promontory
PROM-uhn-tor-ee, -tree
1. A point of high land projecting into a body of water.
2. A projecting part of the body, for example, of a bone.
From Latin promontorium, alteration of promunturium from
prōminēre, to jut out
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TIP OF THE WEEK
A promontory is just the kind of thing a heroine will
threaten to throw herself off of if the love of her life does not return to
her.
Borrowers and lenders feeling no love with a SBA
guarantee should consider a guarantee from the California Infrastructure and
Economic Development Bank.
Their Small Business Loan Guarantee Program has now
increased its guarantee to $2,500,000.
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Indices:
PRIME RATE= 3.25%
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SBA 504 Loan Debenture Rate for July
For 20 year debentures, the debenture rate is only 1.22%
but note rate is 1.24% and the effective yield is 2.69%.
For 25 year debentures, the debenture rate is only 1.40%
but note rate is 1.42% and the effective yield is 2.817%.
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AHEAD OF THE YIELD CURVE
Jobs increased 850,000 in June.
Or did they?
Local, state and private education added 269,000 jobs but
those advances represented a quirk of Labor’s seasonal adjustments.
State and local education hired fewer people for the past
school year given Covid restrictions, and laid off workers earlier than normal
due to school closures. Typically, this sector sees layoffs in the summer, when
fewer school employees are needed. But since the numbers were already low due
to earlier layoffs, there were fewer people to let go. The increase in jobs, therefore, is partly a
reflection of the fact that fewer people were laid off, not that more were
hired.
But this is a seasonal quirk - there were actually 413
thousand education jobs lost in June, but that was fewer than normal for June,
so seasonally adjusted this showed a gain.
No matter the actual number, the U.S. has recovered 15.6
million, or 70%, of the 22.4 million jobs lost last spring, leaving the nation
6.8 million jobs below its pre-pandemic level.
To put that in perspective, 8.7 million jobs were lost in the Great Recession of 2008-2009.
Minutes from last month’s Federal Reserve meeting on
monetary policy showed policy makers remained cautious about the economic
outlook and willing to remain patient about making any changes to interest rate
policy or their asset buying program.
Long term treasury bonds reflect a propitious propensity.
Keep your eyes and ears open for this week’s auction of
30 year Treasury bonds.
Here is what the 30 year Treasury bond has been doing and
this week’s interesting little table:
2006- 4.91
2007- 4.84
2008- 4.18
2009- 3.89
2010- 4.61
2011- 2.89
2012- 2.77
2013- 3.25
2014- 3.97
2015- 2.91
2016- 2.32
2017- 3.16
2018- 3.13
2019- 2.594
2020- 1.216
2021- 2.172
What does all this mean?
At last month’s auction, the high yield was awarded at
2.172 percent, down 22.3 basis points from May’s auction rate and the lowest
rate awarded for the bond in four months.
Since then the 30 year Treasury bond yield has drifted down
to 1.987%.
Prognostications proliferate over the protean slope of
the yield curve.
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OFF BASE
The classic example of promontory in literature is from
John Donne; Devotions upon Emergent Occasions; 1624:
“No man is an Island, entire of itself; every man is a
piece of the continent, a part of the main; if a clod be washed away by the
sea, Europe is the less, as well as if a promontory were, as well as if a manor
of thy friends or of thine own were; any man’s death diminishes me, because I
am involved in mankind; And therefore never send to know for whom the bell
tolls; It tolls for thee.”
