cowabunga
kou-uh-BUHNG-guh
interjection: An
expression of surprise, joy, or enthusiasm.
The word was the
cry of Chief Thunderthud, a character in the children's television program Howdy
Doody. The word was later adopted by surfers. It was popularized by its use on
the animated show Teenage Mutant Ninja Turtles.
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TIP OF THE WEEK
TIP OF THE WEEK
Cowbunga! The SBA
will be closed on Friday, July 3rd in observance of Independence
Day.
That means it
should be a holiday for everyone else.
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Indices:
Indices:
PRIME
RATE= 3.25%
SBA
LIBOR Base Rate June 2015 = 3.18%
SBA
Fixed Base Rate June 2015 = 5.16%
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SBA 504 Loan Debenture Rate for June
SBA 504 Loan Debenture Rate for June
The debenture rate
is only 2.98% but note rate is 3.03% and the effective yield is 5.062%.
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AHEAD OF THE YIELD CURVE
AHEAD OF THE YIELD CURVE
The Bureau of
Labor Statistics is probably also yelling out cowabunga as they too are taking
Friday, July 3rd off.
As a result, their
report on jobs for the month of June will come out on Thursday, July
2nd.
Last month’s
report showed that the U.S.
A few weeks later,
the Federal Reserve met and they didn’t exactly yell out
cowabunga.
Federal Reserve
policymakers are coming around to the bond market's wisdom about where interest
rates are headed.
Futures traders
have been signaling for more than a year that when the Fed begins raising target
rates for the first time since 2006, the increases won't be fast or reach the
levels central bank officials predicted. For the second time this year, the
Fed's policymakers lowered their rate projections in official forecasts.
Officials reduced their median estimate for the funds rate at the end of 2016 to
1.625 percent, from 1.875 percent in their March forecast, and to 2.875 percent
for the end of 2017, down from 3.125 percent in
March.
Eurodollar futures
settle at a three- month lending rate that has averaged about 22 basis points
more than the Fed's target over the past 10
years.
Here is a summary
of what the market expects for Eurodollar futures based upon the pit-traded
prices at the Chicago Mercantile
Exchange:
DEC15-
0.56
DEC16-
1.42
DEC17-
2.12
DEC18-
2.60
DEC19-
2.97
DEC20-
3.25
What does all this
mean?
I don’t
know.
Eurodollar futures
currently imply a federal funds rate that really is not going to be moving up
all that much any time soon.
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OFF BASE
OFF BASE
The
Federal Reserve affects our lives in many ways. Not only do they call the shots
on interest rates, more importantly, they are the official arbitrator of
holidays.
For
July 3rd, they declared that the Board of Governors would be closed.
Like all Federal Reserve pronouncements, the devil is in the details. They go
on say that while the Board of Governors get that day off, for holidays falling
on Saturday, Federal Reserve Banks and Branches will be open the preceding
Friday. Had the Fourth of July fallen on a Sunday, all Federal Reserve Banks
and Branches would be closed the following Monday.
As
a result, there is some confusion as to whether or not July 3rd is a
holiday. According to the U.S. OFFICE OF PERSONNEL MANAGEMENT, for most Federal
employees, Friday, July 3, will be treated as a holiday for pay and leave
purposes
Most
banks will be open on Friday, July 3rd. Here is a handy dandy guide
as to who is open and who is closed: http://www.theholidayschedule.com/bank-holidays.php
I
will be taking the day off. Cowabunga!
