FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Citi Field bondholders are benefit ting from the Mets’ post season run (Think Advisor)
New York Mets players and fans aren’t the only ones enjoying the team’s World Series berth. The holders of $US700 million worth of Citi Field bonds are also thrilled with the way the team has been playing. According to Think Advisor, ticket sales for 2013 and 2014 averaged 26,366 and 26,528 per game, far below the expected average of 37,980 for 2013 (the team didn’t forecast past that year). However, the recent play of the team should provide a meaningful boost to next season’s attendance, possibly increasing the team’s ability to service its debt. Currently, the bonds are rated one step below investment grade, but S&P analyst Ben MacDonald told Think Advisor an improvement in attendance alone won’t be enough for an upgrade. “If there was enough liquidity then it could be higher,” MacDonald said.
The People’s Bank of China cut rates (Business Insider)
China’s central bank lowered both its one-year lending rate and one-year deposit rate by 25 basis points to 4.35% and 1.50%, respectively. Additionally, the PBOC cut its reserve-requirement ratio 50 basis points to 17.50%. The rate cuts come as the PBOC continues its attempt to jump start the slowing Chinese economy.
New grads won’t be able to retire until 75 (Nerd Wallet)
Nerd Wallet’s 2015 New Grad Retirement Report has concluded the class of 2015 won’t be able to retire until they reach the age of 75, 13 years later than the current average retirement age of 62. With an average life expectancy of 84, the class of 2015 is likely to spend just nine years in retirement according to Nerd Wallet. The report cites student loan debt, rising rents and millennials’ approach to investing for reasons of the delay.
SEC enforcement hit a record high (Securities and Exchange Commission)
The Securities and Exchange Commission says fiscal year 2015 saw a total of 807 enforcement actions, representing an almost 7% jump in cases from last year’s total of 755. Disgorgement and penalties totaled $US4.2 billion, up slightly from the $US4.16 billion in 2014. Some of the SEC’s first-of-a-kind cases included: “a private equity adviser for mis-allocating broken deal expenses; an underwriter for pricing-related fraud in the primary market for municipal securities; and a “Big Three” credit rating agency.
Raymond James is looking to expand (Financial Planning)
Financial Planning reports Raymond James CEO Paul Reilly is looking to expand the company through acquisitions. Sources have suggested Deutsche Bank’s US brokerage unit and Cetera Financial are possible targets, but Raymond James won’t buy just any company. Reilly says, any deal must fit the company’s cultural. As for what the Raymond James wants, “We look at realistic retention rates and what it’s going to cost,” Reilly told Financial Planning. “We will not roll the dice and just hope.”
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