A sense that
something is going to happen, especially something bad.
From Latin pre-
(before) + sentire (to feel).
_____________________________________________ TIP OF THE WEEK
came from the FDIC recently.
and savings institutions insured by the Federal Deposit Insurance Corporation
(FDIC) reported the highest quarterly income on record as reflected in the
latest FDIC Quarterly Banking Profile.
The head of the
Federal Deposit Insurance Corp. says banks have responded to low margins by
extending long-term assets more than long-term liabilities, setting the stage
for vulnerability if interest rates were to grow. Net interest margins continue
to shrink, down by nearly 80 basis points since 2009. In response, banks have
been extending asset maturities — but not longer-term funding at the same
market premiums for the guaranteed portion of SBA 7(a) loans are well in excess
of 10%. This is one way lenders can offset compressed net interest margins.
Let me know if
you’d like a copy of the latest FDIC Quarterly Banking
LIBOR Base Rate September 2015 = 3.20%
Fixed Base Rate September 2015 = 5.09%
________________________________________ SBA 504 Loan
Debenture Rate for August
The debenture rate
is only 2.82% but note rate is 2.87% and the effective yield is 4.909%.
OF THE YIELD CURVE
Do you have any
presentiment about the Federal Reserve’s meeting this week on monetary policy
and interest rates?
Just before they
begin their meeting, they will be releasing their report on industrial
production and capacity utilization for the month of
One of the Fed’s
favorite gauges of the economy is the capacity utilization rate which measures
how much plants and factories are being used. The Federal Reserve watches
capacity utilization rates to see if production constraints are threatening to
cause inflationary pressures. Bottlenecks or shortages often lead to
inflationary pressures that would drive prices even higher. Several analysts
have pointed to a rate between 81% and 82% as a tipping point over which
inflation is spurred. The Federal Reserve typically won’t initiate increases in
interest rates until
Last month the
Federal Reserve reported that capacity utilization had increased 0.3 percentage
point to 78%.
Here is what
capacity utilization rates have
What does this
utilization is actually 0.3 percent lower than it was a year ago. On the plus
side, capacity has actually grown 1.7 percent over the last
utilization might be interpreted as a sign that the Federal Reserve’s 2%
inflation target is still out of reach and interest rates may not be going up
presentiment on this?
Heaney, the sole bright spot on the Angels pitching staff has agreed to sell 10
percent of his future earnings to Fantex, a publicly traded company, in exchange
for $3.34 million, the company announced on
of Heaney aren’t yet for sale, but once they are he would become the first
player in major league history to sell a portion of his earnings in that way.
order for investors to make a profit from Heaney, he would need to earn more
than $33.4 million in his career, including endorsements and other sources of
is making just above the major league minimum of $500,000 this year. He will
make approximately the same amount in 2016 and 2017, but once he’s eligible for
arbitration, his salaries will jump significantly. He could make about $4
million his first year of arbitration, followed by about $6 million and about $9
Heaney, he is giving up a portion of his future earnings in exchange for the
guarantee of cash up front, which presumably he can invest and earn more than he
would if he’d waited to earn the money himself. He also protects himself from an
injury that could derail his earnings potential. He could also just be a flash
in the pan.