Manske Wealth Management’s Post

"From Treasury Bills to Repos: Exploring the Core of the Money Market" The money market is a sector of the financial market focused on short-term borrowing and lending. It provides a platform for the trading of short-term financial instruments with high liquidity and low risk. ‘Navigating Financial Stability: The Strategic Importance of the Money Market’ The importance of the money market is given below: 1. Liquidity Management 2. Interest Rate Benchmarks 3. Economic Stability 4. Safety and Low Risk ‘The Tools of Liquidity: Exploring Essential Money Market Instruments’ The attached PPT provides you with the following: 1. Introduction to money market 2. How does the money market work? 3. Money market instruments Understanding the money market's dynamics is crucial for making informed financial decisions and appreciating its role in both individual and institutional finance. By grasping its intricacies, we not only enhance our financial literacy but also contribute to a more stable and efficient financial system. Syed Jafri, ICA #MoneyMarket #Finance #Liquidity #Investment #FinancialStability

Maggie A. has written an interesting article on the Private Credit Market for ABF Journal, and PIMCO has been purchasing CRE portfolio's from mid-sized banks. This move sparks discussions on the challenges and opportunities it presents for financial institutions and the broader economy. What implications do you think this trend will have? #Finance #CreditMarket #EconomyDiscussion

The Federal Reserve's widely anticipated rate cut happened yesterday—and while it's good news in the fight against inflation, there will be both winners and losers once its impacts start hitting financial markets. Here's a few examples: * Consumers with big credit card debt stand to gain the most from a rate cut, especially those with variable rates. But with average credit card interest rates sitting at well over 20%, a 0.5% drop is unlikely to make a big difference. * Like credit cards, auto loan rates follow the federal funds rate closely, meaning car loan costs rise quickly when the Fed raises rates. However, when the Fed lowers rates, the relief for borrowers is slower and less noticeable, making rate hikes more immediately impactful than rate cuts. * Homeowners looking to refinance may benefit from the rate cut, but they need to pay close attention to any additional costs that may cancel out potential savings in interest, such as closing costs. * When the Fed cuts rates, your savings account interest will likely follow—just not as quickly. That means your money won’t grow as fast, so now’s the time to rethink your savings strategy. Read more on how the Fed's rate cut will impact consumer finances, via Natalie Campisi on Forbes Advisor here: https://lnkd.in/ewAWMVJa #federalreserve #economy #personalfinance

I recommend you to a reading this paper. Financial Times

Rate cuts should free up cash for financial planning!     Leading economist, Kevin Lings, expects the Reserve Bank to take a slow and steady approach to interest rate cuts.    In an interview with Wealthport, he says independent financial advisers (IFAs) should bank on up to four 25 basis point cuts before the current cycle ends, at around 10% Prime. Lings contends that prudent management of inflation is more beneficial to consumers than aggressive rate cuts.    “The economist told us that interest rates are unlikely to return to the lows of 2020-21,” says Charles Brits, Head of Distribution at Wealthport. Then, the Repo fell to 3.5%; during this cycle, it will likely peg nearer 7%.    Read the full interview here: https://lnkd.in/dTwkmN8c

Thx Brent Beardall - #OVERBLOWN #CRE #REGIONAL #BANK #FEARS (summarized and edited from YouTube*):   1. Regional Bank Shares Under Pressure   • Higher for Longer Interest Rates   • Commercial Real Estate Challenges   • S&P 500 Regional Banking ETF Down   • Moody's Downgrade Review 2. Commercial Real Estate Loan Exposure   • Sale of $3 Billion in Loans to PIMCO   • 45% of Gross Loans in Commercial Real Estate   • Selling at Par, Not Distressed   • Reducing Commercial Real Estate Exposure   • Apartment Loans 3. Moody's Credit Watch Issue   • Not Concerned, Sees It Differently   • Expects to Prove Moody's Wrong   • No Significant Losses Expected in Portfolio   • Office Weakness, but Only 4% of Portfolio   • No Delinquencies Currently We'll help by: 1) Reviewing *SHORT* #PPPP DRAFTS - Plan, Property, Pitch or Pro Forma - #GRATIS - THEN 2) Selecting #OPTIMUM #SMART(est) #CAPITAL (#Debt and #Equity) available for CRE • its Tech (Building, AI, GPT, IoT, Blockchain, Data) • Investment • AECtech • FinTech • PropTech • https://FINANCEoptions.biz (robust InfoList) • #GoldenInfoNuggets _____________ * https://lnkd.in/gr4wcCEg

Today, I delved into the intricacies of coupon rates, market rates, and contract rates. These fundamental concepts are crucial for understanding bond investments and loan agreements. I explored: 1. Coupon Rates: The fixed interest payments made by bond issuers to bondholders, calculated as a percentage of the bond’s face value. 2. Market Rates : The prevailing interest rates in the financial markets, influenced by economic factors and central bank policies. 3. Contract Rates: The interest rates specified in loan or bond agreements, which can be fixed or variable. These rates are interrelated and impact investment decisions, bond pricing, and refinancing strategies. Understanding these relationships is essential for making informed financial choices and strategizing effectively. I’ve put together a comprehensive presentation to break down these concepts in detail. Feel free to check it out and let me know your thoughts! Syed Jafri, ICA - #Finance #Investment #BondMarket #FinancialEducation #InterestRates #InvestmentStrategy #FinancialLiteracy #MarketRates #CouponRates #ContractRates

Comparing the performance of accounts with longer time horizons to shorter term bank rates can be a misleading endeavor. This article highlights the importance of balancing short term liquidity with longer term accumulation objectives. A comprehensive financial plan can help you develop an overall approach that addresses both the short term needs and long term goals. https://lnkd.in/etg2BY4P TC7034321(0924)1

In the intricate world of finance, balance sheets serve as the bedrock of transparency and trust. Yet, recent revelations have shed light on a troubling reality: some banks may not be as forthright as they claim when presenting their financial health through these documents. Behind the façade of numbers lies a narrative of deceit and manipulation, eroding the very foundation of confidence upon which the banking sector operates. #money #banks #finance

Answering the question of whether the surge in private markets has de-risked the financial system or just shuffled exposures on bank balance sheets will probably have to wait for the next recession. However, we should be thinking about this issue and I found this NBER working paper a useful addition to the topic. https://lnkd.in/e9E-MaJb