallies are going to be popping up on occasion still. Even though shares of GME soared 688% in 2021 due to coordination among retail investors and certain high profile whales, the company continues to struggle financially. What’s Happening With GME Stock? GME stock again saw a spike on October 31 when the … [Read more...] about GME Stock Update November 2022: What’s Going On With The Latest GameStop Rally?
This article first appeared in The Edge Malaysia Weekly, on November 7, 2022 - November 13, 2022. - A + A IT has been five years since peer-to-peer (P2P) financing platform Fundaztic started its operations in Malaysia. Now with a proven track record, it hopes to fund 30,000 micro, small and medium enterprises (MSMEs) — the backbone of the economy — in the next five years. Since its launch in July 2017, the platform has served over 3,000 MSMEs, with RM190 million disbursed. Its promising returns of up to 15% per annum have also attracted the registration of 20,000 investors, of which 5,000 are active. It is worth noting that Fundaztic already turned profitable a few months ago, driven by the surge in lending activity in recent months. “Certainly 3,000 MSMEs is too small. We want to have a bigger impact. Right now, we fund 1,200 a year. In the next five years, we want to fund 6,000 a year, to organically bring the total to 30,000 by end-2027,” says … [Read more...] about Fundaztic eyes exponential growth in financing to MSMEs
Share to Twitter Share to Linkedin In January, the Federal Housing Finance Agency (FHFA) announced that it would increase the upfront fees that Fannie Mae FNMA and Freddie Mac charge for mortgages on second homes. In October, the agency announced it would implement “targeted increases to the upfront fees for most cash-out refinance loans.” Both moves are good for federal housing finance policy. The federal government should not be in the business of making it less expensive for people to buy second homes, and federal lending subsidies shouldn’t be further rewarded with easier equity cash-outs. Still, the housing lobbyists–who, of course, opposed these changes –can rest easy. The Biden administration isn’t on the verge of shutting off the federal spigot. In fact, as part of its ongoing review of Fannie’s and Freddie’s guarantee fee framework (their g-fees ), the FHFA is also eliminating the upfront fees for several single-family … [Read more...] about The FHFA’s New Fee Policy Will Place Even More Upward Pressure On Home Prices