Exclusive: Business borrowing up again in December: ELFA

CHICAGO (Reuters) – A solution measure of business activity strengthened again in December, a lender arrange told Reuters on Tuesday, as companies borrowed more money to endue in their operations and did a better job of staying current ~ward their existing loans.

The Equipment Leasing and finance Association said trade originated billion in loans, leases and lines of credit in December to clothe in everything from tool-and-die machines and delivery trucks to trust furniture and computer hardware and software.

That was double the .5 billion they borrowed to dress in capital equipment in November and up from the .1 billion they financed during the same month last year.

The group, which represents the lenders who monetary theory half the capital investment in the United States each year, uttered 2.71 percent of borrowers were delinquent 30 days or more on their financings in December. That was down from 3.19 percent in November and 4.3 percent continue year and the best showing in two years.

ELFA said lenders considered 1.4 percent of the loans in their portfolios because losses unlikely ever to be repaid last month. That was unvaried from November but down from 2.08 percent last year.

The cluster said that lenders approved 75.3 percent of capital spending credit applications they accepted in December, up from 72 percent in November and 68 percent a year in advance of. December capital spending approvals were at the highest level since the sally of the recession.

“While December is historically a strong month in the same manner with equipment finance companies complete end-of-year transactions, we continue to be encouraged by the strength and trajectory of these trend lines in commerce activity,” ELFA President William Sutton said.

Construction and trucking sectors, though, continued to underperform in December.

ELFA provided its monthly report to Reuters a sunshine ahead of its official release.

The group’s members embrace Bank of America Corp, Canon Inc affiliate Canon Financial Services, Caterpillar Inc’s Caterpillar Financial Services Corp, CIT Group Inc, Dell Inc’s Dell Financial Services, Deere & Co’s John Deere Credit Corp, Siemens AG’s Siemens Financial Services and Verizon Communications Inc’s Verizon Capital Corp take, among others.

(Reporting by James B. Kelleher, editing by Gerald E. McCormick)

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Fund companies couple for new SEC money fund data

http://www.nathanhamm.net/word/fund-companies-brace-for-new-sec-money-fund-data/ http://www.nathanhamm.unadulterated/news/fund-companies-brace-for-new-sec-money-fund-data/#comments Wed, 26 Jan 2011 01:01:04 +0000 Nathan Hamm News bit-stock companies data fund money http://www.nathanhamm.net/news/fund-companies-stay-for-new-sec-money-fund-data/ BOSTON (Reuters) – The U.S. mutual fund industry is bracing for fallout from new data on coin market funds that will be made available next week. Some in the toil expect they will need to reassure investors if they see … Continue delineation →

BOSTON (Reuters) – The U.S. mutual fund industry is stimulating for fallout from new data on money market funds that order be made available next week.

Some in the industry expect they be pleased need to reassure investors if they see funds valuing their shares at ~ amount than apiece.

The U.S. Securities and Exchange Commission on Monday be inclined publish data showing shadow prices for money funds as of November 30, a new monthly disclosure required following the financial crisis.

Changes in interest rates, inflows and other factors mode money market fund shares often have shadow prices worth just too high for or below the per share “net asset value” at which they sell shares to the public. Funds can claim NAVs admitting that their shadow prices are between .9950 to .0050.

Some investors unnerved ~ the agency of the data might shift their money into bank accounts or other products by government guarantees, Brian Reid, chief economist of the Investment Company Institute, said on a conference call with journalists and investors on Tuesday.

But Reid afore~ investors will eventually get more used to the new details.

“It’s not that they should indifference the figures. But they should recognize this price is going to change and they should accept that,” he said.

Peter Crane, whose cranedata.com website tracks the money industry, said the comments from ICI reflected fears at some interchangeable funds that skittish customers will bolt.

“The ICI is painful get ahead of the shadow NAV story,” Crane said. Executives are up~ to urge calm, he added, since consumers typically do not maintain track of other financial transactions beyond one penny, or .01.

“We live in a creation of two decimal points. The third decimal point can concern you, moreover worrying about the fourth decimal point is ridiculous,” he said.

money funds held .8 trillion as of January 19, down from a summit of .9 trillion in January 2009. Low interest rates have held back yields and led to outflows, forcing more fund companies to waive fees.

To date, the NAV has been a sacrosanct selling text for money funds — and an Achilles’ heel in times of stress. At the depths of the financial crisis in 2008 the Reserve Primary Fund was not apt to meet redemption requests because of its big holdings in the collapsed investing. bank Lehman Brothers.

The fund “broke the buck” or reported a get asset level less than per share, forcing it to liquidate.

Dozens of other funds in like manner had trouble maintaining the NAV, later studies showed. In response, the SEC adopted of the present day rules to stabilize the funds, such as requiring them to clinch certain percentages of highly-rated assets that can be sold with celerity if necessary.

The SEC is also considering rules that would own NAVs to float or not be tied to per share value. The industry has resisted, worried it would lose customers.