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Refinancing your mortgage will cost more thanks to an ‘adverse market’ fee

Finance
Getty ImagesIf you've thought about refinancing your mortgage, be aware that it may soon be a more expensive proposition.Due to a 0.5% "adverse market" fee, effective Dec. 1 and imposed on lenders by mortgage backers Fannie Mae and Freddie Mac, many homeowners are expected to absorb at least some of the cost when they refinance (certain refis are exempt, including those for loan balances below $ 125,000)."If you assume it takes two months to close [on the refinance], anything applied for after early October could push to December," said Joel Kan, associate vice president of economic and industry forecasting for the Mortgage Bankers Association.For a $ 280,000 mortgage, the 0.5% fee would mean your lender is an extra $ 1,400 when your loan is sold to Fannie or Freddie. The expectation is...
Distressed debt market likely to dry up with RBI recast plan

Distressed debt market likely to dry up with RBI recast plan

Finance
MUMBAI: The allure of India's $ 260-billion distressed debt market is dimming with the Kamath Committee loan recommendations coming into play, as asset reconstruction companies (ARC) will likely face hurdles in executing transactions. The market for distressed assets may not revive for at least six months as bankers and investors grapple with the fallout of the plan. The distressed asset market, which witnessed deals estimated in the range of Rs 60,000-65,000 crore in FY20, is almost non-existent this year so far, said people involved in distressed asset sale. This fiscal year, there have been negligible sales. “The recent restructuring scheme may lead to assets not becoming NPAs,” said Vishal Kampani – Managing Director, JM Financial Group that also runs an asset reconstruction company. “

New U.S. sanctions add uncertainty for global banks looking to tap China market

Finance
Aerial view of Lujiazui Financial District at dusk, Pudong, Shanghai, China.Fei Yang | Moment | Getty ImagesU.S. sanctions on Hong Kong leader Carrie Lam raises uncertainty for international banks that were looking at a historic opening of the Chinese financial market.The U.S. Treasury announced Friday sanctions on the semi-autonomous region's chief executive and 10 other government-related individuals for "undermining Hong Kong's autonomy" and restricting freedom of expression. The decision generally prohibits the targeted individuals from accessing their U.S. assets and transacting with U.S. persons, including provision of funds."It is at the very least awkward for US and foreign banks wanting to take advantage of market opening in China," Michael Hirson, practice head, China and No...
ETMarkets Survey: How to invest Rs 1 lakh in a Covid19-hit market

ETMarkets Survey: How to invest Rs 1 lakh in a Covid19-hit market

Finance
Volatility in equity market throws up opportunities to rejig portfolios and pick up quality stocks. But with a very uncertain outlook for the economy, should you still remain heavy on equities? You should. In fact, depending on your risk appetite, you may still put over half of your wealth into equities. That’s the view of an overwhelming majority of brokerages that took part in an ETMarkets.com survey last week. Analysts at eight top brokerages advised investors to put at least 50-60 per cent of wealth in equities, 20-30 per cent in fixed income and the rest in gold. Three analysts -- Naveen Kulkarni, Chief Investment Officer, Axis Securities, Deepak Jasani, Head of Retail Research, HDFC Securities and Vinod Nair, Head of Research, Geojit Financial Services – suggested a similar portfolio
Stock futures flat after the market notches its best quarter in decades

Stock futures flat after the market notches its best quarter in decades

Finance
A man wearing a protective mask sits on top of the Charging Bull sculpture near Wall St. amid the coronavirus pandemic on April 19, 2020 in New York City, United States.Alexi Rosenfeld | Getty ImagesStock futures were flat in overnight trading on Tuesday as the market is set to kick off a new quarter after a remarkable comeback.Futures on the Dow Jones Industrial Average fell about 25 points. The S&P 500 futures and the Nasdaq 100 futures were little changed. Trading volumes were thin. The market just notched its best quarter in decades as it snapped back from the historic sell-off triggered by the coronavirus. The Dow gained 17.8% in the second quarter, posting its best quarter since 1987, while the S&P 500 finished the period with a near 20% gain, its best sin...