prodition
pro·di·tion
prōˈdishən
betrayal, treason
From Latin proditio, from prodere to give forth, betray
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TIP OF THE WEEK
The Final Rule on
regulations on use of proceeds for partial changes of ownership, lending
criteria, loan conditions, reconsiderations, and affiliation standards has been
published.
It is now available on the Federal Register. These changes will be in the next SOP.
Borrowers should no longer feel a sense of prodition with
being unable to obtain a subordination on their EIDL loans.
The EIDL loans have been consolidated into a new
servicing center which should make these requests flow better in the future
with a goal of eleven business days to turn them around.
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Indices:
PRIME RATE= 8.00%
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SBA 504 Loan Debenture Rate for April
For 20 year debentures, the debenture rate is only 4.48%
but note rate is 4.547% and the effective yield is 5.956%.
For 25 year debentures, the debenture rate is only 4.48%
but note rate is 4.529% and the effective yield is 5.884%.
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AHEAD OF THE YIELD CURVE
Prodition from the Federal Reserve and the economy? A profligate proliferation.
U.S. employers added 236,000 jobs last month, a solid
gain but the weakest showing since December 2020.
At least through the March data, Fed policymakers will be
able to characterize the labor market as strong enough to withstand another
rate hike to combat persistent inflation.
Eurodollar futures can be prospicient.
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 several decades.
Here is a summary of what the market expects for
Eurodollar futures based upon the pit-traded prices at the Chicago Mercantile
Exchange:
DEC23- 4.55
DEC24- 3.22
DEC25- 3.07
DEC26- 3.12
DEC27- 3.23
What does all this mean?
I don’t know.
The December 2023 implied rate is now at 4.55% down from
5.03% just four months ago.
Keep your eyes and ears open for three big things.
On Wednesday, the Bureau of Labor Statistics will release
the Consumer Price Index. Last month
the CPI was up 0.4 percent in February from January and up 6.0 percent year-over-year.
On Thursday, Treasury will auction $18 billion in
Treasury bonds. At last month’s
auction, the high yield was awarded at 3.877 percent, down from a high of 4.080
percent in November. The 30 year is
currently at 3.623%.
On Friday, the Federal Reserve will release its report on
Capacity Utilization for March.
Capacity utilization was unchanged in February at 78.0 percent.
The Fed meets again on monetary policy May 2nd and 3rd.
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OFF BASE
Proditiophobia is the fear of being betrayed by someone
you love.
It can be cured by remembering the words of perhaps Dr.
Suess which were also the last comment by Vin Scully as he retired as the voice
of the Dodgers:
“Don't cry because it's over. Smile because it happened.”
