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
Debt based financing and equity based financing
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?
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 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 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
Home equity loan rates are likely to increase in tandem with the increase in the Federal Reserve’s federal funds rate announced today. Key Takeaways The Federal Reserve raised its benchmark rate by 0.75% to a target range of 3.75% to 4% at its Nov. 2, meeting. Today's rate hike is the sixth of 2022 in an effort to reduce consumer demand, consumer prices and inflation. Interest rates for all types of loans, including home equity and home equity lines of credit, are expected to increase in tandem with the latest rate increase. The Fed raised its benchmark rate by 0.75% to a target range of 3.75% to 4% at its meeting Nov. 2, as it did in September . It's the sixth rate hike this year to combat high inflation in the U.S., which was 8.2% year-over-year in September. The Fed’s inflation target is 2%. Interest rates on many home equity products like home equity loans and home equity lines of credit (HELOCs) generally change in sync with changes in the Fed’s target … [Read more...] about Expect Home Equity Loan Rates to Rise After a Fed Rate Hike
Billionaire Ramon Ang-led San Miguel Corp. (SMC) and Aboitiz Equity Ventures Inc. are lining up bond offers worth as much as P80 billion in a bid to tap demand for debt instruments during a period of rising interest rates. The Securities and Exchange Commission said on Friday it approved the planned bond offerings of the two conglomerates during a meeting on Nov. 17. SMC, a food, drinks, power and infrastructure group, is raising as much as P60 billion, composed of a P40-billion base offer and an overallotment option of P20 billion. Aboitiz Equity, which is into power, banking, food, property and infrastructure, is raising up to P20 billion. April Lynn Tan, chief equity strategist at stockbrokerage house COL Financial Group Inc., expected strong demand from investors. “Yields of these bonds are high so that should make them attractive, especially since most are expecting [interest] rates to peak soon,” Tan said in a text message to the Inquirer. Large banks were also … [Read more...] about San Miguel Corp, Aboitiz Equity get approval to sell bonds
- 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
Share to Twitter Share to Linkedin I recently interviewed Sundeep Yerapotina, Chief Risk Officer (CRO CRO ) for Rewards Branded Cards at Citi, who is an expert in the field of personal finance and credit risk management on how people can navigate credit and financial risk in today's unstable market. What advice do you have for consumers in the current environment? Any advice on managing their existing debt or for those planning to take new loans? On the positive side, many consumers and households could take advantage of low mortgage rates until a few months back to refinance their existing home loans or purchase new homes. With those rates locked in for the next 30 years, it certainly puts those households in a good position in terms of monthly repayment burden. Now, it is crucial for consumers to revisit their household balance sheets to account for higher expenses as a result of inflation but also start accounting for higher repayment burdens on … [Read more...] about How To Navigate Credit And Financial Risk In An Unstable Economy
Share to Twitter Share to Linkedin Texas-based GloriFi was a financial technology startup that aspired to be the anti-woke banking alternative for conservatives to “put their money where their values are.” Founder Toby Neugebauer went public with his concept in summer of 2022, just as trillions of investment dollars had begun flowing out of the fossil fuel industry towards greener borrowers. He and his wife raised $50 MM from 84 conservative backers, including billionaires Peter Thiel, Ken Griffin and Vivek Ramaswamy. Talk show host of The Daily Wire, Candace Owens, was a co-founder; Nick Ayers, consultant to Mike Pence, a senior business partner. GloriFi was due to go public in Spring 2023 through a merger with DHC Acquisition Corp., a SPAC whose senior executives have military and defense backgrounds, who characterize their business culture as “Special Ops.” But just months after the public announcement, GloriFi folded. In communications officer … [Read more...] about How Fast Can A Startup Non-Bank Burn $50 MM?