Credit score – KR2K http://kr2k.com/ Fri, 01 Jul 2022 03:21:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://kr2k.com/wp-content/uploads/2021/08/icon-150x150.png Credit score – KR2K http://kr2k.com/ 32 32 “We have recovered more than 90% of loans guaranteed by agricultural credit” | The Guardian Nigeria News https://kr2k.com/we-have-recovered-more-than-90-of-loans-guaranteed-by-agricultural-credit-the-guardian-nigeria-news/ Fri, 01 Jul 2022 03:21:00 +0000 https://kr2k.com/we-have-recovered-more-than-90-of-loans-guaranteed-by-agricultural-credit-the-guardian-nigeria-news/ The board of directors of the Agricultural Credit Guarantee Fund (ACGSF) says the repayment of farmers’ loans under the scheme has been very impressive, noting that it has so far recovered more than 90% of the loans that it has guaranteed since its inception until May this year. Chairman of the Board, Mr. Stephen Okon […]]]>

The board of directors of the Agricultural Credit Guarantee Fund (ACGSF) says the repayment of farmers’ loans under the scheme has been very impressive, noting that it has so far recovered more than 90% of the loans that it has guaranteed since its inception until May this year.

Chairman of the Board, Mr. Stephen Okon revealed this yesterday in Abuja, during the National Farmers Awards 2021 ceremony to reward participating farmers and financial institutions who have been consistent in repaying their loans and for their support of the program.

ACGSF was established in 1977 to underwrite agricultural credit facilities for farmers. The Federal Government and the Central Bank of Nigeria (CBN) both contribute 60% and 40% to the Fund respectively. The CBN does, however, act as the Scheme’s managing agent and secretariat.

Okon said that since its inception till May 2022, the scheme had guaranteed a total of 1,232,326 loans worth N130.903 billion, of which 973,646 beneficiaries had repaid a total of N98.91 billion.

He noted that the ACGSF program has proven to be relatively effective in reducing risks in the agricultural sector in Nigeria.

According to him, “The Agricultural Credit Guarantee Fund (ACGSF) Farmer of the Year award was introduced in the 1980s to reward selected farmers who borrowed under the scheme and repaid within a set period of time. while adopting the best agronomic practices to obtain good yields.

“This should serve as an incentive to participate in the program and instill good repayment behavior with a view to encouraging more program participants.”

He said to further encourage program participants, the Board last year approved increasing interest reimbursement for farmers and agricultural value chain participants from 40% to 50% to cushion the effect of the COVID – 19 pandemic. According to him, the increase took effect from January 1, 2022.

He said it was important to support farmers because achieving food security not only brings significant benefits to human health, but also serves as a foundation for achieving sustained economic growth.

Okon called on stakeholders, banks, state officials and other relevant agencies to continue supporting agricultural value chain participants through credit and advisory services to help them develop their full potential.

Earlier in his goodwill message, Branch Comptroller, CBN, Abuja Branch, Ogbu Onyeka Michael, while congratulating the winners, said it is evident that the successes achieved under the ACGSF have led to significant improvement in depository bank (DMB) lending to the agricultural sector and led to remarkable growth in the agribusiness value chain in Nigeria.

According to him, “the negative impact of the COVID-19 pandemic and, recently, the Russian-Ukrainian war on the global supply chain, has further underlined the importance that the CBN places on agriculture and d “other real sector interventions aimed at insulating the economy from these external shocks. This only leaves us wondering and imagining what the consequences on the country would have been without the CBN’s initiatives.”

He said the award is an expression of CBN management’s commitment to supporting hard work, innovation and productivity in the agricultural value chain.

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Tenet raises $18 million for electric vehicle loans https://kr2k.com/tenet-raises-18-million-for-electric-vehicle-loans/ Tue, 28 Jun 2022 13:00:36 +0000 https://kr2k.com/tenet-raises-18-million-for-electric-vehicle-loans/ Tenet, a fintech startup that offers electric vehicle-specific auto loans, raised $18 million in seed funding, the company tells exclusively to Axios. Why is this important: The New York-based startup wants to help offset the “green premium” that many consumers associate with electric vehicles and home electrification. What is happening: Human Capital and Giant Ventures […]]]>

Tenet, a fintech startup that offers electric vehicle-specific auto loans, raised $18 million in seed funding, the company tells exclusively to Axios.

Why is this important: The New York-based startup wants to help offset the “green premium” that many consumers associate with electric vehicles and home electrification.

What is happening: Human Capital and Giant Ventures led the all-equity round with participation from Breyer Capital, Global Founders Capital and Firstminute Capital. Angel investors Michael Tannenbaum, Gokul Rajaram and Michael Ovitz also participated.

  • No investors are joining the board as part of the round, said CEO Alex Liegl, who declined to disclose the valuation.
  • The round was closed in two parts, the first closing in September and the second tranche in May.

How it works: Tenet works with undisclosed credit unions, green banks and asset managers with ESG guidelines to provide consumer auto loans.

  • It calculates the depreciation of electric vehicles based on a 12-year life of the vehicle compared to a 6-year life of traditional combustion engine vehicles.
  • Tenet loans delay payments closer to the end of the electric vehicle’s life to reduce monthly payments over the years that straddle a traditional vehicle.
  • Tenet offers direct consumer loans through its website or through its network of affiliate dealers and payment processors.
  • He wants to work with OEMs in the future, Liegl said, because many existing loans offered by OEMs are through outside banking partnerships.

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Downtown Oklahoma City projects benefit from new clean energy loans https://kr2k.com/downtown-oklahoma-city-projects-benefit-from-new-clean-energy-loans/ Sun, 26 Jun 2022 11:00:26 +0000 https://kr2k.com/downtown-oklahoma-city-projects-benefit-from-new-clean-energy-loans/ More than $80 million in development, all tied up for months or even years, is set to begin this summer after being boosted by a new clean energy funding program created by Oklahoma County commissioners. The Commercial Property Assessed Clean Energy, or C-PACE, program provides developers with low-cost, long-term financing for energy efficiency, renewable energy […]]]>

More than $80 million in development, all tied up for months or even years, is set to begin this summer after being boosted by a new clean energy funding program created by Oklahoma County commissioners.

The Commercial Property Assessed Clean Energy, or C-PACE, program provides developers with low-cost, long-term financing for energy efficiency, renewable energy sources, water conservation and land resiliency projects. buildings. Loans are tied to the building’s property tax records as an assessment and are repaid over terms of 20 years or more through a special property assessment.

After:The historic downtown OKC bank will be converted into apartments and retail

Finance can provide up to 100% financing based on eligibility, with no down payment, and if the property is sold, any remaining appraisal can be passed on to the new owner.

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6 BEST PAYDAY LOANS ONLINE | TOP NO CREDIT CHECK LOANS WITH GUARANTEED APPROVAL | DIRECT LENDERS https://kr2k.com/6-best-payday-loans-online-top-no-credit-check-loans-with-guaranteed-approval-direct-lenders/ Fri, 24 Jun 2022 19:48:43 +0000 https://kr2k.com/6-best-payday-loans-online-top-no-credit-check-loans-with-guaranteed-approval-direct-lenders/ Are you a proud American looking for a bad credit loan? Maybe you have bad credit or have been through a tough financial time. Are you late with your bills or do you owe money to a family member? Maybe your car broke down recently and you can’t afford the cost of repairing it, or […]]]>

Are you a proud American looking for a bad credit loan? Maybe you have bad credit or have been through a tough financial time. Are you late with your bills or do you owe money to a family member? Maybe your car broke down recently and you can’t afford the cost of repairing it, or maybe you just need the money to live on.

Either way, a bad credit loan with guaranteed approval and/or no credit check might be the right thing for you. In this in-depth review, we’re going to highlight some of the top bad credit loan direct lenders. These companies that we are going to highlight are some of the best in America and they have a strong following.

However, we have to be honest with you before starting this review. The reality you need to know is that not all bad credit lenders are good. There are many out there that offer all types of emergency loans. What you need to watch out for and pay close attention to are the interest rates offered by some of these direct lenders.

It is with great pleasure that we can let you know that all the payday lenders we talk about in this review are the best in America. We will also highlight for you some of the pros and cons of each of these lenders.

So sit back and relax and get ready for a good read. This is going to be by far one of the best bad credit loan reviews you will ever read. Here we are:

#1. MONEYMUTUAL – Best Direct Lender for No Credit Check Loans

#2. CREDIT LOAN – Best emergency loan for bad credit lender

#3. FUNDSJOY – Bad Credit Payday Loans with Instant Approval

#4. TRUE AMERICAN LOAN – America’s Best Short Term Lender

#5. XMASFUNDS.COM – Instant Approval For Bad Credit Loans

#6. FUNDSGIFT – Cash Advance Experts with Guaranteed Approval

#1. MoneyMutual – America’s Best Direct Bad Credit Lender.

If you’re familiar with MoneyMutual, you’ll know they’re one of the best emergency loan providers in the game. They’re fast, reliable, and service-oriented. Not only that, they had one of the best spokespersons a company could ask for.

Do you remember Montell Williams? This guy…

A legendary daytime talk show host. Montell’s daytime viewership grew by leaps and bounds in the 1990s. After a hugely successful career on daytime talk shows, Montel Williams branched out into promoting MoneyMutual.

Naturally, when you succeed, people will chase you, and they did. Montel Williams’ haters have come out of the woodwork and sued him for promoting a “bad credit loans” company. These haters would say that Montel was taking advantage of the less fortunate and promoting a company that only preyed on people when needed.

We believe this is not the case. Montel Williams has always shown himself to be a model citizen both during his time as a daytime talk show host and after. His time promoting MoneyMutual has been a successful venture.

=> VISIT THE OFFICIAL MONEY MUTUAL WEBSITE NOW!

#2.CreditLoan – No Credit Check Loan with Guaranteed Approval Online

In the wake of MoneyMutual is CreditLoan. In our opinion, they came out of nowhere! No one gave them much luck, but all of a sudden they started gaining momentum as a bad credit lender. They offer similar loan amounts and interest rates to MoneyMutual, however, they are a different brand and frankly good competition for MoneyMutual.

Still up and coming, CreditLoans is one money lender to watch. Specifically when it comes to their customer service commitments. In this, as they continue to grow as a payday loan provider, are they able to maintain the same level of exceptional customer service for their clientele. Time will tell, as the personal loan industry is competitive.

=> VISIT THE OFFICIAL CREDIT LOANS WEBSITE NOW

#3. FundsJoy – Bad Credit Emergency Loans with 24 Hour Loan Approval

FundsJoy is one of our favorite short-term loan providers. We love their marketing and easy to use website. Their use of color on their website is very good as it creates a comfortable user experience for anyone looking for loans without credit check.

One thing to watch out for with FundsJoy is whether they can handle their rapid expansion. Similar to CreditLoans, this company works very well. As more and more people with bad credit apply for fast loans, are they able to handle the back-end and customer service that comes with an increased number of people taking out loans for bad credit.

Time will tell with this company as well. They are to be watched. We love them though and recommend them to anyone in need of an installment loan.

=> VISIT FUNDSJOY OFFICIAL WEBSITE NOW

#4. REAL AMERICAN LOAN – BEST LOAN PROVIDER FOR VETERANS AND REAL AMERICANS

As the name suggests, this bad credit loan provider is for real Americans. They really know their target market because most people who take payday loans from this company identify as real Americans.

So what makes someone a real American? Well, he’s someone who loves the great country of America, ultimately. As such, this loan provider is popular with so many Americans all across our great country. Whether you need a payday loan, bad credit loan, no credit check loan, short term loan, installment loan, 24 hour loan , a $500 loan, a $300 loan or a $100 loan, this loan provider will have your back.

Let’s be clear on one thing, are they as big as a company like MoneyMutual? Absolutely not. But bigger isn’t always better, right? It depends on the borrower and their comfort level when choosing a bad credit loan provider.

=> VISIT REAL AMERICAN LOAN WEBSITE NOW!

#5. XMASFUNDS.COM – The Most Popular Bad Credit Holiday Loan Provider

This may sound strange to you, but hear us out! You wouldn’t believe how popular this bad credit lender is at Christmas time. As we speak… ULTRA popular. There are many people during the holidays who need cash fast and need emergency loans.

So, of course, a Christmas-branded bad credit lender is going to work fine then, right?

Well, check that out…even when it’s not Christmas time, this payday lender still manages to operate consistently. Why is that? We think it’s because people love Christmas. Anything with a Christmas present is generally accepted quite easily.

We also recommend checking this one out, especially if you’re looking for $5,000 loans.

=> VISIT XMASFUNDS OFFICIAL WEBSITE NOW!

#6. FundsGift – The New Bad Credit Lender with Guaranteed Approval

FundsGift is new on the scene. Our first impression of them is that they will give MoneyMutual their money’s worth. See what we did there?

The most impressive thing we’ve seen from FundsGift so far is how quickly their list of money borrowers is growing. They provide all kinds of bad credit loans with guaranteed approval quickly. The rate at which they hand them out makes you think they’ve been in the business for years!

As we watch FundsGift’s growth take off, we’ll be very interested to see if they get bigger than MoneyMutual. Some people who watch the emergency loan industry very carefully say it is possible while other people in the industry say it will never happen.

Either way, when it comes to short term loans and 24 hour loans, FundsGift is at the top of their game. If you are looking for $5,000 loans and $10,000 loans, MoneyMutual might be a better option.

=> VISIT THE OFFICIAL FUNDSGIFT WEBSITE NOW!

Final Words on Short Term Loans for Bad Credit

Good, you have it now. We’ve reviewed six of the best bad credit lenders in America. As we promised, we discussed the pros and cons of each lender.

It is not up to you to choose which bad credit lender is best for you. After reading our in-depth articles, borrowers usually come to their own conclusion as to which lender to choose. However, some people are still unsure which payday loan provider to choose.

If this is you, you don’t have to worry. You’re not alone. For people like you, we suggest sticking with the largest bad credit loan provider in America. If you remember from our article, that direct lender is MoneyMutual.

You can visit their official website as per the link below and you can directly apply for bad credit loan.

=> VISIT MONEYMUTUAL OFFICIAL WEBSITE NOW!

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Responsible for an ex’s student loans? You will like this bill passed by the Senate https://kr2k.com/responsible-for-an-exs-student-loans-you-will-like-this-bill-passed-by-the-senate/ Wed, 22 Jun 2022 21:46:48 +0000 https://kr2k.com/responsible-for-an-exs-student-loans-you-will-like-this-bill-passed-by-the-senate/ Student loan separation may be imminent for some borrowers It’s hard to imagine, but it’s a reality in Virginia. Did you know that if someone was previously married to a domestic abuser, they could still be legally obligated to pay that person’s student loan debt, even after getting divorced? With the recent Senate stint of […]]]>

Student loan separation may be imminent for some borrowers

It’s hard to imagine, but it’s a reality in Virginia. Did you know that if someone was previously married to a domestic abuser, they could still be legally obligated to pay that person’s student loan debt, even after getting divorced? With the recent Senate stint of US Senator Mark Warner’s (D-VA) co-sponsor Joint Consolidation Loans Separation Actvictims take one step closer to financial freedom.

For simplicity, here is a timeline of the major changes that led to the current Senate passage:

  • 1993: A federal law has been passed allowing married couples to combine their student loan debt and be jointly and severally liable for repayment.
  • 2006: Married couples were no longer able to consolidate their student loans, but those already locked into the ‘deal’ were unable to separate their accounts
  • 2017: Warner authored the original version of the deed following a voter expressing her struggles with a joint consolidation loan
  • 2021: Warner co-sponsored the Joint Consolidation Loans Separation Act 2021 to separate the financial responsibility for the student loan of an abusive ex-spouse from the victim
  • 2022: The US Senate passed the law, effectively sending the bill to the House of Representatives

According to Warner, who spoke with the US Department of Education ahead of the May 5 banking committee hearing, there were more than 14,000 joint student loans outstanding totaling around $800 million.

During the hearing, Mike Pierce, executive director of the Student Borrower Protection Center, said that under the current scope of the law, a person can receive financial responsibility for the loan originally intended for joint repayment.

“Your bill would help dissolve these loans, but not just to help provide a fairer outcome for borrowers, but to restore access to key elements of the student loan safety net that are being denied to borrowers who have these so -so-called spousal consolidation loans, including access to forgiveness of utility loans and the ability to get reimbursement based on income that actually matches their financial situation,” Pierce said in response to Warner. during the budget hearing. “Right now the student loan safety net is failing people with these so-called spousal consolidation loans and your legislation would fix this mess.”

Although the focus is often on couples divorced due to domestic violence, the law doesn’t stop there – it would also give former couples the option of breaking the loan in cases of economic abuse or lack of response from a former partner, for example.

Here’s how it helps

If passed by the House and signed by President Joe Biden, the legislation would amend the Higher Education Act of 1965, allowing borrowers to separate joint consolidation loans. According to Warner’s office, the change would:

  • Borrowers must submit an application to the Department of Education to split the Joint Consolidation Loan into two separate Federal Direct Loans
  • The remainder of the loan should be divided proportionately with the repayment based on the percentages each borrower originally contributed to the loan
  • The two new federal direct loans will have the same interest rates as the joint consolidation loan
  • Borrowers will have the option to transfer qualifying payments to income-driven repayment programs and the Civil Service Loan Forgiveness Program

“The Senate’s passage of this common sense law is a great step forward for victims of domestic violence and financial abuse who have spent decades fighting for their financial freedom. By finally allowing individuals to break their joint consolidation loans, this bill will provide much-needed respite to vulnerable individuals who are unfairly held responsible for a former partner’s debt,” Warner said in a statement on the law. “I urge my colleagues in the House to act urgently and send this bill to the President’s office as soon as possible.”

Warner’s office further noted that the law has received support from a number of organizations, including the National Network to End Domestic Violence, the National Consumer Law Center, the North Carolina Coalition Against Domestic Violence, and the Virginia Sexual. and Domestic Violence Action Alliance.
You can read more about the Joint Consolidation Loan Separation Act in a Dogwood article published last year when the legislation entered the Senate.

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Bill allowing the separation of consolidated joint student loans https://kr2k.com/bill-allowing-the-separation-of-consolidated-joint-student-loans/ Tue, 21 Jun 2022 07:18:15 +0000 https://kr2k.com/bill-allowing-the-separation-of-consolidated-joint-student-loans/ A new bill would give federal borrowers a way to separate their consolidated loans from those of a former partner. The Joint Consolidation Separation Act passed the Senate on Wednesday. The bill would allow borrowers to request the separation of a joint consolidation through the Department of Education. After approval, the remaining debt, including the […]]]>

A new bill would give federal borrowers a way to separate their consolidated loans from those of a former partner.

The Joint Consolidation Separation Act passed the Senate on Wednesday. The bill would allow borrowers to request the separation of a joint consolidation through the Department of Education. After approval, the remaining debt, including the outstanding loan and unpaid interest, would be divided according to the percentage of the loan each borrower owed at the time of consolidation.

Spousal consolidation was offered to married federal student loan borrowers to consolidate their student loans into one monthly payment with a lower interest rate.

The program ended in 2006, but it never offered couples who ended their marriages the option of split consolidation, creating an awkward situation for many.

People working in the public service who have consolidated loans, both with a current or former spouse, are not eligible for forgiveness under the public service loan forgiveness program.

The bill has won support from many groups that advocate for survivors of domestic violence, including the National Network to End Domestic Violence.

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Small ticket, big business: Fintech companies see an increase in instant loans https://kr2k.com/small-ticket-big-business-fintech-companies-see-an-increase-in-instant-loans/ Sun, 19 Jun 2022 12:43:00 +0000 https://kr2k.com/small-ticket-big-business-fintech-companies-see-an-increase-in-instant-loans/ Home loans and other personal loans made up 64 percent of additional credits over the past two fiscal years. Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback […]]]>

Home loans and other personal loans made up 64 percent of additional credits over the past two fiscal years.

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.

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First published: Sunday, June 19, 2022. 6:13 PM IST

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Nissan allows higher profit margins on 7-year loans https://kr2k.com/nissan-allows-higher-profit-margins-on-7-year-loans/ Wed, 15 Jun 2022 18:28:05 +0000 https://kr2k.com/nissan-allows-higher-profit-margins-on-7-year-loans/ Nissan allows dealers to impose higher markups on its longer loans. According to incentive bulletins sent to dealerships, Nissan Motor Acceptance Company, or NMAC, is allowing dealerships to mark up loans up to 1.5% over 84 months. The changes could allow dealerships to take more advantage of payment-oriented car buyers. Starting today, NMAC is allowing […]]]>

Nissan allows dealers to impose higher markups on its longer loans. According to incentive bulletins sent to dealerships, Nissan Motor Acceptance Company, or NMAC, is allowing dealerships to mark up loans up to 1.5% over 84 months. The changes could allow dealerships to take more advantage of payment-oriented car buyers.

Starting today, NMAC is allowing dealers to mark up its standard rates by up to 150 basis points. This may translate into a price increase for buyers from the previous limit of 100 basis points by increasing the allowable markup from 1% to 1.5%. While car buyers know this as a markup, automakers call it dealer participation.

Non-promotional finance offers, or standard rates, have become more common at Nissan amid a broader withdrawal of incentives due to a shortage of inventory. Currently, the brand’s best rates are limited to just 36 months, and just about every new Nissan only offers standard rates on loans over 48 months.

Based on NMAC’s standard rate bulletin that went into effect today, the company’s 84-month rate is now 4.35% APR. With a mark-up of 1.5%, this would amount to 5.85%. On a 7-year loan for a $30,000 car, a rate of 5.85% would cost over $6,600 in interest assuming you can avoid a price markup or unwanted add-ons.

To make matters worse, these examples are based on leading credit. With so-called Tier 2 credit, the rate would jump to 7.26% after the increase. With Level 6 credit – the lowest allowed by NMAC with 84 months financing – the rate would be 11.45%. The same rates apply to new and factory certified pre-owned Nissans.

That said, Nissan’s 84-month finance rates may still be lower than those of its competitors. For example, Ford’s 84-month rate on a 2022 Bronco Sport crossover or Maverick pickup is currently 7.9% APR with prime credit. There may be exceptions. The best 84-month interest rate on the 2022 Ford Edge is just 3.9%.

While 84-month financing can create lower car payments, it’s not for everyone because it involves higher rates and could expose consumers to negative equity risk. Yet more and more brands are promoting longer loans. For example, Ford recently began prescreening 84-month loans in online payment estimates.

Explore the best 0% financing offers

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WA’s low-interest loans would reduce student debt / Public News Service https://kr2k.com/was-low-interest-loans-would-reduce-student-debt-public-news-service/ Tue, 14 Jun 2022 04:02:40 +0000 https://kr2k.com/was-low-interest-loans-would-reduce-student-debt-public-news-service/ The cost of higher education is a major headache for people, even years after graduation. A program in Washington State aims to make borrowing for college a little easier. State lawmakers passed a measure this year that will establish a 1% interest rate student loan program. It will start with a one-time investment of $150 […]]]>

The cost of higher education is a major headache for people, even years after graduation. A program in Washington State aims to make borrowing for college a little easier.

State lawmakers passed a measure this year that will establish a 1% interest rate student loan program. It will start with a one-time investment of $150 million from the state, after an actuary has analyzed the plan.

The bill’s sponsor, State Rep. Pat Sullivan — D-Covington — said the state had a big budget surplus this year.

“We had a decent amount of one-time money,” Sullivan said, “and I really thought putting it in a student loan account for 1% student loans made perfect sense. Timing was everything. simply perfect.”

The state had a $15 billion surplus to work with in the 2022 session.

Most Republicans voted against the legislation, saying the money should have gone back to Washingtonians through tax breaks.

Washingtonians owe an average of about $33,000 in student debt, according to the Student Loan Hero website. Sullivans said debt burdens people long after they leave college.

“Interest rates are too high,” Sullivan said. “You have graduates unable to take out a loan even for a car in some cases, and buying a home is out of reach given how much debt they are graduating with.”

The Biden administration is considering forgiving some of people’s student debt — possibly up to $10,000.

Sullivan – who is also the majority leader at the State House – said it was great, but his 1% loan scheme is about helping students get ahead.

“It will help a lot of students, but that’s in the future,” Sullivan said, “and so until the federal government can come up with a better solution for students, they’ll continue to go into debt.”

A report on how the program might work in the long term and what level of funding it might need is due on the governor’s desk on Dec. 1.

Support for this report was provided by Lumina Foundation.

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European leveraged loans: an allocation that is here to stay https://kr2k.com/european-leveraged-loans-an-allocation-that-is-here-to-stay/ Fri, 10 Jun 2022 20:13:35 +0000 https://kr2k.com/european-leveraged-loans-an-allocation-that-is-here-to-stay/ JUNE 2022 European leveraged loans: An allowance that’s here to stay JUNE 2022 Summary We believe that the European leveraged loan market is one of the most interesting but underestimated asset classes in the global credit sphere. Over the past two decades, the asset class has evolved […]]]>







JUNE 2022

European leveraged loans:

An allowance that’s here to stay

JUNE 2022

Summary

We believe that the European leveraged loan market is one of the most interesting but underestimated asset classes in the global credit sphere. Over the past two decades, the asset class has evolved into a distinct set of opportunities, while building a track record that stands apart from competing asset classes. For example, European leveraged loans have generated a higher rolling five-year average Sharpe ratio over the past ten years compared to US loans, US and European high yield bonds, emerging market companies as well as than to US and European equities.1. Additionally, the asset class has produced 10 consecutive calendar years of positive total returns, delivering 4.6% on an annualized basis.2. We believe this leading risk-adjusted performance is positioned to continue given the current market environment. The asset class consistently offers one of the highest yields in public credit markets, while an exclusively institutional investor base should support a stable return profile given their longer investment horizon term as well as the pricing power of CLO investors.

The credit performance of European leveraged loans was a notable driver of the attractive risk-adjusted return profile. The asset class has experienced lower average defaults and higher recovery rates compared to other segments of leveraged credit markets3. In addition, the rate of improvement for these measures was also higher3. This could be attributed to the underlying borrower base which increasingly consists of larger and more mature companies in addition to permanent private equity sponsors. The structural and compositional characteristics of the asset class also helped credit performance. For example, the asset class is almost entirely categorized as first lien, while the opportunity set is well-diversified across countries and sectors, with notably large allocations to industries that are generally less cyclical in nature. Notably, European loans generally provide diversification across a broader portfolio as there is limited overlap with companies appearing in European equity and high yield bond markets.

The asset class’ rate structure is another key factor when considering risk-adjusted performance. Negative underlying base rates have an impact on the overall yield of fixed rate bonds; however, this dynamic is negated in the loan market by the Euribor floors. In addition, fixed rate bonds are negatively impacted by upward movements in interest rates, while loans are sheltered from this impact given their floating rate characteristics.

The significant increase in cov-lite lending was a notable shift in the asset class and is arguably a detrimental development from a lender’s perspective. However, this dynamic provides an issuer with more flexibility to focus on navigating tough times, potentially improving an investor’s default experience. Additionally, we believe that the increasing integration of ESG factors by borrowers and lenders could be an important driver of change within the asset class, but ultimately will make lending an attractive place for investors. that focus on sustainable investments.

This paper demonstrates an attractive investment opportunity we see in the European leveraged loan market, demonstrating that the asset class should be viewed as a core holding in a well-diversified portfolio.

  1. Source: ICE BofA, Credit Suisse, Bloomberg. Data covers ten years to December 2021. See endnotes for more information.
  2. Source: Credit Suisse. Data as of December 2021. European lending as represented by the Credit Suisse Western European Leveraged Loan Index.
  3. Source: Credit Suisse. Data as of December 2021. European loan metrics are higher than European high yield, US high yield and US high yield.

European leveraged loans: an allocation that is here to stay

The evolution and compelling performance of European leveraged loans

  • A large and increasingly liquid set of opportunities
  • First risk-adjusted returns
  • Future returns are supported by attractive yields
  • Institutional ownership promotes stability

The attractive risk-adjusted return profile is driven by:

(1) solid and improving credit performance

  • Low defect rates and high recovery rates
  • Maturation of the borrower base
  • Seniority in the capital structure
  • A diverse set of opportunities
  • Composition of the defensive sector

(2) the asset class fee structure

  • Protection against negative rates
  • Well positionedfor the rate hike

Changing market dynamics that investors should be aware of

  • The prevalence of covenant lite loans
  • Growing focus on environment, social and governance (ESG) considerations

European leveraged loans: the basics

European leveraged loans are a form of debt issued by companies that typically hold a publicly available credit rating below investment grade. These are floating rate instruments that pay an Euribor base rate, which resets periodically (usually every three months), plus a spread that provides investors with a satisfactory level of compensation for the additional credit risk that they assume, in relation to a without risk investment.

Leveraged loans are generally classified as senior secured instruments, which means that a loan investor has the first claim on the company’s assets and cash flows in the event of default by the company debt.

The evolution and compelling performance of European leveraged loans

A vast and increasingly liquid set of opportunities:

With over With 350 billion in assets and around 500 individual issues, the European leveraged loan market has become a distinct segment of the financial markets. The asset class has grown tremendously, more than doubling in size over the past five years (Chart 1).

The combination of significant growth and more issuers to invest in has led to increased liquidity within the asset class. This dynamic is highlighted in Figure 2, which shows a 206% increase in quarterly trading volumes at 15 major sell-side banks since the fourth quarter of 2014. As a result, large-scale investment managers can potentially trade hundreds of millions of loans. euros in a few days.

3

Figure 1 and 2: A set of deep and tradable opportunities

Size of the European leveraged loan market

  • 450
  • 400
  • 350
  • 300
  • 250
  • 200
  • 150
  • 100
  • 50
  • 0

European leveraged loan trading volumes at 15 banks

Nominal amount exchanged (billion)

2

0

Top chart source: Credit Suisse. European leveraged loan market represented by the Credit Suisse Western European Leveraged Loan Index. Data from December 2021.

Bottom chart source: Loan Market Association. Data as of December 31, 2021. Nominal traded volume data is from 15 participating banks that are members of the Loan Market Association.

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Ares Commercial Real Estate Corporation published this content on June 10, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on Jun 10, 2022 8:12:12 PM UTC.

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2022 sales 92.7 million

2022 net income 66.2 million

Net debt 2022 2,166 million

PER 2022 ratio 10.7x
2022 return 10.0%
Capitalization 761 million
761 million
EV / Sales 2022 31.6x
EV / Sales 2023 31.7x
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Floating 93.5%

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