long term – 4 Walls And A View http://4wallsandaview.com/ Wed, 16 Mar 2022 00:41:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://4wallsandaview.com/wp-content/uploads/2021/06/icon-5.png long term – 4 Walls And A View http://4wallsandaview.com/ 32 32 Lack of loan insurance cover: Gwadar power project hits a snag https://4wallsandaview.com/lack-of-loan-insurance-cover-gwadar-power-project-hits-a-snag/ Wed, 16 Mar 2022 00:41:29 +0000 https://4wallsandaview.com/lack-of-loan-insurance-cover-gwadar-power-project-hits-a-snag/ ISLAMABAD: Government reportedly failed to convince Chinese government to resume suspended work on 300MW coal-fired power project in Gwadar as M/s Sinosure, China’s loan insurance company, refuses to cover the risk of government default in the context of medium and long-term buyer credit. insurance largely due to late payments to CPEC IPPs and the delay […]]]>

ISLAMABAD: Government reportedly failed to convince Chinese government to resume suspended work on 300MW coal-fired power project in Gwadar as M/s Sinosure, China’s loan insurance company, refuses to cover the risk of government default in the context of medium and long-term buyer credit. insurance largely due to late payments to CPEC IPPs and the delay in opening the revolving account, according to sources close to the managing director of the Private Power and Infrastructure Board (PPIB).

Sharing the details, sources said that PPIB is processing a 300MW imported coal power project in Gwadar, Balochistan by CIHC Pak Power Company Limited (CPPCL), which is included as a priority project as per the agreement on the China-Pakistan Economic Corridor (CPEC). Cooperation project of November 8, 2014.

After the required approvals, CPPCL received a Letter of Intent (LoI) on May 26, 2017 and a Letter of Support (LoS) on August 23, 2019.

In accordance with the terms of the LoS, CPPCL has signed the Implementation Agreement (IA), the Power Purchase Agreement (PPA) and the Supplemental Agreement to the IA (SIA) – the Security Package – April 8, 2021 after nine months of detailed negotiations and ECC approval on January 28, 2021.

In accordance with the LoS, the Financial Close (FC) deadline was January 31, 2022, while the Required Commercial Operations Date (RCOD) was set to June 30, 2023 in the PPA.

Following the signing of the security package, CPPCL started construction activities at the site before the FC, in order to respect the agreed RCOD of June 30, 2023.

Prime Minister to interact with private sector during visit to China

Meanwhile, Sinosure has revised its policy and does not accept to cover the risk of government default under the medium and long-term buyer credit insurance, mainly due to late payment to CPEC IPPs, delays in opening a revolving account in accordance with SIA for CPEC energy projects and renegotiations. PPAs with existing IPPs.

Given the current situation, lenders have informed CPPCL that developers are required to provide joint and several guarantees covering the entire repayment period, which would greatly exceed the industry practice of providing completion guarantees during the construction period. However, the position of the sponsors is that they have already injected substantial equity into the project and are unwilling to accept this demand from the lenders. As a result, construction at the site has been suspended until the financing agreement is finalized between the lenders, Sinosure and the sponsors. Accordingly, the CPPCL requested the assistance of the GoP for the necessary facilitation.

Therefore, the GoP addressed the issues of delays in CPEC CF projects at the level of the Special Assistant to the Prime Minister for CPEC Affairs, with the Chinese Ambassador to Pakistan on September 9, 2021 and through a letter from the Minister of Planning, Development and Reforms to the Vice-President. Chairman NDRC, China on October 15, 2021.

In the meantime, the CPPCL has expressed its inability to reach the FC before the deadline of January 31, 2022 and has requested an extension of the date of the FC until February 28, 2023 and a change of the RCOD from June 30, 2023 30 months from FC (i.e. end of 2025).

According to the PPIB, the requested modification of the RCOD will further delay the development of Gwadar as an international logistics hub and related infrastructure, as the development and operations of the industrial city of Gwadar are dependent on a reliable power supply.

In order to discuss the matter, PPIB called a meeting with the sponsors on October 26, 2021 where CPPCL again highlighted its issues with Sinosure and the lenders who have blocked progress on the site as the sponsors are unwilling. to inject additional capital.

In the meantime, the PPIB launched a summary on the matter in November 2021 and forwarded it to the Department of Energy (Energy Division) for further submission to the Cabinet Committee on CPEC with a request to approach the relevant agencies of the Chinese government at the appropriate level to solve the problems. faced by the Gwadar Power Project, for timely achievement of financial close and immediate resumption of construction by CPPCL to achieve RCOD (June 30, 2023), as stipulated in the security package approved by the ECC.

In addition, the issue was also discussed at the 8th Joint Task Force Meeting on Gwadar held on December 30, 2021, during which Chinese assistance was sought to obtain Sinosure’s approval (in order to obtain its financial close) for the project so that construction activities can be resumed on site. However, according to reports, the matter is still unresolved and construction activities at the site have stalled, the sources added.

Copyright Business Recorder, 2022

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Mortgage rates today, March 12 and rate forecast for next week https://4wallsandaview.com/mortgage-rates-today-march-12-and-rate-forecast-for-next-week/ Sat, 12 Mar 2022 15:18:33 +0000 https://4wallsandaview.com/mortgage-rates-today-march-12-and-rate-forecast-for-next-week/ Today’s Mortgage and Refinance Rates Average mortgage rates rose slightly yesterday. But that doesn’t reflect the whole week. That was bad for those rates, pushing them to their highest levels in nearly three years. Again I predict that mortgage rates could rise next week. But we are in a volatile time and the recipe for […]]]>

Today’s Mortgage and Refinance Rates

Average mortgage rates rose slightly yesterday. But that doesn’t reflect the whole week. That was bad for those rates, pushing them to their highest levels in nearly three years.

Again I predict that mortgage rates could rise next week. But we are in a volatile time and the recipe for every prediction contains cups of speculation.

Current mortgage and refinance rates

Program Mortgage rate APR* Change
30-year fixed conventional 4.24% 4.262% +0.01%
15-year fixed conventional 3.592% 3.626% +0.01%
20-year fixed conventional 4.138% 4.175% Unchanged
10-year fixed conventional 3.565% 3.627% +0.05%
30-year fixed FHA 4.308% 5.097% -0.02%
15-year fixed FHA 3.779% 4.439% +0.02%
30-year fixed PV 4.264% 4.476% -0.02%
15-year fixed VA 3.5% 3.833% +0.01%
Pricing is provided by our partner network and may not reflect the market. Your rate may be different. Click here for a personalized quote. See our rate assumptions here.


Should you lock in a mortgage rate today?

I would lock in my rate on the first morning when mortgage rates look likely to rise. Recently it was most mornings.

Of course, you risk missing out on future falls. But I expect a lot more ups than downs. And continuing to float your rate over several days or weeks is, I believe, very risky.

Yes, events could prove me otherwise. It would not be the first time. But I doubt they will this time.

So my personal rate lock recommendations remain:

  • LOCK if closing 7 days
  • LOCK if closing 15 days
  • LOCK if closing 30 days
  • LOCK if closing 45 days
  • LOCK if closing 60 days

However, with so much uncertainty right now, your instincts could easily turn out to be as good as mine, or even better. So let your instincts and personal risk tolerance guide you.

What’s Moving Current Mortgage Rates

Federal Reserve

The Federal Open Market Committee (FOMC) of the Federal Reserve begins a two-day meeting next Tuesday. And it will release a report at 2 p.m. ET the next day (March 16), with a press conference scheduled 30 minutes later.

This is potentially very important. The FOMC is the Fed’s monetary policy committee and has enormous influence over the entire economy, including mortgage rates. And his focus at the moment is how to reduce inflation.

We know the views of Fed Chairman Jerome Powell on March 2-3 because he testified before House and Senate committees on those days. The report and the press conference next Wednesday will tell us if the events in Ukraine and his colleagues at the meeting succeeded in changing his mind.

What Powell predicted

When testifying on Capitol Hill, Mr. Powell made comments in two areas that are particularly relevant to both inflation and mortgage rates. He expected that:

  1. The federal funds rate will increase by 0.25% next Wednesday – This will drive up rates on almost all variable rate borrowings. But we expected it since January
  2. The FOMC would not release its plans to sell its vast stock of bonds next week. But he was working on those plans and Mr Powell would reveal them soon

Mortgage rates are not directly affected by changes in the federal funds rate. But the rises and falls of this rate tend to influence them in the long term.

However, mortgage rates will almost certainly be directly affected by the Fed’s plans to sell off its stock of mortgage-backed securities (MBS). It is the type of bond that largely determines these rates. And the Fed owned $2.69 trillion value of them as of Wednesday.

Mortgage bonds

These mortgage bonds are like any other bond. The less you pay for the same fixed income, the higher your return. It is a mathematical fatality. And it is MBS yields that are directly linked to mortgage rates.

So when the Fed starts offloading its mortgage obligations, yields and mortgage rates will rise. Because all that extra supply will drive prices down and increase yields. It’s just supply and demand in action.

Of course, if the Fed were to dump all of its $2.69 trillion in MBS all at once, mortgage rates would skyrocket and spiral. But it won’t because it’s not stupid. Instead, it will sell them off as quickly as the markets can absorb them without destabilizing them.

What to expect next Wednesday

Of course, the Fed has been pointing all this out for months. And the markets already know the things I outlined above.

This is why mortgage rates have been rising for much of this year and why investors have already priced current expectations into MBS prices. Indeed, the pain ahead may prove mild compared to what we have already endured.

But next Wednesday could provide more information that could drive those rates up or (probably briefly) down. Although there have been no new announcements since Mr. Powell’s recent testimony, markets will be on the lookout for changes in tone and emphasis. And they will want to know if the Fed:

  • Seems more aggressive (“hawkish”) or less (“dovish”) when talking about his anti-inflationary measures, including rate hikes and bond sales
  • Appears frightened by the war in Ukraine and in what way. If he fears Russian aggression could tip the world into a global recession, he may be more conciliatory. But if he’s more fearful of the extra inflation the conflict creates, he might be more hawkish.

The way the Fed “sounds” and “appears” may seem barely remarkable to you and me. But, believe me, investors will be analyzing in detail every word written and spoken by Mr. Powell and his colleagues on Wednesday afternoon.

Economic reports next week

There are a few important economic reports on the calendar for next week. Wednesday sees the release of retail sales figures for February. And Tuesday and Wednesday bring some future inflation indicators with the producer price index and the import price index.

But Wednesday’s FOMC report and press conference (see above) should dominate the week.

The potentially most important reports below are highlighted in bold. The others are unlikely to move the markets much unless they contain surprisingly good or bad data.

  • Tuesday – February producer price index
  • Wednesday – FOMC Events. More retail sales and import price indexboth for february
  • Thursday – February Housing starts and building permits. Plus weekly new claims for unemployment insurance through March 12
  • Existing Home Sales Friday through February

Wednesday is the day to watch.

Mortgage interest rate forecast for next week

I suspect that mortgage rates could rise next week. But it all depends on Wednesday’s FOMC meeting. If it’s accommodating, we might see drops, though I doubt they’ll last long. If it’s hawkish, expect more upside.

Mortgage and refinance rates generally move in tandem. And the removal of unfavorable market refinancing charges last year has largely eliminated the gap that had grown between the two.

Meanwhile, another recent regulatory change has likely made mortgages for investment properties and vacation homes more accessible and less expensive.

How your mortgage interest rate is determined

Mortgage and refinance rates are typically determined by prices in a secondary market (similar to stock or bond markets) where mortgage-backed securities are traded.

And it depends heavily on the economy. Thus, mortgage rates tend to be high when things are going well and low when the economy is struggling.

Your part

But you play an important role in determining your own mortgage rate in five ways. And you can affect it significantly by:

  1. Find your best mortgage rate – They vary widely between lenders
  2. Boost your credit score – Even a small bump can make a big difference to your rate and payments
  3. Save the biggest down payment possible – Lenders like you have real skin in this game
  4. Keep your other borrowings small – The lower your other monthly commitments, the higher the mortgage you can afford
  5. Choose your mortgage carefully – Are you better off with a conventional, conforming, FHA, VA, USDA, jumbo or other loan?

Time spent getting these ducks in a row can earn you lower rates.

Remember it’s not just a mortgage rate

Be sure to factor in all of your homeownership costs when calculating how much mortgage you can afford. So focus on your “PITI”. It’s your Pprincipal (repays the amount you borrowed), IInterest (the price of the loan), (the property) Jaxes, and (owners) Iassurance. Our mortgage loan calculator can help you.

Depending on your type of mortgage and the amount of your down payment, you may also need to pay for mortgage insurance. And that can easily hit three figures every month.

But there are other potential costs. So you will have to pay homeowners association dues if you choose to live somewhere with an HOA. And, wherever you live, you should expect repair and maintenance costs. There is no owner to call when things go wrong!

Finally, you will have a hard time forgetting closing costs. You can see those reflected in the annual percentage rate (APR) that lenders will quote you. Because it spreads them effectively over the term of your loan, making it higher than your normal mortgage rate.

But you may be able to get help with those closing costs. and your down payment, especially if you are a first-time buyer. Read:

Down payment assistance programs in every state for 2021

Mortgage Rate Methodology

Mortgage reports receive daily rates based on selected criteria from multiple lending partners. We arrive at an average rate and APR for each loan type to display in our chart. Because we average a range of prices, it gives you a better idea of ​​what you might find in the market. In addition, we average rates for the same types of loans. For example, fixed FHA with fixed FHA. The result is a good overview of the daily rates and their development over time.

The information contained on The Mortgage Reports website is provided for informational purposes only and does not constitute advertising for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent company or affiliates.

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What to know about student loans before borrowing https://4wallsandaview.com/what-to-know-about-student-loans-before-borrowing/ Thu, 10 Mar 2022 08:36:43 +0000 https://4wallsandaview.com/what-to-know-about-student-loans-before-borrowing/ One Billion Photos / Shutterstock.com Editor’s Note: This story originally appeared on Live on the cheap. Are you considering taking out a student loan for your studies or those of your children? This is not a decision to be taken lightly. Here is the basic information you need to know. Federal student loans aren’t always […]]]>
One Billion Photos / Shutterstock.com

Editor’s Note: This story originally appeared on Live on the cheap.

Are you considering taking out a student loan for your studies or those of your children?

This is not a decision to be taken lightly.

Here is the basic information you need to know.

Federal student loans aren’t always superior

Man giving stop gesture with one hand and holding money with the other
Krakenimages.com / Shutterstock.com

A long time ago, private student loans were given for ridiculously high amounts and interest rates varied, which meant that over a 10-year repayment period, you could have an interest rate of 4% at some times and 12% at other times.

Payments could not only exceed $1,000 per month, but also vary by hundreds of dollars due to changes in interest rates.

Now, private student loans are available at fixed interest rates that do not change and are often lower than the parent PLUS loan interest rate. Compare federal parent loan rates with rates from lenders such as SoFi.

There is a big difference between student loans and parent loans

University student on a laptop
Studio F8 / Shutterstock.com

Parent PLUS loan interest rates are higher than traditional undergraduate student loans, income-contingent repayment plan prices are higher, and the only limit is the cost of attendance.

For example, let’s say a school costs $30,000 per year, including room and board, books, etc. The limit for dependent undergraduate students for the first year is $5,500.

If parents qualify, they can borrow significantly more, up to the full cost of tuition minus any other student financial aid. So a parent could easily end up in debt of $100,000 because of a child’s undergraduate degree.

Credit score and income determine eligibility for private student loans

Man checking his credit score
Andrey_Popov / Shutterstock.com

Whether it’s a private loan for parents or students, credit rating and income matter. Students who obtain a loan in their own name with a limited credit history can obtain loans with a parent or other co-signer with more established credit.

A co-signer is someone who agrees to repay the loan if the primary borrower cannot. Thus, they are also responsible for the loan, and the loan payment history also appears on the co-signer’s credit report.

The credit rating can also determine the interest rate. For example, someone with a better credit rating may qualify for an interest rate two or more percentage points lower than another person with a lower credit rating.

There are different types of federal student loans

Student
pathdoc / Shutterstock.com

For students, most federal student loans are issued as subsidized or unsubsidized loans. Interest on subsidized student loans is paid by the federal government while students are in school with at least half-time status and a few other circumstances. These loans must be used up to their limit before taking out any other type of student loan.

Unsubsidized loans are available for the remaining amount a student is eligible to receive within normal borrowing limits. The gaps are filled by PLUS parent loans or PLUS graduate loans. Private student loans also fill in the gaps.

Remember that you are never obligated to borrow the full amount granted. I can’t stress that enough. Compare financial aid programs and call the financial aid office to apply for more scholarships and also inquire about local and state scholarships. If you are still or recently in high school, ask your high school counselor to help you find scholarships.

Repayment term and terms vary

Black man in office thinking about possibilities
Roman Samborskyi / Shutterstock.com

Repayment periods vary from 5 to 30 years. The five-year repayment is only for private student loans, but it depends on the lenders. Some lenders will have the option of a 15 year repayment term. Longer repayment periods generally mean smaller payments. Although you pay more interest because you are borrowing for a longer period, you can still pay off the loan sooner. Usually there is no penalty for this.

The standard repayment term for repaying federal student loans is 10 years. There is a 20 year plan where payments are based on earnings and up to 25 years for an extended payment plan.

There are consolidated loans with repayment periods of up to 30 years, with payment never increasing as income increases.

An advantage of loan consolidation is that it can make you eligible for civil service loan forgiveness., a program in which you can potentially have your remaining balance canceled for working for a public service employer for 10 years. Student loan consolidation allows borrowers to combine multiple federal student loans into one federal student loan. Although consolidation allows you to pay off multiple loans with one simplified payment, it will likely increase the amount of interest you pay over time.

Sound complicated? It can be. A student loan is a decision that involves comparing interest rates, long-term protections for financial emergencies, and avoiding over-indebtedness.

The best way to make the decision easier is to complete the FAFSA so that you know all the federal options available to you. Then talk to your financial counselor and a college financial aid counselor or high school counselor about what your options might mean for your family’s future. It’s better to spend a few hours making an informed decision about borrowing now than to spend years worrying about the financial impact of loan repayments later.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our stories.

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Developing economies must act now to mitigate shocks from conflict in Ukraine https://4wallsandaview.com/developing-economies-must-act-now-to-mitigate-shocks-from-conflict-in-ukraine/ Tue, 08 Mar 2022 22:25:11 +0000 https://4wallsandaview.com/developing-economies-must-act-now-to-mitigate-shocks-from-conflict-in-ukraine/ The war in Ukraine could not have come at a worse time for the global economy – when the recovery from the pandemic-induced contraction had begun to falter, inflation was skyrocketing, central banks in the world’s largest economies world were preparing to raise interest rates, and financial markets were hovering above a formidable constellation of […]]]>

The war in Ukraine could not have come at a worse time for the global economy – when the recovery from the pandemic-induced contraction had begun to falter, inflation was skyrocketing, central banks in the world’s largest economies world were preparing to raise interest rates, and financial markets were hovering above a formidable constellation of uncertainties.

The war has compounded these uncertainties in ways that will reverberate around the world, harming the most vulnerable people in the most fragile places. It is too early to tell how much the conflict will alter the global economic outlook. Like the novel coronavirus, the latest crisis has come in a form largely unexpected – in its scale and ferocity, in its location, and in the global response to it. Everything will depend on what happens next. But it is already clear that rising food and energy prices, along with supply shortages, will be the immediate source of suffering for low- and middle-income economies.

Many developing economies around the world remain weakened by the pandemic. The healthy recovery that advanced economies have experienced over the past year has largely ignored them: By 2023, levels of economic output in developing economies will still be 4% below their projected pre-pandemic levels. The total debt of these economies is now at its highest level in 50 years. Inflation is at its highest level in 11 years and 40% of central banks have started raising interest rates in response.

As devastating as it has been, the coronavirus pandemic has been an object lesson in the power of policymakers to respond effectively to disaster.

The Ukraine crisis could make it harder for many low- and middle-income economies to get back on their feet. In addition to rising commodity prices, spillovers are likely to occur through several other vectors: trade shocks, financial turmoil, remittances and refugee flight. The countries closest to the conflict, due to their close trade, financial and migration ties with Russia and Ukraine, are likely to suffer the greatest immediate harm. But the effects could spread far beyond that.

Food and fuel costs

Some developing economies are heavily dependent on Russia and Ukraine for food (Chart 1). These two countries supply more than 75% of the wheat imported by a handful of economies in Europe and Central Asia, the Middle East and Africa. These economies are particularly vulnerable to an interruption in the production or transport of grains and seeds from Russia and Ukraine. . For low-income countries, the disruption of supplies as well as rising prices could lead to increased hunger and food insecurity.

Russia is also a major force in the energy and metals market: it accounts for a quarter of the natural gas market, 18% of the coal market, 14% of the platinum market and 11% of crude oil. A sharp fall in the supply of these raw materials would paralyze construction, petrochemicals and transport. It would also reduce the growth of the whole economy: estimates from a forthcoming World Bank publication suggest that a 10% increase in oil prices that persists for several years can reduce the growth of economies in development importing raw materials by one-tenth of a percentage point. Oil prices have risen more than 100% in the past 6 months. If it lasts, oil could shave a percentage point off the growth of oil importers like China, Indonesia, South Africa and Turkey. Before the war started, South Africa was expected to grow by around 2% per year in 2022 and 2023, Turkey by 2 to 3% and China and Indonesia by 5%, therefore a slowdown of 1 growth point means that the growth be cut between one-fifth and one-half.

Financial turbulence

The conflict has already caused tremors in financial markets, prompting a sell-off in stocks and bonds in major global markets. An increase in investor risk aversion could lead to capital outflows from developing economies, leading to currency depreciations, falling stock prices and higher risk premia in bond markets. This would create acute stress for the dozens of highly indebted developing economies. Economies with high current account deficits or large shares of short-term debt denominated in foreign currencies would find it difficult to refinance debt. Alternatively, they would face higher debt service obligations.

Financial strains could be aggravated by central banks’ response to higher inflation. In many developing economies, inflation is already at its highest level in a decade. Further impetus from soaring energy prices could lead to an inflationary spiral as expectations of higher long-term inflation take hold. This, in turn, could prompt central banks to tighten monetary policy faster than expected so far.

Flight of refugees and remittances

Since the start of the conflict, more than 2 million people have fled Ukraine to neighboring countries, marking the largest mass migration to Europe since World War II. The United Nations High Commissioner for Refugees expects the number of refugees to climb to 4 million soon. Adjusting to the sudden arrival of large numbers of newcomers is difficult for host governments. It puts pressure on public finances and on the delivery of services, especially health care, which remain scarce as the pandemic enters its third year.

Moreover, the economic pain could radiate beyond Eastern Europe to countries that rely heavily on remittances to affected countries. Several Central Asian countries, for example, are heavily dependent on remittances from Russia – in some cases, these remittances represent up to 10% of the country’s GDP. Many Central Asian countries will likely see a drop in remittances due to the conflict.

Prevention pays

It’s time to act. The World Bank Group, together with the International Monetary Fund, is moving quickly to provide assistance to Ukraine and other affected countries. A $3 billion support package in the coming months will include $350 million for Ukraine by the end of this month. Governments in developing economies should also act quickly to contain economic risks. Building foreign exchange reserves, improving financial risk monitoring and strengthening macroprudential policies are essential first steps. Policymakers will need to be vigilant – and make careful course corrections – in their response to rising inflation. They should also begin to rebuild fiscal policy buffers depleted by COVID-19, eliminating inefficient spending and mobilizing domestic financial resources where possible. And they should strengthen the social safety nets needed to protect their most vulnerable citizens in times of crisis.

As devastating as it has been, the coronavirus pandemic has been an object lesson in the power of policymakers to respond effectively to disaster. However, prevention is better than cure. Governments in developing economies would do well to act now.

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Berkshire Hathaway reveals $5 billion stake in oil giant Occidental Petroleum https://4wallsandaview.com/berkshire-hathaway-reveals-5-billion-stake-in-oil-giant-occidental-petroleum/ Sat, 05 Mar 2022 11:59:30 +0000 https://4wallsandaview.com/berkshire-hathaway-reveals-5-billion-stake-in-oil-giant-occidental-petroleum/ Daniel Zuchnik | WireImage | Getty Images In its annual letter to shareholders published less than a week ago, Warren Buffett filed a complaint he might “find little that excites us” in the stock markets. However a new SEC filing Friday night revealed that someone at Berkshire Hathaway, Buffett himself or his portfolio managers, is […]]]>

Daniel Zuchnik | WireImage | Getty Images

In its annual letter to shareholders published less than a week ago, Warren Buffett filed a complaint he might “find little that excites us” in the stock markets.

However a new SEC filing Friday night revealed that someone at Berkshire Hathaway, Buffett himself or his portfolio managers, is very excited about Occidental Petroleum.

As of Friday, Berkshire owns 91.2 million common shares of the oil giant. They are worth $5.1 billion at the close of $56.15 tonight. The stock has gained 18% today and 45% this week.

It rose sharply with the price of oil, which soared to around $115 a barrel following the Russian invasion of Ukraine.

And as Occidental rallied, Berkshire bought.

More than 61 million shares currently in his portfolio were purchased on Wednesday, Thursday and today, at prices ranging from $47.07 to $56.45.

The remaining 29 million shares were purchased this year by Tuesday. (Berkshire reported holding no OXY shares as of December 31 in its last deposit 13F.)

Berkshire did not respond Friday night to CNBC’s request for comment.

We don’t know exactly when he bought, or what Berkshire paid for those 29 million shares, because he hadn’t yet reached the 10% ownership level which requires new purchases to be disclosed within a day of their execution.

Berkshire owns only about 9% of Occidental’s common stock. But he also has warrants to buy an additional 83.9 million shares at $59.62.

Even if the warrants were unexercised, for purposes of the SEC filing trigger, they must be counted, which technically brings Berkshire’s stake to over 17%.

Berkshire received those warrants as part of a deal that included what was, in effect, a $10 billion loan in 2019 to Occidental to help it. buy Anadarko for $38 billion.

The loan, in the form of a preferred stock purchase by Berkshire, requires Occidental to pay a dividend of 8% per year. This equates to $200 million per quarter.

At the time, Buffett told CNBC it was a bet that oil prices would rise in the long term.

Berkshire bought a relatively small stake of just under 19 million shares in the second half of 2019. It was valued at around $780 million at the end of that year.

In the shorter term, Buffett’s bet on oil prices didn’t fare too well when they crashed in early 2020 due to the onset of the COVID-19 pandemic.

To save money, Occidental made its first- and second-quarter loan payments to Berkshire in stock form. (He resumed cash payments after that.)

Berkshire received 17.3 million shares for the first trimester and 11.6 million shares for the second trimester.

But his 13F filings don’t list any OXY stock. as of June 30 and September 30 in 2020, indicating that amid the carnage in the oil market, he sold both the 19 million shares he bought and the nearly 29 million shares he received as a dividend payment.

Now, with oil prices high again, it’s back in Berkshire’s portfolio in a big way.

(Get a roundup of Warren Buffett and Berkshire Hathaway-related news and features delivered straight to your inbox each week. Sign up for the Warren Buffett Watch newsletter.)

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3 debt repayment strategies that worked after being laid off https://4wallsandaview.com/3-debt-repayment-strategies-that-worked-after-being-laid-off/ Fri, 04 Mar 2022 16:26:35 +0000 https://4wallsandaview.com/3-debt-repayment-strategies-that-worked-after-being-laid-off/ When Ja’Net Adams was laid off, she used that time to clarify her financial goals. Adams then tracked every penny and built lasting habits to help him pay off $50,000 in debt. This article is part of the “Better, Smarter, Faster” series focusing on the impactful choices you can make with your money to achieve […]]]>
  • When Ja’Net Adams was laid off, she used that time to clarify her financial goals.
  • Adams then tracked every penny and built lasting habits to help him pay off $50,000 in debt.
  • This article is part of the “Better, Smarter, Faster” series focusing on the impactful choices you can make with your money to achieve big life goals.

After being laid off from her full-time job in pharmaceutical sales in the early 2000s, Ja’Net (pronounced juh nay) Adams took a hard look at his family’s finances.

She soon realized that her husband’s $25,000 student loan and high-interest car loan were preventing her family from achieving their financial goals.

“He didn’t even know he had $25,000 in student loan debt after a year of college,” Adams, CEO of Debt Sucks University and mother of two, told Insider. “He thought he got a four-year basketball scholarship, but since we’re both first-generation college students, we didn’t understand the things we were signing.”

The couple worked together to pay off $50,000 in debt in just two years. Their journey sparked in Adams, now 40, a lifelong passion for teaching personal finance to people who feel like they’re going to be in debt for the rest of their lives.

Here are three strategies Adams used to get out of debt.

1. She started with a “dream sheet”

Adams suggests people create a “dream sheet” and write down a list of short-term (six to 12 months), intermediate (three to five years), and long-term (10 to 15 years) goals.

“The day I got fired, I said, ‘I don’t ever want to feel like this again,'” Adams said. “The dream sheet kept me focused whenever something happened with the car, or whenever there was an emergency.” Instead of panicking about money, Adams was able to stay grounded and focused on her future goals.

His original dream sheet mentioned a trip to Europe with his family under intermediate goals. Since then, Adams has taken his family on trips to Costa Rica and visited Barcelona, ​​Paris and London.

2. She tracked every penny and cut her spending

The first four months of layoff “was just survival mode,” Adams says. She tracked every penny her family spent so she could cut back on discretionary spending like dining out and shopping.

“In one phone call, we lost 60% of our income, a car, our health insurance, and we also had a one-year-old child at home,” she says. She needed to get some insight into her family’s drinking habits to figure out what she didn’t need. She was also able to save an additional $400 per month by reducing her cable and cell phone service and her home insurance.

Because Adams worked as a pharmaceutical sales rep, she and her family had a premium health insurance plan as part of her benefits package. After being laid off, Adams enrolled her family in Obamacare for free health insurance to cut costs.

3. She got back to work as soon as possible

“We kept our one-year-old at daycare because I needed to look for work,” she says. Adams soon found another job selling pharmaceuticals, starting with a base salary of $45,000 plus bonuses, which amounted to about $65,000 a year. Soon after, she took on a new role that was bringing in $65,000 a year plus bonuses.

Since her bonus structure was based on the amount of her sales, she became more assertive in closing deals. It helped her increase her income, spend more money on paying off her debts, and open a savings account for her son, a short-term goal on her dream sheet.

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Van Hollen meets virtual State of the Union guest Julie Verratti https://4wallsandaview.com/van-hollen-meets-virtual-state-of-the-union-guest-julie-verratti/ Wed, 02 Mar 2022 03:29:39 +0000 https://4wallsandaview.com/van-hollen-meets-virtual-state-of-the-union-guest-julie-verratti/ March 01, 2022 Today, U.S. Senator Chris Van Hollen (D-Md.) met via Zoom with virtual State of the Union guest Julie Verratti, co-owner and founder of Denizens Brewing Company. The two discussed his small business which he co-founded with his wife and brother-in-law, how it was impacted by COVID-19 and how the federal pandemic assistance […]]]>

March 01, 2022

Today, U.S. Senator Chris Van Hollen (D-Md.) met via Zoom with virtual State of the Union guest Julie Verratti, co-owner and founder of Denizens Brewing Company. The two discussed his small business which he co-founded with his wife and brother-in-law, how it was impacted by COVID-19 and how the federal pandemic assistance they received supported them during a difficult period. The residents applied for and received a $448,000 Paycheck Protection Program (PPP) loan, which was fully canceled because 100% of it was used to keep employees on the payroll. The PPP was created by the CARES Act which the senator helped sign into law in 2020. Watch their discussion here.

“We were lucky enough to be able to take advantage of the Paycheck Protection Program – the PPP as some call it – and it absolutely saved us. If we hadn’t been able to get that $448,000 loan in 2020 – around April/May 2020 – we would have run out of money, and I have no idea what would have happened – not only to our employees at long term but for the long term company. We may have had to close permanently. And so, I’m very grateful to you, senator, for taking over, and I know you’ve been a great leader in helping to develop this program – and not only that, but all the stimulus programs that have been put in place, including the American rescue plan. passed last March, Verratti said during today’s conversation.

Announcing Verratti as his virtual guest yesterday, Senator Van Hollen said“As we mark just over a year since President Biden was sworn in, our nation, our economy, and the American people are on much stronger footing. While we still have much to do, we are on the road to recovery – having delivered lifesaving vaccines to turn the tide of this pandemic; worked to keep our small businesses open; and created millions of new job opportunities across the country. The pandemic has resulted in huge hardship and loss, but throughout so many Marylanders have shown extraordinary resilience, including small business owners like Julie. People like her are the real drivers of our ongoing recovery, and I am proud to highlight her story as a virtual guest at President Biden’s first State of the Union address. I pledge to work together to continue supporting our small businesses, our ers, our families, our seniors and more as we recover from this pandemic.



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What is a sinking fund and how to start one https://4wallsandaview.com/what-is-a-sinking-fund-and-how-to-start-one/ Tue, 01 Mar 2022 16:35:45 +0000 https://4wallsandaview.com/what-is-a-sinking-fund-and-how-to-start-one/ Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. When you hear the term sinking fund, the first image that comes […]]]>

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money.

When you hear the term sinking fund, the first image that comes to mind may be of a sinking pirate ship with treasure on board. That’s not what we’re talking about here.

In fact, sinking funds are a great addition to your financial strategy. A sinking fund works like a savings account, but with its own purpose and approach.

A sinking fund is money you set aside for a specific upcoming expense. Unlike a general savings account or emergency fund, a sinking fund has a clear purpose, whether it’s saving for a vacation, a down payment on a house, or a big splurge. Financial educator Haley Sacks has an amortization account reserved for astrologers.

If you have a big expense coming up, you might consider setting up a sinking fund to take the stress out of saving.

Let’s talk about what a sinking fund is, how it works, and what makes it worthy of being a line item in your budget.

What is a sinking fund?

A sinking fund is a safe, secure, and liquid savings account that is earmarked for a specific future expense. You can use a sinking fund for almost anything, but it helps to have an approximate amount and a timeline in mind. This will help you plan your budget until you reach your goal.

“[Sinking funds] allow you to take small, manageable steps toward your ultimate goal,” says Sophia White, CEO and Founder of The Balanced Budget.

Sinking Fund Examples

Some common known upcoming expenses include:

  • Vehicle purchases or financing
  • Car repair or maintenance
  • Home repair or renovation
  • Insurance premiums
  • Buy new furniture
  • Saving for the holidays
  • Holiday and Travel Gifts
  • Paying self-employment taxes
  • A big event, like attending a wedding or having a baby shower
  • Living expenses during parental leave

These are just a few to get you started. Really, you can use a sinking fund for many other types of expenses.

Pro tip

Sinking funds serve their best purpose when you have a known upcoming expense, assign a timeline, and work it into your budget. They are completely separate from your emergency fund and other savings accounts.

Sinking Fund Vs. Savings Account

When it comes to a sinking fund or a savings account, it’s all about intention and the desired outcome.

A savings account is a place where you can safely put your money for your needs and long-term goals.

When you have an expense that you know about, you don’t want to mix funds inside accounts for larger purposes that don’t have a specific timeline.

For example, you don’t want to pay your insurance premiums from the same account you use to save extra student loan payments, because the lines can quickly fade.

It is best to separate your financial goals from each other so that you are not tempted to use the money you have saved for purposes other than those for which it is intended.

Sinking Fund Vs. Emergency Fund

An emergency fund is money set aside for the worst-case scenario, such as a sudden loss of income or a large, unforeseen expense. “You have no control over when this will happen. An emergency fund is your safety net for covering these types of emergency expenses,” says White.

A sinking fund is for purchases with a set schedule, and emergency funds are for unknown expenses that occur without warning.

You never want to keep these accounts together, just in case you use your sinking funds for a purpose and experience an emergency right after. If this were to happen, your funds could be totally depleted, depending on how much you keep in your emergency fund, and end up derailing your progress.

How to Start a Sinking Fund

To get started, review your past spending to get an idea of ​​what will show up again in the future. For example, if you pay for your car insurance every six months, you will have an idea of ​​when your premium will be due again.

Make a list of everything you want to save for, so that when it comes time to pay those expenses again, you can dip into your sinking fund and deal with it right away. Peasy easy.

Next, decide how many months or pay periods you need to reach your goal. For example, if you need $1,000 for a vacation, you would need to save $83 per month. If you decide your budget allows more, you can save $167 per month over six months instead. Adjust the schedule until the amounts are meaningful and manageable.

Commit to your goal by transferring the amount to your sinking fund account each month or each pay period. Reach the goal by paying your expenses when they are due. Take a moment to appreciate your accomplishment. Repeat as often as necessary.

Where should you keep your sinking fund?

Whatever you do, don’t mix your sinking funds with your other accounts. This method works best when you have a completely separate account.

If you are disciplined and not prone to temptation, you can open a separate savings account with your main bank and label it accordingly. This way you will see all of your sinking funds clearly listed in your main account dashboard.

But if you know you’re going to give in and dip into the funds for other expenses, be honest with yourself and open an account elsewhere – an online-only savings account is perfect as it takes a few days to complete a transfer out of account. , so you’ll be more likely to leave it alone.

“You can choose to keep it in a separate checking account if you plan to use those funds quickly,” says White. If your goal is several months to over a year away, you can even opt for a high-yield savings account to earn some interest.

You can have as much sinking fund as you need for various expenses. As long as there’s room in your budget and you’re making regular contributions, you can use sinking funds and distribute them as you pay off expenses and plan new ones.

Other Types of Savings Accounts You Need

Ideally, before you start your sinking funds, you’ll have your other accounts in order — that means a fully funded emergency fund and no high-interest consumer debt, like credit cards.

If you don’t already have an emergency fund, it’s a great idea to have at least 6-9 months of expenses set aside in case something happens. Many experts recommend more, but the amount you need depends on various factors regarding your personal finances.

Once you have an emergency fund, you can tackle debts such as credit cards, personal loans, and medical bills. Once these are covered, you can focus on sinking funds.

Remember to review your budget from time to time and adjust it as you progress or as needed.

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These 4 metrics indicate that SpartanNash (NASDAQ:SPTN) is using debt a lot https://4wallsandaview.com/these-4-metrics-indicate-that-spartannash-nasdaqsptn-is-using-debt-a-lot/ Sun, 27 Feb 2022 14:55:20 +0000 https://4wallsandaview.com/these-4-metrics-indicate-that-spartannash-nasdaqsptn-is-using-debt-a-lot/ Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, […]]]>

Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can sink a business. We note that SpartanNash Company (NASDAQ:SPTN) has debt on its balance sheet. But the more important question is: what risk does this debt create?

Why is debt risky?

Debt and other liabilities become risky for a business when it cannot easily meet those obligations, either with free cash flow or by raising capital at an attractive price. If things go really bad, lenders can take over the business. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. That said, the most common situation is when a company manages its debt reasonably well – and to its own benefit. When we look at debt levels, we first consider cash and debt levels, together.

See our latest review for SpartanNash

How much debt does SpartanNash have?

As you can see below, SpartanNash had $405.7 million in debt as of January 2022, up from $442.8 million the previous year. However, he has $10.7 million in cash to offset this, resulting in a net debt of approximately $395.1 million.

NasdaqGS: SPTN Debt to Equity History February 27, 2022

A look at SpartanNash’s responsibilities

We can see from the most recent balance sheet that SpartanNash had liabilities of US$655.8 million due in one year, and liabilities of US$768.1 million due beyond. As compensation for these obligations, it had cash of US$10.7 million and receivables valued at US$361.7 million due within 12 months. Thus, its liabilities outweigh the sum of its cash and (current) receivables of US$1.05 billion.

Given that this deficit is actually greater than the company’s market capitalization of $1.02 billion, we think shareholders really should be watching SpartanNash’s debt levels, like a parent watching their child go shopping. bike for the first time. In the scenario where the company were to quickly clean up its balance sheet, it seems likely that shareholders would suffer significant dilution.

We use two main ratios to inform us about debt to earnings levels. The first is net debt divided by earnings before interest, taxes, depreciation and amortization (EBITDA), while the second is how often its earnings before interest and taxes (EBIT) covers its interest expense (or its interests, for short). In this way, we consider both the absolute amount of debt, as well as the interest rates paid on it.

SpartanNash has net debt worth 2.1x EBITDA, which isn’t too much, but its interest coverage looks a little low, with EBIT at just 6.8x interest expense. . While these numbers don’t alarm us, it’s worth noting that the cost of corporate debt has a real impact. Shareholders should know that SpartanNash’s EBIT fell 26% last year. If this decline continues, it will be more difficult to repay debts than to sell foie gras at a vegan convention. The balance sheet is clearly the area to focus on when analyzing debt. But it’s future earnings, more than anything, that will determine SpartanNash’s ability to maintain a healthy balance sheet in the future. So if you want to see what the professionals think, you might find this free analyst earnings forecast report interesting.

Finally, while the taxman may love accounting profits, lenders only accept cash. We must therefore clearly examine whether this EBIT generates a corresponding free cash flow. Fortunately for all shareholders, SpartanNash has actually produced more free cash flow than EBIT for the past three years. This kind of high cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.

Our point of view

Reflecting on SpartanNash’s attempt to (not) increase its EBIT, we are certainly not enthusiastic. But on the bright side, its conversion from EBIT to free cash flow is a good sign and makes us more optimistic. Looking at the balance sheet and taking all of these factors into account, we think debt makes SpartanNash stock a bit risky. Some people like that kind of risk, but we’re aware of the potential pitfalls, so we’d probably prefer it to take on less debt. The balance sheet is clearly the area to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example, we found 2 warning signs for SpartanNash which you should be aware of before investing here.

In the end, it’s often best to focus on companies that aren’t in debt. You can access our special list of these companies (all with a track record of earnings growth). It’s free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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There’s an easier way for rideshare and delivery drivers to get into an electric vehicle https://4wallsandaview.com/theres-an-easier-way-for-rideshare-and-delivery-drivers-to-get-into-an-electric-vehicle/ Thu, 24 Feb 2022 23:53:00 +0000 https://4wallsandaview.com/theres-an-easier-way-for-rideshare-and-delivery-drivers-to-get-into-an-electric-vehicle/ The cost and availability barriers of electric vehicles can limit access for carpool and food delivery drivers, as well as small business owners whose fleets may travel a small number of miles on the road. But at least one fintech company thinks it has the answer. Launch of the Spring Free EV EVInstaFleet this week, […]]]>

The cost and availability barriers of electric vehicles can limit access for carpool and food delivery drivers, as well as small business owners whose fleets may travel a small number of miles on the road. But at least one fintech company thinks it has the answer.

Launch of the Spring Free EV EVInstaFleet this week, a less restrictive funding structure, he says, that will allow more drivers to lease electric vehicles, and without the typical mileage limitations.

Although falling battery costs and government subsidies are closing the sticker gap between electric vehicles and comparable gas-powered cars, and that gap is expected to shrink further — especially if Congress passes the proposed incentives — getting into a vehicle purchased electricity can be more expensive initially.

Electric vehicles have a list price that is 25 to 30% higher on average than comparable gasoline-powered vehicles. Ultimately, EV drivers save more of the total cost over the life of the car when they consider maintenance and repairs, fuel costs and depreciation, according to consumer reports.

EVInstaFleet connects drivers to rentals and secures financing in one step. This contrasts with most current financing options which can take up to six months and require personal guarantees. For a small business, that could mean a second mortgage on a home, getting into debt, or asking for help from family and friends. EVInstaFleet uses a pay-per-mile subscription model, charging customers a base monthly fee plus a fee per mile flown.

Most leases limit the number of miles before an additional fee is charged, creating challenges for high mileage drivers at ridesharing, ridesharing, last mile delivery, and rental fleet companies like Turo , Getaround, HyreCar, Uber UBER,
+7.66%,
Gopuff and Lyft LYFT,
+3.58%
to find a suitable financing solution.

“EVInstaFleet is democratizing access to electric vehicles and opening the door for electric vehicle entrepreneurs developing small businesses using electric vehicles as economic assets,” said Sunil Paul, CEO and co-founder of Spring Free EV.

“Most of our clients are immigrants and people of color who have been underserved by traditional auto-funding models,” Paul added.

Read: Want to tip your delivery driver big? ‘Gig’ companies may not allow this

Paul comes to this market with experience in the ridesharing industry. And it has teamed up with Martin Lagod, an early investor in solar, battery materials and the food supply chain, to make the market for electric vehicles fairer, they say.

The launch of EVInstaFleet’ followed a partnership with Cox Automotive, which will supply used cars, and HyreCar, which will help Spring Free EV connect with more electric vehicle drivers operating carpools, carpools, rentals, taxis, on-demand deliveries and public works.

There are already signs that the ridesharing and rental industries have become aware of a growing preference for electric vehicles among drivers and cyclists. Uber announced in 2020 that it would provide $800 million in support to help “hundreds of thousands of drivers” worldwide switch to electric vehicles by 2025. Lyft’s Flexdrive unit is working with select car dealerships premises, initially in Seattle, Atlanta and Denver, to rent vehicles on a weekly or long-term basis. In China, considered the world’s largest electric vehicle market, EVCARD, a Shanghai-based electric car-sharing company, has been operational since 2017.

The Biden administration has said it will put the United States on track to halve emissions from burning gasoline and other fuels by 2030 and to net zero by 2050 , a goal consistent with most of the world’s largest nations. Biden and the private sector are bolstering charging infrastructure, and more electric vehicle models are hitting the market all the time.

Market tracker LMC Automotive expects electric vehicles to represent 34.2% of new vehicle sales in the United States by 2030. Electric vehicles, including plug-in hybrids, accounted for only about 4 % of total US vehicle sales in 2021. Yet that doubled in just one year. earlier.

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