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Cov-lite Loan Controversy Fades To Whisper While Portfolio Managers Chase Yield - Forbes

Student Loan Servicing: The Borrower?s Experience

We just have to stick to our basics and do our credit work, one portfolio manager commented. The market is what it is and we have to go with whats out there. Still, its a matter of debate as to whether the superior performance of cov-lite loans during the 2007-08 default cycle is repeatable. Cov-lite apologists rely on data from that cycle showing that first lien cov-lite loans defaulted at a lower rate than the overall market, and, when they defaulted provided better recoveries, according to a special report published by DDJ Capital Management , citing data from Moodys Investors Service and S&P Leveraged Commentary & Data . But a host of factors imply that the market should not necessarily expect a repetition in the next cycleof any superior performance stats the 2008 cycle spawned, and that isolating a cov-lite effect is virtually impossible, several investors noted in interviews with Debtwire . For one, the drastic central bank intervention in the financial system beginning in 2008 quickly stabilized then helped improve the economy. That action, which helped cut off distress before it pushed more levered companies into restructuring, is unlikely to be repeated in future cycles. The differences between then and now also include the quality of the cov-lite component of the market which has broadened substantially. During the last cycle, cov-lite was largely the province of borrowers with better credit ratings that investors could justify didnt even really need the looser structures, sources agreed.
Puedes ver la version sin traducir en http://www.forbes.com/sites/mergermarket/2014/06/03/cov-lite-loan-controversy-fades-to-whisper-while-portfolio-managers-chase-yield/

CDB to Loan LDK Solar $320 Million

The good news is you had plenty of documentation showing you had made your loan payments on time. It took about a month, but eventually Ocwen was able to get your account properly credited and remove the threat of foreclosure. Robert Kaltenbach, director of Ocwen's office of the ombudsman, told us that everything should be fine going forward, though the company never gave us an explanation for why this happened. You said the story you got was that when they took over the loan, someone apparently inputted the terms into their system incorrectly. From there, it spiraled out of control, resulting in the supposed late payments and $7,098.75 in mysterious added "fees/expenses." You are correct that Ocwen has had bigger troubles than this. In March, a federal judge finalized a consent judgment between Ocwen and the U.S. Consumer and Financial Protection Bureau, 49 states and the District of Columbia over allegations that Ocwen deceived consumers about their loans and engaged in illegal foreclosures. The company did not admit any wrongdoing, but it agreed to provide $2 billion in principal reduction to consumers with underwater loans and refund $127.3 million to consumers who were foreclosed upon. Under the terms of the settlement, Ocwen also said it will adhere to a number of consumer protection measures. One last note -- you said the Ocwen rep assured you that the correct payment history will be sent to the credit reporting bureaus.
Puedes ver la version sin traducir en http://abcnews.go.com/Blotter/loan-company-demands-payment-family-proof-paid/story?id=23991963

English: The door to the walk-in vault in the ... Well-intentioned federal policies have failed to drive down college costs. An easy flow of federal student aid has enabled students to take out sizeable student loans, with little if any credit check or consideration of their future earnings potential. Some have even argued that such policies have enabled universities to raise tuition, [4] creating a vicious lending and spending cycle. Increases in Federal Higher Education Subsidies Federal higher education subsidies have increased substantially over the past decade, and now represent 71 percent of all student aid. [5] Federal student loans. According to the College Board, during the 2012-13 academic year, 43 percent of all student aid was in the form of federal student loans. [6] Thirty-four percent of undergraduate students took out federal student loans that year, up from 24 percent during the 2002-03 academic year. The College Board notes that, over the past 10 years, the number of students borrowing through federal student loans increased by 69 percent, from 5.9 million students during the 2002-03 academic year to 10 million in 2012-13. [7] Federal grant aid. Since 2008, grant aid per full-time enrolled student has increased over 30 percent.
Puedes ver la version sin traducir en http://www.heritage.org/research/testimony/2014/06/student-loan-servicing-the-borrowers-experience

RLPC-Rosneft loan going ahead despite UK banks' exit - bankers | Reuters

Lloyds is 25 percent-owned by the British government, which has repeatedly condemned Russia over its annexation of Crimea in March and accused it of involvement in a separatist rebellion in eastern Ukraine. Moscow denies the charges but Rosneft chief Igor Sechin has been hit by U.S. sanctions as part of a broader move to punish Russia for its seizure of Crimea from Ukraine. The loan was launched to banks in late November at $5 billion but progress has been slow and it was reduced to up to $2 billion in April. Bankers said the deal still has enough support from lenders to go ahead despite the loss of Lloyds, which walked away this week followed by HSBC. "All the other banks are still in the deal, I don't think it will have any impact, we are surprised they were there in the first place," a second banker said. In April Royal Bank of Scotland, which is 80 percent owned by the British government, also walked away from a $1 billion club loan for Russian petrochemicals company Sibur. Bankers are watching to see whether Deutsche Bank will continue to support the deal but said the lender was not under the same political pressure as British banks. Germany, which is a major importer of Russian natural gas, has often been more cautious towards Moscow than Britain, which gets most of its gas from the North Sea and Qatar.
Puedes ver la version sin traducir en http://www.reuters.com/article/2014/06/05/idUSL6N0OM3HS20140605

Loan Company Demands Payment, Family Has Proof They Already Paid - ABC News

At a trio of events Wednesday, senators touted legislation that would allow student borrowers to refinance their loans to last year's rate for new loans. Massachusetts Sen. Elizabeth Warren , the bill's sponsor , positioned the measure as key to reducing a drag on the national economy caused by the $1.2 trillion in student debt held by Americans. "It is a drag on our economy," Warren said. "It's harder for young people to buy homes, to start businesses, and to begin their economic lives." Warren, flanked by fellow Democrats Barbara Mikulski of Maryland, who sponsored the equal pay legislation blocked by Republicans last month , Dianne Feinstein of California, Patty Murray of Washington, Debbie Stabenow of Michigan, Tammy Baldwin of Wisconsin, and Maisie Hirono of Hawaii, called the combination of soaring student loans and paycheck inequality a "one-two punch for women." Although the number varies depending on how it is measured, most studies find women earn between 15 and 33 cents less than men when equally qualified to do the same work. The number for college-educated women, the senators said, is $0.82. "Young women are working hard to build an economic future for themselves," she said. "Right now, they face an extra tax." The Banking on Students Emergency Loan Refinancing Act would allow student borrowers to refinance their loans to 3.86 percent interest -- the level matching the level set by Congress last year for new borrowers and would be paid for by enacting the so-called Buffett Rule that eliminates a tax loophole allowing millionaires to pay low tax rates. "Young women are hit by a double whammy by ever-increasingly high student debt," Mikulski said.
Puedes ver la version sin traducir en http://www.upi.com/Top_News/US/2014/06/04/Female-senators-tie-college-loan-push-to-equal-pay/2071401890697/

Warren: Student loans are a 'one-two punch' for women - UPI.com

Improvement in technology has made this plant obsolete and the company has not been generating profits. The companys share were delisted from NYSE and the company sold equity stakes to Chinese state funds for a pittance, as it was desperate to raise cash to run operations. NoteSuntech(STP) has already become bankrupt, with most of its assets sold to Shunfeng. Bankruptcy in China remains a hazy process as state owned funds keep running even zombie companies to protect jobs. LDK Solar (NYSEARCA:TAN)was the largest solar wafer producer and had diversified into all parts of the supply chain. But increasing competition from the like of GCL Poly eroded its competitive position and its huge pile of debt made operations almost impossible.$64 millionof the loan will be used to resurrect the dead poly plant that LDK had built over the last 3-4 years. The plant never ran to even half of its capacity as price of poly went below $20/kg. LDK had no money to improve the equipment. I think it is a bad move on the part of the banks to pour more money into a company that has already defaulted on $3 billion of debt.
Puedes ver la version sin traducir en http://www.wallstreetsectorselector.com/investment-articles/analyst-desk/2014/06/cdb-loan-ldk-solar-320-million/

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