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Tag: debt

Rating downgrades and payment delays not new to debt mutual funds

Rating downgrades and payment delays not new to debt mutual funds

Finance
The prospects of debt mutual funds are back in focus after Kotak Mutual Fund’s fixed maturity plans (FMPs) failed to return investors’ entire money on account of delay in repayment by two Essel group companies. In the past too, investors in various debt schemes have been affected by ratings downgrades of investments, defaults or delay in repayments. ET looks at such instances. Amtek Auto MF: JP Morgan TIME: August 2015 SCHEMES: JP Morgan India Short Term Income Fund and JP Morgan India Treasury Fund FALL IN NAV: 1-3% BRICKWORK RATINGS brought down its rating to C from A+, while CARE suspended coverage of Amtek Auto. Soon, JP Morgan side-pocketed the Amtek Auto exposure and allotted units to investors. In December, JP Morgan sold Amtek Auto bonds at 85% of the value. Investors, who stayed i
More people put off home buying because of student debt: Survey

More people put off home buying because of student debt: Survey

Finance
If you graduated from college years ago and are still reeling from the costs, you're not alone. A new survey from Bankrate shows that 73 percent of respondents have delayed at least one major life milestone because of their student loan debt. Participants said they've put off buying a house (23 percent), saving for retirement (29 percent), saving for emergencies (34 percent) or paying off other debt (27 percent). "For prospective students and their families, many of who will help them to pay for their secondary education, we'd urge them to investigate all possible options for financial aid including scholarships to limit thei...
New Look to slash debt by £1bn to restore profitabilty

New Look to slash debt by £1bn to restore profitabilty

Business
Fashion retailer New Look plans to cut its debt by £1bn and raise more money to turnaround the business. The company, which is closing its remaining 120 stores in China as well as 60 stores in the UK to return to profitability, said it had agreed with key shareholders to slash its debt from £1.35bn to £350m.It will raise £150m in new money to finance its business and by cutting its debt its interest payments would be reduced to £40m from £80m a year.New Look avoided a collapse into administration after creditors and landlords agreed in March to back a plan to close 60 stores in the UK.Executive chairman Alistair McGeorge said: "Today's agreement represents a critical step in our turnaround plans and lays the foundations to secure the future an...
Here's how $50,000 in student debt becomes nearly $100,000

Here's how $50,000 in student debt becomes nearly $100,000

Finance
How much people borrow to attend college can become just a small share of what they wind up owing. Currently, fewer than a quarter of student loan borrowers are repaying their principal, or the amount they originally took out, according to recent remarks made by Education Secretary Betsy DeVos at a conference on financial aid. That's because their monthly payments are just going to the interest accumulating on their debt or they're not paying anything right now. In the meantime, their debt is likely growing. ...
How to make sure a balance-transfer card will help you pay down your debt

How to make sure a balance-transfer card will help you pay down your debt

Finance
Anyone carrying burdensome credit-card debt knows how those zero percent (or low-rate) balance-transfer options can feel like a lifeline. And if you approach them right, they can help you hack away at your debt much faster and reduce how much you pay in interest. Yet more than 40 percent of consumers who take advantage of these deals don't get the balance paid off during the special-rate period, according to a new study from CompareCards.com. Depending on how much more than the monthly minimum you pay during that introductory time, you could end up making little headway in paying down your debt. ...