Growth Concerns, Financials Push Wall Street Lower

Growth Concerns, Financials Push Wall Street Lower

 

wall street

On the one hand, the European financial sector is facing erratic profitability crisis, while; at the same time, the U.S. stocks are dropping at a rapid pace, as well. Global growth is being highly impacted by the ever – increasing dropping market shares and expensive monetary policies imposed by banks. Signs of stress can be seen in all major nations and future of the financial sector seems unpredictable and uncertain.

 

Due to numerous factors, even the U.S. Federal Reserve has been slightly secretive about their decisions. No one can be absolutely certain anymore regarding the future of rates. The situation has further worsened, especially taken into account the sudden drop of 2.6 percent in S&P financial index. This is undoubtedly the worst performing year as far as S&P sectors are concerned.

 

Investors are adapting to a laid – back kind of an attitude. This is as a result of the increasingly uncertain monetary policies. This subsequently is leading to question of whether the next big recession is in order to follow.

 

“I think that’s what financials are reflecting – that their net interest margins are going to be further compressed under collapsing bond yields,” said Mark Luschini, Chief Investment Strategist at Janney Montgomery Scott in Philadelphia.

 

Stocks of leading internet forums such as Facebook and Amazon had been marked as a form of strength in the previous year. In fact, fund managers have even said that last year’s gains, especially of the internet stocks such as Facebook have resulted in an increase of thirty – seven percent. Netflix can also be soaring with a total of 144 percent. This has naturally led people to choose internet shares as their first preference. However, their shares also face slight drops of 4.2 percent and 2.8 percent, respectively.

 

However, Chesapeake Energy faced a downfall of 33.3 percent at $2.04. They are hammered to such an extent that they are forced to opt for an alternative restructuring option with the help of their existing adviser, Kirkland & Ellis.

 

At the same time, the Dow Jones closed down at 177.92 points alongside the S&P 500 that lost 26.62 points. Nasdaq Composite too further dropped 79.39 points.

 

Fluctuating oil prices are also to a certain extent, adding tension to the already existing barriers that lay toward achieving a global growth in terms of finance and economy.

 

The technology sector is not spared either. Tech Company, Cognizant resulted in a drop of 7.7 percent to 54.05 dollars. The IT services also issue a weak sales forecast.

 

According to Thomson Reuters data, “Approximately 10.6 billion shares changed hands on U.S. exchanges, above the 9.4 billion daily average for the past 20 trading days.”

 

Declining issues outnumbered advancing ones on the NYSE by 2,484 to 618, for a 4.02-to-1 ratio on the downside; on the Nasdaq, 2,029 issues fell and 804 advanced for a 2.52-to-1 ratio favoring decliners. The S&P 500 posted 7 new 52-week highs and 97 new lows; the Nasdaq recorded 4 new highs and 495 new lows.

What’s the Difference Between Secure and Unsecured Debt

What’s the Difference Between Secure and Unsecured Debt

secure debt

If you’re going through the process of applying for title loans, registration loans, bank loans, or considering consolidating your debt, the phrases “secure” and/ord “unsecure” debt have probably come up at least once so far. You may have smiled and nodded, and pretended like you understood every piece of insane lending jargon they threw at you. But inside you were screaming, “Wait, what is that? Is that important?! Should I know this?!”

 

Short answer: you should know it in order to fully understand what you can expect out of your new financial situation. Here’s your chance!

 

Understanding Creditworthiness

 

So the first thing you need to know before moving on to secure and unsecured debts is how creditworthiness works. Essentially, when a loan applicant approaches a credit-provider, the credit-provider wants to know that you’ll be able to pay them back their money; it’s a matter of safety for them.

 

The more proof you have that you can pay off that debt (and/or that you have successfully paid off your debts in the past) then they’ll be more likely to trust you with a loan. Creditworthiness is typically measured by two indicators:

 

  1. Your credit score and financial history.
  2. Your list of collateral or assets.

 

First they’ll check your credit and financial history. If you have a history of paying all your bills on time, not owing any money to anyone, you have a steady source of income, and so on… then they’ll consider you an ideal candidate for a loan.

 

But if your credit score is subprime and you lack positive financial history, they’ll move on to any collateral or assets that you may own. These possessions hold value, so they can be put up against the loan as a form of collateral insurance that the creditor will get their money back.

 

Unsecured Debt

 

Most forms of unsecured debt come from the first of the two types of creditworthiness indicators: credit score and financial history. The loan is based solely on your promise that you’ll pay on time. I.e. it’s not secured by any physical possessions, assets, or collateral, therefore… ‘unsecured.’

 

Unsecured debt is more likely to feature higher interest rates than secured debt, because the credit-provider really only has your word. That makes it a riskier loan for them to give out, so they compensate that risk with a higher rate of interest.

 

Secured Debt

 

Since secured debt requires you to provide the credit-provider with some form of collateral, the interest rates are usually lower because the bank has a physical and more tangible guarantee that you’ll pay them back. One example of a secured loan is a mortgage. Your house is the collateral in that example.

 

That’s why banks require the lender to get home insurance in order to apply for a mortgage; they want you to protect their asset in case you default on the loan and they need to sell your house to recoup the money that you lost them.

 

Secured debts can be used with cars, property, businesses, and other types of assets and resources that the creditor approves as having good equity.

 

The Women of 2016’s ‘30 Under 30’ From European Finance

The Women of 2016’s ‘30 Under 30’ From European Finance

finance expert

Out of the 30 financial experts that were selected for Europe’s 30 Under 30, there were 8 women that made the cut. In a male-dominated field where women have more obstacles to overcome in order to be taken seriously, these eight women have displayed persistence, intelligence, grit, and indomitable innovativeness.

 

In 2017, let’s hope there are more women chosen to be featured in the 30 Under 30. Until then, let’s celebrate these top-dogs in Europe’s financial arena:

 

 

  • Ophelia Brown

 

Age: 29

United Kingdom

Principal, Index Ventures

A year ago, when Brown was the lead investor of her firm, a Spanish tech startup decided to raise their Series A round. After the startup refused to negotiate with her, Brown sat outside their offices in Barcelona for two weeks. Her dedication won her the deal. Brown has also sourced Index’s investments in Osper, Big Health and Marvel.

2. Laura-Maria Baz

Age: 26

United Kingdom

Investment Professional, Vitol Group

Baz had previously worked out of the Russian, Korean, and Abu Dhabi offices of Citigroup. Now Baz is an investor at Vitol Group, the commodities megalith. Baz more specifically deals with multi-billion dollar energy portfolios.

3. Stefania Boroli

Age: 29

Italy

Investment Manager, IDEA Capital Funds SGR

Boroli has a history of creating her own opportunities. She is a cofounder of Mentors4u, which is a non-profit mentoring program for undergraduate college students that want to get into finance. Boroli was formerly a consultant at Bain. She then helped to create “Idea Taste of Italy.” Focusing on the Italian food and wine sector, “Idea Taste of Italy” is a private equity fund where Boroli operates as an investment manager.  

4. Gamze Demirci

Age: 25

Germany

Analyst, Hasso Plattner Ventures

Before becoming an analyst for Hasso Plattner Ventures, Demirci worked with tech startups with Global Venture Development at Rocket Internet. As an analyst for Hasso Plattner Ventures, Demirci advises portfolio companies as well as performing due diligence.

5. Frances Houweling

Age: 29

Netherlands

Associate Director, IK Investment Partners

Renowned for her knack of finding the smartest investment bets, Houweling employs a tactic of wide focus to lock down the best in the industry. Vista and CIS Lines are two popular firms that Houweling had the foresight to invest in. Before becoming the Associate Director at IK Investment Partners, Houweling worked as an analyst with J.P. Morgan’s investment bank and fixed income divisions within the firm.

6. Lauren Hurwitz

Age: 29

United Kingdom

Business Manager – Europe, Middle East, Africa, Moelis & Company

Hurwitz has made a concerted effort to help other women in finance. She helped to launch the Global Women’s Leadership Forum, which hosts over a dozen events worldwide through her firm. Based in London, Hurwitz  handles operational and managerial oversight of the offices in the Moelis & Company’s EMEA region in her role as Business Manager.

7. Amy Kang

Age: 26

South Korea

Vice President, Bank of America

Kang assists large companies and firms to navigate their tax, currency, and legal risk through Bank of America in Merrill Lynch’s London offices at the young age of 26.

  1. Marta Krupinska

Age: 27

Poland

Co-founder, Azimo

Originally from Poland, Krupinska saw the need for an easier way to perform international money transfers after trying to send money home to her family. So she helped to found Azimo to fulfill that very need. Since then, Azimo has raised $30 million in Series A and B funding and is one of the fastest-growing fintech companies in Europe.