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Will having the H.E.L.O.C. work against us for financial aid? – Marie A home equity loan yields a cash balance in a bank account that counts as an asset on the Fafsa.
A $20,000 savings balance yields maybe 0.2% interest; a $20,000 car loan yields 7.2%.
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Subtracting that from the 2.44 percent takes the business loan yield down to 1.64 percent.
And now there's a large number of bonds where the probabilities are they're going to [be] performing loans, yields of 25% or better.
Because the loans in which these funds invest are made to highly leveraged companies -- typically the same ones that issue junk bonds -- the loans yield a lot more than traditional corporate loans.
Black has reduced the weighting in 30-year mortgage-backeds, moving into the 15-year part of the home-loan yield curve.
At the height of the financial crisis in September 2008, he lent $5bn to Goldman – a loan that yields annual income of $500m for Berkshire Hathaway, at a rate of $15 a second.
Last year, increased refinancings and investor demand for securitized loans produced near-record mortgage profits at big banks, which benefited from the historically high spread between what homeowners paid in interest rates on their loans and yields commanded by investors that purchased slices of the loans after they had been bundled into securities.
People can refinance their housing loans if yields drop, thereby boosting the amount of spare money that they have to spend in the shops.
GE's Japanese consumer-loan portfolio yields a 28% annual return; it also thinks it can sell 22 of GE Capital's 28 product lines in Japan.
A popular gauge of credit market fear is the TED spread, which measures the gap between the interest rates that banks charge one another for short-term loans and yields on low-risk, short-term Treasuries.
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CEO of Professional Science Editing for Scientists @ prosciediting.com