Pressing Topics at the Fed

first_img Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago The Fed 2017-10-06 Brianna Gilpin Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, Government, Headlines, News Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: HUD: Establishing Equal Opportunities Next: The Week Ahead: Q3 2017 Bank Earnings Tagged with: The Fed Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago About Author: Brianna Gilpin October 6, 2017 1,013 Views Subscribe Share Save  Print This Post The Federal Reserve, who is a little over four months out from needing a new or reinstated leader, announced it purchased $7.029 billion in agency mortgage-backed securities, which is compared to $6.937 billion the week prior. This week’s purchase did not include securities guaranteed by either GSE, the Government National Mortgage Association, or Ginnie Mae.In September, the Fed announced it would leave rates unchanged and begin a gradual shrinking of its balance sheet, which sits at $4.5 trillion due to purchases of Treasury bonds and mortgage-backed securities in the aftermath of the financial crisis, according to CNBC.However, despite the decision to leave rates alone last month, Atlanta Fed President Raphael Bostic said he believe the U.S. central bank should raise interest rates again by the end of the year.”We, in our forecasts of movements for the year, had said we expected three hikes in the course of 2017. I am still in that space,” said Bostic in an interview by Reuters on the sidelines of a Fed conference in Austin, Texas while adding that he isn’t, “wedded to anything.”Regarding the expiration of Janet Yellen’s term in February 2018, President Donald Trump has interviewed four candidates for the job. According to Reuters, the nomination could come within weeks.“He faces a choice between two continuity candidates, current Chair Janet Yellen and Governor Jerome Powell, and two outsiders, Gary Cohn, currently his top economic adviser, and former Fed Governor Kevin Warsh,” the report said.Yellen was rumored to step down last year if now President Trump was elected, but now almost a year later, many wonder if she is up for another term if asked.”I have said that I intend to serve out my term as chair and that I’m really not going to comment on my intentions beyond that,” CNBC cited Yellen telling reporters following the Fed’s two-day policy meeting in September. “I will say that I have not had a further meeting with President Trump. I met with him early in my term and I’ve not had a further meeting with him.” Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Pressing Topics at the Fed Pressing Topics at the Fedlast_img read more

​Norwegian oil fund plans gradual shift to reference portfolio

first_imgThe chief executive said it would come as no surprise that indices excluded certain countries as segments, but that it was potentially more surprising they did not reflect the listed market as a whole, citing free-floats.“The global indices are designed to cater for the needs of an investor requiring daily liquidity,” Slyngstad said. “The fund has no such needs.”He added that the obvious question was whether the sovereign fund should increase its exposure to less liquid assets, moving away from restrictions that require it to invest purely in public markets – with the exception of its 5% strategic investment to private real estate.The chief executive explained that the framework proposed in the report would allow NBIM to boost private holdings, while analysing all investment opportunities the same way, based around the opportunity-cost model.“A new framework for the management of the fund may also facilitate a development where we as manager of the fund take a greater responsibility by defining a tailor-made reference portfolio,” he added.A planned switch away from its current strategic benchmark to one consisting of 60% listed equities and 40% fixed income is meant to express the fund’s risk tolerances rather than act as a limitation on the investable universe, Slyngstad said.“This change would clarify the role of the strategic index in the management of the fund,” he said. Norway’s Government Pension Fund Global (GPFG) is to replace its current strategic index with a new benchmark meant to offer greater flexibility.The new approach, which Yngve Slyngstad, chief executive of Norges Bank Investment Management (NBIM), said stemmed from a recent review of the fund’s approach to active management, would also encourage “gradual” growth of private investments while allowing for a consistent benchmark approach across all holdings.Speaking at a seminar at the Norwegian Ministry of Finance, Slyngstad said the review by Andrew Ang of Columbia Business School, Michael Brandt of Duke University and the former president and chief executive of the Canada Pension Plan Investment Board (CPPIB), David Denison, had shown how the GPFG could exploit investment opportunities currently outside the index.He said the opportunity-cost model proposed was “worth exploring in more detail”, especially in light of the fund’s strategic benchmark – the FTSE Global All Cap index – excluding a number of countries with developed capital markets, such as Qatar and Kuwait.last_img read more

UK roundup: Mercer on DB-to-DC transfers, JLT on deficits

first_imgThere has been a 60% increase in the number of defined benefit (DB) pension members looking to ascertain the value of their benefits as new freedoms are applied to defined contribution (DC) schemes.Data from consultancy Mercer showed that, during each month of 2014, around 1,500 people made enquiries into the value of their benefits.However, in March 2015, some 2,500 people contacted the consultancy looking for a cash-equivalent transfer value (CETV) in the run-up to freedoms that came into force on April 6.The UK government has consulted on whether to ban DB-to-DC transfers but decided to allow them to continue as long as members obtain independent financial advice. It banned transfers from funded and unfunded public sector pension schemes.Many consultants raised concerns over an influx of DB members leaving their schemes to DC options to access their pension entitlements as cash following the scrapping of rules to buy an annuity.Matthew Demwell, partner at Mercer, said the current rate would lead to around 4% of DB members being administered by the firm seeking a CETV quote.“It’s clear these changes have appealed to a number of people,” he said.“However, these are just quotations. It remains to be seen how many people will actually accept the quotation and transfer out of their defined benefit scheme.“This certainly represents an opportunity for employers and trustees to reduce the sometimes crippling burden of pension costs, but, clearly, to ensure people have enough in their retirement, the process must be carefully managed.”In other news, JLT Employee Benefits has predicted the level of deficit contributions from FTSE 100 schemes will spike in 2015, given the number of triennial valuations being finalised and the continued low interest rate environment.Around 30 firms in the FTSE 100 are set to have the valuations this year, and, with low interest rates pushing up liabilities, many companies could see trustees demand higher cash contributions, the consultancy said.Companies contributed £14.1bn (€19.1bn) in the last accounting year.Approximately £6.9bn of that was purely for deficit recovery, but the figure was lower than the £9bn reported the year previous.However, total IAS 19 deficits in FTSE 100 companies came to roughly £80bn at the end of 2014, £26bn higher than at the end of 2013.Charles Cowling, director at JLT Employee Benefits, said: “We expect to see some difficult negotiations between trustees and employers, and, inevitably, there are going to be demands for increases – potentially significant increases – in employers’ funding contributions.”last_img read more

Franklin County crash kills Ohio woman

first_imgFranklin County, In. — An Ohio woman has been fatally injured in a Fourth of July crash in Franklin County.A report from the sheriff’s department says Patricia Lynn Archer, 75, of Hamilton, was westbound on State Road 252 when she drove off the right side of the roadway. The vehicle left the roadway and rolled several times. Archer was declared deceased at the scene.The crash remains under investigation.last_img