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Fitch Rates South Carolina Student Loan Corp, 2014 Series

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings rates the South Carolina Student Loan Corporation (SCSLC) Education Loan revenue bonds, 2014 series, issued from the South Carolina Student Loan Corp. – 1996 General Resolution, as follows:

–$328,000,000 floating rate class A-1 notes ‘AAAsf’; Outlook Stable;

–$100,500,000 floating rate class A-2 notes ‘AAAsf’; Outlook Stable;

–$73,000,000 floating rate class B notes ‘AAsf’; Outlook Stable.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral is comprised of Federal Family Education Loan Program (FFELP) loans with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. Fitch currently rates the U.S. ‘AAA’ with Outlook Stable.

Sufficient Credit Enhancement: The cash flow results for the senior and subordinate bonds were satisfactory under Fitch’s ‘AAA’ stresses. At closing, senior and total parities are expected to be 112.00% and 105.47%, respectively. Credit enhancement (CE) is provided by overcollateralization, excess spread, and for the senior bonds, subordination provided by the class B bonds. Excess cash cannot be released from the trust until all the bonds are paid-in-full, with the exception of a one-time cash release to the issuer on or before Sept. 3, 2014, provided the parity test is met.

Adequate Liquidity Support: Liquidity support is provided by an $8,752,480 reserve account which will be funded at closing with the bond proceeds. The required reserve account balance is the greater of (a) 1% of the outstanding balance of the prior bonds and 0.25% of the outstanding balance of the 2014 series bonds, (b) 0.10% of the original principal of all bonds outstanding and (c) $750,000.

Acceptable Servicing Capabilities: Day-to-day servicing will be provided by South Carolina Student Loan Corporation and Nelnet Servicing, LLC will be the back-up servicer. All servicers have demonstrated adequate servicing capabilities.

RATING SENSITIVITIES

Since FFELP student loan ABS rely on the U.S. government to reimburse defaults, ‘AAAsf’ FFELP ABS ratings will likely move in tandem with the ‘AAA’ U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch’s published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Key Rating Drivers and Rating Sensitivities are further described in the pre-sale report titled ‘South Carolina Student Loan Corporation, 2014 Series’, dated August 4, 2014, available on www.fitchratings.com.

Fitch affirms the following ratings from the South Carolina Student Loan Corp. – 1996 General Resolution:

–Series 2005 A-2 at ‘AAAsf’; Outlook Stable;

–Series 2005 A-3 at ‘AAAsf’; Outlook Stable;

–Series 2006 A-1 at ‘AAAsf’; Outlook Stable;

–Series 2006 A-2 at ‘AAAsf’; Outlook Stable.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Global Structured Finance Rating Criteria’ (August 2014);

–’Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria’ (June 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750530

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=854734

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Security Upgrades & DowngradesBondsFitch RatingsFFELPEducation Loan
Contact:

Fitch Ratings

Primary Analyst

Emily Lee, +1 212-908-0667

Director

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Secondary Analyst

Harry Kohl, +1 212-908-0837

Associate Director

or

Committee Chairperson

Tracy Wan, +1 212-908-9171

Senior Director

or

Media Relations:

Sandro Scenga, +1 212-908-0278

sandro.scenga@fitchratings.com

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Fitch Rates South Carolina Student Loan Corp, 2014 Series

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Asta Funding, Inc. Announces Financial Results for Third Quarter and Nine Months of Fiscal 2014

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‘Trapped Cash’ Phenomenon Labeled an Overstatement

By Siobhan Hughes

Big American companies have long complained that an estimated $1 trillion in cash is trapped overseas—all because the U.S. corporate tax rate of 35% keeps companies from bringing it home. A new report from a California tax-law professor counters that argument, calling it an “overstatement” advanced by large, multinational corporations with significant foreign operations.

Ed Kleinbard, a professor at the University of Southern California who was previously chief of staff at the Joint Committee on Taxation, examines why so many companies are seeking to reincorporate overseas for tax purposes, a practice known as inversion. Companies are advancing a “false narrative,” he says, that they are pushed into inversions because “their love goes unrequited by a country that cruelly saddles them” with “the highest corporate tax rate in the world.”

Instead, U.S. multinationals take advantage of a “feast of tax planning opportunities” to end up with corporate tax rates that are “the envy of their international peers,” he writes. A May 2013 report by the Government Accountability Office found that for the 2010 tax year, the effective tax rate paid by profitable companies was 17%, factoring in foreign and state and local income taxes. The effective rate was 22.7% when unprofitable companies were included – still well below the top rate of 35%.

As an example, Mr. Kleinbard cites Apple Inc. The maker of the iPhone held $113.3 billion in cash and other instruments in overseas subsidiaries as of Sept. 28, 2013. In May 2013, it issued almost $17 billion in debt. Under the U.S. tax code, the interest earned on the overseas cash is taxable in the U.S. At the same time, the interest payments on the debt are tax-deductible in the U.S. The interest earned on the overseas cash investments can be used to pay the interest on the loan, and the company, Mr. Kleinbard says, “is left in the same economic position as if it had simply repatriated the cash tax-free (plus or minus a spread for differences in interest rates between the two streams.)”

“As Apple Inc. demonstrated in 2013, large multinational firms often can access their offshore earnings without incurring a tax cost, simply by borrowing in the United States and using the earnings on the offshore cash to pay the interest costs,” he writes.

The idea that current tax rules trap cash overseas, Mr. Kleinbard concludes, is a “great overstatement.”

 


 

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Payday loan problems? Watch the latest video from the Ombudsman …

Aug19

Payday loan problems? Watch the latest video from the Ombudsman

posted by in Payday Loans

Payday loans often add to your worries

Taking out a payday loan to deal with a money problem can be tempting but we know that it can lead to a slippery slope of debt and stress.

That’s why it’s great to see the Financial Ombudsman Service’s new video, aiming to highlight the dangers of taking out a payday loan.

As the video says, payday loan might give you short term relief but often only postpones the problem and the loan becomes an extra thing to worry about. We talk to people who’ve fallen victim to this all too often.

Watch the Financial Ombudsman’s video

How can the Financial Ombudsman help?

If you’ve got issues with payday loans the Financial Ombudsman can:

help you agree affordable repayments on your loan stop you being harassed by debt collectors deal with creditors when you’re being mistakenly chased for a loan in someone else’s name points you in the direction of people who can give in-depth debt advice

The Financial Ombudsman doesn’t give in-depth debt advice but if they think you need they’ll put you in touch with us here at StepChange Debt Charity.

What should you do if you’ve got payday loan problems?

There are four steps you can take to deal with a payday loan problem:

1. Don’t panic: it can feel overwhelming but help is available and things are rarely as bad as they first seem

2. Stop borrowing: many people take out new payday loans to pay off their old loans. This can lead to a quick snowballing of debt

3. Cancel loan payments if you can’t afford them: we’ve got in-depth advice on this in our How to cancel a continuous payment authority article

4. Get free debt advice: we can give you free and impartial advice on how to deal with your debts and help you find a practical solution. Our Debt Remedy advice tool will give you a personal action plan within 20 minutes.

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James Winterbottom has been a debt advisor for six years. Away from work he is an amateur app developer and writes fiction. James is a lifelong supporter of Huddersfield Town football club, which suggests he is either very loyal or very daft. He also likes to talk about himself in the third person in bio pages. Written by

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All-Cash Share of U.S. Home Sales Pulls Back From 3-Year High, Institutional Investor Share Drops to 3-Year Low

From
cash loan – Yahoo News Search Results:

IRVINE, CA–(Marketwired – Aug 19, 2014) – RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, today released its Q2 2014 U.S. Institutional Investor & Cash Sales Report, which shows all-cash sales accounted for 37.9 percent of all sales of single family homes and condos nationwide in the second quarter, down from a three-year high of 42.0 percent in the previous quarter but still up from 35.7 percent a year ago.

The report also shows that sales to institutional investors — entities that purchase at least 10 properties in a calendar year — accounted for 4.7 percent of all sales of single family homes and condos in the second quarter, down from 5.3 percent in the previous quarter and down from 5.8 percent a year ago to the lowest level since the first quarter of 2012.

“The flurry of purchases by institutional investors and other cash buyers that kicked off two years ago when U.S. home prices hit bottom is finally showing signs of subsiding,” said Daren Blomquist, RealtyTrac vice president, noting that the U.S. median home prices bottomed out in March 2012. “Over the past 10 quarters cash sales have accounted for 39 percent of all home sales on average, and institutional investor purchases have accounted for 5.3 percent of all home sales on average. Prior to that, from 2001 to 2011, the average quarterly cash share was 30 percent, and the average quarterly institutional investor share was 2.6 percent.”

“This is a classic good news/bad news scenario for the housing market,” Blomquist continued. “The good news is that fewer cash buyers should help loosen up inventory of homes for sale and reduce competitive bidding, giving first time homebuyers and other non-cash buyers more opportunities. The bad news is that some of those first time homebuyers and other non-cash buyers may already be priced out of the market thanks to the rapid run-up in home prices over the past two years in many areas.”

Cash sales account for larger share of very high-end, low-end and distressed sales
The report shows that U.S. cash sales hit a recent peak of 45.8 percent of all home sales in the first quarter of 2012, when home prices bottomed out, but were down to as low as 34.0 percent of all sales in the third quarter of 2013 before jumping to 36.6 percent in the fourth quarter on the heels of the rise in interest rates and jumping again to 42.0 percent of all sales in the first quarter of 2014, when new qualified mortgage rules from the Consumer Financial Protection Bureau took effect.

Cash sales in the second quarter were skewed higher on both ends of the home price spectrum. Cash sales accounted for 67 percent of purchases of homes selling for $100,000 or less, and cash sales accounted for 45 percent of purchases of homes selling for more than $2 million.

Cash sales represented a larger share of distressed sales, with 49 percent of bank-owned sales, 61 percent of sales of properties in the foreclosure process, and 96 percent of sales at the foreclosure auction. By comparison, non-distressed home sales were 36 percent all-cash.

Cash sales more than half of all sales in Miami, New York, Detroit, Atlanta, Las Vegas
Among metropolitan statistical areas with a population of at least 500,000, those with the top six highest percentages of cash sales were all in Florida: Miami-Fort Lauderdale-Pompano Beach (64.1 percent), Cape Coral-Fort Myers (62.1 percent), Sarasota-Bradenton-Venice (61.5 percent), Tampa-St. Petersburg-Clearwater (54.6 percent), Lakeland (53.0 percent), and Orlando-Kissimmee (52.2 percent). All six metros posted a lower all-cash share of sales than the previous quarter and a year ago.

Other major metro areas with an all-cash share among the top 20 highest nationwide were Las Vegas (50.7 percent), New York (48.2 percent), Detroit (47.7 percent), Kansas City (46.8 percent), Philadelphia (45.1 percent), and Cleveland (45.1 percent).

Analysis of percentage of cash sales with subsequent financing
RealtyTrac analyzed more than 7,500 all-cash transactions for single family homes in Orange County, Calif., between January 2013 and July 2014 to determine what percentage of the properties purchases were subsequently financed by the buyer.

The analysis found that 10 percent of those all-cash purchases had some sort of subsequent mortgage taken out by the owner who purchased with cash. The subsequent financing was recorded on average 136 days after the sale of the property was recorded.

Institutional investor share increases in Las Vegas, Jacksonville, Columbus, Miami
Among metropolitan statistical areas with a population of at least 500,000, those with the highest share of institutional investor purchases in the second quarter were Atlanta-Sandy Springs-Marietta (15.6 percent), Las Vegas-Paradise (14.4 percent), Jacksonville, Fla., (12. 5 percent), Memphis, Tenn. (12.0 percent), and Charlotte-Gastonia-Concord (11.3 percent).

Although Atlanta documented the highest share of institutional investor sales in the second quarter, its 15.6 percent share was down from a 20.6 percent share in the first quarter and a 16.5 percent share in the second quarter of 2013 — following nine consecutive quarters with year-over-year increases in Atlanta’s institutional investor share.

The institutional investor share of home purchases were also down from a year ago in Memphis and Charlotte, but increased from a year ago in Las Vegas and Jacksonville, bucking the national trend.

Other metro areas among the top 10 for institutional investor share with increases from a year ago were Knoxville, Tenn., (10.0 percent compared to 6.9 percent a year ago); Columbus, Ohio (9.2 percent compared to 6.9 percent a year ago); and Miami (8.2 percent compared to 6.7 percent a year ago).

Institutional investor breakdown: price, foreclosure status, financing and bulk sales
The report shows that the second quarter share of institutional investor purchases was the lowest since the first quarter of 2012, when they represented 4.6 percent of all U.S. home sales. The peak in institutional investor share of all sales was 6.0 percent in the first quarter of 2013.

In the second quarter institutional investors purchased homes at an average sale price of $147,017, while the average estimated full market value of the homes purchased was $164,553 at the time of the sale.

The majority of purchases made by institutional investors in the second quarter were all-cash (79 percent) and not in any stage of foreclosure or bank-owned (80 percent). Of the remaining 20 percent, 7 percent were bank-owned, 11 percent were scheduled for a foreclosure auction, and 2 percent were in default with no foreclosure auction date set.

Analysis of institutional investor bulk transactions on single family homes
Among the 29,444 single family homes purchased by institutional investors in the second quarter, 8,856 (29 percent) were bulk transactions involving multiple properties sold on the same date from the same seller and to the same buyer. The 29 percent bulk transactions was down from 31 percent in the previous quarter but still up from 19 percent a year ago.

An analysis of the buyers and sellers involved with the bulk transactions indicated that most of the bulk transactions involve an institutional investor with multiple corporations purchasing properties that are consolidating all of those properties under a single ownership name. A detailed breakdown of buyers and sellers involved in these bulk transactions is available upon request.

Report methodology
The RealtyTrac U.S. Institutional Investor & Cash Sales Report provides percentages of all sales that are sold to institutional investors and cash buyers, by state and metropolitan statistical area. Data is also available at the county and zip code level upon request. The data is derived from recorded sales deeds and loan data. Statistics for previous quarters are revised when each new quarterly report is issued as more deed data becomes available for those previous months.

Special note on methodology change in second quarter of 2014: RealtyTrac adjusted its methodology for calculating cash sales, changing how loan coverage was determined and eliminating data from one of the data providers used in the past.

Definitions
All-cash purchases: sales where no loan is recorded at the time of sale and where RealtyTrac has coverage of loan data.

Institutional investor purchases: residential property sales to non-lending entities that purchased at least 10 properties in the last 12 months.

Report License 
The RealtyTrac U.S. Residential & Foreclosure Sales report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report.

Data Licensing and Custom Report Order
Investors, businesses and government institutions can contact RealtyTrac to license bulk foreclosure and neighborhood data or purchase customized reports. For more information contact our Data Licensing Department at 800.462.5193 or datasales@realtytrac.com.

About RealtyTrac
RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 129 million U.S. parcels that include property characteristics, tax assessor data, sales and mortgage deed records, Automated Valuation Models (AVMs) and 20 million active and historical default, foreclosure auction and bank-owned properties. RealtyTrac’s housing data and foreclosure reports are relied on by many federal government agencies, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.

FinanceReal EstateRealtyTracInstitutional Investor

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Most Orlando luxury estate buyers come with cash in hand

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Why You Should Avoid Payday Loans

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FY 2014 Results: US$24M Cash Flow from Operations, US$9M Increase in Net Cash

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Hidili Seeks Loan Relief as Rating Downgrades Curb Bond Chances

Here’s %category%-related post from
cash loan – Yahoo News Search Results:

Hidili Industry International
Development Ltd. (1393)
is turning to lenders to ease its cash strain
after four rating downgrades make it harder for the Chinese coal
mining company to sell bonds overseas.

Losses at the Sichuan-based miner widened in the first half
of this year as average clean coal selling prices fell about
18.5 percent, it said in a Hong Kong stock exchange filing Aug.
8. Cash dwindled to 193.7 million yuan ($31.5 million) on June
30 from 322.2 million yuan at the end of 2013, just enough to
service the next semi-annual coupon on its $380 million 8.625
percent notes in November.

“The company is getting new facilities” and is unlikely
to face difficulty rolling over existing debt, Cathy Huang, a
Chengdu, Sichuan-based spokeswoman, said via e-mail Aug. 15 in
response to questions from Bloomberg News. “Do you think the
market can offer us good and attractive terms with our existing
rating?” she said, asked whether Hidili planned to issue new
bonds to repay its $380 million of senior debt.

Standard & Poor’s has downgraded Hidili four times in the
past two years, most recently in April to CCC with a negative
outlook. That’s eight levels below investment grade, signaling
non-payment risk. The company is among 12 of 50 locally listed
miners with debt-to-equity ratios over 100 percent, Bloomberg
data show.

Rising Debt

Hidili shut its wholly-owned coking plant Panzhihua City
Hidili Coke Co. last year and booked a 257.5 million yuan loss.
It’s one of 2,000 mines earmarked by Premier Li Keqiang to close
by the end of 2015 to cut pollution and overcapacity.

Hidili’s November 2015 notes fell 0.97 cents on the dollar
to 59.05 cents as of 5:05 p.m. in Hong Kong, Bloomberg-compiled
prices show, pushing the yield up 194 basis points to 61.391
percent. The securities have lost 13 percent this year while
corporate distressed debt in emerging markets gained 8.6
percent, based on a Bank of America Merrill Lynch index.

Hidili hasn’t sold dollar-denominated securities since
tapping investors in October 2010 for the 8.625 percent bonds.
Those notes are the only time it’s raised debt in the U.S.
currency, data compiled by Bloomberg show.

Funding Plan

“The company needs to show how it plans to term out its
liabilities,” Cheong Yin Chin, a high-yield analyst in
Singapore at CreditSights Inc. said by phone today. “I don’t
think they can sell bonds, onshore or offshore, given their
financial condition. Investors are wary of the mining sector.”

Total debt at Hidili rose 6.7 percent to 8.627 billion yuan
as of June 30 from six months ago, according to Bloomberg-compiled data. Most of its 2.42 billion yuan of bank loans are
secured by collateral and securities and may be rolled over
without difficulty, Huang said in the e-mail.

While Hidili appears to have converted some of its short-term loans into longer-term debt, a liquidity crunch remains,
Cheong said in her report on Aug. 8. Total debt has increased,
while cash in hand isn’t sufficient to repay obligations due
within 12 months, she wrote.

Shares in Hidili closed down 3 percent at HK$0.98 in Hong
Kong
, the lowest since July 25. The stock has lost 17 percent
this year.

To contact the reporter on this story:
David Yong in Singapore at
dyong@bloomberg.net

To contact the editors responsible for this story:
Katrina Nicholas at
knicholas2@bloomberg.net
Ken McCallum

Press spacebar to pause and continue. Press esc to stop.

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The Hawk Eye >> Alternatives to payday loans exist

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