RR Reading http://rrreading.com/ Thu, 25 Nov 2021 16:42:20 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://rrreading.com/wp-content/uploads/2021/03/rrrreading-icon-70x70.png RR Reading http://rrreading.com/ 32 32 No change to central bank mortgage rules https://rrreading.com/no-change-to-central-bank-mortgage-rules/ Thu, 25 Nov 2021 16:42:20 +0000 https://rrreading.com/no-change-to-central-bank-mortgage-rules/

The central bank left its mortgage rules unchanged after the publication of its annual review today.

However, it will now allow banks to carry over loans in excess of approved limits from one calendar year to the next.

The Central Bank also announced its intention to introduce new rules for real estate funds.

Mortgage rules are part of the Central Bank’s Financial Stability Review that tests the robustness of the financial system.

The rules on mortgages with value limits and borrower income limits remain unchanged.

An ongoing review of the measures will now be open for public consultation next month.

The exam will not be completed until the second semester of next year.

In the meantime, banks will now be able to carry over from one calendar year to another the proportion of loans, over and above the limits, approved.

They have also been given the green light to participate in the government’s shared equity loan program.

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Mortgage measures were first introduced in February 2015 and aim to strengthen the resilience of borrowers and the banking sector.

The Central Bank also intends to put in place new rules on the borrowing limits and cash requirements of property investment funds, which now represent 40% of tertiary property investments.

Today’s Financial Stability Review indicates that risks from the Covid-19 pandemic are “receding” and its impact on the banking sector is starting to “dissipate”.

However, he warns that there is a risk of sudden increases in interest rates if inflation persists.

There are also risks if the fallout from events like the struggles of Chinese real estate fund Evergrande were to spread beyond Asia.

The Central Bank took a closer look at real estate investment funds operating in Ireland. It now wishes to put in place measures to reduce the amount of loans from these funds and increase their capacity to repay investors quickly.

More than 200 funds registered in Ireland now account for 40% of commercial real estate investments here, worth some 23 billion euros.

The central bank left the countercyclical capital buffer (CCyB) requirement for banks unchanged at 0%, but said it plans to reintroduce it next year as the recovery takes hold.

The bank had reduced the CCyB to 0% from 1% in April 2020.

Speaking at a briefing, the governor of the Central Bank said he expected the increase in demand in the real estate market that could result from the new “First Home” equity loan program. From the government would lead to higher prices, if there was no increase in supply. .

However, Gabriel Makhlouf said preventing banks from participating would be disproportionate and that he did not believe participating would put their financial stability at risk.

Commenting on today’s Central Bank decision that macroprudential mortgage rules will remain unchanged, Brokers Ireland called the move “disappointing, if not surprising”.

“Another year will pass before anything more fundamental can be hoped for, such as easing in particular the severity of the current limit of 3.5 times gross pay,” Brokers Ireland said.

Rachel McGovern, director of financial services at Brokers Ireland, however, said the slight change in carrying over unused allocations was welcome.

Brokers Ireland has proposed to the Central Bank to change the current loan-to-income ratio from a three-and-a-half multiple of gross salary to a percentage of net disposable income (NDI).

“Using net disposable income would be a much more realistic mechanism for judging affordability,” McGovern said today.

“The new long-term fixed interest rates of less than 3% for periods of 20, 25 and 30 years make the NDI calculation method sustainable for borrowers,” she added.

Separately, just over a quarter of first-time buyers were aged 30 or under last year, according to an analysis of data by the Banking and Payments Federation.

This represents a halving of the proportion in 2004, when six in ten people who took out a mortgage for the first time were in this age group.

Using statistics from the Department of Housing, Local Government and Heritage, the BPFI study also found that people who move – typically “swap” – also age.

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Brown mortgages the future, ignores the inevitable cost of fixing pipes, buildings and roads https://rrreading.com/brown-mortgages-the-future-ignores-the-inevitable-cost-of-fixing-pipes-buildings-and-roads/ Thu, 25 Nov 2021 02:27:36 +0000 https://rrreading.com/brown-mortgages-the-future-ignores-the-inevitable-cost-of-fixing-pipes-buildings-and-roads/

Brampton’s aging community center foundations don’t care about Patrick Brown’s political legacy. The cracked asphalt that forms the city’s road network is oblivious to the political pressure on CAO David Barrick.

Brampton’s $ 6.3 billion municipal infrastructure ages every year and the need to replace some of it becomes more urgent. The cost of the necessary works increases with the increasing price of materials and labor.

This is a problem facing cities in Ontario.

Aging infrastructure is reaching critical points as life cycles have, in some cases, passed their expiration date. Much of the federal, provincial, and developer funds who built much of it have dried up. To preserve their declining assets, local governments have introduced infrastructure taxes: special costs charged to homeowners for a specific need, which are in effect a tax, but separate from the actual property tax line on the bill.

“Although Brampton’s infrastructure charge is among the highest of the municipalities examined, it still does not completely address the cumulative asset management deficit,” explained a long-term financial master plan, prepared for the City of Brampton in 2017.

The document was written to ensure that residents have a well-maintained local government for years to come. “In order [to] fully fund all of the City’s asset replacements, an increase in the infrastructure charge to 4.7% of the tax charge would be required.

Brampton’s current elected and unelected officials have done the opposite.

In his latest annual budget proposal, Barrick, who was handpicked by Brown to run City Hall, cut Brampton’s vital infrastructure tax from 2% to just 0.5%. He took an equally irresponsible bet in 2021.

Brown pushed back three consecutive freezes without a property tax increase during his tenure, with the infrastructure levy being one of many things on the chopping block. This means that Brampton’s plans to keep its buildings, fleets, pipes and roads from collapsing are grossly underfunded.

Downtown Brampton provides a clear example of why rainy day funds for infrastructure should be retained. The area is in an advanced state of disrepair, due to its broken water pipes, crumbling sidewalks and cracked roads, neglected by the City as the area has decayed and attracted extensive property damage and a growing uncompromising population.

A recently approved beautification project, along with infrastructure work by the Region of Peel, will bring investment to the region after years of protracted negotiations. The municipal portion of that plan, which is only a fraction of the downtown renewal strategy approved by the previous council before Brown canceled it, will be debt-financed.

Brampton’s infrastructure ranges from roads to pipes and buildings, the maintenance of which will require significant investments in the years to come.

(Image pointer files)

“By utilizing healthy reserve balances and adjusting the infrastructure charge funding model, the City continues to be well positioned to refurbish buses, trucks and firefighters, roads and fire systems. ‘stormwater,’ Barrick wrote at the start of Brampton’s 2022 budget document.

The claim is patently false.

A 2019 paper, The State of Local Infrastructure Report (SOLI), took an in-depth look at the assets Brampton owns. Using measures that include its age, the report determined that it would cost $ 6.3 billion to replace buildings, roads and other assets, which must be done as they age and become obsolete and dilapidated. He identified a need to spend just over $ 1.8 billion over the next decade to replace parts of his wallet.

The report gave general categories such as fire or transportation high marks, but that does not represent the complete picture. The company’s fleet, for example, received an overall rating of “good”, despite the fact that 52% of its off-road equipment was rated as “very poor”. Even categories with positive average ratings needed attention in some places.

Most of the $ 1.8 billion needed over the decade to repair Brampton’s assets was to come from an infrastructure tax that would add two percent to the city’s total budget each year. The total amount to be collected through the levy was $ 1.1 billion, an average of $ 110 million per year for a decade. Thus, an increasing share of public funds would be devoted to the maintenance of the deteriorated assets of the City.

It was still not enough, but it would have enabled the City to cover the costs of maintaining its infrastructure in decent condition.

In its 2019 plan, the City suggested that the majority of funding for asset upgrades would come from the infrastructure charge, which will likely be significantly reduced.

(Image by Isaac Callan / The Pointer)

“This level of investment will translate into a cumulative infrastructure deficit of approximately $ 723 million by 2028, compared to $ 337 million currently,” the document said. He identified transportation and parks as the two areas that required the most investment. If the levy was followed, the growing gap would stabilize by the mid to late 2020s. “The concern about an infrastructure gap is not so much that it exists, but how that gap evolves over time. term. “

Under Brown and Barrick, a political hire by the mayor who chose a man with no experience in municipal governance and served as a former Port Colborne city councilor with close ties to Brown’s friends in Conservative politics, Brampton began to stray considerably from its bare minimum plan, towards even less investment in the city.

Brampton’s current budget cuts the infrastructure tax by 75 percent.

“In recent years, the City has managed to achieve a 0% change in property taxes, reducing the operating budget while increasing the amount of property taxes allocated to repair and replacement of infrastructure,” says the budget. 2022. “During this term, contributions for infrastructure and public transit increased from $ 54 million in 2018 to $ 87 million in 2021, which equates to a 61% increase over 3 years or more. by 20.3% per year.

Suggesting a 20% increase in the “per year” contribution is misleading, as the base infrastructure tax was already established before this council term to meet minimum needs (the tax increases with the additional 2% tax on infrastructure. infrastructure that has been added above the base since at least 2015). However, that steady growth, the bare minimum for what is needed to pay for aging assets in need of replacement, will now be halted due to Brown’s reluctance to budget responsibly. Reducing the additional infrastructure tax by 2% and the transit tax by 1% to just 0.7 and 0.3% by 2021 means that instead of raising $ 98.2 million this year, only 87 million dollars will actually be collected. And for 2022, the new reduction to 0.5% for the additional infrastructure tax and 0.2% for the transit tax will mean that only $ 90.4 million will be collected, instead of $ 102.1 million. of dollars.

Barrick presented a document last year indicating that the 2022 royalty amounts for infrastructure and transit would be reduced to 2% and 1% respectively, but he reneged on that promise and instead reduced the charges even more than which had been cut off from them last year.

In 2021, CAO David Barrick promised to restore the levies to their previous amounts for 2022 in order to pay for the necessary infrastructure; instead, he proposed to reduce them further.

(Image of the City of Brampton)

The 2022 draft budget will only make matters worse.

Projections from 2019 to 2022 – the four budget documents produced under the current council – show how far behind the City is on its own plan. The 2020 budget suggested that the base infrastructure tax in 2022, with an additional 2% infrastructure tax on top of that (these do not include the transit tax) should collect $ 93.3 million per year. Next year alone, a number reduced to $ 78.2 million in the 2022 budget document, thanks to Brown ignoring the need for an additional levy of at least 2% each year to keep assets safe.

“While this principle is prudent under healthy economic conditions, the current social and financial stress facing the community has warranted serious consideration of affordability versus sustainability when developing the 2022 budget,” explains the budget, explaining the decision to delay responsible investing in the heart of Brampton. assets.

A spokesperson for the City of Brampton referred to the agreement not yet finalized with the Canada Infrastructure Bank as a potential source of relief for the infrastructure tax deficit.

Without proper financial planning, investments in critical infrastructure can be delayed, causing much-needed repairs to be postponed, increasing the risk of failure.

(Image by Natasha O’Neill / The Pointer)

“The City is maximizing partnership opportunities with the federal and provincial governments and has included $ 49.6 million in federal and provincial contributions in the 2022 budget,” said the spokesperson.

It is not known whether this total amount has been guaranteed, and if it is included in the final 2022 budget but never materializes, it is also not known how the City plans to offset part of the $ 50 million.

Any funding from a federal loan program could have two conditions that Brampton is not well positioned to meet: a repayment requirement; and a matching infrastructure investment requirement, for example, to cover a portion of the City of Brampton to purchase new electric buses.

Brown has developed a habit of claiming funding from higher levels of government, without displaying the ability to obtain those funds.

Councilors will hear an update on the City’s asset management plan and the state of its infrastructure during deliberations on the 2022 budget. Budget committee meetings will begin Monday, November 29, with a separate levy to help. to fund the expansion of phase two of Peel Memorial also potentially on the table.

E-mail: [email protected]

Twitter: @isaaccallan

Phone. : 647 561-4879

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Global Automotive Software Market Report 2021-2026 – Growing Integration of Advanced Technology into Vehicle Scripts Phenomenal Growth Story | New https://rrreading.com/global-automotive-software-market-report-2021-2026-growing-integration-of-advanced-technology-into-vehicle-scripts-phenomenal-growth-story-new/ Wed, 24 Nov 2021 20:30:00 +0000 https://rrreading.com/global-automotive-software-market-report-2021-2026-growing-integration-of-advanced-technology-into-vehicle-scripts-phenomenal-growth-story-new/

DUBLIN, November 24, 2021 / PRNewswire / – The report “Automotive Software – Global Market Trajectory & Analytics” has been added to ResearchAndMarkets.com offer.

Global Automotive Software Market To Reach $ 29.3 billion by 2026

Global automotive software market estimated at US $ 17.7 billion in 2020, is expected to reach a revised size of US $ 29.3 billion by 2026, with a CAGR of 8.9% over the analysis period.

Also referred to as software for on-board vehicle systems, automotive software covers programmable data instructions used to perform various tasks of on-board computer applications such as infotainment, telematics, communication, body control and comfort, the group powertrain, safety and advanced driving assistance. systems (ADAS).

The growth of the global market is due to the increasing influx of emerging and advanced technologies in vehicle models to improve functionality, safety and driving experience. The incorporation of new features and the increasing use of connectivity services for communication and real-time data transfer are creating a high demand for automotive software solutions that provide high convenience and utility to customers.

Global adoption of automotive software is also driven by stringent safety and fuel efficiency regulations coupled with the incorporation of electronics-based safety and driving comfort systems. Mandatory installation of electronic call systems and reversing cameras in all vehicles to reduce the risk of reversing accidents is sure to increase market growth.

Application software, one of the segments analyzed in the report, is expected to grow at a CAGR of 9.7% to reach US $ 18.3 billion at the end of the analysis period. After a thorough analysis of the business implications of the pandemic and the induced economic crisis, the growth of the Middleware segment is readjusted to a revised CAGR of 8.5% for the next 7 year period.

This segment currently accounts for a 30.1% share of the global automotive software market. Application software is the software layer designed to help users run applications developed and defined by automotive manufacturers and incorporated into vehicles to perform single or multiple tasks. The growing integration of infotainment and telematics services is driving the demand for application software.

Middleware is the software layer that resides between operating systems and application components. Middleware software manages application components that run on distributed hosts and primarily establishes communications between applications and the back end.

The US market is estimated at $ 2.4 billion in 2021, when China is expected to reach $ 7.4 billion by 2026

The automotive software market in the United States is estimated at 2.4 billion US dollars in 2021. The country currently represents a 13.28% share of the global market. China, the world’s second-largest economy, is expected to reach an estimated market size of 7.4 billion US dollars during the year 2026, with a CAGR of 10.4% during the analysis period.

Other notable geographic markets include Japan and Canada, each projects growth of 6.7% and 7.6% respectively over the period of analysis. In Europe, Germany is expected to grow by around 8.2% CAGR while the rest of the European market (as defined in the study) will reach 8.3 billion US dollars at the end of the analysis period. Market growth in Asia Pacific region is driven by the growing adoption of connected mobility and intelligent transport systems.

Market growth is also being driven by the enforcement of strict emissions regulations in countries like Japan, China and India, driving the adoption of automotive software for powertrain and engine management systems. Europe represents the second largest regional market and growth is driven by growing concerns about vehicle and driver safety as well as the resulting implementation of intelligent transport systems.

Main topics covered:




  • Impact of COVID-19 pandemic and looming global recession: 2020 marked as a year of disruption and transformation
  • Impact of the pandemic on the automotive industry
  • Adoption of COVID-19 Driven Technologies Among Auto Manufacturers Has Positive Implications for the Global Automotive Software Market
  • An introduction to automotive software
  • Automotive software applications in vehicles
  • Industry standards
  • Growing Integration of Advanced Technology into Vehicle Scripts Phenomenal Growth Story for Automotive Software Market
  • Connectivity As New Buzzword Boosts Automotive Software Market Growth
  • The influx of new technologies continues to fuel growth
  • Obstacles to Market Growth
  • Analysis by product type
  • Analysis by application
  • Analysis by end-use: passenger cars remain the main growth segment
  • Regional analysis
  • Competitive scenario
  • Recent market activity
  • Select global brands

2. FOCUS ON CERTAIN PLAYERS (Total 247 featured)

  • Airbiquity, Inc.
  • Apple Inc.
  • Aptiv API
  • Bosch Software Innovations GmbH
  • Denso Corporation
  • Electrobit
  • ETAS
  • Google Inc.
  • Green Hills Software Inc.
  • Intel company
  • International Business Machines Corporation
  • Lectronix, Inc
  • Luxoft Global Operations GmbH
  • Lynx Software Technologies, Inc.
  • Microsoft Corporation
  • MSC Software Company
  • Nuance Communications, Inc.
  • NVIDIA Corporation
  • NXP Semiconductors NV
  • Oxbotica LTD
  • Tesla Motors Inc.
  • MathWorks, Inc.
  • Vector Informatik GmbH
  • Wind River Systems, Inc


  • Automotive electronics: the cornerstone of the evolution of software solutions
  • The Continued Proliferation of Digital Technologies Maintains a Gradual Tide in the Automotive Software Market
  • With advanced technologies having a big impact on the automotive industry, automotive software is poised to expand its footprint
  • Continuous improvements to business models to increase the importance of automotive software
  • Over the Air (OTA) software updates for cars: the next step in software evolution
  • Changing automotive revenue streams make software expertise the core competency of automotive manufacturers
  • Declining New Car Sales Growth Through 2025 Directs OEMs to New Revenue Streams
  • The shift to recurring revenue streams makes ‘software’ an indispensable platform for service delivery
  • As the fuel that powers the era of connected cars, automotive software is poised to take full advantage of the explosive growth of connected car services
  • Infotainment systems as a point of contact for connectivity, become the focus of software development activity
  • Evolving Role of V2X to Further Reinforce the Importance of Automotive Software
  • Telematics software: a key component of modern motor vehicles
  • Autonomous cars: a mine of growth opportunities for automotive software
  • Technological forces driving the self-driving car segment
  • Critical need for sensor fusion in automobiles increases importance of software
  • Automotive HMI: a rich application area for software
  • Migration to automatic transmission systems reinforces the importance of software and algorithms for transmission control systems
  • The rise of X-By-Wire technologies offers software the possibility of increasingly replacing mechanical and hydraulic components
  • Strong ADAS Adoption Accelerates Software Essentials
  • Adoption of on-board vehicle health monitoring and diagnostic system drives growth
  • Security regulations increase pressure on software
  • TPMS regulations drive demand for software driver components
  • Fuel Management and Safety Standards Drive Automotive Engine Management Systems Market
  • Growing Leniency in Airbag Technology Expands Prospects for Automotive Software
  • OEMs focus on reducing software development costs
  • Hybrid cars promise high volume of software deployments
  • Automotive software outsourcing is growing in popularity
  • The increase in software content increases the risk of failure and the difficulty of repair
  • Cybersecurity and Compliance: Red Button Issues for Automotive Software Market
  • Automotive supply chain vulnerabilities pose a security threat to software systems




For more information on this report, visit https://www.researchandmarkets.com/r/nkghb5

Media contact:

Research and markets

Laura Wood, senior


For EST office hours, call + 1-917-300-0470

For USA / CAN call toll free + 1-800-526-8630

For GMT office hours, call + 353-1-416-8900

US Fax: 646-607-1904

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View original content: https://www.prnewswire.com/news-releases/global-automotive-software-market-report-2021-2026—rising-integration-of-advanced-technology-in-vehicles-scripts – phenomenal growth story-301431741.html

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Explanation: What is happening with gasoline prices in the United States? https://rrreading.com/explanation-what-is-happening-with-gasoline-prices-in-the-united-states/ Wed, 24 Nov 2021 13:25:00 +0000 https://rrreading.com/explanation-what-is-happening-with-gasoline-prices-in-the-united-states/

Chevron hydraulic fracturing site near Midland, Texas, USA, August 22, 2019. REUTERS / Jessica Lutz / File Photo

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Nov. 24 (Reuters) – The United States uses more gasoline than any other country in the world, and Americans have recently become concerned about rapidly rising costs at the pumps.

The White House on Tuesday announced plans to release millions of barrels of oil from strategic reserves in coordination with other countries in the hope of cutting costs. Read more

The average retail price of gasoline was just recently $ 3.40 for a regular gallon, down from around $ 2.11 at the same time a year ago. The rapid increase – 61% over 12 months – has alarmed consumers.

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According to the American Automobile Association, 48.3 million people are expected to hit the roads for Thanksgiving, nearly 4 million more than last year, although still below 2019 levels.


Yes. The cost of a gallon of regular gasoline hit $ 4.11 in July 2008. The current cost is still significantly lower than that, but such a rapid increase is rare.


President Joe Biden, in his remarks on releasing oil from the strategic reserve, said prices are expected to be about 25 cents lower than they are now.

It refers to the current spread between unfinished gasoline futures known as RBOBs and retail prices, which has widened as the RBOB has fallen in recent weeks as the retail cost has remained relatively stable.

Over the past six weeks, that spread has widened from about 78 cents to about $ 1.14 per gallon, the highest since April 2020. That’s significantly wider than the five-year average of around 85 cents.

Wholesale prices often diverge from retail prices when the former fall sharply, as retailers generally react to such changes with a lag. In March 2020, the gap widened to $ 1.64 per gallon as wholesale prices collapsed as the coronavirus pandemic worsened as Saudi Arabia and Russia flooded the market with barrels . He did not return to a more normal range for two months.

In November 2018, the spread dropped to $ 1.11 and took several months to narrow.

Retail gasoline prices exceed wholesale costs due to refining, transportation, marketing and taxes, and the gap between the two tends to fluctuate – with retail prices often falling more slowly.


There are several factors. Crude oil is more than half the cost, according to the US Department of Energy. This price is largely determined by supply and demand around the world.

Consumers pay additional costs for blending ethanol and other additives, as well as for distribution and marketing. These costs have increased dramatically, according to Tom Kloza, global head of energy analysis at the Oil Price Information Service (OPIS).

“The gasoline you get at the pump actually contains eight or nine different elements, all of which have been rising in cost in recent months,” Kloza said.

About 17% of the cost comes from taxes. Federal gasoline tax is 18 cents, while average state taxes and fees are 30 cents, although this varies (see CHART).

State average of gasoline taxes and charges.


The release of the US Strategic Petroleum Reserve would be a combination of a loan and sale to companies, US officials said, for a total of 50 million barrels.

Oil prices fell for several days as the oil market expected a potential announcement. However, because it takes time for a strategic version to make its way through the refining process, drivers likely won’t see prices at the pump drop when they hit the road for the Thanksgiving holiday in the United States on Thursday. .

“The price relief is unlikely to be passed on to consumers in the short term, unless the Biden administration prioritizes releasing gasoline inventories,” said Louise Dickson, senior market analyst. tankers at Rystad Energy.


In response to rising gasoline prices in his state, Florida Governor Ron DeSantis on Monday urged lawmakers to consider removing the state’s gasoline tax, which is used to fund infrastructure. of public transport. Florida state taxes and fees total nearly 35 cents, above the national average.

“Other Republican-leaning states could follow suit, especially if they argue that the revenues will be made up of funding for the federal infrastructure bill,” Kloza said.


Gasoline prices are expected to drop in the coming weeks, but this is largely due to lower demand for fuel during the winter months, according to Kloza.

When demand for gasoline returns, American consumers will likely return to the pumps, but the ability to refine oil is diminished after a year in which even major refineries around the world have closed.

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Reporting by Laura Sanicola in New York Editing by Matthew Lewis and Louise Heavens

Our Standards: Thomson Reuters Trust Principles.

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ASB, ANZ First To Raise Variable Rates On Home Loans And Deposits After OCR Rise https://rrreading.com/asb-anz-first-to-raise-variable-rates-on-home-loans-and-deposits-after-ocr-rise/ Wed, 24 Nov 2021 03:33:45 +0000 https://rrreading.com/asb-anz-first-to-raise-variable-rates-on-home-loans-and-deposits-after-ocr-rise/

November 24, 2021 The Reserve Bank today raised the official exchange rate from 0.25% to 0.75%. The 25 basis point hike was the first for the RBNZ in seven years.

ANZ Bank followed the ASB as the first major banks to increase variable rates on mortgage loans after Reserve Bank announced it would increase the official cash rate from 0.5% to 0.75% today hui.

ASB said it decided to go through 0.15%, increasing its variable mortgage rate from 4.45 to 4.6% and its orbit rate from 4.55 to 4.7%.

A special rate for new construction called Back my Build would also drop from 2.04% to 2.29%.

ANZ followed shortly after, saying it would increase the rates on its floating and flexible home loans by 0.20%. Interest rates will also rise on a number of savings and calling accounts, the bank said.

Craig Sims, executive managing director of ASB’s retail banking, said the bank suspended its hike in variable rates after the October OCR hike, but today’s increase would be partially passed on to customers due to changing market conditions.

The new variable rate would be effective for new loans from December 1 and applied to existing loans from December 8.

In October, ASB pledged to defer any increase in OCR for the remainder of 2021 at its base commercial rate in recognition of the difficult business conditions many small business owners are currently facing.

Good news for savers, the bank said it will also increase deposit rates on its Savings Plus and Headstart accounts, raising them by 0.25% and raising the maximum interest rate to 0.65%.

The increase for Headstart accounts will apply from December 1, while customers with Savings Plus accounts will have to wait until January 1, 2022.

Ben Kelleher, ANZ chief executive for personal banking, said the economic conditions that supported historically low interest rates have changed and the RBNZ was one of the first central banks to start tightening its monetary policy since the start of the pandemic in the face of inflation.

“For some time now, we have been encouraging our clients to take advantage of the low interest rate environment and pay off as much of their debt as possible,” Kelleher said.

“We have seen a continued increase in fixed rate mortgages, with approximately 90% of our home loan balances now at fixed rate. “

The Reserve Bank’s forecast shows that it will take the cash rate to a high of around 2.5% by the end of 2023.

CoreLogic’s chief real estate economist Kelvin Davidson said the implications for the residential real estate market are clear – paternal mortgage interest rates are coming.

“With most short-term fixed rates now pushing towards (or above) the 4% mark, we have already seen them roughly double from previous lows, and numbers of 5% or more would not be. not a surprise. in the next 6 to 12 months either. “

While still small by past standards, Davidson said many borrowers on one-year terms could see a big change in mortgage costs.

He pointed to data from the Reserve Bank which showed that $ 227.8 billion in mortgages were either floating or due for renewal next year.

“This equates to 71% of all loans – a lot of financing which, when re-secured, will likely result in larger mortgage payments and therefore less disposable income.”

But at least one real estate company is arguing that the rate hike will not dampen the enthusiasm of tenants wishing to buy.

Tim Kearins, owners of Century 21 New Zealand, said it was because for first-time buyers paying for a mortgage was still comparable or cheaper than paying record rents.

“People are realizing that they can either buy and set their interest rate at 4.5%, or wait and pay 6%, or 33.3% more.”

Kearins said rents were rising as demand remained high and supply fell.

“Real estate prices also continue to rise. However, at least now we are seeing many more townhouses coming onto the market, providing first-time homebuyers with a relatively affordable entry point. “

He said his agency was seeing a sharp increase in registrations as Covid-19 restrictions began to lift.

“This latest Reserve Bank increase will not deter Kiwis from buying property and securing good fixed rates. Homeownership remains a safe bet in the long run. It is a proven way to save money. ‘Help maintain people’s standard of living and way of life later in life, “Kearins said. noted.

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Karim Adeyemi is eyeing the future of Alexandre Lacazette last January, Robert Pires tells the club to “sign English players” https://rrreading.com/karim-adeyemi-is-eyeing-the-future-of-alexandre-lacazette-last-january-robert-pires-tells-the-club-to-sign-english-players/ Tue, 23 Nov 2021 12:22:51 +0000 https://rrreading.com/karim-adeyemi-is-eyeing-the-future-of-alexandre-lacazette-last-january-robert-pires-tells-the-club-to-sign-english-players/

Arsenal could consider several moves in the January transfer window to ensure they build on their recent return to form.

But who’s next on Mikel Arteta’s wishlist as he seeks to guide Arsenal to European football? talkSPORT.com takes a look …


Adeyemi has been in sensational form this season and it’s no surprise that some big clubs are lining up to sign him

Karim adeyemi

Arsenal are considering a deal in January for Red Bull Salzburg star Karim Adeyemi.

The Mirror claims the Gunners have identified Adeyemi as a potential replacement for Alexandre Lacazette.

North Londoners are favorites for the 19-year-old forward but may have to wait until summer to sign him.

The Bayern Munich academy ace, who already has three caps in Germany, has scored 14 goals in 18 appearances for Salzburg this season.

Alexandre lacazette

Arsenal have reportedly suspended contract talks with Alexandre Lacazette until the summer – even if they risk losing him for nothing.

The 30-year-old forward will see his current Gunners tenure expire at the end of the season and he will be free to speak to other clubs in January.

But the Sun say Arsenal won’t be discussing their deal anytime soon.

Atletico Madrid, AC Milan, Marseille and Newcastle are among those monitoring his situation.

The Sun add that Arsenal are unwilling to offer him a long-term deal but could offer a new 12-month contract.

The Lacazette agreement expires this summer


The Lacazette agreement expires this summer

Robert Pirès

Arsenal great Robert Pires has urged his former club to buy from Brits in the January transfer window.

He said: “It’s difficult, but in January, if Arsenal can spend money on a defender, I think our midfielder and our forwards are very good players.

“In my opinion, sign English players because we need English players in this squad because when you play in the Premier League you need a player like this.

“For example, in my day I played with Tony Adams, Lee Dixon and Martin Keown, Ashely Cole and that’s the base of your team.

“They must spend money on a defender in my opinion, English.”

Dejan Koulusevski

Juventus want to get rid of the 21-year-old Swedish winger, according to Italian media Calciomercato.

The report adds that a swap deal with Arsenal for the record signing of Nicolas Pepe, 26, has been suggested, but the old lady prefers cash.

Kulusevski – who is also a target for Tottenham – revealed he grew up loving Arsenal on the Swedish Lundh podcast in October 2019.

He said: “My favorite team is Arsenal, because I love everything about the club, the city, the players and the way they play football.”

Kulusevski failed to reach the top at Juventus


Kulusevski failed to reach the top at Juventus

Florian Wirtz

Arsenal are reportedly keeping an eye on the Bayer Leverkusen starlet, according to Catalan outlet El Nacional.

However, the report adds that Chelsea and Real Madrid are also interested in the race to land German playmaker Wirtz.

The player himself is believed to prefer a transfer to Barcelona despite the Blues showing the most interest in him alongside Madrid.

Arsenal keep tabs on Bayer Leverkusen starlet Florian Wirtz


Arsenal keep tabs on Bayer Leverkusen starlet Florian Wirtz

Folarin Balogun

Arsenal starlet and Liverpool target Folarin Balogun questioned his future

Jurgen Klopp’s side were linked with a move for the 20-year-old striker this summer and he has now said he is keen on a new challenge.

“I feel like I am ready for a new challenge,” said Balogun.

“I feel like I played junior football for a while. I scored goals at this level and I have improved considerably at this level compared to now. At the same time, I am not sure what that challenge could be.

“It could be a loan, or if I need me at Arsenal I’m here – and the coach knows that too.

“I feel like I’m definitely open to a new challenge, wherever it is, I’ll be ready.

“As a striker and as a young player you need the minutes. It’s the best way to learn and get consistency.

Arsenal starlet Folarin Balogun is 'ready for a new challenge'

Arsenal starlet Folarin Balogun is ‘ready for a new challenge’

Rahim sterling

Arsenal have reportedly received a boost in their pursuit of Man City star Raheem Sterling.

The Daily Express claims the Barcelona scouts have been ordered to stop their preparations for the January transfer window and will not budge for long-term target Sterling.

This has apparently made Arsenal’s game as they look to get a hold of Sterling.

The England star is valued at around £ 45million and is keen on a new challenge after falling down City’s pecking order.

Sterling may soon be leaving Man City


Sterling may soon be leaving Man City

Matteo guendouzi

Matteo Guendouzi does not want to return to Arsenal at the end of his loan with Marseille.

Speaking to French media RMC Sport, he said: “Today I’m on loan and still bound by my contract at Arsenal. But I’m totally focused on what to do with Marseille.

“And yes, it’s a club with which I want to project myself into the future and I want to register for the long term.

“These are discussions that I had already had with the club before signing and I feel very comfortable there. And that’s why I want to keep having fun in Marseille.

Guendouzi is loaned to Marseille


Guendouzi is loaned to Marseille

Eddie nketiah

Borussia Mönchengladbach are reportedly considering a January move for Arsenal striker Eddie Nketiah.

Nketiah has had to settle for a partial role this season after making just two appearances and The Sun claims he now wants to leave for the sake of his career.

The 22-year-old’s contract expires at the end of the season and Arsenal want the England Under-21 international to sign a new contract.

But Nketiah wants to switch to regular playing time.

And The Sun claim that German club Gladbach want to offer him that and will be free to talk to the player in January.

Nketiah could leave Arsenal soon


Nketiah could leave Arsenal soon

Ainsley Maitland Niles

The versatile England star is keen to stay in north London just two months after his loan spell at Everton failed in the dying days of the Summer Window.

Asked how happy he was with the summer, Maitland-Niles told the Mail: “It’s a thing of the past now.

“I just think about the future and what to expect. It was great to be there, to get my minutes, and I hope there will be more to come. “

Maitland-Niles seized the opportunity in the win over Watford


Maitland-Niles seized the opportunity in the win over Watford

Dusan Vlahovic

The Fiorentina striker is expected to refuse a transfer to Arsenal in January, according to Italian media Football Italia.

The report adds that the 21-year-old Serb is awaiting further offers and will therefore join Manuel Locatelli and Joaquin Correa in snubbing the Gunners.

Arteta’s side have reportedly reached a tentative deal with Fiorentina on a £ 68.5million transfer in the winter window.

The latest report from La Nazione claims Spurs have joined Arsenal as favorites to sign him ahead of a number of other European clubs.

Vlahovic has a proven track record in Italy and has been linked with a move to England


Vlahovic has a proven track record in Italy and has been linked with a move to England

17th EU-Central Asia ministerial meeting held in Dushanbe https://rrreading.com/17th-eu-central-asia-ministerial-meeting-held-in-dushanbe/ Tue, 23 Nov 2021 03:06:00 +0000 https://rrreading.com/17th-eu-central-asia-ministerial-meeting-held-in-dushanbe/

AKIPRESS.COM – Foreign Ministers of Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan as well as the EU High Representative for Foreign Affairs and Security Policy / Vice-President of the European Commission and the Commissioner for International Partnerships organized the 17th EU-Central Asia ministerial meeting on 22 November 2021 in Dushanbe.

The participants reaffirmed their shared commitment to forge a strong, ambitious and forward-looking partnership based on their common values ​​and mutual interests. Participants reaffirmed the importance of advancing on the rule of law, democracy, governance, gender equality and universal human rights, including labor rights, rights of ethnic minorities and full enjoyment by women and girls for their human rights. Participants stressed the importance of promoting the full, equal and meaningful participation of women in decision-making. They called for stepping up cooperation to create opportunities for the region’s youth, including better access to quality education for all, especially girls, and decent work. The European Union proposed exploring the possibility of establishing a regional dialogue on the effective implementation of international labor standards.

EU and Central Asian Foreign Ministers underlined the relevance of the priorities set in the 2019 EU Strategy for Central Asia – promoting resilience, prosperity and regional cooperation – for development future of the region. The EU underlined that these priorities would guide the programming of its development cooperation under its new multiannual financial framework. The EU has indicated that it is currently starting preparations for two regional Team Europe initiatives, respectively on digital connectivity and on water, energy and climate, both identified in areas crucial for economic and human development. sustainable development of Central Asia. Participants underlined the importance of enhanced partnership and cooperation agreements to advance bilateral relations between the EU and the countries of Central Asia.

Central Asian ministers greatly appreciated the assistance provided by the EU to their countries to cope with the socio-economic repercussions of the COVID-19 pandemic. They particularly welcomed the EU’s support for the rapid mobilization of WHO’s action in the region and for the preparation of a follow-up program for the region, which will focus directly on support for immunization, which is essential to “build back better”. Participants underscored their determination to work together to promote a green and sustainable recovery from the COVID-19 pandemic, leaving no one behind.

Participants welcomed the results of the first in-person “EU-Central Asia Economic Forum” held on 5 November 2021 in Bishkek (Kyrgyz Republic) and underlined the contribution that EU and Central Asian companies can bring to the post-COVID-19 socio-economic recovery. They underlined the importance of a healthy business and investment climate through legal certainty, more transparent and predictable rules and the fight against corruption. Participants welcomed Uzbekistan’s proposal to host an “EU-Central Asia Tourism Forum” in 2022.

Participants stressed the need to step up cooperation on sustainable connectivity between the EU and Central Asia in the areas of trade, transport, energy, digital and people-to-people contacts. The EU presented its upcoming strategy on Global Gateway Partnerships. Participants hailed the success of the International Conference on Central and South Asia: Regional Connectivity: Challenges and Opportunities which was held from July 15-16, 2021 in Tashkent, Uzbekistan. Turkmenistan stressed the importance of the 15th Summit of Heads of State of the Organization for Economic Cooperation, which will take place on November 28, 2021 in Ashgabat, and the forthcoming Ministerial Conference on Transport for Landlocked Developing Countries ” Ashgabat Process – Funding for Better Connectivity ”to be held on 5-6 April 2022. Participants welcomed Uzbekistan’s proposal to host an EU-Central Asia high-level ministerial conference on connectivity in 2022.

The EU urged further progress in implementing the Paris climate commitments and in the region’s transition to a green economy, including integrating increasing shares of renewable energy into the energy market. electricity, with the aim of climate neutrality. In this regard, the EU called on Central Asian countries to join the Global Methane Pledge. The participants recognized the need to improve the interconnectivity of the regional electricity system and to continue efforts to increase energy efficiency. Following the COP26 summit in Glasgow, the EU underlined the importance for all parties to the Paris Climate Agreement to submit ambitious nationally determined contributions. Ministers welcomed Tajikistan’s intention to host a water conference in June 2022 and to co-host the 2023 United Nations Water Conference with the Netherlands to support international efforts in the context of the United Nations Water Decade and the implementation of the 2030 Agenda for sustainable development and the water-related SDGs. Tajikistan presented its intention to declare 2025 the International Year of Glacier Preservation and set a specific date for World Glacier Day.

The participants stressed that the peaceful settlement of disputes and the establishment of relations of trust and good neighborliness are essential for economic and social development. They welcomed the initiative of Turkmenistan to host on December 12, 2021 in Ashgabat an international conference on “Politics of peace and confidence – Basis of international security, stability and development” in the context of the proclamation of 2021 as the International Year of Peace and Confidence by the UN. General assembly.

Participants expressed their common concern about the regional repercussions of developments in Afghanistan. They called for the promotion and respect of the universal human rights and fundamental freedoms of all Afghans, in particular women and girls as well as children and persons belonging to ethnic and minority groups, and for the implementation place of an inclusive and representative government.

The participants looked forward to stepping up EU-Central Asia cooperation in security and border management, as well as in the common fight against terrorism, transnational organized crime, trafficking in human beings, smuggling of migrants, trafficking in small arms and light weapons, transnational drug trafficking and cybersecurity. threats, while acting in accordance with universal human rights commitments and the rule of law.

The participants welcomed the cooperation in the fields of education, vocational training and skills development, as a key factor to ensure the sustainable and inclusive socio-economic development of the region. They highlighted the key role that science, technology and innovation play in accelerating economic diversification and transformation, improving productivity and competitiveness, as well as enabling the integration of Central Asian countries into the global economy. . In this regard, the participants took note of the proposal of the Kyrgyz Republic to establish a European university in Central Asia. The EU and Central Asia have recognized the value of international cooperation in research and innovation between their two regions, notably through scientific collaboration and the funding opportunities offered by the EU Framework Program for research and innovation Horizon Europe. The Foreign Ministers of Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan proposed that the European Union launch a new regional program for Central Asia on cooperation in the fields of science, of technology and innovation.

The participants agreed to meet in 2022 in Brussels.

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Unconventional ideas can yield better returns https://rrreading.com/unconventional-ideas-can-yield-better-returns/ Mon, 22 Nov 2021 21:08:42 +0000 https://rrreading.com/unconventional-ideas-can-yield-better-returns/

Investors should regularly look for an edge that will give them an edge in a relatively efficient market, and this is especially true for those who want to beat the market in these very unusual economic times.

Interest rates are lower than ever before, with current benchmark fed funds rates just 0.25%. Separately, it appears that inflation is no longer just a risk, but now a grim reality. The Bureau of Labor Statistics reports that prices rose 6.2% in October, the largest annual increase since 1990, due to supply chain and labor shortages as well as rising prices. energy prices. Gasoline prices are up nearly 50% from a year ago, with a national average of around $ 3.50 / gallon. And it’s not just gasoline. Most commodities have also recovered over the past year.

Looking at all of these signs, it seems obvious that there really is no other place to go than higher interest rates. At the start of the month, US GDP growth was around 6.7%, with an unemployment rate hovering around 4.8%. High yield debt default rates have fallen to record highs, due to massive government support in response to COVID.

Fortunately, the economy has recovered, but not completely. The government has certainly done the right thing in providing fiscal and monetary support, but much of this stimulus appears to be continuing well beyond the planned timeline. And with that, we are seeing significantly higher inflation, as the most recent figures show.

And while default rates have fallen dramatically due to massive fiscal and monetary stimuli, we are seeing some great investment ideas among previously struggling companies. This “post-distress” equity investment opportunity includes both public and private companies.

There are many companies that we can use to illustrate what happens to those who have successfully come out to the other side of distress. Two of these are the post-distress stock of Alpha Metallurgical Resources (NYSE: AMR) and the post-distress stock of Chesapeake Energy Corp (NASDAQ: CHK), both of which have benefited significantly from the price rally. raw material.

AMR is a metallurgical (“met”) coal miner that emerged from a reorganization in 2016 after eliminating approximately $ 7.8 billion in debt. In 2018, its predecessors merged to form the largest American coal producer encountered. In addition to enjoying a healthy balance sheet, it also has significant tax assets (around $ 1.7 billion), which will offset future cash taxes for many years to come. Going forward, most industry analysts expect coal prices to continue to recover. On the cost side, AMR management has cut costs (by around $ 20 / tonne) by downsizing, increasing productivity, and replacing some high-cost mines with cheaper alternatives. During the third quarter, they were successful in reducing long-term debt and legacy liabilities by over $ 75 million. Despite these achievements, as well as the company’s advantageous positioning in the face of growing demand for steel, AMR is trading at just 1.55x TEV / EBITDA 2022.

CHK, on ​​the other hand, is a low-cost natural gas exploration and production company. One of the largest E&P companies in the United States, it has interests in world-class natural gas resources in Pennsylvania, Louisiana, Texas and Wyoming. He emerged from bankruptcy in February 2021, simultaneously wiping out around $ 8 billion in debt. The restructured company has a strong balance sheet designed to generate sustainable free cash flow, a disciplined capital reinvestment strategy and a commitment to ESG excellence. CHK management anticipates approximately $ 3 billion in free cash flow over the next five years and plans to maintain the strength of the company’s balance sheet (under 1.0x leverage).

During the third quarter, CHK management announced a transformative acquisition to acquire Vine Energy (NYSE: VEI). The deal, which was zero-premium, immediately generated free cash flow and added approximately 370 premium locations in the Haynesville Basin with an MMR> 50% at $ 2.50 / MBTU of gas. Notably, Haynesville is a critical source of natural gas supply for the large and growing export market for liquefied natural gas. Finally, management expects the combined company to achieve annual savings of around $ 50 million, given that the two companies were already operating alongside each other.

In addition, CHK management also announced an important new capital allocation framework to accelerate cash distributions to shareholders. The company already had an annualized dividend of $ 1.375 / share, as noted above. After the closing of the Vine acquisition, it rose 27% to $ 1.75 / share. In addition, they also launched a new variable dividend, which will distribute 50% of all quarterly free cash flow to shareholders. This exciting new dividend catalyst was the main event for CHK stocks to recover during and after the third quarter. However, at 3.13x the pro forma TEV / 2022 EBITDA, the stock is indeed cheap.

In the examples cited above of companies that have recently emerged from distress, both are commodity companies well positioned to do well given current macroeconomic inflationary trends. By 2022, there will be many more event-driven and troubled investment opportunities due to (a) massive issuance of low-quality debt securities and (b) rising interest rates . We are already seeing signs of potential opportunities among Chinese real estate companies. In contrast to restructuring, once companies are out of distress, they are sometimes publicly traded and sometimes private. Thus, a flexible approach between these two types of investments can double the set of opportunities.

The current market is highly unusual with interest rates so low, inflation rising and markets near record high post-COVID highs. As a struggling investor for almost 30 years, I know that different periods of the business cycle often present unique opportunities in different industries. These can be very rewarding if you are patient and work with the right specialist to find and capitalize on these investments. However, it is important to keep in mind that troubled investing is a highly specialized strategy and not recommended for inexperienced investors.

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Shaastic Launches Elle App on Finastra’s FusionFabric.cloud to Streamline Mortgage Process | https://rrreading.com/shaastic-launches-elle-app-on-finastras-fusionfabric-cloud-to-streamline-mortgage-process/ Mon, 22 Nov 2021 12:40:00 +0000 https://rrreading.com/shaastic-launches-elle-app-on-finastras-fusionfabric-cloud-to-streamline-mortgage-process/

BERKELEY, Calif., 22 November 2021 / PRNewswire-PRWeb / – Shaastic, a technology company that offers an investment-free robotic process automation (RPA) platform for banks, today announced that its The application It is available for purchase via Finastra’s FusionStore. The app, which integrates with Fusion MortgagebotLOS, allows lenders and bankers to easily connect and communicate with applicants at any stage of the loan process, from research to reservation, 24 hours a day. , 7 days a week, using text messaging. Built on core Finastra technologies and leveraging an extensive catalog of open APIs, Shaastic has developed an application that facilitates and streamlines communication between lenders or bankers and their clients using a platform of automation of business robotic processes for banking operations. Customers can easily text documents to eliminate days of follow-up and allow lenders to process more loans without increasing staff. It improves efficiency by eliminating 30% of phone calls during loan processing, resulting in savings in full-time equivalent (FTE) expenses. It connects to Finastra’s Fusion MortgagebotLOS in 60 minutes without IT intervention, ensuring a more convenient and engaging way to communicate with clients throughout the loan process.

Joseariel Gomez, CEO of Shaastic, said: “Maintaining a close human bond in the age of doing business remotely is a real challenge for financial institutions. By leveraging our Elle app through Finastra’s FusionStore, financial institutions can improve user experience and customer satisfaction in a world of social distancing. Banks and credit unions will be able to make more loans and reduce processing costs at a time when mortgage lending volumes are at their peak. “

Going live on FusionStore marks the final step in the application development journey for businesses using Finastra’s open cloud development platform, FusionFabric.cloud. The FusionStore Marketplace enables Finastra customers around the world to access, test, purchase and deploy certified applications on Finastra core systems, helping them quickly realize benefits and deliver added value to their businesses. clients. Philippe Taliaferro, Head of Partners and Fintech Ecosystem at Finastra, said: “Shastic brings a truly exciting app to FusionStore, an app that streamlines communication between lenders and borrowers to make the mortgage process faster and easier. As our fintech community continues to grow, we are happy to welcome Shastique on board. “

Using Finastra’s open APIs, developers can create solutions that address business challenges across the spectrum of financial services, including retail banking, payments, banking, business banking, loans, treasury and capital markets.

About Shastique

Shaastic created the world’s first zero-investment robotic process automation (RPA) platform specializing in banking. We offer our technology as a cloud service that does not require an initial IT investment or a lengthy implementation process like other RPA platforms. We are trusted by 50 financial institutions across the United States. Our platform enables financial institutions to increase their capacity and processing speed 10-fold using the same resources and processes they have in place today while achieving a 10x higher return on investment. Shaastic has partnered with Finastra, MeridianLink and Access Softek to help financial institutions streamline banking processes and improve customer service. Learn more at shastic.com.

About Finastra

Finastra is building an open platform that accelerates collaboration and innovation in financial services, creating better experiences for people, businesses and communities. Backed by the largest and most comprehensive portfolio of financial services software, Finastra delivers this vitally important technology to financial institutions of all sizes around the world, including 90 of the world’s 100 largest banks. Our open architecture approach brings together many partners and innovators. Together, we show how applications are written, deployed and used in financial services to evolve with changing customer needs.

About FusionFabric.cloud

FusionFabric.cloud is a scalable, open and collaborative development platform built by Finastra. The secure and proven cloud platform encourages innovation, opening up core business systems through APIs so that third parties can develop applications on top of it. Fintechs can quickly build and promote apps around the world. Financial institutions can access or create new services, requested by their customers, more quickly. Visit fusionfabric.cloud.

Media contact

Ronda Duran, Shastique, 1 4086000540 Ext: 701, rduran@shastic.com

SOURCE Shastic

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Shawbrook closes £ 670,000 semi-commercial deal in 14 days https://rrreading.com/shawbrook-closes-670000-semi-commercial-deal-in-14-days/ Sun, 21 Nov 2021 21:17:01 +0000 https://rrreading.com/shawbrook-closes-670000-semi-commercial-deal-in-14-days/

Shawbrook Bank provided a client with a mortgage of £ 670,000 to purchase a semi-commercial property at auction.

The lender was approached by a new broker partner, CM LifeCycle Finance, for an auction bridging loan, which was to be completed in four weeks. The client was looking to quickly secure the purchase with a bridge, then switch to a term mortgage and lease the property.

Once the principle request was received, Shawbrook reviewed the documentation and issued a formal mortgage offer within the week, with the bridge loan and term loan applications executed side by side. The client was able to move directly to the term mortgage, eliminating the need for a bridging loan and saving them money on additional arrangement fees.

Shawbrook provided a semi-commercial mortgage of £ 670,000 at 75% LTV with an interest term of only 25 years. The funds enabled the client to purchase a commercial unit on Main Street with access to a private residential apartment.

Gavin Seaholme, Sales Manager at Shawbrook Bank, said: “One of the advantages of our offering is that we can help clients secure their investments quickly through bridge financing and then support them in the future with our products. in the long term. In this case however, thanks to the expertise and efficiency within the team, we had the opportunity to save money for the client and put it directly into the term mortgage.

“We worked seamlessly with our broker partner to get the job done and we are delighted that we were able to deliver the best possible result to the client. “

Clare Marlow, Director of CM LifeCycle Finance, added, “We had 28 days to complete this file and after reaching out to a number of lenders, Shawbrook and one other lender had the most competitive rates. With difficult deadlines, the other lender had expressed doubts about meeting such an urgent deadline. Shawbrook assured me from the start that they were well positioned to withstand even the tightest deadlines, so for me the decision was clear.

“We all worked closely to organize the bridge, with a term loan application running. Not only did they finish on time, we didn’t need the bridge because the term loan ended so quickly. The whole process was really easy, and Shawbrook was fantastic to work with.