ineluctable
in-i-LUHK-tuh-buhl
Impossible to
avoid: inescapable.
From Latin in-
(not) + eluctari (to struggle out of), from ex- (out) + luctari (to
struggle).
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TIP OF THE WEEK
The ineluctable
changes to SBA lending often require explanations or
corrections.
The SBA recently
released SBA Procedural Notice 5000-1310 which provides technical corrections to
SOP 50-10-5(F).
For example,
lenders no longer need a transcript of payment history on debt to be refinanced
if it is not same institution debt.
Real estate can
also be valued at 85% of the market value for the calculation of “fully-secured”
meaning no other collateral is required.
_____________________________________
Indices:
PRIME
RATE= 3.25%
SBA
LIBOR Base Rate April 2014 = 3.15%
SBA
Fixed Base Rate March 2014 = 5.51%
________________________________________
SBA
504 Loan Debenture Rate for March
The
debenture rate is only 3.21% but note rate is 3.26% and the effective yield is
5.289%.
________________________________________________
AHEAD
OF THE YIELD CURVE
Are
higher interest rates ineluctable?
The
U.S. has recovered all but 437,000 of
the 8.7 million jobs lost as a result of the last
recession.
Here is a summary
of net payroll employment and this week’s interesting little table of
data:
March
192,000
February
197,000
January
144,000
2013
2,074,000
2012
2,193,000
2011
2,103,000
2010
1,022,000
2009
-5,052,000
2008
-3,617,000
2007
1,115,000
2006
2,071,000
2005
2,484,000
2004
2,019,000
What does this
mean?
I don’t
know.
The
economy added 533 thousand jobs in the first quarter this year compared to 618
thousand in the first quarter of 2013
But
the labor force has continued to increase over the last 6+ years, and there are
still millions of workers unemployed. The economy still has a long way to go as
the number of people out of work for six months or longer is still at 3.739
million .
Friday’s
employment report isn’t likely to shake the Federal Reserve from its strategy of
slowly winding down its bond-buying program while keeping short-term interest
rates pinned near zero well into 2015.
Treasury
prices jumped Friday as the market grappled with easing expectations for Federal
Reserve rate hikes.
Keep
your eyes and ears open for Thursday’s auction of 30 year Treasury
bonds.
Last
month the Treasury Department sold $13 billion of 30-year bonds at a yield of
3.630% compared to February’s yield of 3.69%. January’s auction sold at a yield
of 3.899% compared to December’s 3.90%.
On
Friday, the 30-year Treasury bond yield fell 4 basis points to
3.585%.
The
yield curve is starting to flatten out a bit. The slope of the yield curve—the
difference between the yields on short- and long-term maturity bonds—has
achieved some notoriety as a simple forecaster of economic growth. A flat curve
indicates weak growth, and conversely, a steep curve indicates strong
growth.
Traders
are betting the Federal Reserve won’t raise interest rates any time
soon.
__________________________________________
OFF
BASE
Does
it seem like Easter comes really late this year?
That’s
because Easter always falls on the first Sunday following the full Moon after
the vernal equinox. Got that?
The
alignment of the moon and earth cruelly pushed Easter out to late April.
With
no federally recognized holiday until Memorial Day at the end of May, many
people look forward to Good Friday.
It’s a holiday for
the stock market. So why not for everyone else? The day marks the
crucifixion and death of Jesus Christ. How could that possibly be considered
good?
Many believe this
name simply evolved—as language does. Originally it was called "God's Friday."
This seems a reasonable conjecture, given that "goodbye" evolved from "God be
with you."
Death is
ineluctable and sooner or later everyone will have to say
goodbye.
