Monthly Archives: September 2012

2012
09/12

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Finance

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Personal Finance: Gold climbs sharply

The shine is back in gold again, thanks to a tarnished global economy and the expectation that the Federal Reserve and European Central Bank are going to try to spark growth.

Gold hit $1,700 an ounce before closing at $1,696 on Sept. 4 in a continuation of a sharp three-day climb and a significant move from Mays low of $1,540. The surge was triggered last week when Federal Reserve Chairman Ben Bernanke sounded like he was inclined to start a new round of stimulus.

After Bernanke called the economy far from satisfactory and noted the stagnation of the labor market … is a grave concern, analysts concluded that a new round of stimulus is likely from the Federal Reserve.

The expectation is for central banks in the US, Europe and possibly also China to pour billions into the economy in the hope that businesses and consumers will use low-cost money to make purchases and get growth moving. Gold investors are attracted to gold under such circumstances because they assume that a lot of money sloshing through the system will debase the value of paper money and ignite inflation.

So far, those concerns have not materialized as the Federal Reserve has fought a struggling economy with two earlier rounds of stimulus known as quantitative easing.

But gold investors tend to buy gold whenever there is significant speculation that stimulus is coming, and a new round of stimulus looks like it could be widespread.

Investors are seeing stimulus across the board, not just the US, but Europe and China, said David Meger, director of metals trading at Vision Financial Markets. Every time there is a hint of stimulus, there is an immediate reaction and gold prices move higher.

As European countries such as Spain and Italy have struggled with unmanageable debt and recession, and European Central Bank President Mario Draghi has suggested a possible bailout through buying sovereign bonds, gold prices have drifted upward. Gold has moved significantly from Mays low, although prices remain below the all-time high of $1,900, set in September 2011, or of Februarys $1,784.

Gold has a reputation for being a volatile investment, and when financial leaders have appeared to have lost interest in stimulating, gold investors have dumped it. That was the case after February, when Bernanke told a congressional committee that there were some signs of strength in the economy and analysts concluded that there would be no new round of quantitative easing.

Then, just three weeks ago, Ned Davis Research commodities strategist John LaForge wrote that many considered gold dead. Yet he cautioned investors to be aware of how quickly sentiment can change in gold. He noted that gold has a tendency to play possum and will spring back on all fours.

In particular, he noted that betting against gold during the months from September to December has been a losing proposition for 12 straight years. During the end of the year, jewelry purchases climb as people in Europe and the US buy holiday gifts and China approaches its new-year celebration.

Lately, jewelry buying has been less prominent; especially in India, where the countrys currency has lost a fifth of its value compared with the dollar, and made gold purchases expensive. In addition, the World Gold Council reported that Chinese jewelry demand had declined 9 percent as the economy has weakened.

Yet, while the decline in gold purchases by consumers has been a concern, demand has continued as individuals lately have invested in gold exchange traded funds and China has added gold to its reserve funds.

LaForge notes that the Chinese government is adding gold to its reserves. In June, the Chinese imported 67 times the gold they imported in June 2009. Gold makes up just 2 percent of Chinas reserves, while it is 70 percent in the West, LaForge said, so Chinese buying should wake up gold.

Still, the recent rally has been strong, and Meger said gold sometimes pauses or pulls back after a strong move.

Regardless, the next few weeks could be a crossroad, since the Federal Reserve is meeting Wednesday and may send signals about whether it will or wont stimulate. And a German court will rule then whether Germany, which is the powerhouse of the European economy, can participate in certain bailouts of struggling countries such as Spain and Greece.

Without Germany behind stimulus, the rest of Europe is not likely to do it.

Gail MarksJarvis is a Chicago Tribune personal finance columnist. Email her at gmarksjarvis@tribune.com and follow her on Twitter at twitter@gailmarksjarvis.

2012
09/12

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World Bank to finance power projects

ISLAMABAD: A delegation of World Bank headed by Country Director, Rachid Benmessaud called on Federal Minister for Water and Power, Ch. Ahmed Mukhtar and briefed on Banks Energy Programme.

It was informed that Bank is providing 840 million dollars for Tarbela-IV extension, 194 million dollars for electricity distribution and transmission improvement programme. The Bank has also planned to finance Dasu Hydropower Project phase-I, CASA-100 project, India-Pak power interconnection, natural gas efficiency project and disbursement linked indication.

The delegation also briefed the minister on the projects under preparation. They stated that the WB would continue to support the energy sector.

The Minister appreciated the role of WB and stated that the government is taking steps to resolve the issues and challenges of energy sector.

2012
09/12

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Finance

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Teaching kids finance

NEW YORK (NBC News Channel) — When it comes to people managing money, financial experts are sounding the alarm.

Its my opinion that we have a national financial illiteracy epidemic, said Trae Bodge of RetailMeNot.com.

Experts say it was a major contributor to the financial crisis.

Thats why theres a new push on to get parents to teach their children the virtues of basic finance, and to start while theyre very young.

Children can really start to understand financial concepts, basic financial concepts, as early as kindergarten, said financial expert Farnoosh Torabi.

And why not lay out coins and teach them the value of each one, and dollars. And as they get to be 5 or 6, open up a savings account for them, Bodge said.

Let them watch as you open the account, and use regular shopping trips to teach the difference between needs, wants and wishes.

How much do things cost, and not only how much do things cost but what do you have to do to afford things? You have to work, said Torabi.

Financial expert Farnoosh Torabi says as soon as children start school, they start noticing the difference that money makes.

Keeping up with the joneses doesnt start when youre twenty-five. It starts when you are ten, eight, six. You see things and you want them and you dont understand why you cant have them, said Torabi.

The non-profit Junior Achievement even has downloadable material on its website to help children make the most of their money.

CLICK HERE to visit the Junior Achievement.

2012
09/08

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Finance

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Equipment Finance Industry Confidence stays neutral in August.

August 23, 2012 –
According to August 2012 Monthly Confidence Index, confidence in equipment finance market is 50.2, down from July index of 51.5, reflecting ongoing industry concerns over economic, regulatory, and political uncertainty. When asked to assess their business conditions over next 4 months, 6.3% of executives said they believe business conditions will improve, while 78.1% of respondents believe business conditions will remain the same, and 15.6% believe business conditions will worsen.

2012
09/04

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PE-backed Magma ropes in CEO for housing finance biz from ICICI Home Finance

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    Kolkata-based non banking finance company Magma Fincorp has appointed Sachin Khandelwal as CEO for Magma Housing Finance, a new subsidiary of public listed Magma Fincorp. In addition, Sandeep Walunj was named as Chief Marketing…

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2012
09/03

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Finance

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Horizon Technology Finance Closes $75 Million Term Loan Facility With …

Horizon Technology Finance Closes $75 Million Term Loan Facility With Fortress Credit

Increases Leverage for New and Existing Investments

FARMINGTON, Conn., Aug. 23, 2012 (GLOBE NEWSWIRE) — Horizon Technology Finance Corporation (Nasdaq:HRZN) (the Company or Horizon), a leading specialty finance company that provides secured loans to venture capital and private equity backed development-stage companies in the technology, life science, healthcare information and services, and clean-tech industries, today announced that its wholly owned subsidiary, Horizon Credit III LLC, has closed a new term loan credit facility of $75 million with Fortress Credit Co LLC, an affiliate of Fortress Investment Group LLC (NYSE:FIG) (Fortress Credit). The Company received an initial advance of $10 million at closing.¬†

Horizon intends to use the credit facility to leverage its existing investments, as well as deploy additional capital for new investments. The credit facility has a three-year term subject to two one-year extensions with a draw period of up to four years. Amounts borrowed will bear interest at LIBOR plus 6.0%, with a LIBOR floor of 1%. The effective loan advance rate is 66% of eligible loans. The new credit facility with Fortress Credit complements the Companys existing credit facilities with Wells Fargo Capital Finance, LLC and WestLB, AG, both of which continue to provide leverage to the Company.

Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer, commented, We are pleased to close a new $75 million term loan facility with Fortress Credit as we continue to take advantage of the strong demand for our venture debt products. By strategically increasing our leverage, we have further enhanced our ability to grow our high-quality and diversified investment portfolio. With our significant access to capital and strong market momentum, we intend to strengthen Horizons leadership position in the venture lending industry and drive future earnings growth. 

About Horizon Technology Finance Corporation

Horizon Technology Finance Corporation is a business development company that provides secured loans to development-stage companies backed by established venture capital and private equity firms within the technology, life science, healthcare information and services, and clean-tech industries. The investment objective of Horizon Technology Finance is to maximize total risk-adjusted returns by generating current income from a portfolio of directly originated secured loans as well as capital appreciation from warrants to purchase the equity of portfolio companies. Headquartered in Farmington, Connecticut, with regional offices in Walnut Creek, California and Reston, Virginia, the Company is externally managed by its investment advisor, Horizon Technology Finance Management LLC. Horizons common stock trades on the NASDAQ Global Select Market under the ticker symbol HRZN. In addition, the Companys 7.375% Senior Notes due 2019 trade on the New York Stock Exchange under the ticker symbol HTF. To learn more, please visit www.horizontechnologyfinancecorp.com.

About Fortress Investment Group LLC

Fortress Investment Group LLC (NYSE:FIG) is a leading, highly diversified global investment management firm. Fortress applies its deep experience and specialized expertise across a range of investment strategies – private equity, credit, liquid hedge funds and traditional fixed income – on behalf of over 1,400 institutional clients and private investors worldwide. For more information, visit www.fortress.com.

Forward-Looking Statements

Statements included herein may constitute forward-looking statements, which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

CONTACT: Horizon Technology Finance CorporationChristopher M. Mathieu
Chief Financial Officer
(860) 676-8653
chris@horizontechfinance.com

Investor Relations and Media Contacts:
The IGB GroupLeon Berman / Michael Cimini
(212) 477-8438 / (212) 477-8261
lberman@igbir.com / mcimini@igbir.com

Source: Horizon Technology Finance Corporation

2012
09/01

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Finance

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Finance major excels at Boeing internship

Jonathan McMiller sees himself as a sponge.

“I want to absorb as much as I can,” McMiller said. “Every opportunity I have to learn something or experience something, just gives me a greater understanding of the world.”

That philosophy helped earn McMiller, a senior finance major at the University of Missouri-St. Louis, a summer internship at Boeing. He began in June working with overhead costs and the costs associated with modifications made to the customers product.

“The experience has been very beneficial, I have been given so many important work assignments within the group,” he said. “They didn’t treat me like an intern. They treated me like I was a real full-time employee. They worked with me on learning the systems that are specific to the company.

“Based on my performance, they extended my internship through December when I graduate,” he said.

His internship at Boeing has been a great experience. Not only has he learned new systems and gained valuable skills, he’s learned about positive corporate cultures.

“I was impressed with the corporate culture that Boeing has,” McMiller said. “You think that you could get lost inside a big company like that. But Boeing is really putting an emphasis on employee development. They are really looking into the emotional intelligence side of things. ‘Not only are you capable of doing the technical side, but we really want you to come to work with a positive attitude and we want you to map out your career plan.’ I think that philosophy is great.”

McMiller, a Florissant, Mo., resident and a student ambassador at UMSL, credits the university with preparing him for his Boeing position.

“Not only does UMSL prepare its students by teaching them the skills they need to succeed in business, but the professors really instill professionalism in each student,” he said. “(Joel) Miller (lecturer in finance) is one of my favorite teachers. He’s very professional. He would encourage us to dress like we were attending work. Come prepared and on time. Deadlines are deadlines. But he also taught us to come to him. He had an open-door policy, and if we needed anything, he was available.”

McMiller, whose mother earned an education degree from UMSL, chose the university for its accredited College of Business Administration and his interest in personal finance.

“The reason I went into it originally is because I believe everyone should have a good understanding of how to manage money and how to manage their wealth throughout their lives so that retirement is an option for them so that they live the most comfortable life that they can,” he said.

What does the future hold for McMiller? He hopes more opportunities.

“I could see myself working for Boeing or a company like them with the same positive atmosphere,” he said. “I want to continue to learn everything I can, and enjoy doing it at the same time.”