CDS clearing plan on track, says ICE Nov 4, 2009
ICE has taken a strong lead among exchanges in the race to clear credit default swaps, the OTC contracts widely blamed for aggravating the financial crisis, prompting Congress to demand that most be cleared centrally in order to guarantee the creditworthiness of both sides. EDITORS CHOICE. (FT.com -- Markets)
Red Flags for Junk Bonds Oct 30, 2009
Securitization, syndication, and all kinds of slicing and dicing, the thinking went, could confer creditworthiness on pretty much any object, animate or otherwise. Then came the debt market implosion. (BusinessWeek)
Sarkozy's `Grand Loan' May Total $52 Billion Over Two Years, Rocard Says Oct 30, 2009
Creditworthiness at Stake. If we did significantly more, there would be a serious deterioration of Frances creditworthiness, he said. (Bloomberg -- Germany)
Inflation fears threatenUS creditworthiness Oct 27, 2009
Inflation fears threaten US creditworthiness By Korkut Erturk ... The fear of inflation itself poses a threat for the creditworthiness of the United States as an international net borrower. (Asia Times Online)
In managing city’s money, Menino scores a goal Oct 26, 2009
Rating agencies examine management practices, debt burden, reserves, and liquidity before determining a city s creditworthiness. It s not the only indicator of fiscal health, but since 2001 the high rating helped the city refinance $600 million in outstanding debt, saving taxpayers about $34 million. (Boston Globe)
Lee County business owners wary of Obamas loan plan Oct 24, 2009
Thats because loans to start-ups and very small businesses rely heavily on the business owners personal creditworthiness, Scott said. Following the financial meltdown in fall 2008, banks nationwide raised credit score minimums, Scott noted. (The News-Press -- Business)
Ask AP: Depleted ozone, military VIPs in Congress Oct 24, 2009
And who decided that computers should generate a score to determine a person's creditworthiness. Sheryl Smith. (Atlanta Journal-Constitution -- World)
BexarMet improves water utility's credit rating Oct 23, 2009
The big three credit rating agencies have all affirmed s creditworthiness. and each assigned an A to BexarMet s bond indebtedness. (San Antonio Business Journal, TX)
500 000 South Africans cannot cope with their debt Oct 22, 2009
A thorough examination of the purchaser's creditworthiness status at the time of the transaction should be instituted by law. If it is then found that positive creditworthiness was not apparent at the time of the transaction, and that the financier or lender was aware of this, then the latter must be penalized for his or her having approved of the loan. (Business Report, South Africa)
Kendall trying again to sell Goose Island campus Oct 18, 2009
As the turmoil in the commercial real estate mortgage market drags on, buyers and lenders are carefully scrutinizing the creditworthiness of tenants. When the 3. (Crain's Chicago Business)
The Dow hits 7537! Oct 16, 2009
And I didn t know that Reagan passed the laws that pushed banks to make loans to people with little creditworthiness or presided over the easy monetary policy that gave banks cheap enough money to get away with it for a while or passed the Basel II banking accords that allowed banks to maintain thin capital ratios because securities backed by subprime mortgages had AAA ratings or the SEC regulations that limited the number of recognized credit rating agencies. Note that none of these actions... (Atlanta Journal-Constitution -- Opinion)
A decision that is to everyone's credit Oct 16, 2009
Small business owners, who are traditionally reliant on personal credit to fund their business, also benefit greatly from this reform through an improved capacity to demonstrate creditworthiness and gain access to more traditional lines of business credit, which tend to be more affordable. This is an often overlooked but extremely important benefit of credit reporting reform, which speaks to its broader economic impact. (Sydney Morning Herald -- Business)
New Hartford's bond rating drops again Oct 15, 2009
The Baa-1 rating represents average creditworthiness relative to other U.S. municipals the Moody s Web site said. Bond rating is important because it affects the interest rate at which the town is able to borrow. (Utica NY Obserer, NY)
* Dubai support fund is insufficient to meet debts: S&P Oct 13, 2009
Outside interest in the offering could be seen as a vote of confidence in Dubais creditworthiness and might ease the pressure on the emirate as it seeks ways to unwind the rest of its debt pile. Nasser Saidi, chief economist of the Dubai International Financial Center, said he believed the city-state could succeed in attracting outside investors. (Taipei Times, Taiwan -- World)
Editorial: Agencies are wary of county finances Oct 10, 2009
Bond agencies rate the county's creditworthiness. Over the last few months, all three national agencies Moody's, Standard and Poor's, and Fitch have downgraded Sacramento County's credit rating one notch. (Sacramento Bee -- Opinion)
To Get What They're Owed, Law Firms Are Taking Delinquent Clients to Court Oct 6, 2009
But rather than sue clients, Rose said his clients are doing more to tighten up their intake procedures and check the creditworthiness of potential clients. David I. Grunfeld, of counsel at Astor Weiss Kaplan & Mandel, has been handling collection work for more than 40 years and has represented law firms large and small in this city for about 25 years. (Law.com)
Sukuk investors position amid defaults Oct 3, 2009
From the rating perspective, an analysis of the asset will be inconsequential; instead, we will focus on the creditworthiness of the corporate obligor, with the final assigned rating depending on the ranking of the sukuk vis-a-vis the obligors existing senior unsecured obligations. Usually, the obligor will be the issuer (borrower); in some cases, however, the task may fall on the originator, sponsor or lessee via the existence of a purchase-undertaking agreement. (The Star Online, Malaysia -- Business)
Consistency in credit ratings Oct 2, 2009
Investors appreciate that ratings can change during a cycle, as our view of future creditworthiness evolves. But they wish to avoid excessive volatility, especially of higher ratings. (FT.com -- Markets)
Lawmaker wants to hold ratings firms liable for inaccuracies Oct 1, 2009
The agencies are gatekeepers, issuing ratings on the creditworthiness of public companies and securities. Their grades can be key factors in determining a company s ability to raise or borrow money, and at what cost securities will be purchased. (Boston Globe)
Reform Conservatism or Deformed Conservatism? Sep 30, 2009
While most conservative criticisms of the Community Reinvestment Act s role in the housing bubble have, with some justice, focused on Bill Clinton, Bush also preferred diversity to creditworthiness. As Steve Sailer has reported, the biggest flood of CRA assurances came during the presidency of George W. Bush, who repeatedly called in 2002-2004 for 5. (The American Conservative)
Age of Austerity Awaits G-20 as $9 Trillion Debt Haunts Rogoff, Greenspan Sep 25, 2009
Their next challenge will be to reduce the resulting debt before it sparks higher bond yields and erodes their governments creditworthiness. Theres no question that the most significant vulnerability as we emerge from recession is the soaring government debt, said Harvard University Professor who is a co-author of a new history on financial crises. (Bloomberg -- Canada)
The Case for Higher Interest Rates Sep 24, 2009
Alternatively, reckless expansion of cheap money and government deficits undermine the nation s currency and creditworthiness, triggering debt repudiation and ruinous devaluation. Some are saying that the U.S. is following the path to doom even as the Fed insists that Japan-style deflation and the devaluation of the dollar are impossible. (The American Conservative)
Dubai World planning shake-up Sep 20, 2009
5 billion Islamic bond package as a signal of Dubai s creditworthiness. Refinancing the Nakheel debt, and to a lesser extent $1 billion in sovereign debt due in November, are seen as the real test of Dubai s ability and perhaps willingness to repay, Deutsche Bank economist Caroline Grady said in a recent report. (Orangeburg Times and Democrat, SC)
Small change: Does ‘microlending’ actually fight poverty? Sep 20, 2009
They created their controlled experiment by altering the algorithm the bank used to evaluate creditworthiness so that some borderline applicants were randomly denied loans while other otherwise identical applicants had loans approved. The researchers then followed up with the borrowers and nonborrowers to see what difference the loan had made. (Boston Globe)
CME signs 5 funds to clearing venture Sep 19, 2009
A clearinghouse is seen as mitigating that threat by stepping in between the two parties, guaranteeing each side of the trade and reducing the risk that each party takes on the creditworthiness of its trading partner. What do you think. (Crain's Chicago Business)
How to avoid the repo man Sep 19, 2009
Better Business Bureau advises troubled car owners on how to avoid losing their vehicle and their creditworthiness. According to the American Bankers Association, the number of direct auto loans that were at least 30 days delinquent increased from 2. (Belmont Citizen Herald, MA)
Transcript of a IMF's Conference Call on the Publication of the Paper Crisis-Related Measures in the Financial System and Sovereign Balance Sheet Risks Sep 18, 2009
To what extent do you think that governments creditworthiness depends on the central banks balance sheets ... This approach by construction is indeed the best way in which countries can safeguard and preserve their sovereign creditworthiness ... Ms. CHEASTY: I think maybe creditworthiness is a little bit too specific a concept in the sense that what is very scary is if you thought the central bank s ability to carry about monetary policy might be compromised because it has bad assets on its... (IMF News)
Estonia's Euro Aspirations Depend on Controlling Deficit in 2009, S&P Says Sep 17, 2009
If Estonia manages to keep its budget within the EUs 3 percent threshold, its creditworthiness will improve, Six said. A budget gap of 3 percent or less means Estonia would almost certainly be eligible to enter EMU at the beginning of 2011, Gill said. (Bloomberg -- Europe)
Credit Default Swaps Lose Disaster Stigma as Confidence in Market Rebounds Sep 17, 2009
Prices rise when perceptions of creditworthiness deteriorate and fall when they improve. Banks have had unparalleled access to money after Federal Reserve Chairman reduced the target for overnight loans between banks to a range of zero to 0. (Bloomberg)
Diamonds in Post-Lehman Era Provide No Aura as Buffett Can't See Recovery Sep 16, 2009
In all, 1,261 U.S. jewelry stores, wholesalers and manufacturers folded from January through July, a 53 percent jump from a year earlier, according to Dione Kenyon, president of the Warwick, Rhode Island-based , which rates the creditworthiness of businesses in the industry. The total this year is expected to be about 3,000, Kenyon said. (Bloomberg)
Small-biz owners find way to buck financing trends Sep 16, 2009
Banks throughout the country made fewer business loans in the second quarter, largely because of weaker loan demand and deteriorating creditworthiness, according to a quarterly Federal Reserve report. Pages: 1. (Columbus Business First, OH)
No dialing back Sep 15, 2009
It is with this analysis in mind that I fear the emerging government finance bubble risks destroying the creditworthiness of our entire economy. WEEKLY WATCH For the shortened week, the S&P500 increased 2. (Asia Times Online)
Global Recession Is Over, Says OECD Sep 15, 2009
It said it would maintain the UK's AAA rating, despite fears earlier this year that the parlous state of public finances might damage lenders' views of Britain's creditworthiness. The stock market has also reacted positively to the growing economic feelgood factor, reaching levels not seen since the collapse of Lehman Brothers a year ago and the subsequent financial crisis sent share prices around the world into a tailspin. (BusinessWeek)
London Suicide Connects Lehman Lesson Missed by Hong Kong Hospital Orderly Sep 11, 2009
Minibonds are custom-made securities linked to the creditworthiness of companies, backed by collateralized-debt obligations and sold in denominations of $5,000 ... The notes were financial dumplings -- derivatives contracts tied to the creditworthiness of major companies wrapped inside Lehman corporate bonds. (Bloomberg)
Lehman's suicide connection Sep 11, 2009
Minibonds are custom-made securities linked to the creditworthiness of companies, backed by collateralized-debt obligations and sold in de 00004000 nominations of $US5000. They functioned like credit-default swaps in reverse, where the investor stands to lose his principal when the firm named in the note can't pay its debts. (Sydney Morning Herald -- Business)
Claire's Stores, Inc. Reports Fiscal 2009 Second Quarter Results Sep 10, 2009
The Company will continue to assess whether to pay down all or a portion of this outstanding balance based on various factors, including the creditworthiness of other syndicate members and general economic conditions. We used cash in operating activities of $11. (PR Newswire)
Parkland applauds bond sale Sep 9, 2009
But Parkland, by virtue of its financial stewardship and performance, is the only hospital district nationwide to rate at that highest level of creditworthiness, Janning said. Parkland s balance sheet is quite strong, and the bond is the only debt that Parkland will carry, Janning said. (Dallas Business Journal, TX)
Czech Credit Rating Is Safe as Election Row Simmers, Moody's Hornung Says Sep 9, 2009
Its creditworthiness remains quite favorable, even amid the global economic crisis, Hornung said. Stabilization Needed. (Bloomberg -- Europe)
City of Delawares debt rating boosted Sep 4, 2009
The Aa rating is Moody s second-highest for municipal issues, reflecting very strong creditworthiness. An A rating means above average creditworthiness. (Columbus Business First, OH)
* World Business Quick Take Sep 3, 2009
Fitch had lowered the sovereign credit rating outlook for six emerging market economies last November, including South Korea, Mexico and Russia, to reflect higher risks to creditworthiness stemming from the global financial crisis. INTERNET. (Taipei Times, Taiwan -- Sports)
* Even the poorest of the poor can be creditworthy Sep 1, 2009
They have good knowledge of the creditworthiness of their clients, and the clients as well value the trust and have a good credit discipline. . (Taipei Times, Taiwan -- Business)
'Jobless recovery' won't work Aug 30, 2009
It will touch off more sustained calls to replace the dollar as the benchmark currency, raising risk and uncertainty in our creditworthiness. Most of the developing countries we expect to help our recovery have consumers with traditionally high savings rates, mainly caused by a history of risk aversion and the fact that they must themselves make up for any shortfalls in their governments' traditionally weak social safety nets. (NJ.com -- Times)
SEC's Schapiro Says More Derivatives Information Is `Critical' for Probes Aug 29, 2009
Credit- default swaps insure investors against bond defaults and can be used to speculate on a companys creditworthiness. Obamas Regulatory Revamp. (Bloomberg)
'I don't want a bailout' Aug 28, 2009
In Redfearn's case, $1 million in sales last year and a business degree do not trump creditworthiness. "Lenders have returned to the old-fashioned lending standards," says Lee Cornelison, regional director for the SBA in North Carolina. (CNN)
Zimbabwe: Inflation Creeps to One Percent Aug 25, 2009
Not only had the printing of money without production to support it increased inflation, money supply, and lowering the country's creditworthiness, it also resulted in huge budget deficits over the past five years. With the introduction of multiple currencies in February, questions are being asked if government would be able to live within its means this time around. (allAfrica.com)
The macabre joke of inflation Aug 21, 2009
So although the Weimar Republic was not bankrupt from the outset, its creditworthiness was restricted, and inflation saddled the fledgling state with a congenital defect that would have dire consequences. Ironically, the monetary depreciation in its milder form initially helped stimulate the economy. (Harper's Magazine)
Integrity deficit has its price Aug 20, 2009
These differences have had different causes at different times: monetary policy, tax laws, bank regulations, the possibility that a country might introduce exchange controls, and the differences between the creditworthiness of the banks in London and those in the domestic market. The London money and foreign-exchange markets are dominant for trading currencies, raising capital and selling debt. (Asia Times Online)
Fed survey: Banks say loan demand down Aug 18, 2009
Banks across the nation made fewer business loans in the second quarter, largely because of weaker loan demand and deteriorating creditworthiness, according to a quarterly Federal Reserve survey of senior loan officers released on Monday. A smaller percentage of banks tightened loan standards in the May-through-July period, compared with the last survey, released in April. (Denver Business Journal, CO)
Turbo Power Systems Inc. (TPS) Announces Results for the Second Quarter and Six Months Ended 30 June 2009 Aug 14, 2009
This risk is mitigated through established credit management techniques, including monitoring counterparty' creditworthiness, setting exposure limits and monitoring exposure against these customer credit limits. However, due to the limited number of potential customers in each market this is not always possible. (CCNMatthews Press Releases)
The bill will fall duefor crisis failures Aug 13, 2009
To keep the interest rate at 1% during 2003-2005, the Fed had to inject as much liquidity as required to prevent a rise of interest rates above the target level, irrespective of the volume or creditworthiness of credit expansion induced by low interest rates. Consequently, liquidity went mostly to subprime markets with the high likelihood of a meltdown to follow. (Asia Times Online)
SWS Group, Inc. Records Investment Impairment in June Quarter, Expects Write-Down Related to Correspondent in September Quarter Aug 13, 2009
Actual results may differ materially as a result of various factors, some of which are out of our control, including, but not limited to, volume of trading in securities, volatility of securities prices and interest rates, availability of lines of credit, customer margin loan activity, creditworthiness of our correspondents and customers, demand for housing, and other factors discussed in our Annual Report on Form 10-K and in our other reports filed with and available from the Securities and... (PR Newswire)
NEC Said to Hire Morgan Stanley, Daiwa for $2.1 Billion Stock, Bond Sale Aug 12, 2009
The company lacks growth engines and faces further risks that losses at its semiconductor unit will persist, according to Deutsche Bank AG. The financing could help the company maintain its creditworthiness, said , an analyst at Deutsche Bank in Tokyo. Investors want to know how the company plans to revive growth. (Bloomberg -- Japan)
PM urges global regulators to ensure no repeat of economic crisis Aug 11, 2009
Stressing that it was in the worlds interest to position Asia as the engine of growth, Najib cautioned that a consistent and coordinated global policy was required to ensure that Asia was able to increase its consumption without affecting its creditworthiness. There must also be steps to ensure that Asia was able to reduce its current account surpluses without being vulnerable to speculative attacks on the capital account. (The Star Online, Malaysia -- Business)
Loral Reports Second Quarter 2009 Financial Results Aug 11, 2009
Risks and uncertainties include but are not limited to (1) risks associated with financial factors and our investment in Telesat Canada, including the global economic downturn, our history of losses, financial covenants in SS/L's credit agreement, the structure of our investment in Telesat, Telesat's leverage and volatility in Canadian/U.S. exchange rates; (2) risks associated with satellite manufacturing, including competition, contractual risks, creditworthiness of customers, performance of... (Primezone Releases)
DCP Midstream Partners Reports Second Quarter 2009 Results Aug 8, 2009
the creditworthiness of counterparties to our transactions. weather and other natural phenomena, including their potential impact on demand for the commodities we sell and the operation of company owned and third-party-owned infrastructure. (PR Newswire)
* Will the world miss an opportunity for true economic reform? Aug 7, 2009
Lenders are suspicious, worried about creditworthiness and demand high risk premiums. As a consequence, in most countries, credit is still contracting. (Taipei Times, Taiwan -- World)
About profit, not health Aug 7, 2009
The Negative Outlook reflects the strong potential for national health care reform and its possible adverse implications on each company's financial strength and creditworthiness. Though no bill has been finalized yet, and multiple policy schemes are possible, most of the alternatives being debated could weaken health insurers' financial profiles in Fitch's view. (Fresno Bee -- Opinion)
Russia Beats California in Bond Market as Credit-Default Swaps Favor BRICs Aug 7, 2009
Created to protect lenders, the contracts also are used by hedge funds and insurance companies that dont hold the underlying bonds to speculate on swings in the markets perception of debtors creditworthiness. The average cost of swaps for sovereign debt from 45 developing countries has declined to 314 basis points, the lowest since October, from 785 basis points five months ago, data compiled by Bloomberg show. (Bloomberg -- US)
Loop office market falls on all cylinders Aug 4, 2009
With such concession-rich packages, however, comes a heightened focus on a tenants creditworthiness because landlords are picking up a bigger tab for renovations and will go a year before they collect rent. Mr. Buth says most landlords offer such deals only to companies theyre confident will survive the recession. (Crain's Chicago Business)
Shelf companies lay traps for small-business owners Aug 3, 2009
Companies that create and sell shelf corporations often suggest to the buyer that they will be able to use the creditworthiness and business history of the shelf company to obtain credit for their business ... Also, the bank will likely require a personal guarantee, and since the scheme doesn't actually increase the business' creditworthiness, the bank could come after the owner's personal assets in the event of a default. (The Augusta Chronicle)
Derivatives plans spark doubt on CDS Aug 2, 2009
A US legislative plan to regulate the near-$600,000bn market in over-the-counter derivatives suggests lawmakers debate the idea of banning so-called naked credit default swaps, which allow investors to speculate on the creditworthiness of companies. The proposal by key committees of the House of Representatives would push most derivatives on to an exchange or clearing house but leaves open the issue of whether to outlaw CDSs a type of insurance against bonds defaulting in which the... (FT.com -- Markets)
Small cos which need funds Jul 31, 2009
It can reveal the creditworthiness of the company in relation to its peers in the sector, and an assessment of its strengths and weaknesses based on its financial condition. Anyone who sees the report is instantly appraised of the health of the company, says Yogesh Dixit, head-SME Ratings at Crisil. (India Times)
Should Your Credit Report Cost You a Job? Jul 31, 2009
The legislation follows efforts by some states to sharply limit employers' ability to consider a person's creditworthiness in hiring. While credit checks historically were used to screen applicants for financial and government jobs, the practice has spread. (Yahoo News -- Top Stories)
Debt's the way to keep risks at bay, but let return, liquidity have a say too Jul 30, 2009
Lastly, companies belonging to first generation of promoters are a higher risk as they are yet to prove their creditworthiness. From a risk perspective, NCDs score over company deposits as the former are secured against some assets so they are considered to be safer instruments than company deposits. (India Times)
STF offers high interest rate, adequate credit rating Jul 27, 2009
This shows that the rating agencies consider STF a company with a high creditworthiness. And therefore, the risk of non-payment is very low. (India Times)
