If you are already finding yourself in a position where you aren’t able to pay for your school costs, how are you going to pay back your payday loan? The average length of time a payday lender gives a borrower to repay a loan is 2-4 weeks. If you have to “rollover” your loan which means you will incur high interest rates and hefty fees on top of what you borrowed. This can cause quite a domino effect for your finances.
Paying off a payday loan is not the same as a credit card or personal loan. Payday loans are short-term and are expected to be paid back with your next paycheck. The timeliness, convenience, and ease of borrowing with a payday lender may overshadow the fact that the money needs to be paid back quickly. Perhaps this is why many consumers that borrow this way find themselves unable to repay within the expected time frame, forcing them to have to extend their loan (“rollover”) and pay high interest and fees as a result.
Global bond giant PIMCO, led by bond king Bill Gross, announced today that the firm was awarded a patent on a methodology for constructing investable fixed income indices.
The patent PIMCO just received pertains to the firm’s strategy of weighting the constituent securities of an index by measures like GDP, as opposed to most indices, which typically weight securities by market capitalization (a measure derived from the prices of financial assets).
So, if you invest in a PIMCO index constructed by this method, you’ll be getting more bonds from countries with bigger economies as opposed to more bonds from countries whose bonds just happen to currently be valued higher.
The fact that PIMCO was able to get a patent for its strategy caught us a bit off guard – it doesn’t really seem like the type of thing one would typically seek a patent for.
After all, this a big part of what PIMCO and many other firms do as investment managers – they construct indices comprised of various bonds (or other instruments) that give investors access to a range of securities in a single investment vehicle.
Nonetheless, they justify the patent by the fact that the methodology is considered intellectual property.
Below is more description of the methodology from PIMCO’s press release:
The methodology is designed to capture the ongoing transformations in global bond markets — in particular the shifting economic weight from developed countries to emerging markets — by assigning more appropriate portfolio weights rather than using a backward-looking, market-capitalization weighting common to most global bond indexes.
The GDP weighting approach is intended to help investors to gain a first-mover advantage by positioning portfolios in markets that are underrepresented in traditional indexes. GDP weighting also helps investors avoid the biases embedded in market capitalization-weighted indexes that concentrate large weights in the most highly indebted countries. In addition, GLADI makes fuller use of the global fixed income opportunity set, incorporating both nominal and inflation-linked securities.
A few other managers have been active in the patent space for similar reasons. One is Rob Arnott, who runs Research Affiliates, a fund with over $170 billion in assets under management. One of Arnott’s patents is for an indexing methodology based on various accounting metrics.
The Wall Street Journal’s Eleanor Laise covered Arnott’s patent award in 2009. At the time, she interviewed Arnott about the significance of obtaining it:
Research Affiliates sees the patent “as giving us the opportunity to license our ideas to a lot of folks,” Rob Arnott, chairman of Research Affiliates says. Companies licensing Research Affiliates’ fundamental indexes pay annual fees of 0.08% to 0.20%, depending on the amount of assets and the type of indexes being licensed, Mr. Arnott says. Firms like Charles Schwab Corp. and Allianz SE’s Pacific Investment Management Co. offer products based on these benchmarks.
Laise also received a few choice quotes from another manager that shed some light on the practice and how it is viewed in the industry:
Mr. Arnott isn’t alone in seeking to patent his indexing methodology. ETF provider RevenueShares Investor Services also has applied to patent its approach, which involves reweighting capitalization-weighted indexes like the S&P 500 by revenues. The fact that Research Affiliates was able to obtain a patent “is an encouraging sign,” says Sean O’Hara, RevenueShares’ president. “I don’t think anybody thought anybody would get a patent on any of this stuff,” he says. Yet “there’s a lot of folks investing a lot of money in this area and it makes sense to protect your intellectual property.”
Good investment ideas in the fixed income space seem harder to come by every day as investors chase decent yield returns to the ends of the earth. At least the managers will still be able to make their fees.
A same day loan can be defined as a small amount of cash that an individual borrows while waiting for the next salary check. Laws regulating such loans may vary amongst 37 American states that consider these loans as legitimate. The Consumer Federation of America conducted a survey on hundreds of private same day loan companies and revealed that the lenders often charged exorbitantly high APR and the borrowers became the prey of such lenders.
Are you looking to negotiate your cash advance or credit card debt? You don’t have to sign up to pay another company to do it for you. A creditor or lender will most often prefer to deal with the person one-on-one rather than discuss the case through a third party. Save some cash and work through your debt yourself.
Social interaction is an important aspect of life. Who we interact with and how we do so can determine everything from our friends to our significant others and even our employment. The most important aspect of social interaction is undoubtedly the first impression. Your first impression determines whether you get a chance to make a second impression or not. This is particularly important in a job interview, as your first impression decides the likelihood of you getting a second interview.
All this on the tail of ECB president Mario Draghi’s comments that he’ll do “whatever it takes to preserve the euro.”
Gross: Spanish yields drop 50 basis on #Draghi. No matter. They need 400 basis more to remain solvent longer term.
— PIMCO (@PIMCO) July 26, 2012
A federal bankruptcy judge has slapped down an Anderson church that attempted to blame its bank for a failed scheme to finance church upgrades by buying life insurance policies on its elderly members.
If you struggle every month to pay off your multiple credit bills and want to stop the harassing calls from your credit card companies, you can opt for credit card debt consolidation. Today, in Australia, nearly 11% of the finance applications comprise of consumers who want to consolidate their debts.
What debt consolidation means
Your multiple credit bills will be consolidated into a single new loan with a lower interest rate. In some cases, your total debt amount may also be reduced. So, it will be easier for you to make a single payment every month. A debt consolidation loan has a fixed repayment amount and a loan term. Your total debt can be cleared in a shorter time and thus you will also save money. You have to do negotiation with your creditors for consolidating your debts. You can either approach them yourself or can take help of professionals, who will negotiate on your behalf with your creditors.
Pros and cons of debt consolidation
The main advantages of credit card debt consolidation are:
- Single payment: Instead of multiple bills you have to make single monthly payment to pay off your debt. If you are making payment for multiple bills, payment for one or two bills can be missed. But, with the new loan you will only have to make a single payment, thus, there will be no chance of being a defaulter.
- Lower interest rate: The new consolidated loan will come with a lower interest rate, thus you will save money.
- Reduced debt amount: Your total debt amount may get reduced to 50% to 60%. It will depend how well the negotiation has been done with your creditors.
- Shorter loan term: You will have a shorter loan term to pay off your debt. So, in a shorter period you will be a debt-free man.
- No harassment calls: Once you opt for debt consolidation, your creditors will stop harassing you by making phone calls or paying a visit to your work place. If any creditor continues to do so, you can take legal action against him.
- Mental peace: Debt consolidation will help you to resolve your debts in a shorter time and your monthly payment will also be according to your affordability. So, you will not have any trouble making the monthly payments and can spend the extra money for your family too. Thus, you will have mental peace.
- Tax deduction: If you take a home equity loan, you can get some tax deductions from the interest amount you pay on mortgage.
With all the Oscar and various other award ceremony preparations going on at the moment, celebrities around the world must be sick of sticking on red carpet attire.
Nevertheless Mila Kunis, Rachel Weisz and Michelle Williams managed to look truly amazing when they turned out for the premiere of their latest movie The Wonderful Wizard of Oz, which is a prequel to The Wizard of Oz.
For the occasion Rachel opted for a Victoria Beckham orange gown, Mila donned a Dolce & Gabbana grey prom dress while Michelle slipped into a white, embroidered Prada frock.
Their co-star in the flick James Franco, who plays the Wizard of Oz, didn?t look to shabby either ? he arrived at the premiere (in a hot air balloon would you believe) wearing a dapper Gucci suit.
With the Federal Reserve engaged in an asset purchase program designed to increase the money supply in an effort to stimulate the economy, many are starting to worry about inflation. Inflation represents a decline in the purchasing power of your dollar. Essentially, it is a rise in prices. However, not only are many consumers starting [...]
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These days, you can find a lot of firms out there offering loan processing services. Well, these firms are doing a great job for the mortgage lenders as well as for the banks which are now offering loans to their customers. For every business concentrating high on the core aspects of the process is always important.