Payback_Official’s Post

I've been diving into this rising delinquency issue, and it's not just one thing causing the trouble; it's actually the perfect storm of factors that are hitting our industry all at once:    The Pandemic Hangover: Remember those government stimulus checks and those used equipment prices that went through the roof? Well, now the party is over. Borrowers are tight on cash and saddled with depreciating assets.    Shattered Supply Chains: People are reeling from the wild oscillations between feast and famine. Excess inventory in some areas and shortages in the other have appeared as a logistic nightmare that hurts borrowers' bottom lines.    Interest Rate Whiplash: The Fed's sustained interest rate hikes adds cold water to an environment that is already chilled, thus making it more difficult for businesses to meet their payment obligations.    Modifications as a band-aid: In the past, modifications really were a lifeline, but now they are increasingly being taken for granted. This could set up a dangerous dependency that's hard to break. Commercial Collections resource constraints: It's really tough to double your resources when non-accruals double. Without added resources, each defaulted contract gets less attention.   What do YOU see in your portfolios? Of these factors, which one do you think is hitting the hardest? Are you seeing more loan modifications than usual? 

After years of economic growth, delinquencies and defaults are rising. It becomes a path of diminishing returns for lenders that results in lower net yields, strained borrower relationships, and competitive challenges.     How do you handle delinquencies and defaults biting into your organization? Share with us your strategies in the comments.    #EquipmentFinance #DelinquencyManagement  

Smart kiwi: ‘bloody greedy banks rip us off’. Same smart kiwi: 😳 Leave Kiwisaver with the bank (about 1 in 2 kiwis). 😳 Use the bank for insurance and never get it reviewed. 😳 Have multiple bank accounts with fees. 😳 Leave excess funds in non interest bearing accounts. 😳 Don’t seek mortgage advice for better rates. 😳 Pay fees for bank cards they don’t use Yes the data suggests we are getting pumped but my word, do something. We are increasingly becoming a nation of people yelling at the big bad problems. Problem with that is you’re missing the stern convo needed with the person in the mirror. Stop waiting for the government, the com com or who ever to fix things or be the change. Be the change yourself.

I’m back with the next three levels of risk you could take with your finances… 4️⃣ 𝗗𝘆𝗻𝗮𝗺𝗶𝗰 𝗿𝗶𝘀𝗸 (𝗲𝗾𝘂𝗶𝘃𝗮𝗹𝗲𝗻𝘁 𝗼𝗳 𝟱 𝗼𝘂𝘁 𝗼𝗳 𝟲) The type of people who are usually dynamic investors understand that higher risk offers an opportunity to generate significant returns over the long term. They achieve their goals by: 👉 Making up their mind quickly 👉 Accepting that the occasional poor return is a necessary part of long-term investing 👉 Taking risks with their most available assets 5️⃣ 𝗥𝗶𝘀𝗸-𝗮𝘃𝗲𝗿𝘀𝗲 (𝗲𝗾𝘂𝗶𝘃𝗮𝗹𝗲𝗻𝘁 𝗼𝗳 𝟭 𝗼𝘂𝘁 𝗼𝗳 𝟲) These types of investors usually take a long time to make up their minds on financial matters and are more likely to regret it if their decision turns out badly. They would prefer to keep their money in the bank rather than investing it. However, they do run the risk that the value of their savings will fail to keep pace with the cost of living. 6️⃣ 𝗕𝗮𝗹𝗮𝗻𝗰𝗲𝗱 (𝗲𝗾𝘂𝗶𝘃𝗮𝗹𝗲𝗻𝘁 𝗼𝗳 𝟯 𝗼𝘂𝘁 𝗼𝗳 𝟲) Sitting right in the middle of the investment risk profiles, balanced investors don’t take much risk with their available cash. They tend to lean more towards lower-risk assets but are aware that investments with a higher risk profile are more likely to give greater long-term returns. Ultimately, an investor in this bracket would consider all their opportunities carefully and would regret any decision that failed to lead to a return. So, there you have it, the six levels of investment risk (I’ve shared the post from last week in the comments so you can go back to it and have a look 👍) Not sure where you sit or what your levels are? Drop me a message and we can have a look at your risk tolerance 😊 Approver Quilter Financial Services Limited and Quilter Mortgage Planning Limited 11/03/2024

PCE Stays Calm, Job Report Looms: Markets Brace for Powell's View on Inflation & Cuts. Team Noble gets you up to speed today! https://lnkd.in/gYTTdtbg #FedPolicy #MortgageTrends #PCE #InterestRates #ConsumerSentiment #MortgageRates #RealEstate #Realtor #RateWatch

PCE Stays Calm, Job Report Looms: Markets Brace for Powell's View on Inflation & Cuts. Team Noble gets you up to speed today! https://lnkd.in/gsrMnNmy #FedPolicy #MortgageTrends #PCE #InterestRates #ConsumerSentiment #MortgageRates #RealEstate #Realtor #RateWatch

The Federal Deposit Insurance Corporation's first quarter report: the US banking system has 63 "problem banks." The report released today, also states that banks are sitting on $517 billion in unrealized losses, blamed on the higher for longer interest rate cycle the Fed is sticking with. Commenting on the losses, the report states that “higher unrealized losses on residential mortgage-backed securities, resulting from higher mortgage rates in the first quarter, drove the overall increase.” The FDIC aren’t worried though: "The number of problem banks represent 1.4% of total banks, which is within the normal range for non-crisis periods of one to two percent of all banks.”

CPI Shocker! Inflation Sticks, Stocks Tumble as Fed Rethinks Rate Cuts - Buckle Up for a Bumpy Ride! Get Caught Up W. Team Noble https://lnkd.in/dt29HVWE #RateWatch #MarketVolatility #EconomicIndicators #FedPolicy #InvestmentStrategy #MortgageRates #RealEstate #Realtor

THE Ministry of Finance has announced an increase in deposit insurance coverage, from $125,000 to $200,000 on September 4. In a release, the ministry said on August 28 Minister of Finance Colm Imbert signed both the Central Bank (Deposit Insurance) Order 2024 and the Central Bank (Deposit Insurance Coverage Ltd) order, which were both published on August 29. The ministry said in the release both orders will take effect from October 1. The increase will align coverage levels with the IMF’s recommended ratios for coverage of one-two times GDP per capita, compensate for inflation, keep financial institutions in line with best practices and increase protection for banks in part or in whole who may not be able to pay debts when it is due. Read more from the Business Day magazine in the Newsday or on our website here: https://lnkd.in/ebemV62V

CPI Shocker! Inflation Sticks, Stocks Tumble as Fed Rethinks Rate Cuts - Buckle Up for a Bumpy Ride! Get Caught Up W. Team Noble https://lnkd.in/dhkhtpKX #RateWatch #MarketVolatility #EconomicIndicators #FedPolicy #InvestmentStrategy #MortgageRates #RealEstate #Realtor