Dollars And Nonsense

April 13, 2010, 12:11 AM EDT

April 13 (Bloomberg) — Record U.S. junk bond sales and a rally in the leveraged loan market are chipping away at a $1.2 trillion wall of maturities that’s threatened to cause a surge in defaults.

Cablevision Systems Corp., the New York-area cable-TV provider, sold $1.25 billion of bonds yesterday to refinance notes and has extended loan maturities. Since the start of last year, borrowers with high-yield bonds and leveraged loans maturing through 2015 have cut the amount due in the next four years by $196 billion, according to JPMorgan Chase & Co.

the past year’s recovery in credit markets prompted sales of $239.3 billion in bonds with speculative ratings, reducing the risk that debt-laden companies would be trapped as the securities matured. the 12-month global default rate for junk debt fell to 9.9 percent in the first quarter from 13 percent at the end of 2009 and will drop to 2.4 percent a year from now, New York-based Moody’s Investors Service said in a report.

“The openness of the high-yield bond market has been the major force here,” said Gautam Kakodkar, a New York-based credit strategist at Barclays Plc. “What we’ve seen so far is an incredible flow of money to high-yield bonds and loans, creating a lot of pent up demand.”

Leveraged loan prices surged to the highest in almost two years and default rates have plunged. the S&P/LSTA US Leveraged Loan 100 Index rose 0.12 cent to 92.37 cents on the dollar yesterday, the highest since June 22, 2008. Borrowers have $537 billion of leveraged loans due between 2012 and 2014, or 77 percent of all loans outstanding, JPMorgan analysts led by Peter Acciavatti wrote April 9 in a report.

Junk Sales

Junk sales are “really mitigating that wall of maturity risk,” Martin Fridson, chief executive officer of New York- based money manager Fridson Investment Advisors, said yesterday in a telephone interview.

Cash flowing into high-yield mutual funds helped provide demand for record junk issuance, as investors bet on riskier assets while interest rates are at record lows. Funds had $417 million of inflows last week, the seventh-straight increase, and loan funds had $290 million, the 19th in a row and the longest stretch ever, JPMorgan said. High-yield, or junk, bonds are ranked lower than Baa3 by Moody’s and below BBB- by Standard & Poor’s.

High-yield bond spreads tightened 14 basis points last week to 568 basis points as of April 9, Bank of America Merrill Lynch index data show. the spread on junk-rated securities narrowed to 565 basis points on April 6, the tightest since Dec. 27, 2007.

Borrowing Costs

the extra yield investors demand to own corporate bonds rather than government debt was at 146 basis points yesterday, or 1.46 percentage point, the lowest since November 2007, the Merrill Global Broad Market Corporate Index shows. Yields averaged 4.013 percent, the lowest since March 30.

Bank of China’s Hong Kong unit, Hyundai Motor Co. and a unit of Telefonica SA, the Spanish wireless provider, tapped U.S. bond investors as so-called Yankee issuers made up a record share of dollar-denominated debt offerings, data compiled by Bloomberg show. SLM Corp., the student lender known as Sallie Mae, sold $1.22 billion of bonds backed by student-loans, according to a person familiar with the sale. Lowe’s Cos. issued $1 billion of notes.

Yankee Bond Sales

Bank of China (Hong Kong) ltd., a unit of the country’s third-largest lender by market value, sold $900 million of additional 5.55 percent bonds due in 2020. Hyundai, South Korea’s biggest automaker, issued $500 million of five-year notes through its capital services unit, its first benchmark sale in the currency since October, Bloomberg data show. Madrid- based Telefonica Emisiones SAU was marketing $3.5 billion of debt.

Yankee issuers sold $6.7 billion of U.S. investment-grade bonds last week, or 60 percent of the total, after a record $132 billion in the first quarter, or 52 percent of all offerings, the data show. that compares with $95.3 billion, or 25 percent of all U.S. investment-grade sales, in the year-earlier quarter.

Sallie Mae’s offering was the largest of asset-backed securities since the U.S. government withdrew from the market last month. the top-rated securities maturing in 3.34 years yield 40 basis points more than the 30-day London interbank offered rate, said the person, who declined to be identified because the terms aren’t public.

Corporate Bond Issuance

Daimler AG, the world’s second-biggest maker of luxury vehicles, is marketing $992.8 million of bonds backed by auto loans; Deere & Co., the world’s largest maker of farm machinery, plans to sell $708.2 million of securities backed by equipment loans, according to people familiar with those sales.

Lowe’s, the No.2 U.S. home-improvement retailer, sold $500 million of 10-year notes and $500 million of 30-year bonds, tapping the U.S. market for the first time since 2007, Bloomberg data show. Cablevision sold $750 million of 8-year senior notes and $500 million of 10-year bonds, as U.S. corporate bond issuance yesterday reached at least $7.85 billion.

Credit ratings on investment-grade companies were cut about three times for every two that were raised in the first quarter, Standard & Poor’s said in a report.

‘Merger or Acquisition’

“We are seeing a bit of re-leveraging on the part of relatively stronger issuers,” S&P credit analyst Andrew Watt wrote in the report yesterday. “A closer look at the ratings activity for investment-grade or near investment-grade issuers shows that about half of the downgrades in this category were due to a merger or acquisition.”

among speculative grade companies, upgrades were twice downgrades, according to S&P.

U.S. home-loan bonds without government-backed guarantees rose for a second week, after falling as other credit markets gained in February and March. the most-senior securities backed by option adjustable-rate mortgages rose 1 cent on the dollar to 56 cents last week, compared with a record low of 33 cents in March 2009 and 58 cents in early January, adding to a similar gain the previous week, according to Barclays Plc.

some subprime-loan securities have jumped almost 10 percent since mid-March.

the cost to protect against default on corporate bonds fell around the world as a rescue plan to stem Greece’s budget woes eased concern of a wider crisis. the Markit CDX North America Investment Grade Index Series 14 declined 1.3 basis point to a mid-price of 84.1 basis points at 5:05 p.m. in New York, according to Markit Group ltd. the index is at the lowest level since April 6.

Bondholder Protection

Credit-default swaps on Greek sovereign debt tumbled 62 basis points to 364, according to CMA DataVision at 3:30 p.m. in London yesterday. the Markit iTraxx Crossover Index of swaps on 50 European companies dropped 8 basis points to 410, the lowest since March 17, JPMorgan Chase & Co. prices show.

Today the Markit iTraxx Japan index rose 2 basis points to 89.5 basis points in Tokyo, while the Markit iTraxx Asia index rose 0.5 basis point to 89, Deutsche Bank AG prices show. the Markit iTraxx Australia index fell 0.5 basis point to 78 basis points.

Maturing debt was chiseled down by a record $161.6 billion of junk offerings in 2009 and $77.7 billion this year, according to data compiled by Bloomberg.

“Companies that have these maturities in 2012, 2013 and 2014, they still need to generate top line growth, but market conditions have clearly eased,” said Diane Vazza, head of S&P’s global fixed income research. “The level of concern has eased as well.”

–With assistance from Bryan Keogh in London, Tim Catts, Sarah Mulholland, Jody Shenn and Craig Trudell in New York, and Sarah McDonald and Ed Johnson in Sydney, and Tom Kohn in Hong Kong. Editors: Charles W. Stevens, Alan Goldstein

To contact the reporter on this story: John Detrixhe in New York at jdetrixhe1@bloomberg.net; Emre Peker in New York at epeker2@bloomberg.net.

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net; Faris khan at fkahn33@bloomberg.net.

Maturity Wall Shrinks $196 Billion in 15 Months: Credit Markets

Debt Consolidation – Home Loan Calculators make Clearing Debt Easy

Having too much debt is something that accounts for much of the financial stress we feel in life. The feeling of having too many bills and not enough money to take care of all the expenses is a pretty common feeling among families. The fear grows stronger and stronger and can often seem pretty endless.

However, there is a way to lessen the burden of debt: through a debt consolidation process. this means that all of the individual debts would be combined into one and paid off with one monthly payment instead of having to write multiple bills and keep up with everything. this makes staying organized with paying down one’s debt far easier. many homeowners turn to a debt consolidation home loan to begin the process of getting organized with their debt and even becoming debt free. a good online debt consolidation home loan calculator can help you determine if this is a good fit for your personal debt situation. however, it can be difficult to understand the standard form used to crunch the number. this article will cover the information you need to know in order to fill out the form properly and thus get great results.

First, you need to gather up all of the debts you’d like to include. The specific information you need most is the total amount of the debt, the average monthly payment you’re making, as well as the interest rate if there is one. while many popular debt consolidation home loan calculators now automatically calculate the average monthly payment for you, it’s always a good thing to have these three key pieces of information handy just in case.

Next, you’ll want to enter in all the numbers very carefully. make sure to double check to make sure that you have everything filled out correctly, since missing a zero or forgetting a debt that you want to include can really skew the results you receive from the calculator tool. many calculators also give the option to enter in an estimated interest rate for your debt consolidation home loan. You can start with a higher interest rate in order to get a better idea of what your monthly payment could look like if you choose to pursue this option.

Finally, it’s time to look at the results you get. Since this is an estimate of the interest rate on the home loan, it’s important to keep in mind that the numbers may vary once you get in touch with the lender. usually, the interest rate we receive is often a lot lower than we expect. if you get back a lower monthly payment than what you’re sending out every month, this is definitely a path you should consider pursuing. while debt consolidation does add a bit of time to your loan, it’s also key in lowering your monthly payment so you can get on top of your finances better. if your life changes and you can contribute more to the loan repayment process, you will definitely see the loan repaid much quicker.

Overall, getting out of debt is a process that takes time and effort. With a good debt consolidation home loan calculator, you can see exactly what next steps to take in order to take back control of your future and finally become debt free!

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Debt Consolidation – Home Loan Calculators make Clearing Debt Easy …

Antique Safe Cast Iron Money Box Piggy Bank

January 6, 2010 at 9:14 am · Filed under Uncategorized ·Tagged antique safe cast iron money box piggy bank, piggy banks

Antique Safe Cast Iron Money Box Piggy Bank. I do not have the key.I think it has been repainted. Piggy banks antique safe cast iron money box piggy bank. And david barsby antiques see our about me page.

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Student loan debt consolidation is the most efficient yet most underrated way to deal with the problem of accumulated student debts. Despite the rising costs of higher education and the growing number of students becoming saddled with heavy debts, not many students seem to be aware of the benefits of student debt consolidation.

Student loan debt consolidation is a comprehensive financial package specially designed to help students tackle debt issues. Student loans consolidation offers students the option of combing all of their student loans into one, easy to manage loan. this kind of student debt consolidation can make a huge difference for students looking for a way to ease their financial burden.

Ideally, a student pursuing a degree in higher education should be able to dedicate themselves to academics without having to worry about anything else. Unfortunately, the realism of the situation is that higher education is an expensive affair and continues to grow costlier each year. In order to deal with these high costs, it becomes necessary for a number of students to take out student loans. Over the course of their academic term, many students will wind up taking out more than one loan from more than one lender. The reality of the situation is that on graduating, most students have a sizable student debt.

Dealing With Debt Efficiently

The truth of the matter is that most students see the amount of debt they have amassed and become confused and frustrated. Student debt consolidation can help deal with excessive student debts by combining all outstanding loans into a single loan. In this way, the borrower no longer has to deal with multiple lenders and different interest rates.

Student loan debt consolidation also offers students the opportunity to save money in the long run. this can easily be achieved since the interest rates are fixed at a rate that is usually less than the ordinary rates. Student loan debt consolidation also offers a number of options regarding repayment. Students can opt for payment deferment or extend their payment period to suit their needs.

Student loans consolidation is possibly the most efficient and the easiest way to deal with debt as it streamlines everything into one loan that is easily handled. Its lowered interest rates and easy payment plans make it an ideal option for students who are struggling with debt. If you are a student and are worried about how you’re going to pay your student loans, learn more about the student debt consolidation packages available to you and get your finances in order today.

Student Loan Debt Consolidation and you

Why would you disturb your family and friends about your network marketing opportunity, with millions of prospects coming on the internet everyday? I think doing that is a terrible idea and you actually should just leave your family and friends alone.

Here is why I say that!

1. Many people in multilevel marketing have been in another MLM business before. Odds are very good that if you are one of them you have already approached your family and friends.

Unfortunately you may already have approached them more than once! maybe it’s time you left them alone.

2. What you might want to do with your family and friends is tell them about the excellent product you are using. that might be something they are interested in.

This is where women are so good. they are instinctive networkers and can talk about the product in the course of an everyday conversation.

This will increase your cash flow because of your solid customer base. and some of them will naturally check out the business opportunity or ask about it if they are interested.

3. did you know over 100,000 people Google search the words “make money” every month. Just as many or more look for for words “work from home”. These are two main keyword phrases that are being searched.

When you start adding in all the variations of these words plus other words like network marketing opportunity, home business, Internet business, make money at home, business opportunity, and so on, you get the idea of how many prospects look for ways to make money every day.

These are the people you should be targeting. These people are already interested in finding ways to earn money.

They certainly have a need, and an interest. What they don’t have yet is a real way to make more money. These are the people you should be targeting letting the Internet do the hard work for you.

You never have to go through a personal rejection that way. your business can be identifying prospects and helping recruit them around the clock every day of the year!

You can advertise your business all over the internet in as many ways as you have time and money for. You do this on your computer from the comfort of your onw home. You do not call or meet people this way.

Hopefully the multi-level marketing business you are in has a system in place for using the Internet to generate leads. You should never rely 100% on their system, but it is a good way to get started.

In the end you are better to build up your own email list and follow-up with prospects that are truly interested. if you will do this every day you will never have to contact your family or friends about your network marketing business.

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