Protervity
prō-ter′vi-ti
The state or quality of being irritable; quick excitability; petulance; fretfulness; as, irritability of temper.
From Latin pro, forth, terĕre, to bruise
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TIP OF THE WEEK
Sensing protervity over the verification of tax returns for SBA loans, SBA Lenders may instead obtain tax return information by fully completing and submitting IRS Form 8821.
SBA Lenders may use either IRS Form 4506-C or IRS Form 8821. Use of Form 4506-T has been discontinued.
Putting aside its protervity, Congress has passed both the short term Continuing Resolution (CR) that keeps the government operating to March 15, and also the full year FY22 funding package.
Both the SBA 7(a) and 504 loan programs have more than adequate resources to support small business through the end of the fiscal year which is in about 197 days.
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Indices:
PRIME RATE= 3.25%
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SBA 504 Loan Debenture Rate for March
For 20 year debentures, the debenture rate is only 2.53%
but note rate is 2.57% and the effective yield is 3.766%.
For 25 year debentures, the debenture rate is only 2.75%
but note rate is 2.78% and the effective yield is 3.929%.
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AHEAD OF THE YIELD CURVE
The protervity of the bond market continued at the
government’s last auction of 30 year treasury bonds.
The high yield was awarded at 2.375 percent, up 3.5 basis points from last month's auction rate and the highest awarded for the bond since May of last year.
The shorter end of the yield curve has the pressure as reflected in the earlier 3 year auction where the high yield was awarded at 1.775 percent, up 18.3 basis points from last month's auction rate and the highest yield awarded for the note since July 2019.
The yield curve going procumbent is no need for proditomania.
Here is what the 30 year Treasury bond has been doing and this week’s interesting little table:
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- 1.88
2022- 2.375
So what does all this mean?
I don’t know.
The Federal Reserve meets March 15th and 16th on monetary policy.
At the Semiannual Monetary Policy Report to the Congress, the chairman of the Federal Reserve said that they would probably raise the target range for the federal funds rate.
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 plus years.
The December 2022 implied rate is now at 2.06% up from 1.18% at the beginning of the year and up from only 0.17% in October.
Protervity comes with a procellous prognostication.
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OFF BASE
The protervity caused by daylight saving time began with Germany during World War I. The rationale was to minimize the use of artificial lighting to save fuel for the war effort.
In the US, “Fast Time,” as it was called then, was first introduced in 1918. Only seven months later, daylight saving time was repealed.
In 1942, at the height of World War II, President
Franklin D. Roosevelt reintroduced the measure, instituting year-round Daylight
Saving Time in the US and referred to it as “War Time,”
The protervity of the Irish peoples is celebrated this Thursday, March 17th which is the day Saint Patrick died.
The first day of Spring is Sunday March 20th.
The next proscribed Federal holiday is not until Memorial Day May 30th. This is the longest stretch of the year between three day weekends. Protervity.
