Posts Tagged: interest rate

Have you considered Inflation Bonds?

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According to the New York Times, rising prices have affected both consumer goods and some government savings bonds. However, they could also benefit investors looking for safe spaces for their money. Questions: What type of return will the new series I savings bonds, known as inflation bonds to be issued in the next six months,… Read more »

Debt backed by Frequent Flyer Programs

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According to CNBC, American Airlines is planning to issue $5 billion in bonds and seek a $2.5 billion loan backed by its frequent flyer program to pay back some of its debt used to help survive during the COVID crisis. Questions: How do airlines make money from their frequent flyer programs? What is the loan… Read more »

Under Trump Administration, CFPB scraps requirements to ensure that borrowers can cover basic expenses before loans

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According to the Guardian, the Trump administration plans to abolish key parts of an Obama-era rule that was aimed at protecting vulnerable borrowers from amassing untenable debts from payday loans. Questions: 1. How high can the interest rate be from some payday lenders? 2. What is the Trump administration argument for scrapping the basic expense… Read more »

Enormous Chinese Ponzi Scheme!

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A criminal investigation by Chinese officials has found that the online company, Ezubao, once a dynamo of the financial industry, offered mostly fake investment products to its nearly one million investors. This has highlighted the urgent need for tougher supervision of online financing system in the world’s second largest economy. Questions: 1. What interest rate… Read more »

Will the Fed or won’t the Fed?

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Ms. Janet Yellen indicated in testimony before Congress on November 4, that an interest rate increase could come in December 2015. But she added that no decision had been made. Questions: 1. When was the last time that the Fed raised interest rates? 2. Where has the benchmark interest rate been since Dec. 16, 2008?… Read more »

Feds Catch Bid-Rigging Bankers

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Federal authorities are pursuing legal action against bankers accused of systematically defrauding states, local governments and non-profits. The ongoing probe is focusing on bankers who have colluded about the offers they’ve made as they bid on contracts to invest municipal bond proceeds. Questions: 1. What is bid-rigging? Summarize the way in which the suspect bankers… Read more »

Christmas Cheer Backfires

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Tyrone Newman decided to celebrate Christmas after he finally got a job and kept it for one year. Unfortunately, the Northeast Washington, D.C. maintenance man ended up spending his $1,500 mortgage payment on Christmas gifts. Not wanting to tell his wife that he had no way to pay the mortgage, he got several loans from… Read more »