Loan

Credit News

Mark Kiesel, Top U #top # #bond #funds


#

America’s Top Bond Manager Never Falls in Love

He had a really good year.

Photographer: Chris Goodney/Bloomberg

The best manager of bonds in America refuses to pay full price. He buys his clothes once a year to get a 40 percent discount. He sold his home, put his belongings into storage and rented an apartment in 2006 because he believed home values were inflated. Six years later, when he thought real estate was poised to rebound, he bought another house.

More recently, he purchased the bonds of energy companies after the price of oil traded below $30 a barrel, along with gaming companies, home builders and building-materials makers. He likes to see what he buys, so he went to Macao. He snapped up the bonds of Argentina, Brazil, Chicago, Greece, Illinois, Kuwait, Mexico, South Africa and Saudi Arabia because they were cheap.

Kiesel Says Pimco Is Reducing Risk Across the Board

Earlier this year, he was hedging optimism about U.S. economic strength by buying Treasury bonds and futures contracts with 10-year maturities. Unlike so many pundits after the November election, he refused to be swept up in the so-called Trump rally, focusing instead on slow growth and low inflation as the Federal Reserve raised interest rates.

He sees no reason to invest in the U.K. where a year after British citizens voted to exit the European Union, the pound is weak, the economy is anemic and inflation is rising.

He doesn t love his investments and vows he will never marry one.

He is Mark Richard Kiesel, manager of the $10.36 billion Pimco Investment Grade Corporate Bond Fund since 2002 and the firm s chief investment officer of global credit.

Kiesel s isn t the most famous name associated with Pimco — that s still Bill Gross, the co-founder and longtime CIO, even three years after Gross left for Janus Capital Management. Yet Keisel s portfolio keeps giving exceptional returns and is the No. 1 U.S. bond fund over the past 12 months.

I don t have kids and I refer to it as my firstborn child, Kiesel, 47, said in a telephone interview from his office in Newport Beach, California.

Kiesel s baby is among 79 mutual funds based in the U.S. that are worth more than $5 billion and have a majority of their assets invested in domestic investment-grade bonds. During the past 12 months, his fund produced a total return (income plus appreciation) of 5.3 percent, or 3.4 percentage points more than the benchmark for the funds in the same category, the Bloomberg Barclays U.S. Credit Index, according to data compiled by Bloomberg.

Top 10 U.S. Bond Funds

Total return, July 1, 2016 to June 30, 2017

Category includes 79 funds, each worth at least $5 billion and with most assets in domestic investment-grade bonds

So far this year, only two Vanguard funds investing solely in long-term Treasuries have a slightly better return than the Pimco fund s 5 percent. But the Vanguard funds aren t competitive over a year or longer because they are prone to greater price swings. The Vanguard funds have a volatility of 8.2 percent and 7.6 percent, more than twice Pimco s volatility of 3.5 percent. In other words, Keisel s risk-adjusted return is more than double the Vanguard index-tracking funds, Bloomberg data show.

The Pimco fund also has the advantage of being in the top 25 percent of all comparable funds at any point during the past five years, and has outperformed the benchmark by 41 percentage points during the past 10 years, according to data compiled by Bloomberg.

The fund benefited from Kiesel s anticipation of the Fed s tighter credit stance as the U.S. entered the eighth year of expansion since the 2008 financial crisis. He reacted by trimming government bonds to about 20 percent of the fund s holdings, 5 percentage points less than its weighting a year ago.

On the margin, Kiesel seized the opportunity to obtain deeply discounted bonds of Argentina, Brazil and Mexico with Latin America still in a slump.

Most presciently, he bucked far-fetched U.S. growth forecasts loosed by market exuberance about President Donald Trump. While many investors were tailoring strategies to an expectation of 3 percent annual growth in inflation-adjusted gross domestic product, Kiesel locked in steady long-term returns by purchasing relatively inexpensive futures contracts on 10-year Treasuries amid signs that GDP won t expand much beyond 2 percent. As a result, his fund s government-securities holding outperformed the benchmark by 56 basis points, which alone accounted for 46 percent of the fund s performance advantage over the benchmark.

The Treasury bond rally this year is a function of declining views of inflation and growth, combined with lots of money chasing yield, said Joel Levington, the global director of fixed income for Bloomberg Intelligence. Despite the Fed s decision to raise short-term interest rates by a quarter point in March and again in June, bonds with maturities of 10 years or greater are outperforming debt securities of shorter duration, according to data compiled by Bloomberg.

Kiesel s holdings in financial-company bonds performed especially well, beating that benchmark sector by 77 basis points and accounting for 63 percent of his entire portfolio outperforming the market.

Clear thinking from leading voices in business, economics, politics, foreign affairs, culture, and more.

His confidence in the financial industry is shaped by his faith in companies that show a realistic appetite for debt as measured by the ratio of total debt minus cash to the value of the company. By that metric, known as net debt to enterprise value, corporate America is handling debt better than it has in decades, putting companies in a strong position to secure financing from banks and other lenders.

If you can predict where net debt to enterprise value is going for these companies around the world, Kiesel said, you ll know what to buy and when to buy it.

Kiesel added that his insights into corporate strengths and weaknesses are amplified by longstanding personal relationships tracing back to his days as a junior credit analyst at Pimco.

A lot of the chief financial officers and treasurers that I used to talk to now are running the companies, he said. They re the CEOs and I m the CIO leveraging a 15-to-20-year relationship with the biggest companies all over the world.

By purchasing long-term debt, Kiesel said he is reducing risk and building up a much more defensive portfolio for the future, even though his big picture hasn t changed.

The demand for high-quality income-producing assets exceeds the supply of those assets, he said. If you can find the situations, the unique situations, whether it s a country, whether it s a company, where the fundamentals are actually set to improve, you ve got to buy that.

(With assistance from Shin Pei)

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

Before it’s here, it’s on the Bloomberg Terminal.



TIAA-CREF Lifecycle Retirement Income Fd (TLRIX) #tiaa-cref #lifecycle #retirement #income #fd, #tlrix, #best #mutual #funds, #investing, #mutual #fund, #rating, #review, #scores, #ranking, #performance, #holdings, #fees, #risk


#

TIAA-CREF Lifecycle Retirement Income Fd

About TLRIX

The investment seeks high total return over time primarily through income, with a secondary emphasis on capital appreciation. The fund is a “fund of funds” that invests in Institutional Class shares of other funds of the Trust and in other investment pools or investment products. It invests in underlying funds according to a relatively stable asset allocation strategy that will not gradually adjust over time and is designed for investors who are already in or entering retirement. Target allocations may be changed and actual allocations may vary up to ten percentage points from the targets.

Rankings

U.S. News evaluated 181 Target-Date Retirement Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

TLRIX is listed as:

Scorecard

Trailing Total Returns Monthly

Morningstar Mod Tgt Risk TR USD

Performance

The fund has returned 8.53 percent over the past year, 4.63 percent over the past three years, and 6.01 percent over the past five years.

Fees

Category average: 0.1

Risk

Risk is High compared to funds in the same category according to Morningstar.

Volatility Measurements

Volitility measures reflect the uncertainty or risk of change in a security’s value.

Standard Deviation. 4.975



Jason Trueman – Portfolio Manager for Cumberland Private Wealth Managemenet #cumberland, #kingston, #jason #trueman, #cfa, #investments, #management, #funds, #stocks, #invest, #retirement, #cumberland #private, #kingston #kids #triathlon, #wealth, #wealth #management, #lottery #win, #lottery #winner, #rrsps


#

Jason Trueman graduated from Queen’s University with a Bachelor of Commerce (honours) in 1996. Jason received his CFA charter in 2001 from the CFA Institute. He spent seven years in Toronto then moved to Bermuda in 2003. He returned to Kingston in 2010 where he worked with MD Private Investment Counsel for three years before joining Cumberland Private Wealth Management in January 2014.

Jason has been married since 2003 and is most proud of his growing children, Sierra and Triton. Jason is an active member of his community. In addition to coaching local sports teams he is the Race Director of the Kingston Kids Triathlon. His life consists of three things: Family. Finance and trying to live a Healthy Lifestyle .

Jason is an active member of the CFA Institute and a strong believer in the CFA Institute Code of Ethics and Standards of Professional Conduct

Jason is a Portfolio Manager with Cumberland Private Wealth Management.

Jason joined Cumberland Private Wealth Management in 2014 as he found their investment philosophy matched his own. Jason prefers to allocate capital into companies with a strong balance sheet that have competitive advantages leading to consistent return on invested capital and positive free cash flows. He likes the Cumberland customized approach to portfolio management for clients and the firm’s continual focus on investment excellence.

Jason’s area of specialty is discretionary wealth management. He also has considerable experience with professional corporations, small business structures, trusts, financial planning and estate planning.

Jason believes all advisors need to keep learning and expanding their knowledge to be able to help their clients. In additional to his CFA Charter, Jason has taken the following courses through the Canadian Securities Institute:

Working with a local team in Kingston, Jason interacts daily with Cumberland’s investment team based in Toronto at 99 Yorkville Avenue. Cumberland is one of Canada’s leading independent private wealth management companies with an impressive history of risk adjusted investment returns.

Jason is very proactive in making sure we know how our money is invested. Some advisors hide during times of crisis, but Jason seeks us out. He is there to answer our questions and explain complex ideas in terms we understand.

– J. Lawrence, 2015

Jason offers his clients, colleagues and business partners a rarely found combination of exceptional talent and steadfast ethics.

– R. Bickerton, 2014

Jason’s response time to our enquiries is super fast – even when I know he is on vacation. He really knows us and understands our goals. He is patient and really cares.

During my tenure at MD Private Investment Counsel, I had the unique opportunity to work with Jason. Jason has a very strong work ethic and an excellent command of private client investment management. Jason genuinely cares for and understands his clients, and manages their portfolios appropriately.

* All testimonials are unsolicited and represent the views of the noted individuals.

Investment Articles
Information

Jason is a strong advocate for Canadian Investors. He believes Canadians pay too much in mutual fund fees, segregated fund fees and there is a general lack of transparency in the cost of financial products. He also believes there is a lack of suitable investment solutions being sold to hard working Canadian families. He encourages all Canadians to become better informed:

Jason believes in creating a healthy active lifestyle for children. Those in the neighbourhood know Jason as the dad who is always outside playing some sport with his kids and their friends. In 2015 after a three year hiatus, Jason lead a dedicated group of volunteers in bringing back the Kingston Kids Triathlon. This event is held annually near the end of June at the Kingston Memorial Centre.

Cumberland Private Wealth Management Inc

218 King St E, Kingston, ON K7L 3A6

For Kingston Kids Triathlon:

For other matters:

His phone number is 613.929.4511

Jason’s linkedIn profile is here .



How to Sell – Buy Mutual Funds Online #how #to #buy #mutual #funds #online,how #to #sell #mutual #funds #online,how #to #purchase #mutual #funds #online,how #to #trade #mutual #funds


#

Chapter 3.4: How to Buy Sell Mutual Funds

Mutual funds have been around in India for nearly three decades now, but the number of people who actively buy and sell mutual funds in the country remains abysmally low as a percentage of the population.

The fundamental reason for poor participation in the mutual fund market is the lack of awareness; not just about the benefits of mutual funds, but also the knowledge of how to buy and sell them.

You have tackled the question of how mutual funds help you achieve your investment goals in earlier chapters. Now, let’s go through the process of buying and selling mutual funds.

How to Buy Mutual Funds :

Mutual funds are versatile instruments that can be bought and sold in a variety of ways. Once you get all your paperwork in order, here are some of the various ways you can acquire mutual funds in India through Kotak Securities:

  • Buying mutual funds through Kotak Securities is a great option for investors with limited knowledge about investing and even lesser time to do the paperwork by themselves.
  • You can either trade mutual funds online through your trading account or call us and place an order.
  • The brokerage house can also double up as a financial advisor, helping you out with options that you may not be aware of, offering tips and tricks to help you make the
    most of your investments.
  • In addition to these, you can either buy directly from the
    asset management company or through a bank that sells mutual funds.

Once you have decided which way you want go and which mutual fund scheme(s) you want to invest in, you will have to place the order. Here’s the step-by-step procedure of buying a mutual fund:

  • Get a demat account
  • Go to the Mutual Funds section of Kotak Securities webpage. Login and then click on ‘Place order’. Or, you can call your broker.
  • Select the name of the mutual fund or the AMC’s name that you wish to invest in.
  • Then select the correct scheme as many fund houses offer multiple schemes.
  • Specify the amount you wish to invest in the scheme.
  • In case of a dividend scheme, select one of the two dividend options — payout or reinvestment. If you select the payout option, the mutual fund’s dividends will be credited to your bank account. The reinvestment option allows the amount to be used to buy additional units of the scheme. You thus won’t get the dividends credited to your bank account. Select the former if you want a secondary source of income. The reinvestment option, however, helps you increase the size of your holdings and increase returns.

How to Sell Mutual Funds :

If you thought the amount of research done for buying a mutual fund was hard work, you’re about to repeat a lot of such work while selling your mutual funds. You need to do your homework and sell your mutual funds only if the timing is right to ensure that you always make a profit on your sale.

Some instances for when mutual funds ought to be redeemed:

  • Most people sell their mutual funds to finance some immediate or upcoming financial requirement, like buying a house or car, paying for children’s education, a health crisis or even an upcoming foreign holiday.
  • Another good time to sell off your mutual funds is when your investment requirements undergo a change – this could be due to inherent growth or changes in your existing portfolio or due to a life event that reorganizes your priorities.
  • If the performance of a mutual fund dips consistently below expectations and other comparable funds for a sustained period of time. Here, ‘sustained’ refers to a time period of 1 to 5 years at least.
  • Changes on the part of the mutual fund – a reset of its investment objectives or strategy, a rejig of its favored stock picks or sectors in which it invests or even the departure of a trusted fund manager often leads to the sale of such mutual funds by investors.

Do you see yourself in any of the scenarios? Then it’s probably a good idea to sell your funds and cut your losses early on.

There are two ways to sell your mutual funds – to another investor or back to the mutual fund. The latter is called redemption of mutual fund.
Mutual funds are best redeemed the same route through which they are purchased. This means you could choose to redeem them online or offline, through an agent or broker or directly by yourself.

However, remember to check for any exit load or charges for sale of your MF units. This will be deducted from your total proceeds from the sale.

Common Mistakes to Avoid When Buying and Selling Mutual Funds

Mutual funds are managed portfolios of stocks, bonds and securities that offer investors the perks of participating in the stock market, but with a limited exposure to the risks involved.

Since this is the case, the need for 24 x 7 monitoring of your investments is probably unnecessary. However, this does not mean that you go into this process of investing in mutual funds completely blind and then live to regret your rash decisions.

Don’t be in a hurry to sell off low performers

Some funds are slow starters that even out their losses given enough time and attention. Patience truly is a virtue when dealing with mutual funds. Exercise it and hold on to your low performers for at least a year before you decide to get rid of them.

A lot can change with the stock market or even your low performing fund in the span of a year. Experience shows that funds that are left to accumulate returns on for the longest periods of time are often the ones that offer the highest returns on investment for the investor.

In a downturn, don’t sell everything off

Mutual funds, as mentioned earlier, are managed by professional stock market analysts and fund managers with years of experience in investing under their belts. In tough economic times, they take proactive measures to minimize the impact of the downturn on their portfolios, like switching sectors or specific stocks to minimize losses.

Don’t use your ‘gut feel’ over the training of these professionals as a justification for selling off your funds as the economy starts cooling off.

Avoid putting your money into stock market bubbles

Every few years, we see at least one sector that shows extraordinary promise and has investors making a beeline for such stocks. This tendency to favor sectors that are the ‘flavor of the season’ spills over into mutual fund trading too.

Be very careful of such deep, sector-specific investments. They could well be the next dotcom bubble in the making. Check your call with a financial advisor, read up investing literature online or otherwise, speak to other experienced investors and then proceed with your sector specific picks

Don’t pick funds based on their short term performance

Mutual funds must be evaluated based on not just their current returns but also on their long term – 1 to 5 year – returns. This is necessary to know if there has been a consistent pattern in the fund’s performance over the years and also to ensure that short term market corrections don’t negatively impact your choice of funds.

Don’t go too narrow with your mutual fund choice

You may have done the most extensive research to arrive at the number one mutual fund option according to you. However, there are no guarantees in the world of stock and securities trading. There’s always a small risk of failure even with the best managed funds.

Don’t put all your investments in one basket. Pick your top three or four choices and spread your risks among them. Make sure they are different types of mutual funds to actually benefit from this move.

Don’t sell before your lock-in periods are over

Selling a fund before the lock-in period runs out is a wasted opportunity to make some returns on your investment. There are exit loads attached to such premature exits and they often nullify the profits that you might have made had you stuck till the end of the lock in period.

Another problem is short term capital gains tax that would become applicable on your investment, thus decreasing even further the ROI from the original investment.

WHAT NEXT?

While researching for mutual funds, you will come across multiple types of mutual fund schemes designed to suit every investor’s needs. These may sound confusing. In the next section, we will go through the multiple types of mutual funds in detail. We will also take you through the Systematic Investment Plan and Hedge Fund investing. To read these, Click here .



How to Sell – Buy Mutual Funds Online #how #to #buy #mutual #funds #online,how #to #sell #mutual #funds #online,how #to #purchase #mutual #funds #online,how #to #trade #mutual #funds


#

Chapter 3.4: How to Buy Sell Mutual Funds

Mutual funds have been around in India for nearly three decades now, but the number of people who actively buy and sell mutual funds in the country remains abysmally low as a percentage of the population.

The fundamental reason for poor participation in the mutual fund market is the lack of awareness; not just about the benefits of mutual funds, but also the knowledge of how to buy and sell them.

You have tackled the question of how mutual funds help you achieve your investment goals in earlier chapters. Now, let’s go through the process of buying and selling mutual funds.

How to Buy Mutual Funds :

Mutual funds are versatile instruments that can be bought and sold in a variety of ways. Once you get all your paperwork in order, here are some of the various ways you can acquire mutual funds in India through Kotak Securities:

  • Buying mutual funds through Kotak Securities is a great option for investors with limited knowledge about investing and even lesser time to do the paperwork by themselves.
  • You can either trade mutual funds online through your trading account or call us and place an order.
  • The brokerage house can also double up as a financial advisor, helping you out with options that you may not be aware of, offering tips and tricks to help you make the
    most of your investments.
  • In addition to these, you can either buy directly from the
    asset management company or through a bank that sells mutual funds.

Once you have decided which way you want go and which mutual fund scheme(s) you want to invest in, you will have to place the order. Here’s the step-by-step procedure of buying a mutual fund:

  • Get a demat account
  • Go to the Mutual Funds section of Kotak Securities webpage. Login and then click on ‘Place order’. Or, you can call your broker.
  • Select the name of the mutual fund or the AMC’s name that you wish to invest in.
  • Then select the correct scheme as many fund houses offer multiple schemes.
  • Specify the amount you wish to invest in the scheme.
  • In case of a dividend scheme, select one of the two dividend options — payout or reinvestment. If you select the payout option, the mutual fund’s dividends will be credited to your bank account. The reinvestment option allows the amount to be used to buy additional units of the scheme. You thus won’t get the dividends credited to your bank account. Select the former if you want a secondary source of income. The reinvestment option, however, helps you increase the size of your holdings and increase returns.

How to Sell Mutual Funds :

If you thought the amount of research done for buying a mutual fund was hard work, you’re about to repeat a lot of such work while selling your mutual funds. You need to do your homework and sell your mutual funds only if the timing is right to ensure that you always make a profit on your sale.

Some instances for when mutual funds ought to be redeemed:

  • Most people sell their mutual funds to finance some immediate or upcoming financial requirement, like buying a house or car, paying for children’s education, a health crisis or even an upcoming foreign holiday.
  • Another good time to sell off your mutual funds is when your investment requirements undergo a change – this could be due to inherent growth or changes in your existing portfolio or due to a life event that reorganizes your priorities.
  • If the performance of a mutual fund dips consistently below expectations and other comparable funds for a sustained period of time. Here, ‘sustained’ refers to a time period of 1 to 5 years at least.
  • Changes on the part of the mutual fund – a reset of its investment objectives or strategy, a rejig of its favored stock picks or sectors in which it invests or even the departure of a trusted fund manager often leads to the sale of such mutual funds by investors.

Do you see yourself in any of the scenarios? Then it’s probably a good idea to sell your funds and cut your losses early on.

There are two ways to sell your mutual funds – to another investor or back to the mutual fund. The latter is called redemption of mutual fund.
Mutual funds are best redeemed the same route through which they are purchased. This means you could choose to redeem them online or offline, through an agent or broker or directly by yourself.

However, remember to check for any exit load or charges for sale of your MF units. This will be deducted from your total proceeds from the sale.

Common Mistakes to Avoid When Buying and Selling Mutual Funds

Mutual funds are managed portfolios of stocks, bonds and securities that offer investors the perks of participating in the stock market, but with a limited exposure to the risks involved.

Since this is the case, the need for 24 x 7 monitoring of your investments is probably unnecessary. However, this does not mean that you go into this process of investing in mutual funds completely blind and then live to regret your rash decisions.

Don’t be in a hurry to sell off low performers

Some funds are slow starters that even out their losses given enough time and attention. Patience truly is a virtue when dealing with mutual funds. Exercise it and hold on to your low performers for at least a year before you decide to get rid of them.

A lot can change with the stock market or even your low performing fund in the span of a year. Experience shows that funds that are left to accumulate returns on for the longest periods of time are often the ones that offer the highest returns on investment for the investor.

In a downturn, don’t sell everything off

Mutual funds, as mentioned earlier, are managed by professional stock market analysts and fund managers with years of experience in investing under their belts. In tough economic times, they take proactive measures to minimize the impact of the downturn on their portfolios, like switching sectors or specific stocks to minimize losses.

Don’t use your ‘gut feel’ over the training of these professionals as a justification for selling off your funds as the economy starts cooling off.

Avoid putting your money into stock market bubbles

Every few years, we see at least one sector that shows extraordinary promise and has investors making a beeline for such stocks. This tendency to favor sectors that are the ‘flavor of the season’ spills over into mutual fund trading too.

Be very careful of such deep, sector-specific investments. They could well be the next dotcom bubble in the making. Check your call with a financial advisor, read up investing literature online or otherwise, speak to other experienced investors and then proceed with your sector specific picks

Don’t pick funds based on their short term performance

Mutual funds must be evaluated based on not just their current returns but also on their long term – 1 to 5 year – returns. This is necessary to know if there has been a consistent pattern in the fund’s performance over the years and also to ensure that short term market corrections don’t negatively impact your choice of funds.

Don’t go too narrow with your mutual fund choice

You may have done the most extensive research to arrive at the number one mutual fund option according to you. However, there are no guarantees in the world of stock and securities trading. There’s always a small risk of failure even with the best managed funds.

Don’t put all your investments in one basket. Pick your top three or four choices and spread your risks among them. Make sure they are different types of mutual funds to actually benefit from this move.

Don’t sell before your lock-in periods are over

Selling a fund before the lock-in period runs out is a wasted opportunity to make some returns on your investment. There are exit loads attached to such premature exits and they often nullify the profits that you might have made had you stuck till the end of the lock in period.

Another problem is short term capital gains tax that would become applicable on your investment, thus decreasing even further the ROI from the original investment.

WHAT NEXT?

While researching for mutual funds, you will come across multiple types of mutual fund schemes designed to suit every investor’s needs. These may sound confusing. In the next section, we will go through the multiple types of mutual funds in detail. We will also take you through the Systematic Investment Plan and Hedge Fund investing. To read these, Click here .



Municipal Debt financial definition of Municipal Debt #oppenheimer #municipal #bond #funds


#

Municipal bond

Municipal bond

State or local governments offer muni bonds or municipals, as they are called. to pay for special projects such as highways or sewers. The interest that investors receive is exempt from some income taxes .

Municipal Bond

A bond issued by a local or state government. Municipal bonds are usually used to raise capital for improvements in infrastructure or other aspects of the municipality. For example, a city or school district may issue a bond to build a new school or a new playground. Municipal bonds are exempt from federal income taxes and sometimes from state and local taxes as well. Municipals usually pay lower coupons than corporate bonds. but because the yield is tax-free, the after-tax basis may be higher for a municipal bond. Risk varies with the municipality and the particular type of municipal bond. It is sometimes called a municipal improvement certificate.

municipal bond

The debt issue of a city, county, state, or other political entity. Interest paid by most municipal bonds is exempt from federal income taxes and often from state and local taxes as well. The tax exemption stems from the use to which the funds from a bond issue have been devoted. Municipal bonds with tax-exempt interest appeal mainly to investors with significant amounts of other taxable income. Also called muni. municipal. tax-exempt bond. See also Bond Buyer’s Index. ex-legal. 501(c)(3) bond. general obligation bond. revenue bond. taxable municipal bond .

Case Study Municipal debt, like corporate debt, ranges in credit quality from investment-grade to very speculative. On November 9, 2001, bond trustee State Street Bank and Trust informed holders of $9.7 million of bonds issued by Marineland Foundation, a nonprofit corporation established by the city of Marineland, Florida, that they would receive $245 for each $1,000 of principal amount. Unfortunately for bondholders the debt was being repaid at slightly less than 25¢ on the dollar. The unrated Marineland bonds had been issued at yields of 8.5% in 1995 to institutional investors and remarketed in 1996 to individuals. Funds raised from the bond issue were used to purchase one of Florida’s oldest tourist attractions. Opened south of St. Augustine, Florida, in 1937 as an underwater movie studio, Marineland opened to the public with dolphin and sea lion shows one year later. Attendance suffered beginning in the 1970s following the opening of Disney World, Sea World, Universal Studios, Circus World, and a host of other bigtime Florida attractions. Revenues at the refurbished oceanside aquarium proved too small to cover variable and fixed expenses, including interest on the debt. Marineland had been sold yet again at the time the agreement was reached with bondholders. The new owners intended to promote the attraction as a research resort where visitors could scuba-dive, hike, and learn about marine life.

Municipal bond (muni).

Municipal bonds are debt securities issued by state or local governments or their agencies to finance general governmental activities or special projects.

For example, a state may float a bond to fund the construction of highways or college dormitories.

The interest a muni pays is usually exempt from federal income taxes, and is also exempt from state and local income taxes if you live in the state where it was issued.

However, any capital gains you realize from selling a muni are taxable, and some muni interest may be vulnerable to the alternative minimum tax (AMT).

Munis generally pay interest at a lower rate than similarly rated corporate bonds of the same term. However, they appeal to investors in the highest tax brackets, who may benefit most from the tax-exempt income.

Link to this page:

Oppenheimer Rochester Short-Term Municipal Fund (ORSYX) Y shares was named Best-in-Class among 80 Short Municipal Debt Funds for the three-year period ended Nov.

Based on a comprehensive survey of municipal debt in 16 regional countries, Tuesday’s S P report says local and regional governments in the Czech Republic, Poland, Romania and Turkey continue to dominate municipal debt issuance in the CEE region this year.

Spiotto argues that taxing municipal debt would adversely affect state and local governments’ access to and cost of borrowing, and their ability to address local matters and concerns related both to infrastructure and services.

The chairman said municipal bond issuers that do not keep purchasers informed well enough of matters that affect solvency and those that sell municipal debt are not informing buyers of the markups and commissions they must pay.

3 billion of municipal debt backed by the full faith and credit of the issuing city or town.

The report represents an effort by Fitch to standardize its analytical process when assessing housing market risk during a downturn, and to make this process transparent to municipal debt issuers.

Oppenheimer AMT-Free New York Municipals (OPNYX)[1] A shares was named Best-in-Class among 87 New York Municipal Debt Funds for the three-year period ended 11/30/12

Local government allocation of public goods and services and the method of payment underlie the ensuing discussion of municipal debt financing.

Since it has been an important driver of economic growth, which infused cash into government coffers and boosted employment in markets related to real estate, Fitch believes that the recent activity in the housing market warrants additional consideration among the criteria incorporated into municipal debt ratings, particularly for issuers in specific geographic regions.

Oppenheimer California Municipal Fund (OPCAX) A shares was named Best-in-Class among 108 California Municipal Debt Funds for the three-year period ended 12/31/11

Those questions included how the Valley and what remains of Los Angeles would divide municipal debt and water rights.

An actuarial study will be completed soon which Fitch will review as part of its overall analysis of OPEB liabilities on all issuers of municipal debt .



Limited English Proficiency (LEP): A federal Interagency Website #lep, #limited #english #proficiency, #limited #english #proficient, #language #access, #language #services, #title #vi, #national #origin, #civil #rights, #language, #government, #federal #financial #assistance, #recipient, #grants, #federal #funds, #discrimination, #interpreter, #interpretation, #translator, #translation, #interagency #working #group #on #lep, #benefits, #services, #program, #guidance, #i #speak #cards, #executive #order #13166, #eo #13166, #federal #agencies, #state #agencies, #county #agencies, #city #agencies, #local #agencies


Erie County of New York State Enters Agreement with HHS OCR to Ensure Availability of Language Assistance Services for Individuals with LEP (Agreement ) (Press Release )

Frequently Asked Questions on Section 1557 of the Affordable Care Act (ACA): Applying the Tagline Requirement to Covered Entities that Operate Health Programs or Activities in More than One State – (HTML )

Resource for Entities Covered by Section 1557 of the Affordable Care Act Estimates of at Least the Top 15 Languages Spoken by Individuals with Limited English Proficiency for the 50 States, the District of Columbia, and the U.S. Territories- (PDF )

LEP.gov promotes a positive and cooperative understanding of the importance of language access to federally conducted and federally assisted programs. This site acts as a clearinghouse, providing and linking to information, tools, and technical assistance regarding limited English proficiency and language services for federal agencies, recipients of federal funds, users of federal programs and federally assisted programs, and other stakeholders.



FHA Mortgage Loan Funds Renovations #debt #relief


#renovation loan
#

FHA offers home renovation help

Homebuyers who buy an older home or foreclosure often are frustrated by the difficulty of financing needed repairs and renovations. But a Federal Housing Administration home loan program offers some help.

A Section 203(k) loan allows borrowers to wrap the cost of repairs and improvements into a single mortgage.

Find the best mortgage rates

“We’ve seen tremendous growth in the use of these loans across the country, especially in areas where the housing stock is old and needs repairs or when people are buying foreclosures and short sales,” says Stephen Adamo, president of Weichert Financial Services in Morris Plains, N.J.

The 203(k) loan is a boon for cash-strapped homeowners who either cannot or do not want to tap their home equity. It also offers an alternative to borrowers struggling to find other sources of financing.

“This is a great loan product because it can be very hard to find a construction or rehabilitation loan these days,” Adamo says.

There are two types of 203(k) loans. The first, and more common, loan is known as a Streamline 203(k) and is restricted to repairs or improvements that total $35,000 or less.

The second type of 203(k) loan applies to improvements costing more than $35,000.

A 203(k) loan requires a minimum of $5,000 to be spent on rehabilitation of the home. Generally, the maximum mortgage amount depends on the lesser of the borrower’s approval limit, the FHA maximum mortgage limit for the area or 110 percent of the appraised value of the improved property.

Loan restrictions

While 203(k) loans may be a great option for many homeowners, they also come with some restrictions.

For example, 203(k) loans can be used for refinancing as well as purchase loans, but are limited to owner/occupants. Investors are not eligible.

In addition, work has to begin within 30 days of closing and be complete within six months. The borrower is allowed to be the contractor if qualified, but cannot be paid for anything outside the cost of materials and must meet specific FHA qualifications.

If a contractor is being used, be sure to ask if they have done 203(k) programs before, says Mike Tompkins, a mortgage consultant with W.J. Bradley Mortgage Capital in Scottsdale, Ariz. “The contractor needs to understand the payment schedule and requirements.”



How Morningstar Rates and Ranks Mutual Funds #morningstar #bond #funds


#

How Morningstar Rates and Ranks Mutual Funds

Morningstar, Inc. (NASDAQ: MORN ) first introduced its rating system in 1985. The simple, easy-to-understand Morningstar platform quickly became a favorite of analysts, advisors and individual investors in the mutual fund world. Today, Morningstar is one of the most influential and prominent investment resources in the world, and it’s a company that every interested person should take time to understand better.

Morningstar ranks mutual funds on a scale of one to five stars. These rankings are based on how the fund has performed – with adjustments for risks and costs – compared to funds in the same category. Each fund receives separate ratings for three-, five- and 10-year periods, which it combines into an overall rating.

The company claims that its mutual fund rankings are “objective, based entirely on a mathematical evaluation of past performance.” While this is superficially true – all Morningstar rankings are math-based – it undersells how sensitive the ranking process is to two subjective factors: the weighting of the mathematical formula and the classification of a fund into a particular category.

The Star Rating System

Morningstar is best known for its star rating system, which assigns a one- to five-star ranking to each fund based on past performance relative to peer funds. Star ratings are graded on a curve; the top 10% of funds receive five stars, the next 22.5% receive four stars, the middle 35% receive three stars, the next 22.5% receive two stars and the bottom 10% get one star.

Morningstar doesn’t offer an abstract rating for any fund; everything is relative and risk-adjusted. All funds are compared to their peers, and all returns are measured against the level of risk that portfolio managers had to assume in order to generate those returns.

Even risk and return ratings are made on a relative scale. The top 10% of funds with the lowest measured risk receive a Low Risk designation, the next 22.5% are Below Average and so on. Similarly, the top 10% highest returning funds receive a Highest Morningstar Return designation.

Sectors and Categories

Morningstar organizes all equity research by market sector, allowing investors and analysts to compare equities with similar focuses. Some of Morningstar’s equity sectors include cyclicals, basic materials, financial services, defensive, utilities, communication services, energy and technology.

In October 2010, Morningstar reworked its sector classification system, suggesting the new system was “more logical” and made it “easier to understand the decisions being made by portfolio managers.” All stocks, funds and portfolios were split into three broad sectors: Cyclical, Defensive and Sensitive. Each such supersector contains three or four subgroups.

Within each subgroup, there are multiple industries. Each stock belongs to one of nearly 150 industries based on how Morningstar best identifies the underlying business model for the company. According to Morningstar, these equities are classified by a review of “annual reports, Form 10-Ks and Morningstar Equity Analyst input.”

Each Morningstar fund can be quickly compared for exposure among the three supersectors, but a more thorough review is possible at the subgroup level.

How Morningstar Measures Volatility

Morningstar is steeped in modern portfolio theory (MPT), the investment philosophy centered around minimizing risks and maximizing expected returns by strategically diversifying assets. Morningstar’s primary volatility measurements come straight out of MPT: standard deviation, mean and the Sharpe ratio.

Standard deviation is a basic statistical concept that determines how wide a fund’s range of performance has been. A fund with less consistent returns over time – the numbers are more spread out – has a higher standard deviation. Calculate the standard deviation by taking the square root of the fund return variance, which is just the squared differences from the mean return. This is a reasonable and uncontroversial indicator of volatility.

The mean is just the average return of the fund. Morningstar calculates the mean based on an annualized average monthly return; if a fund gained 80% over the course of a year, its average annualized monthly return was 6.67% (80% divided by 12 months). The primary function of the mean is to serve as a base unit for the standard deviation.

The last of Morningstar’s MPT volatility metrics is the Sharpe ratio, which determines how much extra return an investor receives for a given amount of extra assumed risk. Nobel laureate William F. Sharpe created the concept behind the Sharpe ratio in 1966, and it has been a favorite in the finance industry since. Calculate an investment’s Sharpe ratio with the following formula:

Sharpe(investment) = (average return – risk free rate of return) / standard deviation of investment

Through the Sharpe ratio, Morningstar can compare the performance of one portfolio with another on a risk-adjusted basis.

Bear Market Decile Rank

The bear market decile rank is a non-MPT volatility and risk measurement in the Morningstar toolbox. Essentially, Morningstar compares every equity fund against the S P 500 Index and every bond or fixed-income fund against the Lehman Brothers Aggregate Index. All equity funds and all bond funds are measured against each other and assigned decile rankings according to their performances during bear markets. It’s a more sophisticated way to look at downside capture.

Morningstar Analyst Rating for Funds

The standard Morningstar star rating is backwards-looking; it tells an investor which funds have performed best over a three-, five- or 10-year period. One common misconception is that Morningstar awards higher star ratings to funds it expects to perform better in the future, which isn’t the case. There are no predictive or prescriptive elements in the star rating system.

Morningstar does have a forward-looking metric: the analyst rating for funds. The analyst rating is a summary of Morningstar’s “conviction in the fund’s ability to outperform its peer group and/or relevant benchmark on a risk-adjusted basis.”

Analyst ratings are graded on a five-tier system, with three positive ratings of Gold, Silver and Bronze, plus a Neutral rating and a Negative rating. Morningstar determines analyst ratings based on how a fund scores across five pillars: process, performance, people, parent and price. Gold funds are the best, and are those in which Morningstar analysts have the highest confidence. Silver funds have advantages across all of the five pillars. Bronze funds show “notable advantages across several,” though not all, pillars. Neutral funds don’t receive analyst confidence for overperformance or underperformance. Negative funds show flaws that analysts believe will hamper future performance.



Short Term Loans UK – Fast Payday Loans in 10 Minutes – I Got Funds #car #loan #rates


#instant payday loans uk
#

BBA Short Term Loans

Are you eligible?

  • Are you over 18 years old?
  • Is your salary paid into a UK back account?
  • Do you have a UK debit card?

Then You Are Eligible!

Apply today recieve the cash in just a few minutes.

Need a UK Short Term Loan Today?

Running short before pay day can really be frustrating.

You may have a lot of needs and yet you do not have enough cash in your pocket. You may opt to borrow money from your friends but that may not be the best option if they have their own expenses too. If you are tired of looking around for options on how to get quick cash, they you may need to consider other financing methods such as filing for a pay day loan.

Quick cash loans are becoming in demand today because unlike regular loans, they are easy to file. Most people think that filing for a loan is not good because they take time to approve. What they do not know is that with quick cash loans, you only need to wait for a day or even a few hours to know if you are qualified or not.

Aside from instant results, you can also file a pay day loan online so it is very convenient. If you do not know of any cash loan companies in your area, you can simply browse through the Internet and you will see a couple of websites about speedy loans. You can check what options they offer and compare which among them best appeals to you. All you need to do once you have selected the company is to fill-out an online form where you will put all the necessary details that they need. After they have received the form, you will be notified if your application is approved and how you can claim the money that you borrowed.

Before signing anything, you need to make sure that you understood everything written on the contract. Some people forget to read the fine print when they are looking after the money that they can get. It is important to ask questions if there is anything unclear to you to avoid problems in the future. You will be informed how much you need to pay on your salary day so you know if you can abide with the terms or not.

BBA Can Help!

Speedy loans are not only quick. They are safe and tested by many borrowers. For this, frauds try to imitate the style of lenders just to get personal information from clients. If you are in doubt if the person you are talking to is legit, you can contact the company which the person claims to work for. A legit lending company will always have an email or a contact number so people can contact them any time. They will inform you right away if the person you are dealing with is legit or not so there is no way for swindlers to escape with their scam.

In case you run short on your salary day and you think you cannot pay the total amount that you agreed to settle, you have the option to file for an extension. You can pay the amount that you borrowed for a longer period of time however a deferral fee will apply. The interest rate or deferral fee will depend on how long you wish to extend. The longer you want to extend your contract, the higher deferral fee you need to pay. Some people are unable to finish paying their debts because they keep on extending instead of focusing on the amount that they need to settle. Lenders will always advise borrowers to be wise in spending money so they do not end up having bigger debts.

Short term loans can be a good way to settle you immediate cash concerns. They are reliable, fast and secure which saves you a lot of time and effort. On the other hand, it is necessary to keep in mind that speedy loans are made to assist people who have urgent concerns and not as a regular source of cash for unnecessary spending. It is best to create and stick to a good budget plan to avoid running out of cash before your salary day.