“Unlike previous generations, we have become a nation that’s unwilling to save toward the future cost of retirement or to pay for the advice that most of us will need in order to build a successful retirement portfolio.”
The funding gap is projected to widen from about $1.2 billion this year, according to CalPERS….Such warnings have been echoed by public pension funds across the nation, where the costs of aging baby boomers and expensive retirement benefits are growing faster than contributions from current public workers and municipal governments.
The numbers are severe. According to the National Institute on Retirement Security, nearly 40m working-age households — 45 per cent of the total — had no retirement savings whatsoever in 2013, whether an employer-sponsored 401(k) plan or an individual retirement account (IRA).
The combined deficit of the six Gulf Cooperation Council (GCC) states is forecast to hit $153 billion in 2016, up from $119 billion last year, Kuwait’s investment firm KAMCO Research said.
But to cut the amount of capital to be raised on the market, Monte dei Paschi is considering converting some subordinated debt into equity, sources have told Reuters.
Following the National Bureau of Statistics (NBS) recent official confirmation that Nigeria’s economy had slipped into one of the worst recessions in its history, the government convened a ministerial retreat last week to rally economists’ opinions on possible way out of the doldrums.
Few dispute that debt has become the Achilles’ heel of the Chinese economy as the government builds frantically to boost growth at all costs, even as it seeks to rebalance the economy toward services and consumption. McKinsey calculates that between 2000 and 2014 China added $26.1 trillion to its debt, a figure greater than the GDP of the U.S., Japan and Germany combined.
What’s a bank to do when regulators want it to offload risk to prevent a repeat of the last financial crisis? Why turn to a complicated derivative transaction commonly associated with that same crisis, of course.
Commentators would soon swallow their soothing sentiments when ambitious infrastructure plans blew government expenditures beyond the ceiling and Kenya went on a borrowing spree almost doubling the debt to GDP ratio in under four years.
Student loan debt more than doubled in New York over the last decade from $39 billion to $82 billion, according to a new report from state Comptroller Thomas P. DiNapoli. The growing debt load is likely the result of rising college costs and a steady increase in the number of individuals taking out student loans, the report finds.
A detailed case study of 19 major institutions, ranging from Ivy League schools like Harvard and Columbia, to state universities like the University of Michigan, to a variety of smaller state schools local community colleges, found that these institutions were involved in risky swaps deals that had already cost schools $2.7 billion in unnecessary fees—enough to pay tuition and school fees for 108,000 students in the sample group.
Every man, woman and child in Chicago is already on the hook for $12,600 to rescue wobbly public pensions. This week, residents will learn from Mayor Rahm Emanuel how he plans to add more police to stem a wave of more than 500 killings and 2,500 shootings, mostly in black and Hispanic neighborhoods. The body count outstrips that of New York and Los Angeles combined.
Policymakers hope the swap plan will help clean up a bad debt problem that is increasingly worrying global investors amid warnings that a banking crisis is looming.
“Shadow financing is banking reform gone wrong given that the key driver of growth has been the banks circumventing regulations to protect their margins,” analyst Francis Cheung wrote in the report. “Shadow financing has grown rapidly, benefiting from implicit government guarantees despite being a channel for credit to higher-risk industries.”
The country’s debt has soared to 250 percent of GDP and the Bank for International Settlements (BIS) warned in a report published on Sunday that a banking crisis was looming in the next three years.
Statistics Canada reports that nationwide household debt reached unprecedented heights in the second quarter of 2016, surpassing the country’s gross domestic product (GDP) for the first time. The main reason was greater borrowing due to historically low interest rates, according to the agency.
That’s the highest weekly purchase since the ECB started buying corporate bonds at the start of June. It brings the ECB’s total corporate bond purchases to €25.6bn.
The BIS has for years warned that the global economy is too dependent on its central banks, whose money-printing power allows for a rapid response to crises. The result is that central bank money boosts asset prices even if underlying economic conditions haven’t changed.
Ailman said Calstrs is reducing its exposure to fixed-income investments to increase returns in the current low- and negative-interest rate environment. He said Calstrs is looking at long-short equity funds to reduce losses when markets turn down.
The ECB began charging banks to deposit excess funds with it in 2014 as part of its effort to spur higher bank lending and economic growth but demand for credit in Germany has remained subdued. The deposit rate is currently -0.4 percent.
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