prow
(prou)
1. The front of a ship or a boat above the water 2. The
projecting front part of something, as a building.
TIP OF THE WEEK
The terms Prow and Bow are often used interchangeably,
but they’re not exactly the same thing.
The Bow is the forward part of the ship. The prow however is the forward most part of
the bow above the waterline.
-For loans of $350,000 or less: 0.00%.
-For loans of $350,001 to $700,000: 2.77% of the
guaranteed portion.
-For loans of $700,001 to $1,000,000: 3.27% of the
guaranteed portion.
-For loans of $1,000,001 to $5,000,000: 3.5% of the
guaranteed portion up to $1,000,000, plus 3.75% of the guaranteed portion over
$1,000,000.
_________________________________________
Indices:
PRIME RATE= 3.25%
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SBA 504 Loan Debenture Rate for September For 20 year
debentures, the debenture rate is only 1.38% but note rate is 1.406% and the
effective yield is 2.860%.
For 25 year debentures, the debenture rate is only 1.56%
but note rate is 1.58% and the effective yield is 2.977%.
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AHEAD OF THE YIELD CURVE
Like the prow of a ship, the most visible aspect of the
Federal Reserve is their Federal Open Market Committee Statement. After their last meeting on monetary policy
the Fed presented a slightly more upbeat picture of the US economy. The FOMC opted to remove
"significantly" from the phrase "The path of the economy
continues to depend on the course of the virus" which suggests
policymakers see less risk of the pandemic worsening and endangering the
current robust expansion.
The under the water or behind the scenes look will happen
on October 13th when minutes from their
last meeting are released.
Also keep your eyes and ears open for this week’s
announcement on employment for September.
Initial jobless claims rose again in the week ended September 25. While at a slower pace, this is the third
week in a row for higher claims for regular unemployment benefits and will add
to the gathering gloom that the September report for nonfarm payrolls may be
weak enough to derail anticipation of a start to the tapering of asset
purchases after the November 2-3 FOMC meeting.
What’s the prognostication on interest rates?
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:
DEC21- 0.17
DEC22- 0.17
DEC23- 1.09
DEC24- 1.52
DEC25- 1.79
DEC26- 2.01
What does all this mean?
I don’t know.
The December 2023 Eurodollar rate was at 0.85 four months
ago. It is now up almost 20 basis
points.
Prognostications proliferate over the protean slope of
the yield curve but now a procellous propugnaculum might be prospicient.
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OFF BASE
From the prow of the Pinta, Rodrigo de Triana sighted
land on October 12, 1492. it appeared
he had also won himself the Royal Reward of 10,000 silver coins per annum for
the rest of his life.
The king and queen of Spain had decreed that the man who
first sighted land, there would be a Royal Reward of 10,000 silver coins, per
year, for the rest of that man’s life.
When Rodrigo returned to Spain to claim his reward,
Christopher Columbus claimed that the previous evening, he sighted the land
first. He added that the event was so
inconsequential that he did not feel the need to tell anyone about it. He noted
all of that in his diary however, and used this as a basis to challenge Rodrigo
de Triana’s claim to the Royal Reward.
Columbus won, and was awarded 10,000 silver coins for the rest of his
life. Rodrigo sailed off to Africa and
obscurity.
As a result, a three day weekend approaches.
According to the Federal Reserve, here are our remaining
holidays:
Columbus Day October 11
Veterans Day November 11
Thanksgiving Day November 25
Christmas Day December 25
