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☆ The Federal Reserve is trimming rates, and these higher-yielding assets could be called back soon
▼ + stars: | 2024-11-12 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

The Federal Reserve last week dialed back interest rates by a quarter point, bringing its target rate range down to between 4.5% and 4.75%. Give and take In addition to buying CDs directly from a bank, investors can also shop for brokered CDs through their brokerage. Indeed, a client holding a 12-month brokered CD with an APY of 4.65% had their instrument called with six more months to go, he said. The Federal Deposit Insurance Corp. backs bank CDs and savings accounts up to $250,000 per depositor and per ownership category. "The time with the brokered CDs has probably come to an end," he said.

Persons: Banks, Marcus, Goldman Sachs, Malcolm Ethridge, There's, noncallable, Ethridge, They're, Dinon Hughes Organizations: Federal Reserve, Capital Area, Vanguard, Nvest, Capital, Federal Deposit Insurance Corp, Treasury, ., Bond, SEC Locations: BTIG, Washington ,, Portsmouth , New Hampshire, Kennebunk , Maine

If the Fed cuts rates on September 18, bank account interest rates are likely to decline further. High-yield savings and money market accounts outearn typical checking or savings accounts even when rates decline. If the Fed decides to cut rates, savings account and CD rates will likely decline. AdvertisementEven in a declining interest rate environment, the best high-yield savings accounts offer a higher annual percentage yield than savings accounts at brick-and-mortar banks. Some of the highest-yield saving accounts include the EagleBank High-Yield Savings Account (0.01% to 5.35% APY), Western Alliance Bank High-Yield Savings Premier( 5.31% APY), and BrioDirect High-Yield Savings Account (5.30% APY).

Persons: —, they'll, George Salinas, ™, Nate Hanft, there's, Banks, it's, I've, Hanft Organizations: Service, CFS, Manske Wealth Management, Barclays, Connexus Credit, Wealth, Western Alliance Bank, Yield Savings Locations: Salinas

☆ What to do now that the Fed is signaling lower interest rates
▼ + stars: | 2024-07-31 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +9 min

Given the many ways lower rates can affect your finances, here are some things to consider when deciding what steps to take in response. Here’s how lower rates may affect key areas of your financial life, along with tips on what to do about it. If that proves difficult to get, see if you can transfer your balance to a credit card from a credit union or local bank that offers lower rates than the biggest banks. And because many variables determine what that factor will be, it will be hard to figure out the impact of lower interest rates. His advice: Don’t keep more than six months’ to a year’s worth of living expenses in cash or cash equivalents.

Persons: ”, Greg McBride, ” McBride, “, Chris Diodato, Diodato, you’ll, McBride, ” Dodiato, Collin Martin, don’t Organizations: New, New York CNN, Federal Reserve, Bankrate, Schwab Center, Financial Research, AAA Locations: New York, Schwab.com

☆ Time to dump CDs? 6 experts share 6 investing moves to make as the Fed prepares to cut rates in September.
▼ + stars: | 2024-07-31 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

Certain areas of the stock market that benefit from lower rates could see a boost. AdvertisementInstead, plug some money into longer-duration bonds to lock in higher returns while they're still around, Milan said. In addition to tying down solid returns, longer-duration bonds could also appreciate when rates fall, he said. AdvertisementLook at rate-sensitive areas of the stock marketCertain areas of the stock market should also benefit from Fed rate cuts. But investors should keep their eye on the labor market the more the Fed cuts rates, Young Thomas said.

Persons: —, Daniel Milan, they're, Ed Mahaffy, Mahaffy, Robert Phipps, Bernstein, Liz Young Thomas, Shmuel Shayowitz, Kristy Kim, Young Thomas Organizations: Service, Federal Reserve, Business, Cornerstone Financial Services, Treasury, ClientFirst Wealth Management, Corporate, Per Stirling Capital Management, Bloomberg, Bond, Index, Fed, Vanguard, ®, Schwab, Fidelity Locations: Michigan, Milan, TreasuryDirect, TomoCredit

☆ What to do when the Fed starts cutting interest rates
▼ + stars: | 2024-07-27 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +8 min

New York CNN —Over the past couple of years, the Federal Reserve aggressively raised its key interest rate to a 23-year high to beat down inflation. But, realistically, how much you’ll save when the Fed lowers rates will depend on how quickly it cuts and by how much each time. Since loan amounts are substantial, this is one area where even small cuts in interest rates could make a meaningful difference in what a homebuyer will pay. A couple of quarter-point rate cuts from the Fed won’t make it meaningfully cheaper, McBride said. A few rate cuts won’t make much of a dent in today’s record-high average rate of 20.7%.

Persons: ”, Greg McBride, ” McBride, “, Chris Diodato, McBride, Diodato, you’re, ” Dodiato Organizations: New, New York CNN, Federal Reserve, Bankrate, Fed Locations: New York

☆ This asset can provide investors hefty yields at a favorable tax rate. Here’s what you should know
▼ + stars: | 2024-06-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Preferred stocks can offer investors plenty of attractive income – and do so at a favorable tax rate – but they should proceed with caution before adding them to their portfolio. Preferred stocks are hybrid assets, combining attributes of bonds and equities, and their issuers include banks and utilities . He said these securities make up no more than 15% of his clients' fixed income allocation. Preferred investors would be paid before the stockholders, but they are well behind the bondholders in terms of priority. There is also the iShares Preferred and Income Securities ETF (PFF) , which has a 30-day SEC yield of 6.33%.

Persons: preferreds, Ken Waltzer, Frank Sileo, Collin Martin, Tapping, Wells Organizations: Wealth, UBS Financial Services, Americas, UBS, Poor's, Schwab Center, Financial Research, Trust Preferred Securities, SEC, Holdings, Barclays, Securities ETF, Citigroup, NextEra Locations: Los Angeles, Wells Fargo, Albemarle

☆ Big banks are touting sweet CD yields in excess of 5%. Where you can find them
▼ + stars: | 2024-04-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

"From our experience, the brokered CD market is more competitive," said Richard Carter, vice president of fixed income products and services at Fidelity. Like traditional CDs, brokered CDs are offered in different maturities. For instance, JPMorgan's one-year CD, with its 5.4% yield, can be called as early as Oct. 30, according to Fidelity's website. With a brokered CD, you'll have to sell it on the secondary market — and you may lose some of your principal. Depending on your time frame, you may consider a one-year ladder with CD maturities three months apart, a two-year ladder with CD maturities six months apart, or a five-year ladder, with maturities one year apart, he said.

Persons: Goldman Sachs, Morgan Stanley, Schwab, Richard Carter, Carter, you'll, there's, Morgan, Greg McBride, It's, McBride, staggers maturities Organizations: JPMorgan, Fidelity Investments, Bank of America, Fidelity, Vanguard, Federal Deposit Insurance Corp, Morgan Stanley Private Bank and Bank of America Locations: U.S

☆ These unique assets are now a popular way to lock in yield. What to know about defined maturity ETFs
▼ + stars: | 2023-11-24 | by ( Michelle Fox | ) www.cnbc.com time to read: +8 min

After being on the market for more than a decade, defined maturity bond funds are finally attracting attention. Traditional open end, bond mutual funds or bond ETFs, on the other hand, have no maturity date. One big advantage over owning individual bonds, however, is that defined maturity ETFs are easy to purchase on the stock exchange. How they work Each defined maturity bond fund holds securities in the same sector that come due in the calendar year chosen for the fund. Callable bonds are simply those that can be redeemed or paid off by the issuer prior to the bonds' maturity date, according to the Securities and Exchange Commission.

Persons: Charles Rotblut, Bonds, Sarajat Samant, Karen Veraa, BlackRock's, —, Veraa, IBonds, Invesco, Treasury iBond, Jason Bloom, Invesco's Bloom, haven't, I'm, BlackRock's Veraa, Morningstar's, Samant, AAII's Organizations: Investors, American Association of, Treasury, BlackRock, Securities and Exchange Commission, Invesco Locations: BlackRock's iShares, U.S

☆ World Bank and kin head for a $100 bln cash call
▼ + stars: | 2023-11-20 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

World Bank President Ajay Banga arrives for a signing ceremony with Thailand to host the 2026 International Monetary Fund and the World Bank annual meetings on the last day of this year's meeting, following last month's deadly earthquake, in Marrakech, Morocco, October 15, 2023. REUTERS/Susana Vera Acquire Licensing RightsLONDON, Nov 20 (Reuters Breakingviews) - The World Bank and its fellow institutions are heading for a cash call. The World Bank and its regional peers, such as the African Development Bank and the Asian Development Bank, are well placed to help developing countries craft strategies to develop in a green way. Donald Trump may seem an unlikely supporter of the World Bank if he wins. The People’s Republic, for its part, will want to increase its stake in the World Bank as part of any capital increase.

Persons: Ajay Banga, Susana Vera, Fitch don’t, Chris Humphrey, Janet Yellen, Joe Biden, Donald Trump, There’s, David Cameron, Peter Thal Larsen, Thomas Shum Organizations: Monetary Fund, World Bank, REUTERS, Reuters, African Development Bank, Asian Development Bank, Group, FIRST, AAA, Bank, Moody’s, European Bank for Reconstruction, U.S, Thomson Locations: Thailand, Marrakech, Morocco, Washington, United States, China, Britain, Ukraine, U.S, Israel, Republic, United Kingdom, France

☆ UBS likes these income plays as Treasury yields come down from recent highs
▼ + stars: | 2023-11-16 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Treasury yields have retreated, and that's good news for one kind of income asset – preferred securities, according to UBS. US10Y YTD line U.S. 10-year Treasury yield in 2023 This month has offered some relief as the 10-year Treasury yield slipped back below 4.5%. "Indeed, a dramatic rate pullback in the early days of November has already sparked a sharp rebound in preferreds," Sileo said. "Callable in July 2028, this fixed-for-life perpetual pays a high 7.375% fixed coupon and offers an attractive [yield to call/current yield]." Investors can receive an attractive yield on a high-quality crossover credit, recently upgraded by S & P following the acquisition by Brookfield [Infrastructure]."

Persons: preferreds, Frank Sileo, US10Y, Sileo, Callable, Michael Bloom Organizations: UBS, Americas, Treasury, Moody's Investors Service, Allstate, Triton International, Triton, Brookfield Locations: preferreds, Infrastructure

☆ Multilateral development banks, keen to expand lending, to meet with ratings agencies
▼ + stars: | 2023-10-10 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

REUTERS/Yuri Gripas/File Photo Acquire Licensing RightsMARRAKECH, Morocco, Oct 10 (Reuters) - Senior executives at multilateral development banks will meet on Wednesday with the top credit ratings agencies, bank executives said, amid a broad push to expand their lending capacity and help countries brace for climate change and other challenges. The World Bank's main lending arms could expand their lending capacity by nearly $900 billion if the ratings agencies changed their processes and modified the allowance they make for callable capital, a study commissioned by Rockefeller found. Lakshmi Shyam-Sunder, the World Bank's chief risk officer, said the ratings agencies had shown some openness to considering revisions in how they treat callable capital in the banks' balance sheets. Casali said Wednesday's meeting, on the sidelines of the annual meetings of the International Monetary Fund and World Bank in Morocco, would include officials from the World Bank, the Asian Development Bank and the African Development Bank, along with the three top credit raters - Moody's, Standard & Poor's and Fitch. Currently, the ratings agencies apply widely different rules and standards in assessing the risks associated with the banks' lending and balance sheets.

Persons: Yuri Gripas, Roberta Casali, Rockefeller, Lakshmi Shyam, Sunder, Casali, Fitch, Ajay Banga, Janet Yellen, Andrea Shalal, David Lawder, Leslie Adler Organizations: Monetary Fund, REUTERS, Rights, Asian Development Bank, Rockefeller, AAA, International Monetary Fund, World Bank, African Development Bank, Poor's, World, Reuters, U.S, Treasury, Thomson Locations: Washington , U.S, Rights MARRAKECH, Morocco

☆ Yellen says World Bank needs 'cultural change' to better mobilize private capital
▼ + stars: | 2023-10-10 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

REUTERS/Elizabeth Frantz/File Photo Acquire Licensing RightsBEN GUERIR, Morocco, Oct 10 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Tuesday the World Bank had made progress in reforming its operations to better address climate change and other global challenges, but still needed "cultural change" to mobilize private sector capital. But more efforts were needed to equip World Bank staff to deliver the desired results, Yellen said. The reforms of the World Bank and other multilateral development banks (MDBs) are a key topic at this week's annual meetings in Morocco of the International Monetary Fund and World Bank. But government funding would never suffice, Yellen added, calling on the MDBs to establish concrete private capital mobilization targets and incentives for staff to meet them. She said the World Bank's International Finance Corp and MIGA divisions should expand their lending, guarantee and insurance instruments, and find new ways to smartly manage foreign exchange risk.

Persons: Janet Yellen, Elizabeth Frantz, BEN GUERIR, Ajay Banga, Yellen, Banga, Andrea Shalal, Catherine Evans Organizations: Treasury, Treasury Department, REUTERS, . Treasury, Bank, Mohammed VI Polytechnic University, World Bank, International Monetary Fund, Bank's International Finance Corp, Thomson Locations: Washington , U.S, Morocco, Ben Guerir

☆ US Treasury pushing development banks for progress on next phase of reforms by April
▼ + stars: | 2023-10-08 | by ( Andrea Shalal | ) www.reuters.com time to read: +4 min

A bronze seal for the Department of the Treasury is shown at the U.S. Treasury building in Washington, U.S., January 20, 2023. U.S. Treasury Secretary Janet Yellen has been pushing for reforms to expand the World Bank's lending for a year, after an expert panel review concluded that the institutions, government shareholders and credit rating agencies were too timid about financial risks. The Treasury official said World Bank governors were expected to sign off on the new measures this week and mapped out previously unreported details on the callable capital issue, including the timetable for action. Any new proposal on treatment of callable capital will require approval by the shareholders of each of the respective multilateral development banks, bank officials have said. "You've got to work on global challenges like climate fragility and pandemics and poverty and boosting shared prosperity all at once because they are all mutually reinforcing and intertwined," the Treasury official said.

Persons: Kevin Lamarque, MDBs, Janet Yellen, You've, Andrea Shalal, Mark Porter Organizations: Department of, U.S . Treasury, REUTERS, Treasury, U.S . Treasury Department, World Bank, Bank, Reuters, Rockefeller Foundation, International Monetary Fund, Thomson Locations: Washington , U.S, MARRAKECH, Morocco, U.S, Marrakech

☆ World Bank chief sees $100 bln-plus lending boost from capital moves
▼ + stars: | 2023-09-26 | by ( David Lawder | ) www.reuters.com time to read: +4 min

Ajay Banga, World Bank president, participates in global infrastructure and investment forum in New York, Thursday, Sept. 21, 2023. They would include U.S. President Joe Biden's proposed $2.25 billion supplemental budget request for the World Bank, along with expected contributions from Germany, Japan, South Korea, Saudi Arabia and Nordic countries, he said. The bank is also examining other ways to expand lending, including providing more loan guarantees, lending against callable capital that is pledged but not paid-in, and special bonds that can serve as hybrid capital. China, India and Brazil got larger shareholdings in the bank in a 2018 capital increase and would likely want more say in a future capital increase, Banga said. "That is a pimple on a dimple on an ant's left cheek compared to what we need in the world," Banga said.

Persons: Ajay Banga, Seth Wenig, Banga, Joe Biden's, I'm, David Lawder, Paul Grant, Rosalba O'Brien Organizations: World Bank, Bank, Foreign Relations, International Development Association, MasterCard, CFR, Bank for Reconstruction, Development, Thomson Locations: New York, Germany, Japan, South Korea, Saudi Arabia, U.S, Marrakech, Morocco, United States, China, India, Brazil

☆ How to get an even higher CD rate than you see advertised
▼ + stars: | 2023-09-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Higher yields on certificates of deposit are out there, but you'll have to venture beyond your favorite bank to get them. "There could be as much as a 50-basis point difference going to a brokered CD," he said. Brokered vs. bank offerings With a bank CD, the investor goes directly to the institution to buy the instrument. For instance, brokered CDs purchased via Vanguard begin at 1 to 3 months and go out beyond 10 years. The value of the CD will fluctuate with interest rates, with the price declining as yields run higher.

Persons: Malcolm Ethridge, Greg McBride, McBride, Ethridge, Michael Bloom Organizations: Wealth, Vanguard, Bankrate.com . Bank, Federal Deposit Insurance Corp Locations: Rockville , Maryland

[1/3] U.S. Treasury Secretary Janet Yellen addresses the media, ahead of the G20 Summit in New Delhi, India, September 8, 2023. She will seek to build G20 support for an "equi-proportional" increase in IMF quota funds paid-in by member countries, which would increase IMF lending resources, but not immediately change its shareholding structure. At the briefing, Yellen said there was significant progress made on international debt relief efforts. "Those are crucial additional resources for reducing poverty, advancing global health security and combating climate change," Yellen said. "Even without Russia's active participation and the tensions the war has created, I still see that G20 is highly effective," Yellen said.

Persons: Janet Yellen, Francis Mascarenhas, Yellen, David Lawder, Swati Bhat, Leslie Adler, Kim Coghill Organizations: . Treasury, REUTERS, International Monetary Fund, World Bank, U.S, Congress, U.S . Treasury, Ukraine, Thomson Locations: New Delhi, India, DELHI, United States, Ukraine, U.S, Washington

☆ Bond investors show confidence in Schwab after cost-cutting
▼ + stars: | 2023-08-23 | by ( Matt Tracy | ) www.reuters.com time to read: +3 min

The company logo for Financial broker Charles Schwab is displayed at a location in the financial district in New York, U.S., March 20, 2023. The announcement led to a 5% fall in Schwab shares on Tuesday but did not hurt investor appetite for its new bonds. "The strong response shows bond investors, at least in the near term, have gotten over their worries about the credit fundamentals of top-tier regional banks after the banking crisis in March," said Richard Wolff, head of U.S. syndicate at Societe Generale (SOGN.PA). Schwab's bond trade also drew attention as new investment grade bond supply this month has so far been lower than expected. Counting Schwab's $2.35 billion in bonds, investment-grade bond volume sits at just $3.45 billion for the week and $67.1 billion so far in August, according to Informa Global Markets data.

Persons: Charles Schwab, Brendan McDermid, Schwab, Richard Wolff, Dan Krieter, Brian Mulberry, David Del Vecchio, Natalie Trevithick, Matt Tracy, Nupur Anand, Shankar Ramakrishnan, Sonali Paul Organizations: REUTERS, Societe Generale, BMO Capital, Zacks Investment Management, Federal Home Loan Bank, Payden, Informa, Thomson Locations: New York, U.S, Los Angeles

☆ World Bank’s green overhaul is slowly taking shape
▼ + stars: | 2023-08-21 | by ( Rebecca Christie | ) www.reuters.com time to read: +7 min

BRUSSELS, Aug 21 (Reuters Breakingviews) - To step up the fight against climate change, World Bank President Ajay Banga wants to overhaul the lender’s balance sheet without overturning its credit rating. Earlier this year, the World Bank pledged $50 billion over 10 years via changes to how it manages its equity to loan ratio. Such backing has been used before, for example by the UK to fund $1 billion of World Bank projects in India. The central banks would hold those bonds as liquid reserves, while the World Bank could use the SDRs for financing its operations. All of these options are more complicated than if the World Bank’s shareholders simply increased its paid-in capital outright.

Persons: Ajay Banga, Janet Yellen, Lawrence Summers, N.K, Singh, Joe Biden, Yellen, ”, Guarantors, Brad Setser, Stephen Paduano, George Hay, Francesco Guerrera, Streisand Neto Organizations: Reuters, World, Treasury, World Bank, Reuters Graphics, Mastercard, Citigroup, AAA, U.S, Bank, London School of Economics, International Monetary Fund, European Union, U.S ., Thomson Locations: BRUSSELS, U.S, Asia, Banga, India, Japan, China, European, Marrakech, Singh

Logo of China Life Insurance is seen on a door at a branch in Beijing, China, March 24, 2016. REUTERS/Jason Lee/File PhotoHONG KONG, Aug 7 (Reuters) - China Life Insurance (Overseas) Hong Kong has mandated banks for its 10-year subordinated bond offering, according to a preliminary term sheet seen by Reuters on Monday. China Life did not respond to an email from Reuters seeking comment on the deal. The last time China Life tapped the bond market was in March 2019, when it issued 35 billion yuan's worth in China's interbank bond market. Reporting by Georgina Lee in Hong Kong and Scott Murdoch in Sydney; Editing by Edwina GibbsOur Standards: The Thomson Reuters Trust Principles.

Persons: Jason Lee, HONG KONG, Georgina Lee, Scott Murdoch, Edwina Gibbs Organizations: China Life Insurance, REUTERS, Reuters, P Global, Thomson Locations: Beijing, China, HONG, Hong Kong, Sydney

☆ US bank preferred capital issuance makes a tentative comeback
▼ + stars: | 2023-07-28 | by ( Shankar Ramakrishnan | ) www.reuters.com time to read: +4 min

So-called preferred securities, which are one of the riskiest forms of debt but also have some characteristics of stocks, are popular among banks as a way to boost their capital for regulatory purposes. More than $160 billion of preferreds were issued in 2020 and 2021 each, when rates were low. Volume dropped last year to $70 billion as the U.S. Federal Reserve embarked on an interest rate hiking cycle. When Wells Fargo & Co (WFC.N) issued a new public preferred security earlier this month, investor demand far outweighed supply. The $1.725 billion deal received orders of over $6 billion, bringing total issuance for the year to $37 billion.

Persons: preferreds, Wells, ”, Daniel Botoff, Allie Quine, Cohen, Steers, Quine, WELLS, Wells Fargo, RBC's Botoff, Shankar Ramakrishnan, Paritosh Bansal, Matthew Lewis Organizations: U.S . Federal Reserve, Credit Suisse, UBS Group, Wells Fargo & Co, Treasury, RBC Capital Markets, Informa Global, Thomson Locations: U.S, preferreds, New York

☆ Where to Move Your Savings Now That the Fed Has Raised Rates Even Higher
▼ + stars: | 2023-07-26 | by ( Steve Garmhausen | ) www.wsj.com time to read: +5 min

But rates on savings accounts and certificates of deposit could start to fall before long—so it might make sense to lock in today’s rates soon. That means that it could become a lot harder to find savings accounts and certificates of deposit paying the most attractive rates. “I think we’ve already broken past the peak,” says Sander Read, a financial advisor in Winter Park, Fla.Where are interest rates headed next? What do higher rates mean for savings accounts and CDs? The reason: Banks that need to raise more cash to make loans are more likely to dangle higher interest rates to get it.

Persons: Steve Garmhausen, ”, Sander Read, Keith Larkin, Ken Tumin, “ Organizations: Fed, Federal Deposit Insurance Corp, Bank, Treasury Locations: Winter Park, Fla, San Francisco, Bank

☆ World Bank chief Banga unveils new plans to boost lending 'firepower'
▼ + stars: | 2023-07-18 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

July 18 (Reuters) - World Bank President Ajay Banga unveiled new plans on Tuesday to stretch the bank's balance sheet and help countries tackle climate change and other challenges, but said a capital increase would still eventually be needed. The new steps, still being discussed with shareholder countries, come on top of initial steps approved in April that will boost World Bank lending by up to $50 billion over the next decade. "We are building a better bank, but eventually we will need a bigger bank." It proposes to absorb more risk and expand lending by widening conditions for callable capital - money pledged by governments but not currently "paid-in." And it plans to expand very low or zero-interest lending, including through a new $6 billion crisis facility set up for the poorest countries through the International Development Association.

Persons: Ajay Banga, Banga, David Malpass, Janet Yellen, Andrea Shalal, Sonali Paul Organizations: Mastercard, World Bank, Bank, Treasury, International Development Association, Thomson Locations: Banga, Gandhinagar, India, U.S

☆ Where to invest $10,000 right now if you want to generate the most income, without a ton of risk
▼ + stars: | 2023-07-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

Meanwhile, preferred securities can see yields around 7%. The Fed's rate hikes also sweetened yields on money market funds and certificates of deposit . Yet what is the best avenue for someone who is looking to generate the most income on a $10,000 investment — without taking on a lot of risk? The ICE BofA Fixed Rate Preferred Securities index, which tracks the performance of fixed-rate preferred securities, has a yield to maturity of 7.1%. "Right now you can't do better … than just owning short- to intermediate term high-grade fixed income," he said.

Persons: There's, Tom Graff, Mitch Goldberg, Goldberg, laddering, you'll, Ian Weinburg, Weinberg, Tim Ghriskey, Snyder, haven't, Ghriskey, Bonds, he'd, Graff Organizations: Treasury, Federal Reserve, Federal, CNBC Pro, Family Wealth, Pension Management, Ingalls, ICE, Securities, Citigroup, XIII, Index, SEC Locations: Baltimore, Melville , N.Y, Woodbury , N.Y, New York, Treasurys, preferreds

☆ Exclusive: World Bank chief to 'push' its balance sheet, vows to protect 'AAA' rating
▼ + stars: | 2023-06-14 | by ( David Lawder | ) www.reuters.com time to read: +3 min

The World Bank Group made total lending commitments of $104 billion last year. U.S. Treasury Secretary Janet Yellen told Banga as he took office on June 2 that she wanted him to "get the most" from the World Bank's balance sheet. But Banga said he viewed the idea as largely unviable, because long-term project loans against liquid central bank assets could create a dangerous asset-liability maturity mismatch. Using "callable capital" -- funds pledged but not paid-in by rich countries that can be called on to back World Bank losses -- is another option, advocated in a G20 report on multilateral development bank capital adequacy. He said he hoped to be able to provide details on what the bank could do in this regard by the time of its annual meeting in October.

Persons: Ajay Banga, Banga, Janet Yellen, I'm, David Lawder, Kim Coghill Organizations: Reuters, Bank, AAA, World Bank Group, MasterCard, Treasury, World Bank, Thomson Locations: KINGSTON, Jamaica, Peru, Banga, U.S

☆ Yellen wants more World Bank reforms in coming months, eyes subnational lending
▼ + stars: | 2023-04-20 | by ( Andrea Shalal | ) www.reuters.com time to read: +4 min

Yellen told Reuters World Bank shareholders had "extremely productive" discussions last week after approving an initial round of reforms to ensure the bank can better tackle issues such as climate change, pandemics and conflict, alongside its work to reduce poverty. Now they expected the bank to take further actions on a "rolling basis," in the run up to the October annual meetings in Morocco, she said. Yellen said private sector executives told her they were upbeat that new incentives and reforms at the World Bank could free up more private capital for development goals. Malpass told Reuters the bank would draft a work plan for reforms to continue over the summer. "We'll explore additional avenues to provide resources directly from the MDBs and enable private sector capital."

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