federal reserve – Local Collectors Post http://www.localcollectorspost.org/ Sun, 20 Mar 2022 23:35:41 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://www.localcollectorspost.org/wp-content/uploads/2021/03/locacollectorspost-icon-70x70.png federal reserve – Local Collectors Post http://www.localcollectorspost.org/ 32 32 Reviews | Ignore the naysayers. Dollar dominance is here to stay. https://www.localcollectorspost.org/reviews-ignore-the-naysayers-dollar-dominance-is-here-to-stay/ Sun, 20 Mar 2022 17:39:26 +0000 https://www.localcollectorspost.org/reviews-ignore-the-naysayers-dollar-dominance-is-here-to-stay/

This defeatism of the dollar is greatly exaggerated. Russia, China and other American adversaries would love to escape Uncle Sam’s financial hegemony. But they have been trying for years and have little to show for it.

China has been on a rampage against the dollar since 2008, when its vast portfolio of US bonds nearly imploded during the Great Financial Crisis. Chinese President Hu Jintao has called for “a new international financial order” and Beijing has begun to promote the use of the renminbi in international trade and as a central bank reserve asset. Soon, renminbi-denominated trade began to grow rapidly, albeit from a low base. Credible economists have predicted that the renminbi could become the first reserve currency within a decade.

In the following years, countries at risk of being sanctioned by the United States redoubled their efforts to escape the dollar. Russia was the most impatient. Its central bank has transferred most of its non-dollar foreign exchange reserves to other stores of value. Its sovereign wealth fund has promised to get rid of all dollar assets. He built a financial messaging system and connected it to Iran’s, thwarting a Western decision to eject Iran from SWIFT, the dominant platform for instructing global transfers. Russia has also worked with China to reduce the use of the dollar in bilateral trade. In 2020, the Bank of Russia published an article on the digital ruble, which would bypass traditional banks and reduce Russia’s exposure to sanctions.

The results have been modest, as the fate of Russia shows today. Western financial sanctions hammered its economy, Russians struggled to make payments overseas, and the crypto escape hatch proved useless.

Moreover, a careful examination of the state of the dollar confirms that it is not really at risk. In five or ten years, dollar-based sanctions will probably be as powerful as ever, including in a crisis where the target is China.

Since 2008, the dollar’s share of foreign exchange reserves held by central banks has declined only slightly, from around 65% to 60%. Additionally, the other three most popular reserve currencies are issued by the European Union (21%), Japan (6%) and Great Britain (5%). Future U.S. financial sanctions against China would almost certainly require the support of these regions, partly because they are geopolitical allies and partly because European and Japanese banks live in terror of being shut out of U.S. financial markets.

How much of the world’s foreign exchange reserves are held in renminbi? The answer is 2%. The ruble and crypto are languishing below 1%.

Central banks like to use dollars for the same reasons businesses and individuals do. They hold dollars knowing that others will gladly accept them, just as many learn English because others speak it. Worldwide, almost three-fifths of private bank deposits in foreign currencies are held in dollars. A similar share of corporate foreign currency borrowing is in dollars. Neither measure shows many signs of decline. The Federal Reserve estimates that foreigners accumulate about half of outstanding dollar banknotes.

Chinese bulls cite the proliferation of renminbi swap lines or agreements allowing pro-China central banks to call in renminbi loans in the event of a crisis. A 2020 tally had 35 such agreements, more than the Federal Reserve maintains with its foreign counterparts. But these renminbi swap lines are mostly symbolic. Central banks in smaller economies have been bullied into signing on, but they have no practical use for Chinese lending. In a crisis, they want dollars because their national banks do business in dollars. A permanent renminbi line of credit is the financial equivalent of fluency in Esperanto.

Meanwhile, the Fed might offer dollar swap lines to a shorter list of countries, but there’s nothing tokenistic about them. During the Great Financial Crisis, the Fed lent $585 billion to its foreign counterparts through these facilities. During the pandemic lockdown, it pumped out another $450 billion. Indeed, the popularity of dollar swap lines outweighs any anecdotal chatter about China’s alleged financial rise. The dollar is more entrenched in advanced economies than before 2008 because major central banks know the Fed will support the dollar-denominated parts of their financial systems.

Of course, the reserve currency status of the dollar is not a divine right and the Fed should strengthen its resolve to fight inflation. But monetary dominance is a kind of sticky power. For now, there is no reason to expect the United States to lose it.

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Explainer: The US yield curve has flattened: why you should care https://www.localcollectorspost.org/explainer-the-us-yield-curve-has-flattened-why-you-should-care/ Thu, 17 Mar 2022 05:17:00 +0000 https://www.localcollectorspost.org/explainer-the-us-yield-curve-has-flattened-why-you-should-care/

The Federal Reserve Building is seen in Washington, U.S., January 26, 2022. REUTERS/Joshua Roberts

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NEW YORK, March 17 (Reuters) – The U.S. Treasury yield curve flattened further on Wednesday as the Federal Reserve raised interest rates for the first time in three years and set tighter monetary policy to fight inflation relentlessly. Read more

The shape of the yield curve is a key metric that investors watch because it impacts the prices of other assets, feeds through to bank yields, and has been an indicator of how the economy is changing. The recent moves have reflected investor concerns about whether the Fed can tighten monetary policy to tame inflation without hurting economic growth.

Here’s a quick primer explaining what a steep, flat, or inverted yield curve means and whether the current shape of the yield curve predicts a recession.

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WHAT IS THE US TREASURY YIELD CURVE?

The US Treasury funds the federal government’s fiscal obligations by issuing various forms of debt. The $23 trillion Treasury market includes Treasury bills with maturities of one month to one year, two-year to 10-year notes, as well as 20- and 30-year bonds.

The yield curve represents the yield of all Treasury securities.

WHAT SHOULD THE CURVE LOOK LIKE?

Typically, the curve slopes upward because investors expect greater reward for taking the risk that rising inflation will reduce the expected return from holding longer-dated bonds. This means that a 10-year note generally pays more than a 2-year note because it has a longer duration. Yields move inversely to prices.

A steepening curve generally signals expectations of stronger economic activity, higher inflation and higher interest rates. A flattening curve may mean the opposite: investors are expecting short-term rate hikes and have lost confidence in the economy’s growth prospects.

WHY IS THE YIELD CURVE FLAT NOW?

Yields on short-term US government debt have risen rapidly this year, reflecting expectations of a series of rate hikes by the US Federal Reserve, while yields on longer-term government bonds have moved at a slower pace amid fears that policy tightening could hurt the economy.

As a result, the shape of the Treasury yield curve has generally flattened. A closely watched part of the curve, measuring the spread between two- and 10-year Treasury yields, showed the spread at 24.5 basis points on Wednesday, more than 60 points lower than at the end of 2021. This flattening increased on Wednesday after the Fed raised rates.

While rate increases can be a weapon against inflation, they can also slow economic growth by increasing the cost of borrowing for everything from mortgages to auto loans.

Two-year US Treasury yields, which track short-term interest rate expectations, rose to 1.94% from 0.73% at the end of last year, an increase of 166%.

Benchmark US 10-year yields rose from 1.5% to around 2.19%, an increase of 46%. In February, they exceeded the 2% level for the first time since 2019.

WHAT DOES AN INVERTED CURVE MEAN, AND WILL IT HAPPEN?

Some investors and strategists have predicted that a curve inversion could occur, with short-term yields exceeding long-term yields, as early as this year – an ominous sign.

The U.S. curve has reversed before every recession since 1955, followed by a recession between six and 24 months, according to a 2018 report by researchers at the Federal Reserve Bank of San Francisco. It only offered a false signal once during this period.

The last time the yield curve inverted was in 2019. The following year, the United States entered a recession, albeit caused by the global pandemic.

DOES THE WHOLE CURVE REVERSE OR PARTIALLY?

Traders typically watch the shape of the curve determined by comparing two-year and 10-year Treasuries, as an inversion of the yield curve on this spread anticipated previous recessions. This curve is flattening but is not yet close to reversing, with a spread down to 24.5 basis points on Wednesday against 29.10 the day before.

But distortions can occur anywhere along the curve without inverting the whole curve.

On Wednesday, the 5s/10s curve reversed in intraday trading. It returned to positive territory, but the spread fell to 0.4 basis points from 3.8 the day before.

A less closely watched part of the curve has inverted several times in recent weeks, with the premium of 10-year U.S. Treasuries over seven-year Treasuries closing in negative territory every day since March 11. .

The 20y/30yr spread has been negative since late October, although technical supply and demand factors may have contributed.

WHAT DOES THIS MEAN FOR THE REAL WORLD?

In addition to the signals it can send about the economy, the shape of the yield curve has ramifications for consumers and businesses.

When short-term rates rise, U.S. banks tend to raise their benchmark rates for a wide range of consumer and commercial loans, including small business loans and credit cards, making borrowing more expensive for consumers. Mortgage rates are also rising.

When the yield curve steepens, banks are able to borrow money at lower interest rates and lend at higher interest rates. Conversely, when the curve is flatter, their margins tighten, which may deter them from lending.

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Reporting by Davide Barbuscia Editing by Chris Reese

Our standards: The Thomson Reuters Trust Principles.

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US futures fall ahead of Fed as oil prices fall https://www.localcollectorspost.org/us-futures-fall-ahead-of-fed-as-oil-prices-fall/ Tue, 15 Mar 2022 10:36:29 +0000 https://www.localcollectorspost.org/us-futures-fall-ahead-of-fed-as-oil-prices-fall/
  • U.S. futures fell on Tuesday as investors weighed the Russia-Ukraine conflict and Federal Reserve policy.
  • Oil also fell, continuing its recent decline as coronavirus cases in China clouded demand prospects.
  • The Fed is expected to raise interest rates on Wednesday as the conflict in Ukraine has little impact on the central bank.

U.S. futures fell on Tuesday as the Russia-Ukraine conflict clouded the global outlook and investors braced for the


Federal Reserve

start raising interest rates, while oil prices continued to fall.

S&P 500 futures were down 0.33% at 6:16 a.m. ET, after the benchmark stock index fell 0.74% on Monday.

Nasdaq 100 futures were down 0.19%, after the index closed in a so-called


bear market

– a decline of 20% or more from recent highs – the day before. Dow Jones futures were down 0.38%.

European stocks fell as investors weighed the risks of war in Ukraine for the region’s economy. The continent-wide Stoxx 600 index was down 1.49% in early trading.

In China, concerns about rising coronavirus cases in China and potential US sanctions sent stocks tumbling. The country’s CSI 300 index fell 4.57% overnight, down nearly 20% this year. However, Tokyo’s Nikkei 225 gained 0.15%.

The decline in stocks came as oil fell for the second day, reflecting investor concern over the potential impact on global energy demand, although lower prices would also in theory ease some inflationary pressures. .

Brent crude fell 5.8% to $100.78 a barrel, while WTI crude fell 5.88% to $96.98 a barrel. The falls came as talks between Russia and Ukraine continued and rising COVID cases in China caused investors to lower their expectations for future demand.

Read more: A chief market strategist at a $29 billion investment firm lays out 3 unique plays of alternative asset trading that can act as ‘ports in the storm’ as the Fed prepares to hike rates

However, investors found little comfort in falling oil prices. A host of factors, including central bank policy and China’s biggest COVID outbreak since the pandemic began, are worrying traders, analysts said.

“Markets were again unable to sustain gains as the cocktail of concerns widened with China being added to the list,” said Richard Hunter, head of markets at trading platform Interactive Investor.

The Federal Reserve’s Open Markets Committee (FOMC) is set to announce its latest interest rate decision on Wednesday, with most analysts expecting the main rate to rise 25 basis points from its current record high. between zero and 0.25%.

Strategists will take a close look at the so-called dot chart, which lays out Fed officials’ expectations for the future course of interest rates.

“We expect the midpoints to show 5 ups in 2022 (3 previously), 4 ups in 2023 (3 previously), and 1 up in 2024 (2 previously),” Bank of America analysts said in a note. to customers on Monday, updating its predictions.

“Communication from the Fed has pivoted belligerently in the new year, with recognition that the Fed needs to take inflation seriously and normalize policy quickly,” they said.

Bond yields have soared over the past week, after falling sharply when Russia invaded Ukraine in February, as investors raised expectations for Fed hikes in 2022.

The yield on the main 10-year US Treasury note fell 3.5 basis points on Tuesday to 2.109%, but still hovered around its highest level since mid-2019. Bond yields move inversely to prices .

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stages of quantitative tightening | Looking for Alpha https://www.localcollectorspost.org/stages-of-quantitative-tightening-looking-for-alpha/ Thu, 10 Mar 2022 10:06:00 +0000 https://www.localcollectorspost.org/stages-of-quantitative-tightening-looking-for-alpha/

FinkAvenue/iStock Editorial via Getty Images

By Thomas L. Hogan

In light of recent high inflation, the Federal Reserve has accelerated its plans to tighten monetary policy. Many journalists are reporting that in addition to raising its short-term interest rate targets, the Fed is set to end its expansionary quantitative easing (QE) program in favor of restrictive tightening action. quantitative (QT).

Some articles describe QT as the Fed “actively selling its bond holdings” or state that QT will begin “on the heels of the central bank’s first interest rate hikes,” presumably at its next meeting in March. However, QT is likely to unfold in four phases, only the last of which involves the active sale of bonds, and which may not begin for a year or more.

1. The end of QE

The Fed has been making QE asset purchases since March 2020. It currently buys $20 billion per month in US Treasuries and $10 billion per month in mortgage-backed securities (MBS). Before it can adopt a QT policy, the Fed will have to end the expansion of its QE balance sheet.

For nearly a year, the Fed has been discussing the possibility of slowing the pace of its monthly asset purchases. It only recently started doing so in November 2021. This reduction was supposed to continue until the summer of 2022, but this plan was accelerated when recent inflation turned out to be higher than expected by the Federal Open. Market Committee (FOMC).

The minutes of the last FOMC meeting show that there was talk of ending the asset purchase program after the previous meeting. However, the members ultimately decided to stick with their QE continuation plan until their next meeting, scheduled for March 15.and at 16and.

2. Stable balance sheet

Once QE is completed, the QT process may not begin immediately. Instead, the Fed is likely to maintain a constant level of total assets for some time.

During this period, any proceeds from maturing bonds will be reinvested in bonds of the same duration to keep the dollar amount and maturity distribution of bond holdings roughly constant, although Fed officials have indicated that they could adjust the asset type mix by investing the proceeds of MBS maturity in Treasury bills.

3. Passive clamping

After a period of maintaining a stable size, the Fed should begin to reduce its balance sheet passively by allowing some of the bonds it holds to mature without replacing them. The cash it receives as proceeds from these bonds will cancel out some of the cash reserves the Fed owes commercial banks, reducing the assets and liabilities on its balance sheet by an equal amount.

The Fed had previously carried out passive tightening before the COVID-19 pandemic. Its total assets were relatively flat from 2015 through early 2018, then declined through 2019 as the Fed allowed some assets to expire. During this period, the balance sheet has shrunk from $4.5 trillion to around $3.76 trillion, a reduction of 16.7% from its peak size. More than half of that reduction happened in 2018 alone, and this time around Fed officials expect an even faster pace.

Passive tightening appears to be the primary tool through which the Fed plans to drive QT. Following the January meeting, the FOMC issued a new statement, “Principles for Reducing the Size of the Federal Reserve’s Balance Sheet,” stating that the committee “intends to reduce the holdings of Reserve securities federally over time in a predictable manner”. primarily by adjusting the reinvested amounts of principal payments received from securities(emphasis added).

That said, the QT start schedule has not been set and it may be several months before such a program begins. According to the latest FOMC meeting minutes, “a number of participants said conditions would likely warrant beginning to reduce the size of the balance sheet. later this year.” (emphasis added)

4. Active clamping

Eventually, the Fed could begin the process of active tightening by selling assets from its balance sheet. This approach would reduce the balance faster than the passive QT.

Even without active QT, however, the pace of balance sheet reduction with passive QT will likely be faster than it was in 2018-19. The average maturity of assets held by the Fed is shorter than before the pandemic, so passive tightening could be used to shrink the balance sheet faster than before, potentially rendering active tightening unnecessary.

Active tightening has never been conducted on a large scale to reduce the size of the Fed’s balance sheet. It was not used to reverse the Fed’s balance sheet expansions from 2008 to 2014. Given the FOMC comments discussed above, it seems that if the active QT is to be used, it might not happen until the end of 2022 or later.

There are still several steps to take before the Fed starts selling assets to reduce the size of its balance sheet. This kind of active tightening probably won’t start for some time.

Original post

Editor’s note: The summary bullet points for this article were chosen by the Seeking Alpha editors.

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Betting on BIZD for Big Earnings https://www.localcollectorspost.org/betting-on-bizd-for-big-earnings/ Tue, 08 Mar 2022 19:02:32 +0000 https://www.localcollectorspost.org/betting-on-bizd-for-big-earnings/

IInterest rates are expected to rise soon, but real yields will remain low, prompting many investors to embrace high-income exchange-traded funds.

Income-hungry investors may want to consider some of the more unique offerings in this category, including the BDC VanEck Vectors Income ETF (NYSEArca: BIZD). BIZD, the dominant name among ETFs focused on business development companies (BDCs), tracks the MVIS US Business Development Companies Index and has a 30-day SEC yield of 7.89%.

“Annual dividend yields of 7% to 10% are typical. By comparison, a high yield bond benchmark, the ICE BofA US High Yield Index, has an annual return of around 5.5%, and the S&P 500 Index a return of 1.4%. Even with bond yields expected to rise as the Federal Reserve begins to raise interest rates, BDCs offer attractive returns, with room for growth,” reports Nicolas Jasinski for Barron’s.

BDCs derive their income from the difference between the rates at which they lend money to holding companies and their own interest and debt. For example, if one of BIZD’s 25 member companies lends money to a mid-sized company at 10%, but the cost of that capital to BDC is only 3%, that’s a scenario likely to appeal to investors.

Additionally, there is rising rate protection offered by the asset class and BIZD itself. While investors often view business loans through the lens of fixed interest rates, the reality is that more than eight out of 10 BDC loans made have variable rates, which offers significant advantages in the context of the tightening of the Federal Reserve.

“Loans from BDCs tend to have floating interest rates, which means that interest income should increase as benchmark rates rise. On the other hand, BDCs tend to borrow at fixed rates, which keeps their costs stable,” according to Barron’s.

The fact that the current climate is a target-rich environment for BDCs adds to the appeal of BIZD, as many businesses need access to capital. BDCs, including BIZD member companies, fill gaps overlooked by banks and their often restrictive credit standards.

“They’re not short of targets. An influx of capital into private equity funds has led to more leveraged buyouts to fund, just as traditional banks shunned riskier lending in the post-global financial crisis era,” Barron’s concludes.

For more news, information, and strategy, visit the Beyond Basic Beta Channel.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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US equity funds down 7.9% for 2022 https://www.localcollectorspost.org/us-equity-funds-down-7-9-for-2022/ Sun, 06 Mar 2022 17:00:00 +0000 https://www.localcollectorspost.org/us-equity-funds-down-7-9-for-2022/

The difficult start to 2022 continued for US investors.

The average diversified US equity fund fell 1.3% in February, a month that began with concerns about the Federal Reserve and quickly moved to Russia’s war on Ukraine. February’s decline pushed the year-to-date decline to 7.9%, according to data from Refinitiv Lipper.

International equity funds were down 3.5% in February and 7.7% since the start of the year.

“It was a very meaningful month…not just for the markets but for us as human beings first, given the tragedy unfolding in Europe,” said Gargi Chaudhuri, Head of Investment Strategy. iShares for the Americas at BlackRock in New York.

The month was a story of two halves, says Ms. Chaudhuri. “I think how much the market was focused on the Federal Reserve, until the middle of the month,” before the invasion of Russia, she says. The focus on the jobs report and inflation data in early February “it all seems a very long time ago,” she says.

Dashboard

Fund performance in February 2022, total return by fund type.

Some strategists say to get out of higher quality bonds. This includes Jim McDonald, chief investment strategist at Northern Trust. “We want inflation protection in our portfolios today, and also want to reflect the increased risk to European growth from the Russian invasion of Ukraine,” he says. “Inflation protection is achieved through our overweight in natural resource stocks and US equities, and our underweight in investment grade bonds.”

Ms Chaudhuri says investors will continue to digest the economic and human toll of the Russian attacks. “One of the things that my team and I have just done is look at previous periods of geopolitical risk to see what the S&P, for example, has been doing,” she says. “Essentially, we found that if you stayed invested in the markets during geopolitical volatility, you tended to do better, unless the volatility happened when economic growth slowed for other reasons.”

Until Friday’s stock decline, the market had held up pretty well since the invasion, notes Ralph Bassett, head of North American equities at asset manager Abrn in Philadelphia. “The market was almost starting to cook not a recession, but definitely a slowdown in growth,” he says. “What happened is that inflation expectations went up [in the past month] and for economic growth declined. The only thing holding markets back is that the Fed doesn’t overreact.

“What we are struggling with is the sustainability of these commodity price rallies. You will have supply,” Bassett says.

Bond funds fell in February. Funds linked to upper-middle-maturity debt securities (the most common type of fixed-income fund) fell 1.3% in February, bringing the year-to-date decline to 3, 3%.

Mr. Power is editor of the Wall Street Journal in South Brunswick, NJ Email him at william.power@wsj.com.

Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the print edition of March 7, 2022 under the title “Equity funds down 7.9% for 2022”.

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Pre-Covid student loan delinquency rates could return when payment restarts https://www.localcollectorspost.org/pre-covid-student-loan-delinquency-rates-could-return-when-payment-restarts/ Sat, 05 Mar 2022 15:00:01 +0000 https://www.localcollectorspost.org/pre-covid-student-loan-delinquency-rates-could-return-when-payment-restarts/

Federal student loan repayments are currently set to resume in May after an extended pause of more than a year due to the coronavirus pandemic.

However, borrowers may not be ready to start payments again and could therefore fall behind on their loans, according to a recent blog post from the Federal Reserve Bank of St. Louis.

“Severe delinquency rates for student debt could return from historic lows to previous highs in which 10% or more of debt was in default,” wrote Lowell Ricketts, data scientist for the Institute for Economic Equity at the University. bank and author of the blog post.

Resuming payments will affect many borrowers differently and put the most pressure on those with the heaviest burdens — often low-income workers and people of color, according to the blog.

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Among the Class of 2016, the average student loan balance was $42,746 one year after graduation for black students, compared to $34,622 for white students, according to data from the National Center for Economic Statistics,” wrote Ricketts. “Therefore, the resumption of student loan repayments will put more strain on the budget of black students than that of white students. »

Other student loan experts worry that restarting payments will push up delinquencies as people have gotten out of the habit of paying back their loans and now face higher inflation that squeezes budgets.

“I think we’re going to have even higher delinquency and default rates than before the pandemic,” said Betsy Mayotte, president of the Institute of Student Loan Counselors, a nonprofit organization.

What borrowers can do now

Granted, the current pause on federal student loan payments and interest may not end in May. White House Chief of Staff Ron Klain said in a recent interview that the Biden administration is reviewing the current student loan debt situation and considering extending the pause further.

Nonetheless, borrowers should prepare for payments to resume as soon as possible and use that time to rework their budgets and get in touch with their lenders. Here are four things all borrowers should do now, according to Mayotte.

  1. Make sure you know your loan manager: A few large loan servicers have decided not to renew their contracts with the federal government, so some borrowers may have different service than they had before the pandemic, Mayotte said. If you’re not sure if this applies to you, the easiest way to check is to log into your account at Studentaid.gov. This will tell you who handles your federal student loans.
  2. Open your repairer’s mail and check your mail: Many services sent reminder messages about resuming payments, which could be emails or letters, Mayotte said.

    Borrowers should be sure to open all communications to ensure they don’t miss important information about payment deadlines or what to do if they want to switch payment plans, e.g. example.

  3. Check what your payment will be: Closer to upcoming payments, borrowers should make sure they know how much they have to pay for their loans each month, Mayotte said. And they need to make sure the payment fits their budget, as their personal financial situation may have changed drastically since the start of the pandemic.

    For some, they may be able to pay more now than they were before, which is a great way to ensure you’ll pay as little money as possible for your loans over time, said Mayotte. There’s never a penalty for paying more than you’re supposed to pay monthly, she said.

  4. Adjusts accordingly: On the other hand, some people may not be able to afford the same payments as before the pandemic. If so, borrowers should first see what their payment would be under an income-driven repayment plan. For many, this will reduce their monthly amount due and in some cases could even be zero. That’s usually a better option than deferring loans, suspending them, or simply not paying, which will leave you delinquent, Mayotte said.

    If you need to change plans, you should send the documents as soon as possible, Mayotte said. There are about 45 million student borrowers who will go into repayment at the same time, which could overwhelm the system.

    “I expect longer wait times for calls or a longer period of time for paperwork,” she said.

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These BDC stocks offer high yields in a low-rate world https://www.localcollectorspost.org/these-bdc-stocks-offer-high-yields-in-a-low-rate-world/ Fri, 04 Mar 2022 10:00:00 +0000 https://www.localcollectorspost.org/these-bdc-stocks-offer-high-yields-in-a-low-rate-world/

BDCs are a public bet on private credit. They raise capital from investors and lend to small and medium enterprises.

Illustration by Benedetto Cristofani

Text size