The comptroller's amortization plan is an expensive way to extend an already "smoothed" payment plan.
To begin with, this is not a "simple fix". The CTBA fairly criticizes the existing amortization plan, the so-called "Edgar Ramp," which indeed backloaded the pension contributions, and which, alongside the contribution holidays of subsequent governors, contributed significantly to the current underfunding.
Useful life time considered was 50 years for buildings, 10 years for refrigerators, freezers, cold boxes and vaccine carriers, 5 years for cars and 3 years motorcycles following the amortization plan of the health district.
This paper presents a model for optimally designing a collateralized mortgage obligation (CMO) with a planned amortization class (PAC -companion structure using dynamic cash reserve.
The tranches include planned amortization classes, or PACs; targeted amortization classes, or TACs; inverse floaters, interest-only tranches, principal-only tranches, residuals, jump Zs (which stands for zero as in zero coupon bonds) and synthetic IO-ettes.
Those cash flows take into account "the probability of default each year, the recovery rate on defaulted loans, the planned repayment (amortization) schedule of a loan, estimated voluntary prepayments, and the fee schedule". Basically, everything that could possibly affect what money's going out and what money's coming in.
He doesn't seem to count his tricky "amortization" of the state pension plan costs that, in effect, borrows from the pension fund and results in far higher payments in the future.
For the year, Cablevision reported AOCF (operating profit before depreciation and amortization and excluding the effects of stock plan income or expense) revenues of $869 million, up 11.2% on a pro forma basis, on net revenue of $3.3 billion, compared to a 1997 AOCF of $645 million on net revenue of $1.9 billion.
Questions posed by the board members suggested they were leaning toward making narrow changes in the existing rules, like shortening amortization schedules or reducing the number of actuarial methods that plans may use.
Tradeoffs between the income based plan and the standard repayment plan are as follows: Income based repayment has negative amortization.
"And specifically, does the drastic increase in the use of risky financing schemes, including interest-only and even negative amortization mortgages, concern you?" Mr. Bernanke replied that the Fed was reviewing its guidelines for these loans and planned to issue new ones soon.
