OSFI looking at low-risk, uninsured mortgages

OTTAWA – Canadian Mortgage Trends.com says it has been notified that the national banking regulator is looking at a possible further tightening of mortgage rules — this time for those with low risk mortgages that don’t require government-backed insurance.

The industry newsletter posted an item on its webpage Monday that the Office of the Superintendent of Financial Institutions verified it is looking at whether amortization periods should be limited to 25 years on mortgages with 20 per cent or more equity, that don’t require to be insured.

The current amortization period limit for such conventional mortgages is 35 years. In July, Finance Minister Jim Flaherty dropped the period to 25 years on mortgages with less than 20 per cent downpayment.

OSFI has said it would not make any changes until it has consulted with the industry.

“A decision in that regard would be taken once we hear back from the industry. Any proposed changes to our mortgage guideline that may result from this work would be subject to a public consultation process,” the regulator is quoted as saying.

In a recent speech earlier this month, OSFI head Julie Dickson said Canadian uninsured mortgages tend to be of higher quality than in many other countries but still warranted attention.

“The real estate lending market has been a big area of focus for OSFI, because of the significant incentives for consumers to borrow and for banks to maintain revenues, the size of mortgage lending portfolios, the concerns about some markets being overvalued, and the possibility that customers’ debt

Article source: http://money.ca.msn.com/savings-debt/yourmoney/osfi-looking-at-low-risk-uninsured-mortgages-2

Higher bond yields help pension solvency

TORONTO – Consulting firm Mercer says the average solvency ratio of pension plans improved during the second quarter of 2013, thanks to an increase in long-term bond yields in the last two weeks.

Mercer’s Pension Health Index stood at 94 per cent on June 30, up from 82 per cent at the start of the year.

Mercer says during the first five months of the year, pension funds also saw strong returns on equity, especially in foreign markets.

Although stock markets started to pull back in June, rising long-term interest rates helped pension plan solvency continue to improve.

Long-term interest rates are used to calculate the amount of money a pension plan needs to pay benefits. Low rates in recent years have forced many plans into a deficit position, while the recent rise has reduced that pressure.

“While interest rates have moved up dramatically in the last few weeks, it is not clear whether this is the start of a trend or a temporary blip,” said Manuel Monteiro, partner in Mercer’s financial strategy group.

The Mercer Pension Health Index shows the ratio of assets to liabilities for a model pension plan with valuations filed on a calendar-year basis.

A survey by consulting firm Aon Hewitt released Tuesday also found an improvement in the solvency of Canadian defined benefit pension plans.

The Aon Hewitt survey found that the median ratio of assets to pension liabilities at Canadian plans was three percentage points higher at the end of June compared to the end of March.

Aon Hewitt said the median solvency

Article source: http://money.ca.msn.com/savings-debt/yourmoney/higher-bond-yields-help-pension-solvency

Winklevoss twins’ unsure Bitcoin bet

winklevoss twins bitcoin

The Winklevoss twins are perplexing to take a Bitcoin ETF public.

A Bitcoin sell traded account competence be Tyler and Cameron Winklevoss’ riskiest gamble yet.

In papers filed with a SEC Monday night, a Harvard-educated twins, best famous for their rarely publicized authorised conflict opposite Facebook (FB), denounced skeleton to take a Bitcoin ETF public.

But their devise comes with a whopping 18 pages value of risk factors.

That shouldn’t come as a outrageous shock, given a fact that no one even knows a name of a hacker who combined a four-year-old cybercurrency.

So far, bitcoins have proven probably cool to hackers, though a exchanges that trade bitcoins and a practical wallets that reason them have been really vulnerable.

Unsurprisingly, one of a pivotal risk factors remarkable in a SEC filing is security.

Related: The Winklevoss twins are Bitcoin bulls

The Winklevoss Bitcoin Trust admits a exclusive certainty complement competence not be protected enough, and it competence not be means to keep adult with new and changing technological threats. “The detriment or drop of a private pivotal compulsory to entrance a Bitcoin competence be irreversible.”

The ETF skeleton to offer an index that marks a blended cost of bitcoins opposite mixed exchanges.

“Even a largest Bitcoin Exchanges have been theme to operational interruption, ensuing in flighty prices and a rebate in confidence,” a filing says.

Mt.

Article source: http://rss.cnn.com/~r/rss/money_latest/~3/opy_MyGwMGk/index.html

Diller strike with $480,000 chastisement in Coke batch purchase

barry diller coca cola

Media noble Barry Diller will compensate a $480,000 chastisement to settle charges that he disregarded filing mandate when he acquired a interest in Coca-Cola.

Media noble Barry Diller has concluded to compensate a $480,000 chastisement to settle charges that he disregarded filing mandate when he acquired a interest in Coca-Cola, a Justice Department said.

According to a censure filed Tuesday, Diller did not forewarn a Department of Justice and a Federal Trade Commission when he acquired 605,000 shares of Coca-Cola (KO, Fortune 500) voting bonds between Nov 2010 and Apr 2012, and an additional 264,000 shares in Apr 2012. The censure valued his land during $136.4 million as of Apr 27, 2012.

Investors are compulsory to forewarn a FTC and Department of Justice of many vast exchange underneath a Hart-Scott-Rodino Act. There’s a watchful duration before they can tighten their transactions, while one of a dual agencies determines if a exchange could outcome in decreased competition.

The censure states that Diller, who is chariman of IAC/InterActiveCorp (IACI), creator of Fox Broadcasting Company and a member of Coca-Cola’s board, unsuccessful to contention a compulsory HSR filings. He done visual filings after Coke’s lawyers asked if his exchange were theme to HSR.

Diller would not criticism on a settlement. To tip of page

Article source: http://rss.cnn.com/~r/rss/money_latest/~3/qZ--Lxsprf4/index.html

New York bakery defends Cronut trademark

cronut

Who knew that a tasty small Cronut could be so controversial?

The small Cronut has combined a large controversy.

The fried, cream-filled, croissant-doughnut hybrid has a cult following in New York, where patrons line up outward a Dominique Ansel Bakery each morning.

The $5 Cronut is so renouned that a bakery boundary purchases to dual per customer. The direct for a product is so good that a bakery has hired a half-dozen workers given a Cronut was combined in May, expanding a staff to 20.

But things have gotten ugly, according to a staff of a Dominique Ansel Bakery, that posted an open missive on Facebook (FB). The staff members shielded their preference to heading a Cronut “as a protecting magnitude opposite a form of bullying that is holding place now.”

“It has sadly come to a courtesy currently that there is a fusillade [of] misinformation being wrongfully widespread about a inlet of a Cronut heading along with antagonistic attacks opposite a Chef,” review a letter.

The minute also pronounced that cook Dominique Ansel “has never claimed he invented all fried-laminated mix recipes nor settled he was a initial to ever grill laminated dough.”

A mouthpiece for Ansel told CNNMoney that other bakeries have been offered identical products that they advertised as Cronuts, or a creatively misspelled “croughnuts,” that are infringements on a trademark. She pronounced that when a Dominique Ansel Bakery tells them

Article source: http://rss.cnn.com/~r/rss/money_latest/~3/ZemByRC27dU/index.html

June automobile sales uncover industry’s stability recovery

car sales

Industry tracker TrueCar predicts U.S. car sales totaled 1.38 million in June, adult 8% contra final year.

Car sales kept on rolling in June, providing serve justification of a liberation in U.S. automobile demand.

Major automakers reported Jun sales totals that solidly increasing contra a year before and came in nearby or above analysts’ expectations. General Motors (GM, Fortune 500) led a approach scarcely 265,000 vehicles sold, adult 6% contra final year and a best month given Sep 2008.

“America’s families are improved off than they were during a commencement of a year and they trust — with good justification — that a mercantile enlargement is going to continue,” Mustafa Mohatarem, GM’s arch economist, pronounced in a statement.

Ford’s (F, Fortune 500) Jun sales were roughly 236,000, adult 13.4% from a year prior, while Chrysler’s sales strike scarcely 157,000, adult 8%.

Related: Eight states lift their gas tax

Toyota (TM) sales jumped 14% to some-more than 195,000. Volkswagen was a slouch of a bunch, with the Jun sales disappearing 3.2% contra final year to roughly 37,000.

Overall, attention tracker TrueCar predicts U.S. car sales totaled 1.38 million, adult 7.8% from Jun 2012. TrueCar predicts that sum Jun sales translated to a seasonally practiced annual rate of 15.7 million, adult from 15.3 million in May and 14.4 million in Jun 2012.

“[T]he

Article source: http://rss.cnn.com/~r/rss/money_latest/~3/jWZvJ05vwUM/index.html

Dying startup blogs the collapse

my start adult 30 days

In an unknown Tumblr blog, an businessman is revelation a story of his company’s collapse.

“In 30 days, my startup will be dead.”

With those blunt words, an unknown businessman began chronicling a partial of a startup life cycle that roughly never gets talked about: a painful, disorderly demise.

His Tumblr blog, “My Startup Has 30 Days to Live,” has turn an intent of mindfulness in a startup community. Last week, a author launched his blog and laid unclothed a inlet of his desperation: “I’m overwhelmed, stretched so skinny and incompetent to do a unequivocally good pursuit during any of my duties. we don’t nap scarcely enough,” he wrote. “I’m scared.”

On Friday, a blogger ran out of money to make payroll. The post carried a tab #DeathRattle.

Failure can be a badge of respect in Silicon Valley — though usually as partial of a conventional account that culminates in success. Instagram was launched from a remains of a check-in use called Burbn, afterwards sole to Facebook (FB) for $1 billion. Serial businessman Max Levchin killed 4 companies before co-founding PayPal. Founders “pivot” divided from near-death experiences and go on to larger glory, afterwards relate their fight stories in bars and keynote speeches. There’s even an annual entertainment clinging to disasters: FailCon.

Discussing debacles in real-time, while

Article source: http://rss.cnn.com/~r/rss/money_latest/~3/uh5LE-shooU/index.html

Before Exiting Bonds, Try These Ideas

Municipal bond investors have been bailing in droves, pulling $4.5 billion from a marketplace final week alone, according to Thomson Reuters.

That’s been in vast partial since of fears of a Fed exit that might not even be germane to a muni market.

“While municipals have been cheapening in consolation with Treasurys, it is value observant that this marketplace has never had approach support from a Fed,” Citigroup muni researcher George Friedlander pronounced in his weekly update.

“Thus, we trust metropolitan investors need not worry about a elemental re-evaluation of a marketplace even after a Fed embarks on a tapering news for item purchases.”

Friedlander’s best ideas embody single-A-rated taxable munis, long-dated high-grade municipals and a switch out of banks (contrary to Lillard’s strategy) and industrials into prepay gas and corporate-backed munis.

(Read More: Junk Bonds No Longer Look So Good)

To be sure, though, a highway to rate fortitude is expected to be rocky.

Investors didn’t seem to know what to make of Monday’s pointy batch marketplace convene that came on a behind of an mercantile reading from a Institute for Supply Management that was improved though zero spectacular.

Until a subsequent turn of large information releases pass—the vicious nonfarm payrolls news comes Friday—investors should be clever about how most risk they are peaceful to take on destiny process decisions, pronounced George Goncalves, conduct of U.S. rates plan during Nomura Securities.

He points

Article source: http://www.cnbc.com/id/100857066

Stocks Start Third Quarter Up, though Headwinds Coming

The marketplace Monday sealed aloft with a Dow up 65 points to 14,974, though still 109 points next a high for a day. The SP 500 also backtracked, and traders pronounced a trade tinge altered when it unsuccessful to reason above a 50-day relocating normal during 1624. The SP finished adult 8 during 1614. The 10-year produce was during 2.48 percent late in a day, next a 2.5 percent turn where bonds seem to get some-more nervous.

“I consider it’s apparently always good when a marketplace starts off with a certain note, and we consider a right groups are heading today,” pronounced J.P. Morgan U.S. equity strategist Thomas Lee. Cyclically supportive sectors, led by tip performers industrials, materials, tech and energy, were a best performers of a day, with a usually losing sectors, defensive utilities and telecom.

“I feel assured and a economists feel assured with a fact that expansion should urge in a second half, mostly since drags are fading. We’re going to see improved support from housing, as good as autos in a second half. we consider a economy is building some momentum,” pronounced Lee. “The biggest overhang still is some of a spillover and repercussions from a selloff in bound income. we consider that we’ve also had, since of rising rates, radically a form of credit tightening holding place in a market. We’re going to feel some of a ramifications of that.” Lee

Article source: http://www.cnbc.com/id/100858346

Investment Banks Eye ‘Hedge Funds for Masses’

Several investment banks are pronounced to be eyeing a launch of sidestep supports for sell investors with smallest investments as low as $1,000 following a launch of a Goldman Sachs account in May that lifted $58 million in reduction than dual months.

Goldman became a initial vital investment bank to launch a multi-manager sidestep account for a sell market, and other banks are pronounced to be formulation identical offerings, according to Amy Bensted, conduct of sidestep account investigate during choice item information provider Preqin.

(View More: The 10 Stocks That Hedge Funds Love Most)

Bensted pronounced banks such as Merrill Lynch and UBS are exploring relocating into a area, as clients are flourishing reduction prone to rest on resources managers for choice investment solutions.

CNBC contacted both UBS and Merrill Lynch; UBS declined to comment, while Merrill Lynch was not immediately accessible for comment.

“A lot of institutional income is issuing from, say, a Credit Suisse account to a Bridgewater fund, Bensted said. “There has been a pierce from relying on resources managers or investment banks to pristine item government shops – so for investment banks, they need to get these smaller investors in and are perplexing to get them used to sidestep account investing.”

(Read More: Introducing a New Hedge Fund: The Family Office)

“A $1,000 smallest investment means we could deposit in one if we wanted, so it’s about removing more

Article source: http://www.cnbc.com/id/100858768