BEVERLY HILLS, Calif.–(BUSINESS WIRE)–
International real estate investment and services firm Kennedy Wilson (NYSE: KW – News) today announced the sale of NoHo-14, a 180-unit, 14-story luxury apartment building located in the NoHo Arts District of Los Angeles’ San Fernando Valley. The signature asset was sold for $74 million, representing a 4.1% cap rate on in place income. The seller assumed the $40 million Cigna fixed rate financing.
“We are very pleased to have sold this iconic property at a very opportune time in the market,” said Robert Hart, president of KW Multifamily Management Group. “NoHo-14 is just one of Kennedy Wilson’s ventures with Guardian Life and is an excellent example of our commitment to investing and creating value in multifamily real estate projects together.”
Kennedy Wilson originally acquired the building along with partners Guardian Life Insurance Company and RECP/Urban Partners as an REO asset in June 2010. The company converted the condominiums into apartments, implementing a new leasing program and enhancing property management to concierge level service, effectively upgrading the resident profile and growing the annual net operating income of the property from $2.3 million to $3.1 million. The company also renovated the building’s amenities, including the leasing office, recreation room, health club quality fitness center and high-tech business center as well as other aesthetics. Additionally, the 11,000 sq. ft. ground floor retail space at NoHo-14 was leased by Kennedy Wilson’s brokerage group to Roger Dunn Golf in a $3.8 million deal that relocated the golf superstore from its original location of over 30 years.
“NoHo-14 is the only Class A luxury tower of its kind in the North Hollywood area and is the only high-rise multifamily rental community in the entire San Fernando Valley,” commented Hart.
Kennedy Wilson’s multifamily portfolio now consists of 13,005 units in the U.S. and Japan.
About Kennedy Wilson
Founded in 1977, Kennedy Wilson is an international real estate investment and services company headquartered in Beverly Hills, CA with 23 offices in the U.S., Europe and Japan. The company offers a comprehensive array of real estate services including auction, conventional sales, property services and investment management. Through its fund management and separate account businesses, Kennedy Wilson is a strategic investor of real estate investments in the U.S., Europe and Japan. For further information on Kennedy Wilson, please visit www.kennedywilson.com.
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2012年3月1日星期四
AG Mortgage Investment Trust, Inc. Reports Fourth Quarter Earnings
NEW YORK–(BUSINESS WIRE)–
AG Mortgage Investment Trust, Inc. (“MITT” or the “Company”) (NYSE: MITT – News) today reported net income for the quarter ended December 31, 2011 of $5.8 million and net book value of $20.52 per share.
FINANCIAL HIGHLIGHTS
AG Mortgage Investment Trust, Inc. is an actively managed REIT that opportunistically invests in a diversified risk-adjusted portfolio of Agency RMBS, Non-Agency RMBS, CMBS and ABS. For the fourth quarter, the Company had net income of $5.8 million, or $0.58 per diluted share, and Core Earnings of $6.5 million, or $0.65 per diluted share. For the period from March 7, 2011 to December 31, 2011, the Company had net income of $19.0 million, or $3.20 per diluted share (7), and for the period from July 6, 2011 to December 31, 2011 (“period ended December 31, 2011”), the Company had Core Earnings of $12.4 million, or $1.24 per diluted share. Core Earnings represents a non-GAAP financial measure and is defined as net income (loss) excluding (i) net realized gain (loss) on investments and terminations on derivative contracts and (ii) net unrealized appreciation (depreciation) on investments and derivative contacts. (See “Non-GAAP Financial Measure” below for further detail on Core Earnings)
David Roberts, Chief Executive Officer, commented “We are pleased to announce our fourth quarter earnings. During the quarter, Core Earnings increased to $0.65 per share and we announced our first full quarter dividend of $0.70 per share. In addition to meeting our financial goals, we continued to diversify funding relationships and in January we were able to successfully complete an equity raise which has improved our stock’s liquidity. We are proud of our accomplishments over the last two quarters and look forward to the opportunities ahead.”
“Amidst uncertainty in the global markets, European liquidity difficulties and year-end funding pressures, we continued to optimize our Agency portfolio, opportunistically rotate the credit portfolio and retain capital for potential market dislocations,” said Jonathan Lieberman, Chief Investment Officer. “While Agency RMBS yields have compressed, we believe the low interest rate environment and a carefully selected investment portfolio will continue to support attractive risk-adjusted returns. Over the course of the quarter, we rotated a significant portion of the Agency portfolio into securities with more favorable prepayment attributes to further mitigate prepayment risk. Allocations to credit securities were concentrated in less volatile short duration Non-Agency securities and CMBS tranches with superior intrinsic value. We believe MITT is well positioned to continue to produce sustainable returns and take advantage of the opportunities ahead in both the Agency RMBS and credit markets. With the success of the European Central Bank’s Long-Term Refinancing Operation, funding risks have materially declined and we anticipate deploying capital in a more aggressive style. New capital from our January equity transaction allows greater latitude to the investment team to selectively increase our capital allocation to credit opportunities.”
INVESTMENT PORTFOLIO
The following summarizes the Company’s investment portfolio as of December 31, 2011 (2):
As of December 31, 2011, the weighted average yield on the Company’s investment portfolio was 3.16% and its weighted average cost of funds was 0.91%. This resulted in a net interest margin of 2.25% as of December 31, 2011. (6)
The CPR for the Agency RMBS portfolio was 5.0% for the fourth quarter and 5.0% for the month of December 2011. (5)
The weighted average cost basis of the Agency investment portfolio, excluding interest-only securities, was 103.5% as of December 31, 2011. The amortization of premiums (net of any accretion of discounts) on Agency securities for the fourth quarter was $1.9 million, or $(0.19) per share. The unamortized net Agency premium as of December 31, 2011 was $42.0 million.
Premiums and discounts associated with purchases of the Company’s securities are amortized or accreted into interest income over the estimated life of such securities, using the effective yield method. Since the cost basis of the Company’s Agency securities, excluding interest-only securities, exceeds the underlying principal balance by 3.5% as of December 31, 2011, slower actual and projected prepayments can have a meaningful positive impact, while faster actual or projected prepayments can have a meaningful negative impact on the Company’s asset yields.
We have also entered into “to-be-announced” (“TBA”) positions to facilitate the future purchase of Agency RMBS. Under the terms of these TBAs, the Company agrees to purchase, for future delivery, Agency RMBS with certain principal and interest specifications and certain types of underlying collateral, but the particular Agency RMBS to be delivered are not identified until shortly before (generally two days) the TBA settlement date. At December 31, 2011, we had $100 million net notional amount of TBA positions with a net weighted average purchase price of 103.8%. As of December 31, 2011, our TBA portfolio had a net weighted average yield at purchase of 3.01% and a net weighted average settlement date of February 5, 2012. We have recorded derivative assets of $1.4 million and derivative liabilities of $0.5 million, reflecting these TBA positions.
LEVERAGE AND HEDGING ACTIVITIES
The investment portfolio is financed with repurchase agreements as of December 31, 2011 as summarized below:
As of December 31, 2011, the Company had entered into repurchase agreements with twenty-one counterparties. We continue to rebalance our exposures to counterparties and add new counterparties.
We have entered into interest rate swap agreements to hedge our portfolio. The Company’s swaps as of December 31, 2011 are summarized as follows:
TAXABLE INCOME
The primary differences between taxable income and GAAP net income include (i) unrealized gains and losses associated with investment and derivative portfolios are marked-to-market in current income for GAAP purposes, but excluded from taxable income until realized or settled, (ii) temporary differences related to amortization of net premiums paid on investments (iii) the timing and amount of deductions related to stock-based compensation and (iv) excise taxes. As of December 31, 2011, the Company had undistributed taxable income of approximately $0.46 per share.
DIVIDEND
On December 14, 2011, the Company declared a dividend of $0.70 per share of common stock to stockholders of record as of December 30, 2011 and paid such dividend on January 27, 2012. The Company declared dividends of $1.10 per share for the period ended December 31, 2011.
SUBSEQUENT EVENT
On January 24, 2012, the Company completed a follow-on offering of 5,000,000 shares of its common stock and subsequently issued an additional 750,000 shares of common stock pursuant to the underwriters’ over-allotments at a price of $19.00 per share, for gross proceeds of approximately $109.3 million. Net proceeds to the Company from the offerings were approximately $104.1 million, net of issuance costs of approximately $5.2 million.
SHAREHOLDER CALL
The Company invites shareholders, prospective shareholders and analysts to attend MITT’s fourth quarter earnings conference call on March 1, 2012 at 11:00 am Eastern Time. The shareholder call can be accessed by dialing (888) 424-8151 (U.S. domestic) or (847) 585-4422 (international). Please enter code number 8732511#.
A presentation will accompany the conference call and will be available on the Company’s website at www.agmit.com. Select the Q4 2011 Earnings Presentation link to download and print the presentation in advance of the shareholder call.
An audio replay of the shareholder call combined with the presentation will be made available on our website after the call. The replay will be available until midnight on March 15, 2012. If you are interested in hearing the replay, please dial (888) 843-7419 (U.S. domestic) or (630) 652-3042 (international). The conference ID number is 8732511#.
For further information or questions, please contact Allan Krinsman, the Company’s General Counsel, at (212) 883-4180 or akrinsman@angelogordon.com.
ABOUT AG MORTGAGE INVESTMENT TRUST, INC.
AG Mortgage Investment Trust, Inc. is a real estate investment trust that invests in, acquires and manages a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets. AG Mortgage Investment Trust, Inc. is externally managed and advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P., an SEC-registered investment adviser that specializes in alternative investment activities.
Additional information can be found on the Company’s website at www.agmit.com.
ABOUT ANGELO, GORDON & CO.
Angelo, Gordon & Co. was founded in 1988 and has approximately $22 billion under management. Currently, the firm’s investment disciplines encompass five principal areas: (i) distressed debt and leveraged loans, (ii) real estate, (iii) mortgage-backed securities and other structured credit, (iv) private equity and special situations and (v) a number of hedge fund strategies. Angelo, Gordon & Co. employs over 250 employees, including more than 90 investment professionals, and is headquartered in New York, with associated offices in Amsterdam, Chicago, Los Angeles, London, Hong Kong Seoul, Shanghai, Sydney and Tokyo.
FORWARD LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation, changes in interest rates, changes in the yield curve, changes in prepayment rates, the availability and terms of financing, changes in the market value of our assets, general economic conditions, market conditions, conditions in the market for Agency securities, and legislative and regulatory changes that could adversely affect the business of the Company. Additional information concerning these and other risk factors are contained in the Company’s most recent filings with the Securities and Exchange Commission (“SEC”). Copies are available on the SEC’s website, http://www.sec.gov/. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Non-GAAP Financial Measure
This press release contains Core Earnings, a non-GAAP financial measure. AG Mortgage Investment Trust’s management believes that this non-GAAP measure, when considered with GAAP, provides supplemental information useful in evaluating the results of the Company’s operations. This non-GAAP measure should not be considered a substitute, or superior to, the financial measures calculated in accordance with GAAP. Our GAAP financial results and the reconciliations from these results should be carefully evaluated.
Core Earnings are defined by the Company as net income excluding both realized and unrealized gains (losses) on the sale or termination of securities, including underlying linked transactions and derivatives. As defined, Core Earnings include the net interest earned on these transactions, including credit derivatives, linked transactions, inverse Agency securities, interest rate derivatives or any other investment activity that may earn net interest. One of the objectives of the Company is to generate net income from net interest margin on the portfolio and management uses Core Earnings to measure this objective.
A reconciliation of GAAP net income to Core Earnings for the quarter and period ended December 31, 2011 is set forth below:
Footnotes
(1) Per share figures are calculated using outstanding shares including all shares granted to our Manager and our independent directors under our equity incentive plans as of quarter end.
(2) Generally when we purchase a security and finance it with a repurchase agreement, the security is included in our assets and the repurchase agreement is separately reflected in our liabilities on our balance sheet. For securities with certain characteristics (including those which are not readily obtainable in the market place) that are purchased and then simultaneously sold back to the seller under a repurchase agreement, US GAAP requires these transactions be netted together and recorded as a forward purchase commitment. Throughout this press release where we disclose our investment portfolio and the repurchase agreements that finance it, including our leverage metrics, we have un-linked the transaction and used the gross presentation as used for all other securities. This presentation is consistent with how the Company’s management evaluates the business, and believes provides the most accurate depiction of the Company’s investment portfolio and financial condition.
(3) Calculated by dividing total repurchase agreements, including $39.2 million included in linked transactions, plus payable on unsettled trades on our GAAP balance sheet by our GAAP stockholders’ equity.
(4) The total investment portfolio is calculated by summing the fair market value of our Agency RMBS, Non-Agency RMBS, CMBS and ABS assets, including linked transactions. The percentage of Agency RMBS and credit investments are calculated by dividing the respective fair market value of each, including linked transactions, by the total investment portfolio.
(5) This represents the weighted average monthly CPRs published during the period for our in-place portfolio during the same period.
(6) Net interest margin is calculated by subtracting the weighted average cost of funds from the weighted average yield for the Company’s investment portfolio, which excludes cash held by the Company. See footnotes (9) and (10) for further detail.
(7) Diluted per share figures are calculated using weighted average outstanding shares in accordance with GAAP. For the period from March 7, 2011 to December 31, 2011, the calculation reflected the impact of 100 shares outstanding from July 1, 2011 through the settlement date of our IPO.
(8) The swap ratio was calculated by dividing the notional value of our interest rate swaps by total repurchase agreements, including those included in linked transactions, plus payable on unsettled trades.
(9) The yield on our investment portfolio during the period represents an effective interest rate, which utilizes all estimates of future cash flows and adjusts for actual prepayment and cash flow activity as of quarter end. This calculation excludes cash held by the Company.
(10) The cost of funds was calculated as the sum of the weighted average rate on the repurchase agreements outstanding at quarter end and the weighted average net pay rate on our interest rate swaps. Both elements of the cost of funds were weighted by the repurchase agreements outstanding at quarter end.
(11) The management fee percentage at quarter end was calculated by annualizing management fees incurred during the quarter and dividing by quarter-ended stockholders’ equity.
(12) The other operating expenses percentage at quarter end was calculated by annualizing other operating expenses recorded during the quarter and dividing by quarter-ended stockholders’ equity.
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AG Mortgage Investment Trust, Inc. (“MITT” or the “Company”) (NYSE: MITT – News) today reported net income for the quarter ended December 31, 2011 of $5.8 million and net book value of $20.52 per share.
FINANCIAL HIGHLIGHTS
- Net income of $5.8 million, or 0.58 per share for the fourth quarter
- Net income of $19.0 million, or $3.20 per share for the period from March 7, 2011 to December 31, 2011
- Core Earnings of $6.5 million or $0.65 per share for the quarter
- Core Earnings of $12.4 million, or $1.24 per share for the period from July 6, 2011 (the consummation of our initial public offering) to December 31, 2011
- Net realized gains of $2.9 million, or $0.29 per share, on Agency RMBS for the fourth quarter and $7.2 million, or $0.72 per share, for the period from July 6, 2011 to December 31, 2011
- Net realized losses of ($3.5) million, or ($0.35) per share, on credit investments for the fourth quarter and for the period from July 6, 2011 to December 31, 2011
- $0.70 per share dividend declared for the fourth quarter and $1.10 per share dividends declared for the period ended December 31, 2011
- Approximately $0.46 per share of undistributed taxable income as of December 31, 2011(1)
- $20.52 net book value per share as of December 31, 2011(1)
- $1.4 billion investment portfolio value as of December 31, 2011 (2) (4)
- 5.86x leverage as of December 31, 2011 (2) (3)
- 91.0% Agency RMBS investment portfolio (4)
- 9.0% credit investment portfolio, comprising Non-Agency RMBS, CMBS and ABS assets (4)
- 5.0% constant prepayment rate (“CPR”) for the fourth quarter on the Agency RMBS investment portfolio (5)
- 2.25% net interest margin as of December 31, 2011 (6)
AG Mortgage Investment Trust, Inc. is an actively managed REIT that opportunistically invests in a diversified risk-adjusted portfolio of Agency RMBS, Non-Agency RMBS, CMBS and ABS. For the fourth quarter, the Company had net income of $5.8 million, or $0.58 per diluted share, and Core Earnings of $6.5 million, or $0.65 per diluted share. For the period from March 7, 2011 to December 31, 2011, the Company had net income of $19.0 million, or $3.20 per diluted share (7), and for the period from July 6, 2011 to December 31, 2011 (“period ended December 31, 2011”), the Company had Core Earnings of $12.4 million, or $1.24 per diluted share. Core Earnings represents a non-GAAP financial measure and is defined as net income (loss) excluding (i) net realized gain (loss) on investments and terminations on derivative contracts and (ii) net unrealized appreciation (depreciation) on investments and derivative contacts. (See “Non-GAAP Financial Measure” below for further detail on Core Earnings)
David Roberts, Chief Executive Officer, commented “We are pleased to announce our fourth quarter earnings. During the quarter, Core Earnings increased to $0.65 per share and we announced our first full quarter dividend of $0.70 per share. In addition to meeting our financial goals, we continued to diversify funding relationships and in January we were able to successfully complete an equity raise which has improved our stock’s liquidity. We are proud of our accomplishments over the last two quarters and look forward to the opportunities ahead.”
“Amidst uncertainty in the global markets, European liquidity difficulties and year-end funding pressures, we continued to optimize our Agency portfolio, opportunistically rotate the credit portfolio and retain capital for potential market dislocations,” said Jonathan Lieberman, Chief Investment Officer. “While Agency RMBS yields have compressed, we believe the low interest rate environment and a carefully selected investment portfolio will continue to support attractive risk-adjusted returns. Over the course of the quarter, we rotated a significant portion of the Agency portfolio into securities with more favorable prepayment attributes to further mitigate prepayment risk. Allocations to credit securities were concentrated in less volatile short duration Non-Agency securities and CMBS tranches with superior intrinsic value. We believe MITT is well positioned to continue to produce sustainable returns and take advantage of the opportunities ahead in both the Agency RMBS and credit markets. With the success of the European Central Bank’s Long-Term Refinancing Operation, funding risks have materially declined and we anticipate deploying capital in a more aggressive style. New capital from our January equity transaction allows greater latitude to the investment team to selectively increase our capital allocation to credit opportunities.”
| KEY STATISTICS (2) | ||||||||||||
| Weighted Average at | Weighted Average | |||||||||||
| December 31, 2011 | at September 30, 2011 | |||||||||||
| Investment portfolio | $ | 1,388,006,801 | $ | 1,332,205,377 | ||||||||
| Repurchase agreements | $ | 1,189,303,407 | $ | 1,126,859,885 | ||||||||
| Stockholders’ equity | $ | 206,283,920 | $ | 207,413,703 | ||||||||
| Leverage ratio | 5.86x | (3 | ) | 5.70x | (3 | ) | ||||||
| Swap ratio | 66 | % | (8 | ) | 51 | % | (8 | ) | ||||
| Yield on investment portfolio | 3.16 | % | (9 | ) | 3.26 | % | (9 | ) | ||||
| Cost of funds | 0.91 | % | (10 | ) | 0.82 | % | (10 | ) | ||||
| Net interest margin | 2.25 | % | (6 | ) | 2.44 | % | (6 | ) | ||||
| Management fees | 1.49 | % | (11 | ) | 1.43 | % | (11 | ) | ||||
| Other operating expenses | 1.57 | % | (12 | ) | 1.58 | % | (12 | ) | ||||
| Book value, per share | $ | 20.52 | (1 | ) | $ | 20.64 | (1 | ) | ||||
| Dividend, per share | $ | 0.70 | $ | 0.40 | ||||||||
INVESTMENT PORTFOLIO
The following summarizes the Company’s investment portfolio as of December 31, 2011 (2):
| Weighted Average | |||||||||||||||||
| Current Face | Premium (Discount) | Amortized Cost | Fair Value | Coupon | Yield | ||||||||||||
| Agency RMBS: | |||||||||||||||||
| 15-Year Fixed Rate | $ | 738,344,948 | $ | 22,525,476 | $ | 760,870,424 | $ | 772,310,909 | 3.32 | % | 2.62 | % | |||||
| 20-Year Fixed Rate | 227,566,114 | 7,362,001 | 234,928,115 | 237,586,837 | 3.69 | % | 3.00 | % | |||||||||
| 30-Year Fixed Rate | 232,890,169 | 12,162,512 | 245,052,681 | 246,679,482 | 3.99 | % | 3.18 | % | |||||||||
| Interest Only | 43,505,596 | (34,046,500 | ) | 9,459,096 | 6,636,871 | 5.50 | % | 3.45 | % | ||||||||
| Non-Agency RMBS | 102,246,062 | (8,980,754 | ) | 93,265,308 | 90,368,316 | 5.90 | % | 6.31 | % | ||||||||
| CMBS | 19,500,000 | (5,411,965 | ) | 14,088,035 | 13,537,851 | 5.88 | % | 13.44 | % | ||||||||
| ABS | 21,046,150 | (34,497 | ) | 21,011,653 | 20,886,535 | 4.50 | % | 4.50 | % | ||||||||
| Total | $ | 1,385,099,039 | $ | (6,423,727 | ) | $ | 1,378,675,312 | $ | 1,388,006,801 | 3.81 | % | 3.16 | % | ||||
As of December 31, 2011, the weighted average yield on the Company’s investment portfolio was 3.16% and its weighted average cost of funds was 0.91%. This resulted in a net interest margin of 2.25% as of December 31, 2011. (6)
The CPR for the Agency RMBS portfolio was 5.0% for the fourth quarter and 5.0% for the month of December 2011. (5)
The weighted average cost basis of the Agency investment portfolio, excluding interest-only securities, was 103.5% as of December 31, 2011. The amortization of premiums (net of any accretion of discounts) on Agency securities for the fourth quarter was $1.9 million, or $(0.19) per share. The unamortized net Agency premium as of December 31, 2011 was $42.0 million.
Premiums and discounts associated with purchases of the Company’s securities are amortized or accreted into interest income over the estimated life of such securities, using the effective yield method. Since the cost basis of the Company’s Agency securities, excluding interest-only securities, exceeds the underlying principal balance by 3.5% as of December 31, 2011, slower actual and projected prepayments can have a meaningful positive impact, while faster actual or projected prepayments can have a meaningful negative impact on the Company’s asset yields.
We have also entered into “to-be-announced” (“TBA”) positions to facilitate the future purchase of Agency RMBS. Under the terms of these TBAs, the Company agrees to purchase, for future delivery, Agency RMBS with certain principal and interest specifications and certain types of underlying collateral, but the particular Agency RMBS to be delivered are not identified until shortly before (generally two days) the TBA settlement date. At December 31, 2011, we had $100 million net notional amount of TBA positions with a net weighted average purchase price of 103.8%. As of December 31, 2011, our TBA portfolio had a net weighted average yield at purchase of 3.01% and a net weighted average settlement date of February 5, 2012. We have recorded derivative assets of $1.4 million and derivative liabilities of $0.5 million, reflecting these TBA positions.
LEVERAGE AND HEDGING ACTIVITIES
The investment portfolio is financed with repurchase agreements as of December 31, 2011 as summarized below:
| Agency RMBS | Non-Agency RMBS / CMBS / Other | |||||||||||
| Repurchase Agreements Maturing Within: | Balance | Weighted Average Rate | Balance | Weighted Average Rate | ||||||||
| 30 days or less | $ | 652,002,000 | 0.35 | % | $ | 68,187,000 | 1.74 | % | ||||
| 31-60 days | 334,825,407 | 0.42 | % | 1,749,000 | 1.95 | % | ||||||
| 61-90 days | 118,340,000 | 0.37 | % | 14,200,000 | 1.80 | % | ||||||
| Greater than 90 days | - | - | - | - | ||||||||
| Total / Weighted Average | $ | 1,105,167,407 | 0.37 | % | $ | 84,136,000 | 1.75 | % | ||||
As of December 31, 2011, the Company had entered into repurchase agreements with twenty-one counterparties. We continue to rebalance our exposures to counterparties and add new counterparties.
We have entered into interest rate swap agreements to hedge our portfolio. The Company’s swaps as of December 31, 2011 are summarized as follows:
| Maturity | Notional Amount | Weighted Average Pay Rate | Weighted Average Receive Rate* | Weighted Average Years to Maturity | |||||||
| 2012 | $ | 100,000,000 | 0.354 | % | 0.285 | % | 0.14 | ||||
| 2013 | 182,000,000 | 0.535 | % | 0.286 | % | 1.78 | |||||
| 2014 | 204,500,000 | 1.000 | % | 0.395 | % | 2.54 | |||||
| 2015 | 184,025,000 | 1.412 | % | 0.380 | % | 3.56 | |||||
| 2016 | 87,500,000 | 1.625 | % | 0.328 | % | 4.63 | |||||
| 2018 | 35,000,000 | 1.728 | % | 0.511 | % | 6.88 | |||||
| Total/Wtd Avg | $ | 793,025,000 | 1.008 | % | 0.350 | % | 2.72 | ||||
| * Approximately 50% of our interest rate swap notionals reset monthly based on one-month LIBOR and 50% of our interest rate swap notionals reset quarterly based on three-month LIBOR. | |||||||||||
TAXABLE INCOME
The primary differences between taxable income and GAAP net income include (i) unrealized gains and losses associated with investment and derivative portfolios are marked-to-market in current income for GAAP purposes, but excluded from taxable income until realized or settled, (ii) temporary differences related to amortization of net premiums paid on investments (iii) the timing and amount of deductions related to stock-based compensation and (iv) excise taxes. As of December 31, 2011, the Company had undistributed taxable income of approximately $0.46 per share.
DIVIDEND
On December 14, 2011, the Company declared a dividend of $0.70 per share of common stock to stockholders of record as of December 30, 2011 and paid such dividend on January 27, 2012. The Company declared dividends of $1.10 per share for the period ended December 31, 2011.
SUBSEQUENT EVENT
On January 24, 2012, the Company completed a follow-on offering of 5,000,000 shares of its common stock and subsequently issued an additional 750,000 shares of common stock pursuant to the underwriters’ over-allotments at a price of $19.00 per share, for gross proceeds of approximately $109.3 million. Net proceeds to the Company from the offerings were approximately $104.1 million, net of issuance costs of approximately $5.2 million.
SHAREHOLDER CALL
The Company invites shareholders, prospective shareholders and analysts to attend MITT’s fourth quarter earnings conference call on March 1, 2012 at 11:00 am Eastern Time. The shareholder call can be accessed by dialing (888) 424-8151 (U.S. domestic) or (847) 585-4422 (international). Please enter code number 8732511#.
A presentation will accompany the conference call and will be available on the Company’s website at www.agmit.com. Select the Q4 2011 Earnings Presentation link to download and print the presentation in advance of the shareholder call.
An audio replay of the shareholder call combined with the presentation will be made available on our website after the call. The replay will be available until midnight on March 15, 2012. If you are interested in hearing the replay, please dial (888) 843-7419 (U.S. domestic) or (630) 652-3042 (international). The conference ID number is 8732511#.
For further information or questions, please contact Allan Krinsman, the Company’s General Counsel, at (212) 883-4180 or akrinsman@angelogordon.com.
ABOUT AG MORTGAGE INVESTMENT TRUST, INC.
AG Mortgage Investment Trust, Inc. is a real estate investment trust that invests in, acquires and manages a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets. AG Mortgage Investment Trust, Inc. is externally managed and advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P., an SEC-registered investment adviser that specializes in alternative investment activities.
Additional information can be found on the Company’s website at www.agmit.com.
ABOUT ANGELO, GORDON & CO.
Angelo, Gordon & Co. was founded in 1988 and has approximately $22 billion under management. Currently, the firm’s investment disciplines encompass five principal areas: (i) distressed debt and leveraged loans, (ii) real estate, (iii) mortgage-backed securities and other structured credit, (iv) private equity and special situations and (v) a number of hedge fund strategies. Angelo, Gordon & Co. employs over 250 employees, including more than 90 investment professionals, and is headquartered in New York, with associated offices in Amsterdam, Chicago, Los Angeles, London, Hong Kong Seoul, Shanghai, Sydney and Tokyo.
FORWARD LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation, changes in interest rates, changes in the yield curve, changes in prepayment rates, the availability and terms of financing, changes in the market value of our assets, general economic conditions, market conditions, conditions in the market for Agency securities, and legislative and regulatory changes that could adversely affect the business of the Company. Additional information concerning these and other risk factors are contained in the Company’s most recent filings with the Securities and Exchange Commission (“SEC”). Copies are available on the SEC’s website, http://www.sec.gov/. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
| AG Mortgage Investment Trust, Inc. and Subsidiaries | |||||||
| Consolidated Balance Sheets | |||||||
| December 31, 2011 | April 1, 2011 | ||||||
| Assets | (Unaudited) | ||||||
| Real Estate securities, at fair value | |||||||
| Agency – $1,186,149,842 pledged as collateral | $ | 1,263,214,099 | $ | - | |||
| Non-Agency – $47,227,005 pledged as collateral | 58,787,051 | - | |||||
| CMBS – $2,747,080 pledged as collateral | 13,537,851 | - | |||||
| ABS – $4,526,620 pledged as collateral | 4,526,620 | - | |||||
| Linked transactions, net, at fair value | 8,787,180 | - | |||||
| Cash and cash equivalents | 35,851,249 | 1,000 | |||||
| Restricted cash | 3,037,055 | - | |||||
| Interest receivable | 4,219,640 | - | |||||
| Derivative assets, at fair value | 1,428,595 | - | |||||
| Prepaid expenses | 317,950 | - | |||||
| Due from broker | 341,491 | ||||||
| Due from affiliates | 104,994 | - | |||||
| Deferred costs | 52,176 | - | |||||
| Total Assets | $ | 1,394,205,951 | $ | 1,000 | |||
| Liabilities | |||||||
| Repurchase agreements | $ | 1,150,149,407 | $ | - | |||
| Payable on unsettled trades | 18,759,200 | - | |||||
| Interest payable | 2,275,138 | - | |||||
| Derivative liabilities, at fair value | 7,908,308 | - | |||||
| Dividend payable | 7,011,171 | - | |||||
| Due to affiliates | 770,341 | - | |||||
| Accrued expenses | 668,552 | - | |||||
| Due to broker | 379,914 | - | |||||
| Total Liabilities | 1,187,922,031 | - | |||||
| Stockholders’ Equity (Deficit) | |||||||
| Common stock, par value $0.01 per share; 450,000,000 and 1,000 shares of common stock authorized and 10,009,958 and 100 shares issued and outstanding at December 31, 2011 and April 1, 2011, respectively | 100,100 | 1 | |||||
| Additional paid-in capital | 198,228,694 | 999 | |||||
| Retained earnings | 7,955,126 | - | |||||
| 206,283,920 | 1,000 | ||||||
| Total Liabilities & Equity | $ | 1,394,205,951 | $ | 1,000 | |||
| AG Mortgage Investment Trust, Inc. and Subsidiaries | |||||||||
| Consolidated Statements of Operations | |||||||||
| (Unaudited) | |||||||||
| Period from | |||||||||
| Quarter Ended | March 7, 2011 to | ||||||||
| December 31, 2011 | December 31, 2011 | ||||||||
| Net Interest Income | |||||||||
| Interest income | $ | 10,022,275 | $ | 18,748,669 | |||||
| Interest expense | 1,106,097 | 1,696,344 | |||||||
| 8,916,178 | 17,052,325 | ||||||||
| Other Income (Loss) | |||||||||
| Net realized gain (loss) | (589,747 | ) | 3,701,392 | ||||||
| Gain (loss) on linked transactions, net | (1,013,291 | ) | (808,564 | ) | |||||
| Realized loss on periodic interest settlements of interest rate swaps, net | (1,175,788 | ) | (2,162,290 | ) | |||||
| Unrealized gain (loss) on derivative instruments, net | 70,663 | (6,491,430 | ) | ||||||
| Unrealized gain (loss) on real estate securities | 1,346,237 | 11,040,692 | |||||||
| (1,361,926 | ) | 5,279,800 | |||||||
| Expenses | |||||||||
| Management fee to affiliate | 770,341 | 1,512,898 | |||||||
| Other operating expenses | 811,372 | 1,566,642 | |||||||
| Equity based compensation to affiliate | 97,343 | 176,165 | |||||||
| Excise tax | 105,724 | 105,724 | |||||||
| 1,784,780 | 3,361,429 | ||||||||
| Net Income (Loss) | $ | 5,769,472 | $ | 18,970,696 | |||||
| Earnings Per Share of Common Stock | |||||||||
| Basic | $ | 0.58 | $ | 3.20 | |||||
| Diluted | $ | 0.58 | $ | 3.20 | |||||
| Weighted Average Number of Shares of Common Stock Outstanding | |||||||||
| Basic | 10,009,958 | 5,933,930 | |||||||
| Diluted | 10,010,799 | 5,933,930 | |||||||
| Dividends Declared per Share of Common Stock | $ | 0.70 | $ | 1.10 | |||||
Non-GAAP Financial Measure
This press release contains Core Earnings, a non-GAAP financial measure. AG Mortgage Investment Trust’s management believes that this non-GAAP measure, when considered with GAAP, provides supplemental information useful in evaluating the results of the Company’s operations. This non-GAAP measure should not be considered a substitute, or superior to, the financial measures calculated in accordance with GAAP. Our GAAP financial results and the reconciliations from these results should be carefully evaluated.
Core Earnings are defined by the Company as net income excluding both realized and unrealized gains (losses) on the sale or termination of securities, including underlying linked transactions and derivatives. As defined, Core Earnings include the net interest earned on these transactions, including credit derivatives, linked transactions, inverse Agency securities, interest rate derivatives or any other investment activity that may earn net interest. One of the objectives of the Company is to generate net income from net interest margin on the portfolio and management uses Core Earnings to measure this objective.
A reconciliation of GAAP net income to Core Earnings for the quarter and period ended December 31, 2011 is set forth below:
| Period from | ||||||||
| Quarter Ended | March 7, 2011 to | |||||||
| December 31, 2011 | December 31, 2011 | |||||||
| Net income/loss | $ | 5,769,472 | $ | 18,970,696 | ||||
| Add (Deduct): | ||||||||
| Net realized gain | 589,747 | (3,701,392 | ) | |||||
| Gain/loss on linked transactions, net | 1,013,291 | 808,564 | ||||||
| Net interest income on linked transactions | 554,729 | 900,638 | ||||||
| Unrealized gain/loss on derivative instruments, net | (70,663 | ) | 6,491,430 | |||||
| Unrealized gain/loss on real estate securities | (1,346,237 | ) | (11,040,692 | ) | ||||
| Core Earnings | $ | 6,510,339 | $ | 12,429,244 | ||||
Footnotes
(1) Per share figures are calculated using outstanding shares including all shares granted to our Manager and our independent directors under our equity incentive plans as of quarter end.
(2) Generally when we purchase a security and finance it with a repurchase agreement, the security is included in our assets and the repurchase agreement is separately reflected in our liabilities on our balance sheet. For securities with certain characteristics (including those which are not readily obtainable in the market place) that are purchased and then simultaneously sold back to the seller under a repurchase agreement, US GAAP requires these transactions be netted together and recorded as a forward purchase commitment. Throughout this press release where we disclose our investment portfolio and the repurchase agreements that finance it, including our leverage metrics, we have un-linked the transaction and used the gross presentation as used for all other securities. This presentation is consistent with how the Company’s management evaluates the business, and believes provides the most accurate depiction of the Company’s investment portfolio and financial condition.
(3) Calculated by dividing total repurchase agreements, including $39.2 million included in linked transactions, plus payable on unsettled trades on our GAAP balance sheet by our GAAP stockholders’ equity.
(4) The total investment portfolio is calculated by summing the fair market value of our Agency RMBS, Non-Agency RMBS, CMBS and ABS assets, including linked transactions. The percentage of Agency RMBS and credit investments are calculated by dividing the respective fair market value of each, including linked transactions, by the total investment portfolio.
(5) This represents the weighted average monthly CPRs published during the period for our in-place portfolio during the same period.
(6) Net interest margin is calculated by subtracting the weighted average cost of funds from the weighted average yield for the Company’s investment portfolio, which excludes cash held by the Company. See footnotes (9) and (10) for further detail.
(7) Diluted per share figures are calculated using weighted average outstanding shares in accordance with GAAP. For the period from March 7, 2011 to December 31, 2011, the calculation reflected the impact of 100 shares outstanding from July 1, 2011 through the settlement date of our IPO.
(8) The swap ratio was calculated by dividing the notional value of our interest rate swaps by total repurchase agreements, including those included in linked transactions, plus payable on unsettled trades.
(9) The yield on our investment portfolio during the period represents an effective interest rate, which utilizes all estimates of future cash flows and adjusts for actual prepayment and cash flow activity as of quarter end. This calculation excludes cash held by the Company.
(10) The cost of funds was calculated as the sum of the weighted average rate on the repurchase agreements outstanding at quarter end and the weighted average net pay rate on our interest rate swaps. Both elements of the cost of funds were weighted by the repurchase agreements outstanding at quarter end.
(11) The management fee percentage at quarter end was calculated by annualizing management fees incurred during the quarter and dividing by quarter-ended stockholders’ equity.
(12) The other operating expenses percentage at quarter end was calculated by annualizing other operating expenses recorded during the quarter and dividing by quarter-ended stockholders’ equity.
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RHB Group provides RM1.38bn loan for RM6b Tg Bin power plant
KUALA LUMPUR (March 1): RHB Bank and RHB Investment Bank are providing RM1.38 billion to partly finance the construction of the RM6 billion coal-fired power plant in Tanjung Bin, Johor.
The financing of the 1,000 MW plant is managed by Malakoff Corporation Bhd’s unit Tanjung Bin Energy Issuer Bhd
RHB Investment Bank is the mandated lead arranger whilst RHB Bank is the lender in the syndicated facilities. RHB Investment Bank is also a joint lead manager in the Sukuk programme.
According to a statement issued by RHB Group, Malaysia’s energy demand is projected to grow at 3.4% annually, which is double the 2010 level with the rollout of the large scale infrastructure and construction projects under the 10th Malaysia Plan.
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The financing of the 1,000 MW plant is managed by Malakoff Corporation Bhd’s unit Tanjung Bin Energy Issuer Bhd
RHB Investment Bank is the mandated lead arranger whilst RHB Bank is the lender in the syndicated facilities. RHB Investment Bank is also a joint lead manager in the Sukuk programme.
According to a statement issued by RHB Group, Malaysia’s energy demand is projected to grow at 3.4% annually, which is double the 2010 level with the rollout of the large scale infrastructure and construction projects under the 10th Malaysia Plan.
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Allied Properties Real Estate Investment Trust Announces Continued Expansion in Western Canada and Acquisition of …
TORONTO, ONTARIO–(Marketwire -02/29/12)- Allied Properties REIT (TSX: AP.UN) announced today that it has entered into agreements to purchase the following properties for $46.7 million:
Calgary Acquisition
Located in Inglewood, the Woodstone Building (1207 & 1215 – 13th Street S.E.) is a Class I property comprised of 31,023 square feet of GLA and 20 surface parking spaces. It is 100% leased to tenants consistent in character and quality with Allied’s tenant base. Built in 1911 as a wood mill, the property was extensively restored and renovated for office use in 2009. It is on the Inventory of Evaluated Historic Resources maintained by the City of Calgary. Inglewood was established in 1875, not long after Fort Calgary was built. Known initially as Brewery Flats, it officially received the name of Inglewood in 1911 and has since evolved into a destination shopping and creative district. It has Class I office inventory of approximately 350,000 square feet.
Victoria Acquisition
Located on Yates Street, between Wharf and Government Streets, 535 Yates Street is a restored heritage property comprised of 19,030 square feet of GLA. It is 92% leased to tenants consistent in character and quality with our tenant base. Built in the early 1900s, the property was extensively restored and renovated in the 1970s and again in 2009. It is a designated heritage property by the City of Victoria.
Montreal Acquisition
Allied acquired 5455 de Gaspe Avenue in June of last year because of its strategic location in Montreal’s Plateau region and its significant, near-term upgrade potential. 5445 de Gaspe is the adjacent property to the south. It is a Class I property comprised of 502,693 square feet of GLA and 150 underground parking spaces. It is currently 97% leased to a large number of smaller tenants at low rents. While carrying 5455 de Gaspe as a rental property, Allied plans to upgrade the building and the tenant-base with a view to boosting the annual net operating income (“NOI”) materially over a five-year period.
Closing and Financing of Acquisitions
The acquisitions are expected to close in late March and early April of 2012, subject to customary conditions. The purchase price for the three properties represents a capitalization rate of 7.5% applied to the annual NOI. On closing, the properties will be free and clear of mortgage financing. Allied will place first mortgage financing on the properties as soon after closing as possible with a view to locking-in the currently favourable cost of debt. On closing of the acquisitions and anticipated mortgage financings, Allied will continue to have a very conservative debt ratio and significant internal liquidity and acquisition capacity.
Cautionary Statements
This press release may contain forward-looking statements with respect to Allied, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of Allied discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under “Risk Factors” in Allied’s Annual Information Form, which is available at www.sedar.com. These cautionary statements qualify all forward-looking statements attributable to Allied and persons acting on Allied’s behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the parties have no obligation to update such statements.
“Capitalization rate” is not a measure recognized under International Financial Reporting Standards (“IFRS”) and does not have any standardized meaning prescribed by IFRS. Capitalization rate is presented in this press release because management of Allied believes that this non-IFRS measure is relevant in interpreting the purchase price of the properties being acquired. Capitalization rate, as computed by Allied, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to capitalization rate reported by such organizations.
NOI is not a measure recognized under IFRS and does not have any standardized meaning prescribed by IFRS. NOI is presented in this press release because management of Allied believes that this non-IFRS measure is relevant in interpreting the purchase price of the property being acquired. NOI, as computed by Allied, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to NOI reported by such organizations.
Allied Properties REIT is a leading owner, manager and developer of urban office environments that enrich experience and enhance profitability for business tenants operating in Canada’s major cities. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.
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Total Office Retail Address GLA GLA GLA Parking Spaces --------------------------------------------------------------------------- Woodstone Building, Calgary 31,023 31,023 20 535 Yates Street, Victoria 19,030 12,718 6,312 0 5445 de Gaspe Avenue, Montreal 502,693 502,693 150 --------------------------------------------------------------------------- Total 552,746 546,434 6,312 170 ---------------------------------------------------------------------------“This is a good start to our 2012 program, one that builds well on last year’s efforts,” said Michael Emory, President & CEO. “The Woodstone Building opens up a new sub-market for us in Calgary, whereas 535 Yates Street adds to our foothold in Victoria. 5445 de Gaspe Avenue in Montreal is a great compliment to 5455 de Gaspe Avenue, a large-scale upgrade property we acquired last year.”
Calgary Acquisition
Located in Inglewood, the Woodstone Building (1207 & 1215 – 13th Street S.E.) is a Class I property comprised of 31,023 square feet of GLA and 20 surface parking spaces. It is 100% leased to tenants consistent in character and quality with Allied’s tenant base. Built in 1911 as a wood mill, the property was extensively restored and renovated for office use in 2009. It is on the Inventory of Evaluated Historic Resources maintained by the City of Calgary. Inglewood was established in 1875, not long after Fort Calgary was built. Known initially as Brewery Flats, it officially received the name of Inglewood in 1911 and has since evolved into a destination shopping and creative district. It has Class I office inventory of approximately 350,000 square feet.
Victoria Acquisition
Located on Yates Street, between Wharf and Government Streets, 535 Yates Street is a restored heritage property comprised of 19,030 square feet of GLA. It is 92% leased to tenants consistent in character and quality with our tenant base. Built in the early 1900s, the property was extensively restored and renovated in the 1970s and again in 2009. It is a designated heritage property by the City of Victoria.
Montreal Acquisition
Allied acquired 5455 de Gaspe Avenue in June of last year because of its strategic location in Montreal’s Plateau region and its significant, near-term upgrade potential. 5445 de Gaspe is the adjacent property to the south. It is a Class I property comprised of 502,693 square feet of GLA and 150 underground parking spaces. It is currently 97% leased to a large number of smaller tenants at low rents. While carrying 5455 de Gaspe as a rental property, Allied plans to upgrade the building and the tenant-base with a view to boosting the annual net operating income (“NOI”) materially over a five-year period.
Closing and Financing of Acquisitions
The acquisitions are expected to close in late March and early April of 2012, subject to customary conditions. The purchase price for the three properties represents a capitalization rate of 7.5% applied to the annual NOI. On closing, the properties will be free and clear of mortgage financing. Allied will place first mortgage financing on the properties as soon after closing as possible with a view to locking-in the currently favourable cost of debt. On closing of the acquisitions and anticipated mortgage financings, Allied will continue to have a very conservative debt ratio and significant internal liquidity and acquisition capacity.
Cautionary Statements
This press release may contain forward-looking statements with respect to Allied, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of Allied discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under “Risk Factors” in Allied’s Annual Information Form, which is available at www.sedar.com. These cautionary statements qualify all forward-looking statements attributable to Allied and persons acting on Allied’s behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the parties have no obligation to update such statements.
“Capitalization rate” is not a measure recognized under International Financial Reporting Standards (“IFRS”) and does not have any standardized meaning prescribed by IFRS. Capitalization rate is presented in this press release because management of Allied believes that this non-IFRS measure is relevant in interpreting the purchase price of the properties being acquired. Capitalization rate, as computed by Allied, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to capitalization rate reported by such organizations.
NOI is not a measure recognized under IFRS and does not have any standardized meaning prescribed by IFRS. NOI is presented in this press release because management of Allied believes that this non-IFRS measure is relevant in interpreting the purchase price of the property being acquired. NOI, as computed by Allied, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to NOI reported by such organizations.
Allied Properties REIT is a leading owner, manager and developer of urban office environments that enrich experience and enhance profitability for business tenants operating in Canada’s major cities. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.
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2012年2月29日星期三
ECB to offer banks billions in cheap loans
The European Central Bank is expected to pump half a trillion euros in ultra-cheap, three-year loans into the eurozone’s troubled financial system today.
In the second such operation to fight the eurozone crisis, banks can stock up on as much of the cheap funding as they like – a ploy the ECB unveiled late last year to dampen tensions on eurozone bond markets.
ECB President Mario Draghi said after the first of the operations that “a major credit crunch” had been averted.
Banks used much of the €489bn they borrowed last year to cover maturing debt.
Mr Draghi has urged them to lend out the funds they tap at today’s operation to households and businesses, helping strengthen economic growth.
Financial markets are monitoring the progress of the longer-term refinancing operations.
The LTROs are unleashing a wall of money just as the US Federal Reserve and the Bank of England have with their quantitative easing (QE) programmes.
The ECB operations differ from QE in that they provide liquidity against guarantees instead of intervening directly in bond markets.
They achieve a similar result while allaying the concerns of some policymakers – led by the Germans – about funding governments.
ECB policymakers in Germany and beyond are nonetheless worried that the central bank risks storing up problems for the future by releasing the wave of cash through the LTROs.
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In the second such operation to fight the eurozone crisis, banks can stock up on as much of the cheap funding as they like – a ploy the ECB unveiled late last year to dampen tensions on eurozone bond markets.
ECB President Mario Draghi said after the first of the operations that “a major credit crunch” had been averted.
Banks used much of the €489bn they borrowed last year to cover maturing debt.
Mr Draghi has urged them to lend out the funds they tap at today’s operation to households and businesses, helping strengthen economic growth.
Financial markets are monitoring the progress of the longer-term refinancing operations.
The LTROs are unleashing a wall of money just as the US Federal Reserve and the Bank of England have with their quantitative easing (QE) programmes.
The ECB operations differ from QE in that they provide liquidity against guarantees instead of intervening directly in bond markets.
They achieve a similar result while allaying the concerns of some policymakers – led by the Germans – about funding governments.
ECB policymakers in Germany and beyond are nonetheless worried that the central bank risks storing up problems for the future by releasing the wave of cash through the LTROs.
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Loans flow from Europe’s central bank, but analysts debate if they’re a cure or a crutch
Throughout his waning months in office, European Central Bank President Jean-Claude Trichet boasted that he had avoided the excesses of his counterparts at the U.S. Federal Reserve and kept the ECB’s response to his continent’s financial crisis relatively modest.
It has taken his successor, Italian central banker Mario Draghi, less than three months to upend that approach, triggering a debate about whether the ECB has quietly solved the euro-zone debt crisis or simply postponed a reckoning by shuffling hundreds of billions of dollars among banks, governments and the central bank’s own coffers.
It has taken his successor, Italian central banker Mario Draghi, less than three months to upend that approach, triggering a debate about whether the ECB has quietly solved the euro-zone debt crisis or simply postponed a reckoning by shuffling hundreds of billions of dollars among banks, governments and the central bank’s own coffers.
As it did in December, the ECB this week is again offering inexpensive three-year loans to euro-region banks. Market analysts expect the central bank to provide new loans worth a trillion dollars or more, putting the ECB on a fast track to catch the Fed.
The policy has stabilized European finances in recent weeks, contributing in a roundabout way to a decline in the exorbitant interest rates that some heavily indebted governments had to pay. After the first round of ECB loans, banks spent some of the money on government bonds, and Italy and Spain as a result saw a drop in the cost they had to pay to attract bond investors.
The banks also began to retire their own bonds, reducing the competition for money on private markets. And bank lending to households and businesses ticked up.
These were all reassuring developments after an autumn consumed by fears that the region’s debt crisis would lead to a breakup of the euro zone.
“There are tentative signs of stabilization,” Draghi said at a recent news conference on ECB policy.
But some analysts and bankers are warning that the policies under Draghi could leave the European financial industry addicted to cheap ECB loans that will be difficult to replace if the region’s economy remains stagnant.
For a variety of reasons, the euro zone remains in trouble. The region is heading into recession, and governments are scrambling to restructure economies ill-suited to compete globally or support the costs of aging populations.
Greece, the region’s hardest-hit country, is in the midst of a bond restructuring that will shape its future. If all goes smoothly, the exchange of new, less-expensive bonds for older ones will greatly reduce the country’s outstanding debts and pave the way for a large package of new international loans. But the debt restructuring has left the country in technical default on its bonds, possibly triggering the insurance payments to bond holders — a development that some analysts worry could stigmatize the euro region for years.
If nothing else, the ECB loans have bought time and helped the currency union through a bulge of borrowing required by governments and financial companies in the first months of the year.
The ECB lending program was launched at a critical moment, when borrowing costs for Spain and Italy were at such a high level that they might have needed a bailout that the rest of Europe and the International Monetary Fund could ill afford. As those rates have dropped, Spain has actually accelerated its borrowing for the year to take advantage.
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The policy has stabilized European finances in recent weeks, contributing in a roundabout way to a decline in the exorbitant interest rates that some heavily indebted governments had to pay. After the first round of ECB loans, banks spent some of the money on government bonds, and Italy and Spain as a result saw a drop in the cost they had to pay to attract bond investors.
The banks also began to retire their own bonds, reducing the competition for money on private markets. And bank lending to households and businesses ticked up.
These were all reassuring developments after an autumn consumed by fears that the region’s debt crisis would lead to a breakup of the euro zone.
“There are tentative signs of stabilization,” Draghi said at a recent news conference on ECB policy.
But some analysts and bankers are warning that the policies under Draghi could leave the European financial industry addicted to cheap ECB loans that will be difficult to replace if the region’s economy remains stagnant.
For a variety of reasons, the euro zone remains in trouble. The region is heading into recession, and governments are scrambling to restructure economies ill-suited to compete globally or support the costs of aging populations.
Greece, the region’s hardest-hit country, is in the midst of a bond restructuring that will shape its future. If all goes smoothly, the exchange of new, less-expensive bonds for older ones will greatly reduce the country’s outstanding debts and pave the way for a large package of new international loans. But the debt restructuring has left the country in technical default on its bonds, possibly triggering the insurance payments to bond holders — a development that some analysts worry could stigmatize the euro region for years.
If nothing else, the ECB loans have bought time and helped the currency union through a bulge of borrowing required by governments and financial companies in the first months of the year.
The ECB lending program was launched at a critical moment, when borrowing costs for Spain and Italy were at such a high level that they might have needed a bailout that the rest of Europe and the International Monetary Fund could ill afford. As those rates have dropped, Spain has actually accelerated its borrowing for the year to take advantage.
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Banks Vie for $2 Billion in Secretive Europe Equity Derivatives
February 29, 2012, 2:56 AM EST
By Elisa Martinuzzi and Zijing Wu
Feb. 29 (Bloomberg) — Investment banks including Deutsche Bank AG and Morgan Stanley are vying for as much as $2 billion in annual fees in Europe arranging customized equity derivatives — a secretive market that has defied the downturn.
The business, about as large as underwriting initial public offerings before the 2008 financial crisis, is now three times bigger and held steady last year, according to estimates from six bankers who asked not to be identified because the information is private. The contracts accounted for almost 10 percent of total investment-banking fees last year in Europe, the Middle East and Africa as revenue from dealmaking and trading sank, data compiled by research firm Freeman & Co. show.
Because the deals, whose value is tied to stocks, are customized and not traded on exchanges, banks are able to charge higher fees than for contracts in which customers seek competing bids. They’re also attractive to lenders because new rules demanding capital buffers against potential losses aren’t as punitive as for other derivatives.
“Regulatory change may drive banks back to the business, not away from it,” said Rachel Lord, Citigroup Inc.’s London- based global head of corporate equity derivatives. “This is one part of the investment-banking industry where, despite compressed margins, the business remains a high priority because it’s so important to the client base.”
Tailor-Made
Investors such as Aabar Investments PJSC, the Abu Dhabi- based sovereign-wealth fund, and Italy’s Fondazione Monte dei Paschi di Siena, owner of the world’s oldest bank, sought derivatives to protect the value of their holdings or to borrow against equity stakes.
Banks including Deutsche Bank AG, Morgan Stanley and Goldman Sachs Group Inc. are competing in a region that’s the biggest in the world by fees, surpassing the U.S. and Asia. The annual notional value of tailor-made equity derivatives is typically more than $50 billion in Europe, the Middle East and Africa, according to estimates from two of the bankers.
The market is so big and lucrative that even lenders shrinking their investment-banking arms want to keep the business going. Royal Bank of Scotland Group Plc, which is selling or closing brokerage, merger-advisory and IPO- underwriting units, will continue arranging “profitable” equity derivatives, the London-based firm said last month. Credit Agricole SA, France’s second-largest bank by assets, will do the same for corporate clients, said Bertrand Hugonet, a Paris-based spokesman.
“There’s a lot of competition because there’s been a history of profitable transactions in this space,” said Samuel Losada, London-based head of European corporate equity derivatives at Bank of America Corp. “You can achieve over the long run, if risks are managed properly, above-market returns.”
Daimler Derivative
Because the deals are private, there aren’t any publicly available rankings. Based on bankers’ own assessments and the sharing of information among them, the business is dominated by the region’s top equity brokers and better-capitalized firms. Industry leaders include Frankfurt based Deutsche Bank, Morgan Stanley, Goldman Sachs and Citigroup, all in New York, and Zurich-based Credit Suisse Group AG, the bankers said.
Deutsche Bank, Morgan Stanley and Bank of America arranged a derivative in May that allows Abu Dhabi’s Aabar to keep its share of the potential near-term gains of Daimler AG, even as the fund sold a 1.25 billion-euro ($1.7 billion) bond exchangeable for the German automaker’s shares. The sale could cut Aabar’s Daimler holding to 7.2 percent from 9.1 percent when the bond matures in 2016.
The deal was the region’s largest ever derivative overlay, a strategy to hold multiple contracts against the same assets, linked to an exchangeable bond, according to Losada.
Emerging Markets
“There’s a clear trend that the emerging-market business is becoming more important,” said Losada. “We saw continuous activity in this space over the last 12 months.”
Increasing demand from emerging-market clients, such as Middle Eastern sovereign-wealth funds, has helped buck a slowdown in Western European deal flows.
“The business can be divided into two parts: the growth markets, where it’s harder for some to obtain liquidity and hence is driven by financing, and developed markets, where clients seek to manage their equity positions,” said Simon Watson, a managing director at Goldman Sachs in London who heads corporate equity derivatives for the region.
While financial firms are cutting employees in other investment-banking areas, many are looking to add to their equity-derivatives businesses in the region.
‘Beefing Up’
Bank of America, based in Charlotte, North Carolina, may hire two bankers this year to join the eight it has in London today, said Losada. Citigroup this month named Sophie Lecoq to the new position of head of corporate equity derivatives for Europe, the Middle East and Africa.
Morgan Stanley also may increase its team’s headcount, according to Daniel Palmer, the firm’s London-based global head of corporate equity derivatives.
“We expanded our business significantly over the past three years,” said Palmer. “Our team is now almost complete, but we might add one or two heads later in the year.”
Nomura Holdings Inc., which took over Lehman Brothers Holdings Inc.’s European business in 2008, may add one senior banker to its 12-person team in London, said Kenneth Brown, global head of equity capital markets. Lenders are “beefing up their European teams” of corporate equity derivatives because Europe is a now a bigger market than the U.S., he said.
It’s also a more resilient market, and the teams, which typically employ about a dozen people, are small compared with those that manage IPOs, said Christopher Wheeler, a banking analyst at Mediobanca SpA in London.
“It’s a business driven by the sweat of the brow,” Wheeler said.
Margin Loans
While banks can earn more arranging tailor-made equity derivatives than underwriting stock sales, increasing competition has driven down fees for financing some deals, including margin loans, or loans from securities firms backed by clients’ equity holdings used as collateral, the bankers said.
Margin loans are a way for investors who have limited access to bank funding or capital markets to raise money. At least 10 firms competed to win a margin loan from an Italian client this year, compared with three or four that would have bid for the business a couple of years ago, said one banker, who declined to be identified citing client confidentiality.
Monte dei Paschi
Fondazione Monte dei Paschi, the biggest investor in Banca Monte dei Paschi di Siena SpA, last year raised about 600 million euros through loans backed by collateral on its stake in the lender.
Eleven banks participated in the deal, which helped raise funds to pay for shares sold by the bank in June, said Gianni Tiberi, a spokesman for the foundation. The firms, which included Credit Suisse and JPMorgan Chase & Co., participated equally, Tiberi said, declining to elaborate. The loan was reduced to about 525 million euros as Monte dei Paschi shares fell, he said.
In one type of equity derivative, known as an equity swap, one party agrees to receive gains in a stock or basket of stocks and in return makes interest payments to the other party on the value of the securities it bet on. Investment banks typically act as intermediaries between the two parties in the swap.
Under the so-called Basel III rules, approved by the Basel Committee on Banking Supervision and scheduled to be phased in through 2019, banks will face a capital charge for potential mark-to-market losses on over-the-counter derivatives.
Data Gaps
“Because credit markets tend to be less liquid and transparent than equities, banks often need proxies to measure the counterparty risk in credit derivatives, creating data gaps and higher capital charges,” said Anastasios Zavitsanakis, a financial-risk consultant at PricewaterhouseCoopers LLP in London. “The actual exposure in equities is more measurable in the short term, and there might be more collateral, reducing further the capital charges.”
Still, banks’ waning risk appetite is spreading the business around more evenly, said Citigroup’s Lord.
“In the past 10 years, two to three banks would typically lead the industry, while over the last year it has been much more broad-based,” Lord said. “Before 2008, banks would have been happy to be sole books on very large deals. It’s not feasible to do that now, so there’s a lot more deal-sharing.”
Morgan Stanley has expanded its business by building up a book of margin loans, said Palmer.
“Some competitors are looking to sell their loans,” he said. “As banks de-lever, we’ve come across clients coming to us seeking to raise money on a shareholding, for example.”
‘Bespoke Solutions’
Even with the increased competition, Deutsche Bank sees demand from clients “as high as ever,” said Ian Holt, the bank’s London-based global head of equity structuring.
“It’s a good business because you are providing bespoke solutions and providing clients with what they need in and around complex situations, which makes higher margins naturally achievable,” said Holt.
Success for most firms this year depends on whether there’s a pick-up in mergers, bankers said. When companies combine, a seller left with a minority stake may seek to raise funds against the holding by buying put options on the shares and using the options to raise cash. Banks can also use derivatives to help investors who receive stock protect the value of their holdings.
“In M&A, you’re the exclusive adviser, and that’s where you can have prime access to interesting situations before they become public knowledge,” said Bank of America’s Losada. “That’s where the real alpha is.”
–With assistance from Ben Moshinsky in Brussels. Editors: Robert Friedman, Edward Evans
To contact the reporters on this story: Elisa Martinuzzi in Milan at emartinuzzi@bloomberg.net; Zijing Wu in London at zwu17@bloomberg.net
To contact the editors responsible for this story: Edward Evans at eevans3@bloomberg.net; Jacqueline Simmons at jackiem@bloomberg.net
http://tourism9.com/ http://vkins.com/
By Elisa Martinuzzi and Zijing Wu
Feb. 29 (Bloomberg) — Investment banks including Deutsche Bank AG and Morgan Stanley are vying for as much as $2 billion in annual fees in Europe arranging customized equity derivatives — a secretive market that has defied the downturn.
The business, about as large as underwriting initial public offerings before the 2008 financial crisis, is now three times bigger and held steady last year, according to estimates from six bankers who asked not to be identified because the information is private. The contracts accounted for almost 10 percent of total investment-banking fees last year in Europe, the Middle East and Africa as revenue from dealmaking and trading sank, data compiled by research firm Freeman & Co. show.
Because the deals, whose value is tied to stocks, are customized and not traded on exchanges, banks are able to charge higher fees than for contracts in which customers seek competing bids. They’re also attractive to lenders because new rules demanding capital buffers against potential losses aren’t as punitive as for other derivatives.
“Regulatory change may drive banks back to the business, not away from it,” said Rachel Lord, Citigroup Inc.’s London- based global head of corporate equity derivatives. “This is one part of the investment-banking industry where, despite compressed margins, the business remains a high priority because it’s so important to the client base.”
Tailor-Made
Investors such as Aabar Investments PJSC, the Abu Dhabi- based sovereign-wealth fund, and Italy’s Fondazione Monte dei Paschi di Siena, owner of the world’s oldest bank, sought derivatives to protect the value of their holdings or to borrow against equity stakes.
Banks including Deutsche Bank AG, Morgan Stanley and Goldman Sachs Group Inc. are competing in a region that’s the biggest in the world by fees, surpassing the U.S. and Asia. The annual notional value of tailor-made equity derivatives is typically more than $50 billion in Europe, the Middle East and Africa, according to estimates from two of the bankers.
The market is so big and lucrative that even lenders shrinking their investment-banking arms want to keep the business going. Royal Bank of Scotland Group Plc, which is selling or closing brokerage, merger-advisory and IPO- underwriting units, will continue arranging “profitable” equity derivatives, the London-based firm said last month. Credit Agricole SA, France’s second-largest bank by assets, will do the same for corporate clients, said Bertrand Hugonet, a Paris-based spokesman.
“There’s a lot of competition because there’s been a history of profitable transactions in this space,” said Samuel Losada, London-based head of European corporate equity derivatives at Bank of America Corp. “You can achieve over the long run, if risks are managed properly, above-market returns.”
Daimler Derivative
Because the deals are private, there aren’t any publicly available rankings. Based on bankers’ own assessments and the sharing of information among them, the business is dominated by the region’s top equity brokers and better-capitalized firms. Industry leaders include Frankfurt based Deutsche Bank, Morgan Stanley, Goldman Sachs and Citigroup, all in New York, and Zurich-based Credit Suisse Group AG, the bankers said.
Deutsche Bank, Morgan Stanley and Bank of America arranged a derivative in May that allows Abu Dhabi’s Aabar to keep its share of the potential near-term gains of Daimler AG, even as the fund sold a 1.25 billion-euro ($1.7 billion) bond exchangeable for the German automaker’s shares. The sale could cut Aabar’s Daimler holding to 7.2 percent from 9.1 percent when the bond matures in 2016.
The deal was the region’s largest ever derivative overlay, a strategy to hold multiple contracts against the same assets, linked to an exchangeable bond, according to Losada.
Emerging Markets
“There’s a clear trend that the emerging-market business is becoming more important,” said Losada. “We saw continuous activity in this space over the last 12 months.”
Increasing demand from emerging-market clients, such as Middle Eastern sovereign-wealth funds, has helped buck a slowdown in Western European deal flows.
“The business can be divided into two parts: the growth markets, where it’s harder for some to obtain liquidity and hence is driven by financing, and developed markets, where clients seek to manage their equity positions,” said Simon Watson, a managing director at Goldman Sachs in London who heads corporate equity derivatives for the region.
While financial firms are cutting employees in other investment-banking areas, many are looking to add to their equity-derivatives businesses in the region.
‘Beefing Up’
Bank of America, based in Charlotte, North Carolina, may hire two bankers this year to join the eight it has in London today, said Losada. Citigroup this month named Sophie Lecoq to the new position of head of corporate equity derivatives for Europe, the Middle East and Africa.
Morgan Stanley also may increase its team’s headcount, according to Daniel Palmer, the firm’s London-based global head of corporate equity derivatives.
“We expanded our business significantly over the past three years,” said Palmer. “Our team is now almost complete, but we might add one or two heads later in the year.”
Nomura Holdings Inc., which took over Lehman Brothers Holdings Inc.’s European business in 2008, may add one senior banker to its 12-person team in London, said Kenneth Brown, global head of equity capital markets. Lenders are “beefing up their European teams” of corporate equity derivatives because Europe is a now a bigger market than the U.S., he said.
It’s also a more resilient market, and the teams, which typically employ about a dozen people, are small compared with those that manage IPOs, said Christopher Wheeler, a banking analyst at Mediobanca SpA in London.
“It’s a business driven by the sweat of the brow,” Wheeler said.
Margin Loans
While banks can earn more arranging tailor-made equity derivatives than underwriting stock sales, increasing competition has driven down fees for financing some deals, including margin loans, or loans from securities firms backed by clients’ equity holdings used as collateral, the bankers said.
Margin loans are a way for investors who have limited access to bank funding or capital markets to raise money. At least 10 firms competed to win a margin loan from an Italian client this year, compared with three or four that would have bid for the business a couple of years ago, said one banker, who declined to be identified citing client confidentiality.
Monte dei Paschi
Fondazione Monte dei Paschi, the biggest investor in Banca Monte dei Paschi di Siena SpA, last year raised about 600 million euros through loans backed by collateral on its stake in the lender.
Eleven banks participated in the deal, which helped raise funds to pay for shares sold by the bank in June, said Gianni Tiberi, a spokesman for the foundation. The firms, which included Credit Suisse and JPMorgan Chase & Co., participated equally, Tiberi said, declining to elaborate. The loan was reduced to about 525 million euros as Monte dei Paschi shares fell, he said.
In one type of equity derivative, known as an equity swap, one party agrees to receive gains in a stock or basket of stocks and in return makes interest payments to the other party on the value of the securities it bet on. Investment banks typically act as intermediaries between the two parties in the swap.
Under the so-called Basel III rules, approved by the Basel Committee on Banking Supervision and scheduled to be phased in through 2019, banks will face a capital charge for potential mark-to-market losses on over-the-counter derivatives.
Data Gaps
“Because credit markets tend to be less liquid and transparent than equities, banks often need proxies to measure the counterparty risk in credit derivatives, creating data gaps and higher capital charges,” said Anastasios Zavitsanakis, a financial-risk consultant at PricewaterhouseCoopers LLP in London. “The actual exposure in equities is more measurable in the short term, and there might be more collateral, reducing further the capital charges.”
Still, banks’ waning risk appetite is spreading the business around more evenly, said Citigroup’s Lord.
“In the past 10 years, two to three banks would typically lead the industry, while over the last year it has been much more broad-based,” Lord said. “Before 2008, banks would have been happy to be sole books on very large deals. It’s not feasible to do that now, so there’s a lot more deal-sharing.”
Morgan Stanley has expanded its business by building up a book of margin loans, said Palmer.
“Some competitors are looking to sell their loans,” he said. “As banks de-lever, we’ve come across clients coming to us seeking to raise money on a shareholding, for example.”
‘Bespoke Solutions’
Even with the increased competition, Deutsche Bank sees demand from clients “as high as ever,” said Ian Holt, the bank’s London-based global head of equity structuring.
“It’s a good business because you are providing bespoke solutions and providing clients with what they need in and around complex situations, which makes higher margins naturally achievable,” said Holt.
Success for most firms this year depends on whether there’s a pick-up in mergers, bankers said. When companies combine, a seller left with a minority stake may seek to raise funds against the holding by buying put options on the shares and using the options to raise cash. Banks can also use derivatives to help investors who receive stock protect the value of their holdings.
“In M&A, you’re the exclusive adviser, and that’s where you can have prime access to interesting situations before they become public knowledge,” said Bank of America’s Losada. “That’s where the real alpha is.”
–With assistance from Ben Moshinsky in Brussels. Editors: Robert Friedman, Edward Evans
To contact the reporters on this story: Elisa Martinuzzi in Milan at emartinuzzi@bloomberg.net; Zijing Wu in London at zwu17@bloomberg.net
To contact the editors responsible for this story: Edward Evans at eevans3@bloomberg.net; Jacqueline Simmons at jackiem@bloomberg.net
http://tourism9.com/ http://vkins.com/
CVC Capital Buys Ahlsell For EUR1.8 Billion From Cinven, Goldman Sachs
LONDON -(Dow Jones)- Funds advised by Private equity and investment advisory firm CVC Capital Partners Wednesday announce the EUR1.8 billion acquisition of Ahlsell, a Nordic technical products wholesaler from Cinven and Goldman Sachs Capital Partners.
MAIN FACTS:
-Transaction marks the successful completion of exclusive talks between these parties.
-Ahlsell has over 220 outlets in Sweden, Norway, Finland, Denmark, Estonia and Russia.
-Company specializes in providing professional users with a wide range of goods and peripheral services within the heating & plumbing, electrical, tools & machinery, refrigeration and DIY product space.
-In 2011, Ahlsell reported revenues of EUR2.3 billion
-Completion of the transaction is subject to customary competition clearances.
-CVC was advised by Deutsche Bank, Roschier, Freshfields, KPMG and BCG.
-Financing was led by Nordea, Deutsche Bank, Goldman Sachs, Barclays Capital, DNB Nor and Danske Bank.
-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; ian.walker@dowjones.com
http://tourism9.com/ http://vkins.com/
MAIN FACTS:
-Transaction marks the successful completion of exclusive talks between these parties.
-Ahlsell has over 220 outlets in Sweden, Norway, Finland, Denmark, Estonia and Russia.
-Company specializes in providing professional users with a wide range of goods and peripheral services within the heating & plumbing, electrical, tools & machinery, refrigeration and DIY product space.
-In 2011, Ahlsell reported revenues of EUR2.3 billion
-Completion of the transaction is subject to customary competition clearances.
-CVC was advised by Deutsche Bank, Roschier, Freshfields, KPMG and BCG.
-Financing was led by Nordea, Deutsche Bank, Goldman Sachs, Barclays Capital, DNB Nor and Danske Bank.
-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; ian.walker@dowjones.com
http://tourism9.com/ http://vkins.com/
2012年2月28日星期二
Saxo Bank Scoops 4 Awards at the Social Forex Awards 2011
SINGAPORE–(Marketwire -02/27/12)- Saxo Bank, the online trading and investment specialist, has won no less than four Awards at the inaugural Social Forex Awards 2011.
Saxo Bank ranked number one in the following categories:
The awards recognise the outstanding players in the industry and were presented by LetstalkFX and Social-Markets.net, in conjunction with e-Forex magazine and were sponsored by The Chicago Mercantile Exchange. The votes were cast by members of the letstalkFX.com community and marketing was undertaken by the Bank using LinkedIn and Facebook.
Disclaimer:Saxo Capital Markets Pte. Ltd. (“Saxo Capital Markets”) is licensed as a Capital Market Services provider and an Exempt Financial Advisor, and is supervised by the Monetary Authority of Singapore.
You should carefully consider whether trading in leveraged products is appropriate for you in the light of your financial circumstances. You should be aware that dealing in products that are highly leveraged carry significantly greater risk than non-geared investments such as share trading. As such, you could both gain and lose large amounts of money. You may sustain losses in excess of the moneys you initially deposit and also in excess of the margin required to establish and maintain any positions in leveraged products.
For further information, please see:
http://sg.saxomarkets.com/about-us/general-disclaimer
About Saxo Capital Markets
Saxo Capital Markets Pte Ltd is a wholly-owned subsidiary of Saxo Bank A/S, the Copenhagen-headquartered online trading and investment specialist. It serves as the Asia Pacific headquarters and holds a Capital Markets Services license from the Monetary Authority of Singapore. Saxo Capital Markets also holds a Commodity Broker licence from The International Enterprise Singapore.
Clients can trade Forex, CFDs, Stocks, Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, its leading multi-asset online trading platforms.
SaxoTrader is available directly through Saxo Capital Markets or through one of its institutional clients. White labelling is a significant business area for Saxo Capital Markets, and involves customising and branding of its online trading platform for other financial institutions and brokers.
About Saxo Bank
Saxo Bank is a leading online trading and investment specialist. A fully licensed and regulated European bank, Saxo Bank enables private investors and institutional clients to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via three specialised and fully integrated trading platforms: the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application available in over 20 languages. Saxo Bank also offers professional portfolio and fund management through Saxo Asset Management who accommodates high-net-worth private clients and institutional investors and provides banking services and advice to retail clients through Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.
http://tourism9.com/ http://vkins.com/
Saxo Bank ranked number one in the following categories:
- Most Social Bank (through the use of Social Media tools such as LinkedIn, Facebook and Twitter
- Best Social Campaign
- Best Social Initiative/Innovation
- Best Social Research
The awards recognise the outstanding players in the industry and were presented by LetstalkFX and Social-Markets.net, in conjunction with e-Forex magazine and were sponsored by The Chicago Mercantile Exchange. The votes were cast by members of the letstalkFX.com community and marketing was undertaken by the Bank using LinkedIn and Facebook.
Disclaimer:Saxo Capital Markets Pte. Ltd. (“Saxo Capital Markets”) is licensed as a Capital Market Services provider and an Exempt Financial Advisor, and is supervised by the Monetary Authority of Singapore.
You should carefully consider whether trading in leveraged products is appropriate for you in the light of your financial circumstances. You should be aware that dealing in products that are highly leveraged carry significantly greater risk than non-geared investments such as share trading. As such, you could both gain and lose large amounts of money. You may sustain losses in excess of the moneys you initially deposit and also in excess of the margin required to establish and maintain any positions in leveraged products.
For further information, please see:
http://sg.saxomarkets.com/about-us/general-disclaimer
About Saxo Capital Markets
Saxo Capital Markets Pte Ltd is a wholly-owned subsidiary of Saxo Bank A/S, the Copenhagen-headquartered online trading and investment specialist. It serves as the Asia Pacific headquarters and holds a Capital Markets Services license from the Monetary Authority of Singapore. Saxo Capital Markets also holds a Commodity Broker licence from The International Enterprise Singapore.
Clients can trade Forex, CFDs, Stocks, Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, its leading multi-asset online trading platforms.
SaxoTrader is available directly through Saxo Capital Markets or through one of its institutional clients. White labelling is a significant business area for Saxo Capital Markets, and involves customising and branding of its online trading platform for other financial institutions and brokers.
About Saxo Bank
Saxo Bank is a leading online trading and investment specialist. A fully licensed and regulated European bank, Saxo Bank enables private investors and institutional clients to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via three specialised and fully integrated trading platforms: the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application available in over 20 languages. Saxo Bank also offers professional portfolio and fund management through Saxo Asset Management who accommodates high-net-worth private clients and institutional investors and provides banking services and advice to retail clients through Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.
http://tourism9.com/ http://vkins.com/
Bad Credit Loans for Emergency Pet Vet Bills and Medical Expenses
Sacramento, CA (PRWEB) February 28, 2012
In the current economic downturn, consumers know they can turn to trusted ReallyBadCreditOffers.com for bad credit loans and no hassle financial help, but now the beloved family pet has a financial ally as well. The site has announced a new suite of installment loan offers for pet owners in need of money for emergency vet bills to ensure the family pet receives the medical attention it needs.
According to the U.S. Bureau of Labor Statistics, 77% of veterinarians in private practice service the medical needs of pet owners, predominantly dogs and cats. Medical expenses for treating pets have been rising and families face the tough decisions if they do not have the money required to meet the costs of care for their beloved animals.
People with bad credit ratings facing financial hardship in these tough times do not have access to the traditional resources good credit scores make available. The new personal loans being offered allow families access to money with a 60 second application process and no credit check required. In so doing the site hopes to lend a helping hand in an area traditional lenders do not consider an emergency.
“I own a cat and a dog, they are valued members of my family, and have helped me through some very tough times, we just would like to acknowledge how important our pets are to us in challenging times and ensure no family pet is denied the care they deserve because of money trouble,” said Ariel Pryor, founder.
The popular consumer site offers a variety of resources to help families improve their personal finances, eliminate debt and fix and reenter the financial system after bankruptcy, foreclosure and bad credit. Visitors to the site can see a variety of bad credit loans with no hidden fees to compare the offers and choose the best of the recommended services.
Contact:
Ariel Pryor, Credit Expert http://www.reallybadcreditoffers.com
In the current economic downturn, consumers know they can turn to trusted ReallyBadCreditOffers.com for bad credit loans and no hassle financial help, but now the beloved family pet has a financial ally as well. The site has announced a new suite of installment loan offers for pet owners in need of money for emergency vet bills to ensure the family pet receives the medical attention it needs.
According to the U.S. Bureau of Labor Statistics, 77% of veterinarians in private practice service the medical needs of pet owners, predominantly dogs and cats. Medical expenses for treating pets have been rising and families face the tough decisions if they do not have the money required to meet the costs of care for their beloved animals.
People with bad credit ratings facing financial hardship in these tough times do not have access to the traditional resources good credit scores make available. The new personal loans being offered allow families access to money with a 60 second application process and no credit check required. In so doing the site hopes to lend a helping hand in an area traditional lenders do not consider an emergency.
“I own a cat and a dog, they are valued members of my family, and have helped me through some very tough times, we just would like to acknowledge how important our pets are to us in challenging times and ensure no family pet is denied the care they deserve because of money trouble,” said Ariel Pryor, founder.
The popular consumer site offers a variety of resources to help families improve their personal finances, eliminate debt and fix and reenter the financial system after bankruptcy, foreclosure and bad credit. Visitors to the site can see a variety of bad credit loans with no hidden fees to compare the offers and choose the best of the recommended services.
Contact:
Ariel Pryor, Credit Expert http://www.reallybadcreditoffers.com
SBA Loan Firm Now Offers Fixed Rates on SBA 504 and SBA 7a Loans
Chicago, IL (PRWEB) February 28, 2012
Clopton Capital, a provider of business loans, working capital and SBA loans is announcing the arrival fixed rates on both SBA 504 and SBA 7a loans. These small business loans are believed by the firm to be more advantageous and less risky for the borrower since it will be easier to predict the total cost of borrowing business capital or working capital on a fixed SBA loan. They believe this will help drive more business to their firm that they had previously been unable to acquire. This announcement is being made via their SBA loan website, SBABusinessLoanSource.com, CloptonCapital.com and this press release. They believe that it is necessary to establish themselves as soon as possible as a source for fixed interest rate working capital business loans since they believe many of their competitors are soon to do the same. “Being able to provide fixed interest rate SBA loans is definitely a breakthrough for us. I can safely say that this change will benefit us and even more so our clients”, said Jake Clopton, the founder of Clopton Capital.
Clopton Capital states that these fixed interest rate SBA loans have been made available roughly one week before the publishing of this release and that they are fully capable of accepting new SBA loan requests immediately. “This is really exciting to be able to offer these SBA loans as there have been few times in history when they were needed more. I imagine there will be a significant spike in business immediately following our current prospects and clients learning of this”, said Matt Reed, an associate of Clopton Capital.
For more information about Clopton Capital’s business loan services visit their website dedicated to them at CloptonCapital.com. To join their financial link exchange visit CloptonCapital.com/link.
http://tourism9.com/ http://vkins.com/
Clopton Capital, a provider of business loans, working capital and SBA loans is announcing the arrival fixed rates on both SBA 504 and SBA 7a loans. These small business loans are believed by the firm to be more advantageous and less risky for the borrower since it will be easier to predict the total cost of borrowing business capital or working capital on a fixed SBA loan. They believe this will help drive more business to their firm that they had previously been unable to acquire. This announcement is being made via their SBA loan website, SBABusinessLoanSource.com, CloptonCapital.com and this press release. They believe that it is necessary to establish themselves as soon as possible as a source for fixed interest rate working capital business loans since they believe many of their competitors are soon to do the same. “Being able to provide fixed interest rate SBA loans is definitely a breakthrough for us. I can safely say that this change will benefit us and even more so our clients”, said Jake Clopton, the founder of Clopton Capital.
Clopton Capital states that these fixed interest rate SBA loans have been made available roughly one week before the publishing of this release and that they are fully capable of accepting new SBA loan requests immediately. “This is really exciting to be able to offer these SBA loans as there have been few times in history when they were needed more. I imagine there will be a significant spike in business immediately following our current prospects and clients learning of this”, said Matt Reed, an associate of Clopton Capital.
For more information about Clopton Capital’s business loan services visit their website dedicated to them at CloptonCapital.com. To join their financial link exchange visit CloptonCapital.com/link.
http://tourism9.com/ http://vkins.com/
Loans, grants available for home repair
Area residents who need help making home repairs should contact the U.S. Department of Agriculture as soon as possible regarding available loans and grants, said Amy Johnson, a rural development specialist for the USDA’s Rural Development office in Oregon.
“It really is a great program for people who otherwise couldn’t afford to make renovations,” Johnson said. “And people who are at risk of losing their home because of a health and safety issue, this can help with that, too.”
The USDA’s Rural Development program for Northwest Illinois offers financial assistance for home repairs in the form of loans and grants. A repair loan must be used to improve or modernize homes, make them safer and more sanitary, or to remove health and safety hazards, states a USDA news release. Eligible repairs include roofing, siding, windows, foundation repairs, kitchen cabinets, septic system, and furnace/air-conditioning.
The maximum loan amount is $20,000, and loans can be made for a term of 20 years at 1 percent interest, the release states. To qualify, an applicant needs to own and occupy the home, have acceptable credit, be able to repay the loan, and meet “very low” income guidelines, the release states. To help illustrate these guidelines, a family of four in Stephenson County can earn up to $29,950 and still qualify, the release states.
The home repair grants are only awarded for projects that address health, safety, or accessibility issues for a home. Unlike the loans, the grants do not have to be repaid. Grants are often made in conjunction with small loans, and there’s a $7,500 lifetime limit on repair grant funds.
A limited number of these grants are available, the release states. Applicants must meet very low income guidelines, be 62 years of age or older, and demonstrate an inability to make loan payments, the release states.
Johnson said homeowners who think they might qualify for a loan or grant should call the USDA office in Oregon. Department officials will ask callers several preliminary questions to get a sense of whether they qualify. Then, an application will be sent to the homeowner if they wish, Johnson said. For disabled residents, USDA officials can also visit the individual’s home to deliver the application and help them with the process, she said.
“It runs all year long every year,” Johnson said of the Rural Development program.
The USDA’s Rural Development office in Oregon serves seven counties in Northwest Illinois, including Stephenson, Jo Daviess, Carroll, Boone, Winnebago, Ogle, and Lee.http://tourism9.com/ http://vkins.com/
“It really is a great program for people who otherwise couldn’t afford to make renovations,” Johnson said. “And people who are at risk of losing their home because of a health and safety issue, this can help with that, too.”
The USDA’s Rural Development program for Northwest Illinois offers financial assistance for home repairs in the form of loans and grants. A repair loan must be used to improve or modernize homes, make them safer and more sanitary, or to remove health and safety hazards, states a USDA news release. Eligible repairs include roofing, siding, windows, foundation repairs, kitchen cabinets, septic system, and furnace/air-conditioning.
The maximum loan amount is $20,000, and loans can be made for a term of 20 years at 1 percent interest, the release states. To qualify, an applicant needs to own and occupy the home, have acceptable credit, be able to repay the loan, and meet “very low” income guidelines, the release states. To help illustrate these guidelines, a family of four in Stephenson County can earn up to $29,950 and still qualify, the release states.
The home repair grants are only awarded for projects that address health, safety, or accessibility issues for a home. Unlike the loans, the grants do not have to be repaid. Grants are often made in conjunction with small loans, and there’s a $7,500 lifetime limit on repair grant funds.
A limited number of these grants are available, the release states. Applicants must meet very low income guidelines, be 62 years of age or older, and demonstrate an inability to make loan payments, the release states.
Johnson said homeowners who think they might qualify for a loan or grant should call the USDA office in Oregon. Department officials will ask callers several preliminary questions to get a sense of whether they qualify. Then, an application will be sent to the homeowner if they wish, Johnson said. For disabled residents, USDA officials can also visit the individual’s home to deliver the application and help them with the process, she said.
“It runs all year long every year,” Johnson said of the Rural Development program.
The USDA’s Rural Development office in Oregon serves seven counties in Northwest Illinois, including Stephenson, Jo Daviess, Carroll, Boone, Winnebago, Ogle, and Lee.http://tourism9.com/ http://vkins.com/
Private Equity, Finance Lawyer Melinda Rishkofski Joins Baker Botts L.L.P. as Partner in Moscow
MOSCOW, February 28, 2012 /PRNewswire/ –
Melinda Rishkofski, who has represented private equity fund managers, international financial institutions and portfolio companies in Russia, Eastern Europe, the UK and the US, has joined Baker Botts L.L.P. as a partner in the firm´s Moscow office.
(Photo: http://photos.prnewswire.com/prnh/20120228/DA58239)
(Logo: http://photos.prnewswire.com/prnh/20100503/BAKERBOTTSLOGO)
Rishkofski´s experience includes working with Russian and Eastern European privatization policies, policy advice and drafting laws for the new Russian economy, development of Russian corporate securities and regulatory structures. She also worked on regulatory and legislative matters with representatives for the U.S. and Russian governments.
“Melinda adds depth to our international transactional resources, ” said Baker Botts Managing Partner Walt Smith. “Her focus on the Russian market and her extensive private equity experience are significant additions to our client offerings.”
Prior to joining Baker Botts, Rishkofski was general counsel for Russian-based Baring Vostok Capital Partners. As principal advisor, negotiator and transaction counsel, she provided legal support to financial institutions, multilateral development banks, private equity fund managers and Russian companies with respect to debt and equity financing transactions, mergers and acquisitions, restructurings, employee incentive programs, dispute resolution and general corporate matters.
In this role, Rishkofski has worked with and served more than 35 investee companies and the legal needs of private equity investment funds with more than $2 billion in capital and assets. She has also worked extensively with the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the Overseas Private Investment Corporation (OPIC) on secured credit and debt and equity financing transactions.
“Melinda´s extensive knowledge of the private equity and funds sector in Russia and the CIS, a market sector where we expect to see significant increased activity in 2012, will provide our clients working in or entering into this sector an expertise not currently available from legal consultants in the region, ” said Steven Wardlaw, Partner in Charge of Baker Botts´ Moscow office.
Rishkofski obtained a BS from the Pennsylvania State University in the U.S., a J.D. from the Dickinson School of Law (now part of the Pennsylvania State University), and an LL.M in International Business and Finance from the University of London, Kings College in the UK.
About Baker Botts L.L.P.
Baker Botts is an international law firm with over 725 lawyers and a network of 13 offices around the globe. Based on our experience and knowledge of our clients´ industries, we are recognized as a leading firm in the energy, technology and life sciences sectors. Throughout our 172-year history, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit http://www.bakerbotts.com/.
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Stephen Winningham Joins Houlihan Lokey as Co-Head of European Corporate Finance
LONDON–(BUSINESS WIRE)–
Houlihan Lokey, an international investment bank, announced today that Stephen Winningham has joined as Managing Director and Co-Head of European Corporate Finance in the firm’s London office.
Mr. Winningham, formerly with Lloyds Banking Group, will work alongside Brian McKay, Managing Director and fellow Co-Head of European Corporate Finance, and will focus on further developing the firm’s European M&A and financing business. He will report to Scott Adelson and Robert Hotz, Senior Managing Directors and Global Co-Heads of the firm’s Corporate Finance business.
Mr. Winningham was recently head of Major Corporates at Lloyds Banking Group, overseeing the group’s coverage of U.K. and U.S. investment grade corporate clients. Prior to this, he was global head of Lloyds Banking Group’s Financial Institutions business.
“Stephen’s extensive international experience and proven track record in building client relationships will be instrumental in further enhancing our European and cross-border coverage,” said Scott Adelson. “Stephen’s appointment underlines our commitment to provide fully-integrated client focused advisory services to our corporate clients. He will be working closely with our sector and product specialists to build on the strong presence Houlihan Lokey has already created in the region,” added Robert Hotz.
“I’m delighted to join the firm at a time when there is an increasing need for independent strategic advice in the marketplace, which is something that Houlihan Lokey specializes in,” said Stephen Winningham. “I look forward to contributing to our growth strategy and further enhancing our client offering.”
Mr. Winningham brings with him three decades of experience in investment banking and commercial banking. Prior to Lloyds Banking Group, he was group head of the Asia Industrials and M&A groups at Salomon Brothers/Citigroup in Hong Kong. He also held leadership roles at Paine Webber Inc. and Kidder Peabody & Co. in New York (both now part of the UBS Group). He started his investment banking career at Drexel Burnham Lambert. Mr. Winningham holds a MBA from Columbia University and a bachelor’s degree from Colgate University in New York. He undertook additional graduate level studies in economics at New York University.
About Houlihan Lokey
Houlihan Lokey is an international investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation serving clients for 40 years. The firm is ranked globally as the No. 1 restructuring advisor, the No. 1 M&A fairness opinion advisor over the past 10 years, and the No. 1 M&A advisor for U.S. transactions under $1 billion, according to Thomson Reuters. Houlihan Lokey has 14 offices and more than 850 employees in Europe, the United States and Asia. The firm serves more than 1,000 clients each year, ranging from closely held companies to Global 500 corporations. For more information, visit http://www.hl.com/.
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EU, Indonesia negotiate partnership
Jakarta (The Jakarta Post/ANN) – Indonesia and the European Union (EU) began negotiations on Monday on a comprehensive economic partnership agreement (CEPA) that seeks to eliminate over 95 per cent of import tariffs on goods and improve bilateral investment.
The chief operating officer of the EU’s external action service, David O’Sullivan, said the Indonesia-European Union CEPA would be very important for the economic growth of both regions amidst the global economic turmoil.
“We already are a major trading and investment partner of Indonesia. In fact, we have huge complementarity. We believe it is very beneficial in terms of trade and investment to have an agreement with Indonesia. It is a win-win solution for both sides,¿ O’Sullivan said.
The EU has a combined non oil and gas trade value of US$32 billion in 2011 with Indonesia, an all time high, and a trade surplus of $8 billion for Indonesia.
In terms of investments, businesses from the EU invested up to $2.2 billion in 2011, making it the second-largest source of foreign investment into Indonesia. EU companies also employ over 500,000 employees in Indonesia.
“It is time to start the negotiation. From our perspective, trade negotiation typically takes a couple of years but this negotiation could go relatively quickly,¿ O’Sullivan said.
Based on policy recommendations from a joint study team, the CEPA would cover improvements in market access, capacity building and facilitation of trade and investment. On trade, the agreement would implement gradual tariff reduction within a period of nine years, eliminating 95 per cent of tariffs and possibly even the remaining 5 per cent.
The capacity-building program would include a permanent forum for business-to-business and business-to-government technical dialogue and joint financing for programs. CEPA would also cover standard protocols for joint cooperation in infrastructure development under the so-called private-partnership framework.
House of Representatives’ trade commission chairman Airlangga Hartarto said that the multitude of issues being discussed meant the agreement could potentially provide many beneficial opportunities for both regions.
“This is not a Free Trade Area (FTA) agreement but will be more comprehensive. The issues being discussed include trading, investment and capacity-building. These issues make this agreement different from the FTA, which only aims at eliminating levies,¿ Airlangga said.
Indonesian Employers’ Association (Apindo) chairman Sofjan Wanandi said that he expected EU investment to provide benefits to small- and medium-scale enterprises (SMEs), a sector on which Indonesia relied heavily for growth.
“I believe this [agreement] will benefit both sides and we must also involve SMEs in our future investment plans. We are going to promote this agreement throughout the essential business regions in the country,¿ Sofjan said.
“Now that the negotiation is underway, we need to promote this agreement to the public so that they can give us their input. This [negotiation] will take time and therefore Indonesia must play the main role in ensuring the discussions go in line with our interests,¿ he added.
Indonesian Chamber of Commerce and Industry (Kadin) deputy chairman for international trade Emirsyah Satar said that establishing a comprehensive partnership with the EU was important because there was still a lot of untapped potential.
“We rank only at number 23 in the world in imports to the EU. On the other hand, the EU is the fourth-largest exporter into Indonesia. So, there is still a lot of room for business growth,¿ Emirsyah said.
COPYRIGHT: ASIA NEWS NETWORK
The chief operating officer of the EU’s external action service, David O’Sullivan, said the Indonesia-European Union CEPA would be very important for the economic growth of both regions amidst the global economic turmoil.
“We already are a major trading and investment partner of Indonesia. In fact, we have huge complementarity. We believe it is very beneficial in terms of trade and investment to have an agreement with Indonesia. It is a win-win solution for both sides,¿ O’Sullivan said.
The EU has a combined non oil and gas trade value of US$32 billion in 2011 with Indonesia, an all time high, and a trade surplus of $8 billion for Indonesia.
In terms of investments, businesses from the EU invested up to $2.2 billion in 2011, making it the second-largest source of foreign investment into Indonesia. EU companies also employ over 500,000 employees in Indonesia.
“It is time to start the negotiation. From our perspective, trade negotiation typically takes a couple of years but this negotiation could go relatively quickly,¿ O’Sullivan said.
Based on policy recommendations from a joint study team, the CEPA would cover improvements in market access, capacity building and facilitation of trade and investment. On trade, the agreement would implement gradual tariff reduction within a period of nine years, eliminating 95 per cent of tariffs and possibly even the remaining 5 per cent.
The capacity-building program would include a permanent forum for business-to-business and business-to-government technical dialogue and joint financing for programs. CEPA would also cover standard protocols for joint cooperation in infrastructure development under the so-called private-partnership framework.
House of Representatives’ trade commission chairman Airlangga Hartarto said that the multitude of issues being discussed meant the agreement could potentially provide many beneficial opportunities for both regions.
“This is not a Free Trade Area (FTA) agreement but will be more comprehensive. The issues being discussed include trading, investment and capacity-building. These issues make this agreement different from the FTA, which only aims at eliminating levies,¿ Airlangga said.
Indonesian Employers’ Association (Apindo) chairman Sofjan Wanandi said that he expected EU investment to provide benefits to small- and medium-scale enterprises (SMEs), a sector on which Indonesia relied heavily for growth.
“I believe this [agreement] will benefit both sides and we must also involve SMEs in our future investment plans. We are going to promote this agreement throughout the essential business regions in the country,¿ Sofjan said.
“Now that the negotiation is underway, we need to promote this agreement to the public so that they can give us their input. This [negotiation] will take time and therefore Indonesia must play the main role in ensuring the discussions go in line with our interests,¿ he added.
Indonesian Chamber of Commerce and Industry (Kadin) deputy chairman for international trade Emirsyah Satar said that establishing a comprehensive partnership with the EU was important because there was still a lot of untapped potential.
“We rank only at number 23 in the world in imports to the EU. On the other hand, the EU is the fourth-largest exporter into Indonesia. So, there is still a lot of room for business growth,¿ Emirsyah said.
COPYRIGHT: ASIA NEWS NETWORK
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Manhattan Lures REITs Capitalizing on Rising Rents as Sales Lag: Mortgages
Tom Toomey, chief executive officer of real estate investment firm UDR Inc. (UDR), is betting the best rental deal in Manhattan is owning the whole building.
The nation’s third-largest apartment real estate investment trust bought a five-tower apartment complex on Columbus Avenue between West 97th and 100th streets for about $630 million last month, with rents from $2,500 for a studio or one-bedroom apartment to more than $10,000 a month for a penthouse suite. It’s Toomey’s fifth purchase in Manhattan in the past year as rents soar and financing difficulties make it harder for individuals to buy.
“Financing and underwriting are much tighter,” Toomey said in a telephone interview. With purchases requiring larger down payments, “people are going to stay renters for a long time,” said Toomey, who’s based in Highlands Ranch, Colorado.
Strict lending standards for so-called jumbo mortgages have contributed to declining home buying across the U.S. by even the most creditworthy borrowers as issuance of the loans has dropped 68 percent since 2007. Nowhere is that more evident than in Manhattan, where the median price of a two-bedroom apartment is about $1.2 million, almost twice the limit backed by government- supported mortgage companies Fannie Mae and Freddie Mac.
Manhattan rents rose 9.5 percent last quarter to an average $3,121, Miller Samuel Inc. and Prudential Douglas Elliman Real Estate said in a report last month. That’s about three times the rate for the 44 largest apartment markets in the U.S., according to Marcus & Millichap, a real estate brokerage firm. Manhattan rental apartment vacancy rates fell to a four-year low of 0.96 percent last year, down from 1.2 percent a year earlier and 1.9 percent in 2009, according to brokerage Citi Habitats. Vacancy bottomed in 2006 at 0.76 percent.
Jumbo loans exceed limits set for government-controlled mortgage companies by congress. For New York that’s $625,500.
Wall Street’s pay practices are also making it harder to buy, as financial firms increasingly pay bonuses in stock and deferred cash, said Alan Johnson, managing director of compensation consultant Johnson Associates Inc.
Morgan Stanley, Credit Suisse Group AG and Citigroup Inc. have all reduced senior investment bankers’ pay for last year as revenue slows. Morgan Stanley is capping immediate cash bonuses at $125,000, people with knowledge of the move said last month.
Renters outnumber homeowners in the country’s largest cities including New York, Los Angeles and Chicago. More than 77 percent of Manhattan’s occupied units were rented in the decade ended 2010, compared with nearly 23 that were owned, data from the Census Bureau showed.
Nationally, the home ownership rate fell 1.1 percent to 65.1 percent from 2000 to 2010, the largest decrease since the Great Depression, according to the U.S. Census Bureau.
Low vacancy rates and rents that are likely to continue climbing this year have made apartments the “darling” of commercial real estate, according to Ryan Severino, economist at research firm Reis Inc.
Toomey said in August that the REIT planned to invest as much as $1.8 billion in Manhattan apartment buildings. Its most recent purchase, about 700 apartment units at Columbus Square on the Upper West Side, was a joint venture with MetLife Inc. (MET), the biggest U.S. life insurer.
They partly funded the purchase with $302.3 million of 10- year fixed- and floating-rate debt from Fannie Mae, the government-supported mortgage company, UDR said in a statement last month. The loans pay 3.8 percent interest.
That compares with a rate of 4.85 percent for a 30-year jumbo mortgage to an individual in New York (ILMJNY) and 4.73 percent nationally, according to Bankrate.com data. For conforming Freddie Mac (NMCMFUS) loans, rates are 3.95 percent, after falling to 3.87 percent this month, the lowest in records dating to 1971.
For Fannie Mae and Freddie Mac, the conforming limit is $625,500 in high-priced markets such as New York, San Francisco and the Florida Keys, compared with $417,000 for most of the rest of the country. The Federal Housing Administration (FHAVARM$), a government agency with the goal of expanding ownership for “underserved” communities, according to its website, will insure loans up to $729,750 in New York.
Banks and mortgage lenders issued $110 billion in jumbo loans last year, up 5.8 percent from 2010, according to Guy Cecala, publisher of Inside Mortgage Finance. The market has contracted from $348 billion in 2007 after peaking in 2003 at $650 billion.
Lenders and bankers, no longer able to package jumbo loans and sell them to investors, are required to have enough capital to carry non-conforming debt on their books until maturity.
“Some don’t have the ability to keep it on their balance sheets,” Monte N. Redman, president of bank holding company Astoria Financial Corp., said in a telephone interview.
FHA loans are also harder to get in Manhattan, and aren’t available at all for co-op apartments, because borrowers purchase shares in the building’s management company instead of buying the property itself. The FHA does limited lending for condominiums, units individually grouped into a cluster. It insured 107 mortgages for condos in Manhattan last year, compared with 90 in 2010 and 42 in 2009, the FHA said.
Non-conforming loans nationally accounted for nearly 2 percent of all purchase applications last year, up 33 percent relative to 2010, according to the Mortgage Bankers Association’s monthly profile of state and national mortgage activity.
Those loans have tougher standards such as high interest rates and down payments ranging from 25 to 40 percent, according to Mike Fratantoni, vice president of research for the Mortgage Bankers Association.
“They’re only available to the best credit borrowers,” Fratantoni said.
Financing a purchase with loans above government limits won’t get easier until the secondary market grows an appetite for jumbo loans, according to Miller of Miller Samuel.
The secondary market comprises mortgage bankers, savings and loan associations and large private investment institutions that buy mortgages from primary lenders or investors.
Redwood Trust Inc. (RWT), a real estate investment trust based in Mill Valley, California, has completed four sales of bonds totaling about $1 billion tied to new U.S. home loans since 2010, according to Mike McMahon, managing director of Redwood, which specializes in jumbo loans.
Wells Fargo & Co., the nation’s largest home lender, plans to trim credit requirements this year as it aims to increase its loan volume, according to Greg Gwizdz, sales manager for the eastern U.S. for Wells Fargo Home Mortgage. The bank reduced the cost of loans over $2 million last month and is lowering post- closing requirements for cash reserves, he said.
“We’re seeing a fair amount of demand, we have a strong appetite and we’re doing a lot of volume,” Gwizdz said in a telephone interview.
Wells Fargo funded $13.7 billion in non-conforming loans across the nation for the nine month period ending September, the San Francisco-based lender said. In Manhattan its volume of loans without government backing increased 56 percent from a year earlier.
“Without the conversion, the condos wouldn’t have sold or would have sold at half the price,” Bob Scaglion of Rose Associates, the company’s manager, said. Eventually, the owners want to put the condominiums back on the purchase market, according to Heather McDonough, broker for Prudential Real Estate who works to sell William Beaver units.
“The rentals are in high demand,” McDonough said. “In a few years, maybe it will be different.”
To contact the reporter on this story: Christine Harvey in New York at charvey32@bloomberg.net
To contact the editor responsible for this story: Rob Urban at robprag@bloomberg.net
http://tourism9.com/ http://vkins.com/
The nation’s third-largest apartment real estate investment trust bought a five-tower apartment complex on Columbus Avenue between West 97th and 100th streets for about $630 million last month, with rents from $2,500 for a studio or one-bedroom apartment to more than $10,000 a month for a penthouse suite. It’s Toomey’s fifth purchase in Manhattan in the past year as rents soar and financing difficulties make it harder for individuals to buy.
“Financing and underwriting are much tighter,” Toomey said in a telephone interview. With purchases requiring larger down payments, “people are going to stay renters for a long time,” said Toomey, who’s based in Highlands Ranch, Colorado.
Strict lending standards for so-called jumbo mortgages have contributed to declining home buying across the U.S. by even the most creditworthy borrowers as issuance of the loans has dropped 68 percent since 2007. Nowhere is that more evident than in Manhattan, where the median price of a two-bedroom apartment is about $1.2 million, almost twice the limit backed by government- supported mortgage companies Fannie Mae and Freddie Mac.
Manhattan rents rose 9.5 percent last quarter to an average $3,121, Miller Samuel Inc. and Prudential Douglas Elliman Real Estate said in a report last month. That’s about three times the rate for the 44 largest apartment markets in the U.S., according to Marcus & Millichap, a real estate brokerage firm. Manhattan rental apartment vacancy rates fell to a four-year low of 0.96 percent last year, down from 1.2 percent a year earlier and 1.9 percent in 2009, according to brokerage Citi Habitats. Vacancy bottomed in 2006 at 0.76 percent.
Wall Street Pay
“The key to the strength of the rental market is tightness of credit,” Jonathan Miller, president of appraiser Miller Samuel, said in a telephone interview. “It takes quadruple-A bizarre credit requirements to get approved.”Jumbo loans exceed limits set for government-controlled mortgage companies by congress. For New York that’s $625,500.
Wall Street’s pay practices are also making it harder to buy, as financial firms increasingly pay bonuses in stock and deferred cash, said Alan Johnson, managing director of compensation consultant Johnson Associates Inc.
Morgan Stanley, Credit Suisse Group AG and Citigroup Inc. have all reduced senior investment bankers’ pay for last year as revenue slows. Morgan Stanley is capping immediate cash bonuses at $125,000, people with knowledge of the move said last month.
Shorter Commitment
“It’s not a great sign for the financial sector contributing to purchasing apartments because there’s no sense of urgency to buy,” said Johnson. “Rentals are a much shorter commitment.”Renters outnumber homeowners in the country’s largest cities including New York, Los Angeles and Chicago. More than 77 percent of Manhattan’s occupied units were rented in the decade ended 2010, compared with nearly 23 that were owned, data from the Census Bureau showed.
Nationally, the home ownership rate fell 1.1 percent to 65.1 percent from 2000 to 2010, the largest decrease since the Great Depression, according to the U.S. Census Bureau.
Low vacancy rates and rents that are likely to continue climbing this year have made apartments the “darling” of commercial real estate, according to Ryan Severino, economist at research firm Reis Inc.
Apartment Indices
The Bloomberg REIT Apartment Index (BBREAPT) of 16 publicly traded landlords returned 10 percent in the past year, including reinvested dividends, compared with returns of 6.8 percent for the Bloomberg REIT Index (BBREIT) and 5.2 percent for the Standard & Poor’s 500 Index. Equity Residential (EQR), the largest U.S. apartment REIT, returned 11.2 percent in the past year, according to data compiled by Bloomberg, and UDR gained 10.8 percent.Toomey said in August that the REIT planned to invest as much as $1.8 billion in Manhattan apartment buildings. Its most recent purchase, about 700 apartment units at Columbus Square on the Upper West Side, was a joint venture with MetLife Inc. (MET), the biggest U.S. life insurer.
They partly funded the purchase with $302.3 million of 10- year fixed- and floating-rate debt from Fannie Mae, the government-supported mortgage company, UDR said in a statement last month. The loans pay 3.8 percent interest.
That compares with a rate of 4.85 percent for a 30-year jumbo mortgage to an individual in New York (ILMJNY) and 4.73 percent nationally, according to Bankrate.com data. For conforming Freddie Mac (NMCMFUS) loans, rates are 3.95 percent, after falling to 3.87 percent this month, the lowest in records dating to 1971.
Housing Limits
Lenders have been wary to issue mortgages for non- conforming loans including jumbos since the housing market started falling in 2006 and losses on mortgage securities propelled the nation into the worst financial crisis since the Great Depression.For Fannie Mae and Freddie Mac, the conforming limit is $625,500 in high-priced markets such as New York, San Francisco and the Florida Keys, compared with $417,000 for most of the rest of the country. The Federal Housing Administration (FHAVARM$), a government agency with the goal of expanding ownership for “underserved” communities, according to its website, will insure loans up to $729,750 in New York.
Banks and mortgage lenders issued $110 billion in jumbo loans last year, up 5.8 percent from 2010, according to Guy Cecala, publisher of Inside Mortgage Finance. The market has contracted from $348 billion in 2007 after peaking in 2003 at $650 billion.
Origination Volumes
Mortgage origination overall was down 17 percent year-over- year to $1.35 trillion, the lowest in over a decade, according to Cecala.Lenders and bankers, no longer able to package jumbo loans and sell them to investors, are required to have enough capital to carry non-conforming debt on their books until maturity.
“Some don’t have the ability to keep it on their balance sheets,” Monte N. Redman, president of bank holding company Astoria Financial Corp., said in a telephone interview.
FHA loans are also harder to get in Manhattan, and aren’t available at all for co-op apartments, because borrowers purchase shares in the building’s management company instead of buying the property itself. The FHA does limited lending for condominiums, units individually grouped into a cluster. It insured 107 mortgages for condos in Manhattan last year, compared with 90 in 2010 and 42 in 2009, the FHA said.
Manhattan Sales
Manhattan co-op and condominium sales totaled 2,011 in the fourth quarter, 12.4 percent less a year earlier, according to Miller Samuel and Prudential.Non-conforming loans nationally accounted for nearly 2 percent of all purchase applications last year, up 33 percent relative to 2010, according to the Mortgage Bankers Association’s monthly profile of state and national mortgage activity.
Those loans have tougher standards such as high interest rates and down payments ranging from 25 to 40 percent, according to Mike Fratantoni, vice president of research for the Mortgage Bankers Association.
“They’re only available to the best credit borrowers,” Fratantoni said.
Financing a purchase with loans above government limits won’t get easier until the secondary market grows an appetite for jumbo loans, according to Miller of Miller Samuel.
The secondary market comprises mortgage bankers, savings and loan associations and large private investment institutions that buy mortgages from primary lenders or investors.
MBS Sales
There are signs of revival for mortgage-backed securities, according to Jan Scheck, managing director at DE Capital Mortgage, a New York-based mortgage consulting firm.Redwood Trust Inc. (RWT), a real estate investment trust based in Mill Valley, California, has completed four sales of bonds totaling about $1 billion tied to new U.S. home loans since 2010, according to Mike McMahon, managing director of Redwood, which specializes in jumbo loans.
Wells Fargo & Co., the nation’s largest home lender, plans to trim credit requirements this year as it aims to increase its loan volume, according to Greg Gwizdz, sales manager for the eastern U.S. for Wells Fargo Home Mortgage. The bank reduced the cost of loans over $2 million last month and is lowering post- closing requirements for cash reserves, he said.
“We’re seeing a fair amount of demand, we have a strong appetite and we’re doing a lot of volume,” Gwizdz said in a telephone interview.
Wells Fargo funded $13.7 billion in non-conforming loans across the nation for the nine month period ending September, the San Francisco-based lender said. In Manhattan its volume of loans without government backing increased 56 percent from a year earlier.
William Beaver House
For now, building owners don’t have time to wait for the rebound. William Beaver House in Manhattan’s Financial District was mostly empty in 2010, two years after the 47-story condominium tower was built. It’s almost 90 percent occupied after owner CIM Group converted the units to luxury rentals costing more than $8,000 a month for a three-bedroom. A down payment on a $3 million apartment at William Beaver would range anywhere from $750,000 to over $1 million, per jumbo loan standards. A pre-recession down payment, averaging 20 percent or less, would have cost $600,000.“Without the conversion, the condos wouldn’t have sold or would have sold at half the price,” Bob Scaglion of Rose Associates, the company’s manager, said. Eventually, the owners want to put the condominiums back on the purchase market, according to Heather McDonough, broker for Prudential Real Estate who works to sell William Beaver units.
“The rentals are in high demand,” McDonough said. “In a few years, maybe it will be different.”
To contact the reporter on this story: Christine Harvey in New York at charvey32@bloomberg.net
To contact the editor responsible for this story: Rob Urban at robprag@bloomberg.net
http://tourism9.com/ http://vkins.com/
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