All articles tagged with #high interest rates
Originally Published 6 months ago — by GlobeNewswire
The article discusses the availability of no credit check loans with guaranteed approval in the US in 2025, highlighting lenders like Honest Loans that offer quick, accessible loans up to $50,000 for individuals with bad credit, but warns about high interest rates and potential debt cycles associated with these high-risk, short-term loans.
Originally Published 1 year ago — by Forbes
Wealthfront, a robo-advisor, has achieved profitability for the first time in its 14-year history, largely due to high interest rates that boosted its high-yield cash accounts. The company, which faced a major setback when UBS canceled its acquisition deal, has seen its assets and revenue grow significantly. However, it faces future challenges as interest rates may eventually decline, requiring new strategies to maintain growth and profitability.
Originally Published 1 year ago — by The New York Times
Starwood Real Estate Income Trust, managed by Barry Sternlicht's Starwood Capital Group, is limiting investor withdrawals to 1% of the fund's assets per quarter due to a potential cash crunch caused by high interest rates and declining commercial property values. This move aims to avoid selling properties at discounted prices and reflects the challenges faced by real estate investment trusts in the current market.
Originally Published 1 year ago — by CNBC
Commerzbank reported a 55% increase in net profit for 2023, reaching 2.2 billion euros, its best results in 15 years, driven by high interest rates. Despite a 16% decrease in fourth-quarter net profit, the full-year performance exceeded expectations, leading to a 3.7% rise in shares. The bank anticipates challenges from the economic slowdown but expects net profit to surpass 2023 levels. Following a successful business overhaul, Commerzbank reduced costs and received positive analyst ratings.
Originally Published 2 years ago — by Fox Business
A Bankrate report reveals that nearly half of credit card holders in the US are carrying debt from month to month, with over half of them having done so for over a year. The report also highlights that 10% of those with credit card debt do not believe they will ever be able to pay it off, while 25% expect it to take at least five years. The surge in credit card debt comes amid record-high interest rates, with the average APR hitting 20.72%. This trend is attributed to the need to cover emergency expenses and day-to-day costs, exacerbated by the current high inflation, which is disproportionately affecting low-income Americans.
Originally Published 2 years ago — by Financial Times
Bankruptcies are on the rise as businesses struggle with the combination of high interest rates and the end of Covid-19 aid. The lack of financial support and the burden of debt have hit businesses hard, leading to an increase in bankruptcies.
Originally Published 2 years ago — by Business Insider
Wall Street's private equity industry, which experienced a decade-long boom, is now facing challenges as rising interest rates disrupt their debt-laden business model. In addition, regulators are scrutinizing private equity practices as anticompetitive and antisocial. The industry's biggest players, such as Carlyle Group and KKR, have seen declines in distributable earnings. Private equity firms have also faced criticism for their impact on various industries, including higher education, nursing homes, and hospitals, where their efficiency-focused tactics have been detrimental to consumers and vulnerable populations. The industry's opaque nature and financial contortions have allowed them to hide these troubles, but as interest rates remain high, the struggles are becoming more apparent.
Originally Published 2 years ago — by Bloomberg
The debt crisis is hitting the poorest nations hard, with countries like Nigeria borrowing more just to make debt payments. Nigeria's finance minister pledged to cut spending and increase tax collection to address the issue, but the country's 2022 debt payments already exceed its revenue by $900 million. This highlights the challenge faced by these nations in repaying their debts, which are often subject to high interest rates and owed to foreign investors.
Originally Published 2 years ago — by Yahoo Finance
Porsche and Tesla have both issued warnings about the impact of high interest rates on their businesses. Porsche's CFO, Lutz Meschke, stated that inflation and high rates were a concern, leading to customer reluctance to invest in new products. Tesla CEO Elon Musk also expressed concerns about high rates, emphasizing that they reduce affordability and make it harder for people to buy cars. Both companies highlighted China as a region of concern, with Porsche expecting a challenging year in 2024 due to the geopolitical situation and the economy. Despite these warnings, Porsche confirmed its forecast for the current financial year, citing strong sales and positive product mix as contributing factors.
Originally Published 2 years ago — by Electrek.co
Tesla has confirmed that the delay in groundbreaking at Gigafactory Mexico is due to concerns about the global economy and high interest rates. While the automaker is working on infrastructure and factory design, CEO Elon Musk wants to assess the economic situation before proceeding at full speed. Tesla still plans to move forward with the factory but cannot provide a timeline. In the meantime, the company intends to build its next-generation vehicles at Gigafactory Texas.
Originally Published 2 years ago — by Reuters.com
Oil prices dropped by around 2% to a three-week low due to the expiration of a higher-priced Brent contract, a stronger US dollar, and profit-taking by traders. Concerns about forecasts of increasing crude supplies and the impact of high interest rates on demand also contributed to the decline. The US dollar reached a 10-month high against other currencies, potentially slowing economic growth and reducing oil demand. Additionally, the possibility of more oil entering the market from Turkey and Saudi Arabia easing its supply cuts added to the downward pressure on prices.
Originally Published 2 years ago — by CNN
US consumer confidence dropped to its lowest level in four months in September, as rising gas prices and high interest rates contributed to greater economic uncertainty. The Conference Board's Consumer Confidence Index fell for a second consecutive month, reflecting concerns about rising prices, the political situation, and higher interest rates. The decline in consumer confidence was evident across all age groups, and notably among consumers with household incomes of $50,000 or more. The business organization's "Expectations Index" also fell, indicating less confidence about future business conditions, job availability, and incomes. These factors, along with still-high inflation and mounting credit card debt, are expected to lead to a pullback in consumer spending in the fourth quarter.
Originally Published 2 years ago — by The Wall Street Journal
Balances in certificates of deposit (CDs) have surged to $480.2 billion in February, up from $36.5 billion in April 2022, according to the Federal Reserve. However, many savers are not unlocking the full potential of CDs. A CD ladder can help savers navigate today's high interest rates and maximize their returns on cash.
Originally Published 2 years ago — by New York Post
Manhattan's median rental price has reached an all-time high of $4,175 per month, with the average rental price hitting $5,115 per month. The high prices are due to a lack of inventory, rising mortgage rates, peak season, and the Housing Stability Tenant Protection Act. The report does not include The Bronx or Staten Island in its tallies. Meanwhile, more than 10,000 New Yorkers have fled the state for Florida so far in 2023, and nearly a third of New Yorkers want to move out due to housing costs and other factors.