The document summarizes a presentation about establishing a public bank in Philadelphia using existing government funds. It discusses how Comprehensive Annual Financial Reports show all government assets and accumulated wealth, not just annual budgets. Currently, Philadelphia raises money through taxes, investments, and issuing bonds at interest rates of 2-5%. The presentation argues the city could create credit itself and receive dividends from a public bank. It provides an example of North Dakota's public bank. The document reviews Philadelphia's pension fund investments and risks, including foreign currency exposure and securities lending. It questions the safety and prudence of hedge fund investments, which often underperform with high fees.
The document discusses potential funding sources for a proposed Philadelphia Public Bank by examining the city's Comprehensive Annual Financial Report (CAFR). The CAFR reveals billions in largely untapped liquid assets and the sizable pension funds, which could provide start-up capital and long-term deposits for the bank. Redirecting a small portion of pension investments and reallocating some city funds and assets could sufficiently capitalize the bank. The public bank could offer safer, more stable returns than some current pension investments while also promoting local jobs and businesses.
This document discusses options for addressing budget shortfalls faced by state and local governments. It argues that creating public banks owned by states is a viable alternative to cutting services, raising taxes, or relying on borrowing. The Bank of North Dakota is presented as a successful model, having maintained strong credit ratings and returned profits to the state treasury for over 20 years. Establishing public banks could allow states to leverage their existing liquid assets to generate loans and income, similarly to how private banks operate, in order to stabilize revenues without federal assistance or taking on high interest debt.
This document is a slideshow presentation on public banking. It discusses three main topics: 1) the budget problem faced by states and municipalities, with limited options for resolving budget shortfalls, 2) why establishing a public bank could help address budget issues by creating money through lending, and 3) what actions could be taken to establish public banks. Some key points made include that public projects spend a large portion of their budgets on interest payments to private banks, and that states with more community banks have fewer foreclosures and more lending during economic downturns compared to states dominated by large banks.
Golden Door Partners: An Intro to Opportunity ZonesVijar Kohli
An Introduction to Opportunity Zones. The Investing in Opportunity Tax Act was enacted to incentivize long-term incentives in urban communities.
The Tax Act provides significant tax benefits for investors reinvest unrealized capital gains.
CDFA Annual VC Report for 2014 20150821Pete Mathews
The document analyzes 2014 private activity bond and volume cap trends based on a survey of state allocating authorities. Key findings include:
- Total national volume cap increased to $92.1 billion, up from $87.3 billion in 2013.
- Total private activity bond issuance increased to $11.6 billion after declining for three years, reversing the shrinking bond market trend.
- Industrial development bond issuance decreased to $270 million after being below $300 million in 2012 but over $1 billion as recently as 2009.
Final project financing for development pamela branchPamela Branch
This is my final project for the World Bank MOOC Financing for Development. This slide show describes things I have learned during this course and discussed how remittances can contribute to public funding for the SDGs.
The document summarizes a presentation about establishing a public bank in Philadelphia using existing government funds. It discusses how Comprehensive Annual Financial Reports show all government assets and accumulated wealth, not just annual budgets. Currently, Philadelphia raises money through taxes, investments, and issuing bonds at interest rates of 2-5%. The presentation argues the city could create credit itself and receive dividends from a public bank. It provides an example of North Dakota's public bank. The document reviews Philadelphia's pension fund investments and risks, including foreign currency exposure and securities lending. It questions the safety and prudence of hedge fund investments, which often underperform with high fees.
The document discusses potential funding sources for a proposed Philadelphia Public Bank by examining the city's Comprehensive Annual Financial Report (CAFR). The CAFR reveals billions in largely untapped liquid assets and the sizable pension funds, which could provide start-up capital and long-term deposits for the bank. Redirecting a small portion of pension investments and reallocating some city funds and assets could sufficiently capitalize the bank. The public bank could offer safer, more stable returns than some current pension investments while also promoting local jobs and businesses.
This document discusses options for addressing budget shortfalls faced by state and local governments. It argues that creating public banks owned by states is a viable alternative to cutting services, raising taxes, or relying on borrowing. The Bank of North Dakota is presented as a successful model, having maintained strong credit ratings and returned profits to the state treasury for over 20 years. Establishing public banks could allow states to leverage their existing liquid assets to generate loans and income, similarly to how private banks operate, in order to stabilize revenues without federal assistance or taking on high interest debt.
This document is a slideshow presentation on public banking. It discusses three main topics: 1) the budget problem faced by states and municipalities, with limited options for resolving budget shortfalls, 2) why establishing a public bank could help address budget issues by creating money through lending, and 3) what actions could be taken to establish public banks. Some key points made include that public projects spend a large portion of their budgets on interest payments to private banks, and that states with more community banks have fewer foreclosures and more lending during economic downturns compared to states dominated by large banks.
Golden Door Partners: An Intro to Opportunity ZonesVijar Kohli
An Introduction to Opportunity Zones. The Investing in Opportunity Tax Act was enacted to incentivize long-term incentives in urban communities.
The Tax Act provides significant tax benefits for investors reinvest unrealized capital gains.
CDFA Annual VC Report for 2014 20150821Pete Mathews
The document analyzes 2014 private activity bond and volume cap trends based on a survey of state allocating authorities. Key findings include:
- Total national volume cap increased to $92.1 billion, up from $87.3 billion in 2013.
- Total private activity bond issuance increased to $11.6 billion after declining for three years, reversing the shrinking bond market trend.
- Industrial development bond issuance decreased to $270 million after being below $300 million in 2012 but over $1 billion as recently as 2009.
Final project financing for development pamela branchPamela Branch
This is my final project for the World Bank MOOC Financing for Development. This slide show describes things I have learned during this course and discussed how remittances can contribute to public funding for the SDGs.
The document discusses strategies for municipalities to strengthen their financial position to qualify for water and wastewater infrastructure grants and loans. It recommends establishing strong financial policies, budgets, and financial reserves. It also introduces two new federal funding opportunities - the Partnership to Build America Act and the Water Infrastructure Finance and Innovation Authority, which aim to provide low-cost funding to states for infrastructure projects.
The Role of Multilateral Development Banks (MDBs) in the 2030 AgendaMarc-Anton Pruefer
This presentation provides: i) an overview of the 2030 Agenda and the Sustainable Development Goals (SDGs), ii) the order of magnitude of the associated financing needs, iii) the sources of development finance, focusing on iv) Multilateral Development Banks (MDBs) and their financing instruments, and v) a comparison of the major MDBs. It is targeted at both laypeople and professionals and seeks to convey a “big picture” of what Development Finance is, why the SDG period (2016-2030) is different from the MDG period (2000-2015), and what the role of different MDBs could be in achieving the 2030 Agenda.
The document provides an overview and analysis of recent developments in the municipal bond market. It notes that while credit quality is currently high, negative factors have caused a decline in recent years. Specifically:
- The outlook for U.S. state governments remains stable, though some indicators are mixed and more downgrades are expected for a few states. Tax revenues have fallen for two straight quarters.
- Both positive and negative rating actions occurred among states recently. However, structural issues continue to negatively impact states like New Jersey, Illinois, and Pennsylvania.
- The outlook for local governments remains cautious as downgrades continue to outpace upgrades, with over 50% of recent downgrades due to structural budget imbalances.
This document summarizes a report on refund anticipation loans (RALs) and their disproportionate use among low-income West Virginians receiving the Earned Income Tax Credit (EITC). It finds that in 2007, nearly 77,000 West Virginia residents took out RALs, with 59% receiving the EITC. EITC recipients accounted for 60% of RAL purchases but only 20% of tax filers. This redirected $12.66 million in EITC funds to fees for RALs instead of supporting low-income families as intended. Certain counties saw over 6% of their EITC dollars go to RAL fees. The document recommends educating the public on RAL costs
Impact Investing: Flavor of the Month or Here to Stay?PabloVerra
A presentation delivered at the Impact Investment webinar at Universidad Torcuato Di Tella, introducing the main aspects of impact investment and the latest trends in Latin America.
The document discusses the importance of institutions for economic excellence and uses Zimbabwe as an example of the destruction of institutions leading to economic decline. It summarizes the state of key institutions and economic policies in South Africa, noting both areas of excellence and potential threats to institutions. Overall economic growth in South Africa has averaged 3.0% annually.
Pre-Summit Workshop - New Markets Tax Credit Presentationkingdom1realty
What are New Markets Tax Credits?
First tax credit program to stimulate commercial investment in “low-income communities”
The program is administered by the US Treasury Department through a division call the CDFI Fund, in a unique public/private partnership with Community Development Entities (CDEs)
Transparency In Politics: The Need For Government AccountabilityDebra Ray
The document discusses the history and role of the Federal Reserve and arguments for and against increasing oversight and auditing of the Fed. It notes that former Fed chair Alan Greenspan warned of abnormal low interest rates and a bond market bubble in 2017. While the Fed knew of dangerous mortgage products in 2002, it focused on financial education rather than stronger consumer protection laws. There are calls from all political parties to audit the Fed to increase its accountability.
The Benefits of a Public Bank for New York State; the Derivatives explosion (nominal value of $1.2 quadrillion); The joint FDIC-Bank of England Proposal to forcibly swap deposits (incl. state deposits) for equity in a failing bank; The Public Banking model based on the Bank of North Dakota; The specific state bill for New York state; What the Fed can and can't (or won't) do to save municipalities
The recent $1.3 billion state bond sale is not as successful as it appears. First, the bond sale was only possible because of $600 million in tax increases imposed by the Abercrombie administration. Second, the money will be used to repay hurricane relief and rainy day funds, breaking a promise to taxpayers. Third, the bond success relies on the strong financial report from the previous Lingle administration, which cannot be credited to Abercrombie given his criticism of Lingle's financial management.
Noted national author, attorney and entrepreneur/social entrepreneur and L3C guru discusses key issues to keep in mind when deciding whether to be a for-profit or a not-for-profit organization. He also discusses the lasted events in the growing L3C movement for the social sector.
The Social Enterprise Alliance North Texas Chapter convened entrepreneurs, nonprofit executives and social enterprise practitioners in June to learn about new legal and tax structures for social enterprise organizations. New hybrid organizations are adopting emerging social enterprise models, employing innovative strategies, and creating business alliances to drive positive social change. This interactive presentation helped nonprofit leaders and social entrepreneurs understand a myriad of legal, tax, and governance challenges in the Fourth Sector and learn ways to overcome them by using business efficiencies to achieve nonprofit goals. Marc Lane, a national-recognized expert on social enterprise law, led the discussion and offered his practical advice and answered questions about these issues and others:
The L3C business model and how social enterprises are already benefiting
Relieving legal tension between financial and social objectives
Understanding social enterprise legal issues
· Reducing the risks and financial burden of earned-income social ventures
· Leveraging foundations' "program-related investments" to attract private-sector capital for earned-income ventures
Converting nonprofit funders into social venture capitalists
This briefing note explores ongoing macro-level changes at the World Bank. It focuses on four major trends: (1) changes in lending, including amount of lending, type of lending, and recipient countries; (2) changes in income sources; (3) the growth of trust funds; and (4) trends in staffing. The findings presented here are intended to help shape future engagements with the Bank by placing its operations in a broader context. Major findings: (1) Total World Bank lending has declined in real terms in recent years, driven by a significant decline in International Bank for Reconstruction and Development (IBRD) lending. IBRD commitments averaged more than $25 billion per year during the 1980s and 1990s, but commitments have since declined and are expected to average around $15 billion per year in the near term. This decline is the result of a number of factors, including insufficiently large capital infusions and reduced borrower demand stemming from low global interest rates and the growing availability of alternative funding sources. Declining Bank lending coincides with declining profitability. President Kim has recently announced plans to nearly double IBRD lending over the next several years, but it is not clear how this will be achieved. (2) International Development Association (IDA) lending has continued to increase in real terms, but IDA funding is increasingly dependent on donor contributions. Declining IBRD income limits the size of the subsidy IBRD can provide to IDA and increases the importance of individual IDA donors. (3) World Bank Group funding to support the private sector has increased dramatically, both in absolute terms and relative to overall spending. In 2013, the International Finance Corporation (IFC) accounted for 35% of World Bank Group commitments, compared with 18% in 2009 and only 13% in 2000. IFC support for financial intermediaries has also increased rapidly over the last several years. Multilateral Investment Guarantee Agency (MIGA) commitments have doubled in the past five years, albeit from a low base. (4) The Bank has always faced a pressure to lend, stemming from structural factors (administrative costs are covered by profits from loans), institutional factors (the real or perceived importance of ‘moving money’ for staff promotions), and external factors (demands from donors and shareholders). But while lending has declined, the pressure to expedite disbursements remains stronger than ever. This is because of the increasing pressure from both clients and donors to be more efficient and because of the increasing availability of alternative funding sources for national governments. While these changes have the potential to make the Bank more responsive and effective, they also pose a potential risk to policies, like the suite of safeguards, which could be perceived as impediments to speedy disbursement.
This document summarizes estimates of charitable giving in Kent County, Michigan for the year 2012. It finds that a total of $947.2 million was donated, a substantial increase from 2011. The majority (64.8%) came from individuals, while foundations contributed significantly at 25.8%. Foundations in Kent County contributed a higher percentage than nationally (14.5%). Kent County individuals donated 10% of Michigan's total individual giving despite Kent County households making up only 6% of the state.
The City of Houston faces significant financial challenges, including over $3.3 billion in unfunded pension liabilities and another $3.3 billion in general obligation debt that must be repaid in the coming years. Workforce costs, including payroll and pension contributions, account for over half of the city's annual budget. While revenues have increased in recent years, expenses have risen at a faster rate, leading Moody's to issue a negative outlook on the city's finances due to concerns about its ability to balance budgets going forward.
David Rubenstein posed 10 key questions facing the private equity world. These questions addressed issues like whether leverage for buyouts would return, the potential for major defaults of deals completed during the "golden age" of private equity, what areas private equity firms would pursue to achieve targeted returns, and whether now is the right time for investors to pursue private equity investments. The document also discussed sovereign wealth funds and their potential impact on private equity, as well as ways the industry could work to improve its public image.
Individuals across all income levels and demographics sometimes need access to funds quickly to cover unexpected expenses. However, lower-income individuals often face more stringent lending terms and rely on higher-cost sources of emergency funds such as overdrafts, payday loans, pawn shop loans, and title loans. New financial technologies allow employees to access a portion of earned wages before payday, which could help reduce the need for expensive emergency loans while improving financial wellness especially for those living paycheck to paycheck.
Pyatt Boardmark Investor Presentation Fund IIAlan Chu
This document provides information on Broadmark Real Estate Lending Fund II ("Fund II"), which makes short-term, first lien mortgages against real estate projects in the Mountain West region. Fund II is managed by Pyatt Broadmark Management ("PBM") and aims to minimize risk of principal loss while providing high yields to investors. Fund II maintains a diversified loan portfolio of over 100 loans, has been in operation since May 2014, and has achieved an annualized return of 11.76% in its first 12 months. The document outlines the fund's investment strategy, portfolio and performance details, as well as the investment terms available to investors.
Pyatt Broadmark Real Estate Fund I Presentation Oct 2015Alan Chu
This document provides an overview of the Pyatt Broadmark Real Estate Lending Fund I (PBRELF I). PBRELF I invests in short-term, first lien loans secured by real estate projects in the Pacific Northwest. The goal is to provide high-yield returns while minimizing risk. PBRELF I has $136.4 million in assets under management. It offers diversification, consistent performance, and monthly distributions to investors.
The document discusses strategies for municipalities to strengthen their financial position to qualify for water and wastewater infrastructure grants and loans. It recommends establishing strong financial policies, budgets, and financial reserves. It also introduces two new federal funding opportunities - the Partnership to Build America Act and the Water Infrastructure Finance and Innovation Authority, which aim to provide low-cost funding to states for infrastructure projects.
The Role of Multilateral Development Banks (MDBs) in the 2030 AgendaMarc-Anton Pruefer
This presentation provides: i) an overview of the 2030 Agenda and the Sustainable Development Goals (SDGs), ii) the order of magnitude of the associated financing needs, iii) the sources of development finance, focusing on iv) Multilateral Development Banks (MDBs) and their financing instruments, and v) a comparison of the major MDBs. It is targeted at both laypeople and professionals and seeks to convey a “big picture” of what Development Finance is, why the SDG period (2016-2030) is different from the MDG period (2000-2015), and what the role of different MDBs could be in achieving the 2030 Agenda.
The document provides an overview and analysis of recent developments in the municipal bond market. It notes that while credit quality is currently high, negative factors have caused a decline in recent years. Specifically:
- The outlook for U.S. state governments remains stable, though some indicators are mixed and more downgrades are expected for a few states. Tax revenues have fallen for two straight quarters.
- Both positive and negative rating actions occurred among states recently. However, structural issues continue to negatively impact states like New Jersey, Illinois, and Pennsylvania.
- The outlook for local governments remains cautious as downgrades continue to outpace upgrades, with over 50% of recent downgrades due to structural budget imbalances.
This document summarizes a report on refund anticipation loans (RALs) and their disproportionate use among low-income West Virginians receiving the Earned Income Tax Credit (EITC). It finds that in 2007, nearly 77,000 West Virginia residents took out RALs, with 59% receiving the EITC. EITC recipients accounted for 60% of RAL purchases but only 20% of tax filers. This redirected $12.66 million in EITC funds to fees for RALs instead of supporting low-income families as intended. Certain counties saw over 6% of their EITC dollars go to RAL fees. The document recommends educating the public on RAL costs
Impact Investing: Flavor of the Month or Here to Stay?PabloVerra
A presentation delivered at the Impact Investment webinar at Universidad Torcuato Di Tella, introducing the main aspects of impact investment and the latest trends in Latin America.
The document discusses the importance of institutions for economic excellence and uses Zimbabwe as an example of the destruction of institutions leading to economic decline. It summarizes the state of key institutions and economic policies in South Africa, noting both areas of excellence and potential threats to institutions. Overall economic growth in South Africa has averaged 3.0% annually.
Pre-Summit Workshop - New Markets Tax Credit Presentationkingdom1realty
What are New Markets Tax Credits?
First tax credit program to stimulate commercial investment in “low-income communities”
The program is administered by the US Treasury Department through a division call the CDFI Fund, in a unique public/private partnership with Community Development Entities (CDEs)
Transparency In Politics: The Need For Government AccountabilityDebra Ray
The document discusses the history and role of the Federal Reserve and arguments for and against increasing oversight and auditing of the Fed. It notes that former Fed chair Alan Greenspan warned of abnormal low interest rates and a bond market bubble in 2017. While the Fed knew of dangerous mortgage products in 2002, it focused on financial education rather than stronger consumer protection laws. There are calls from all political parties to audit the Fed to increase its accountability.
The Benefits of a Public Bank for New York State; the Derivatives explosion (nominal value of $1.2 quadrillion); The joint FDIC-Bank of England Proposal to forcibly swap deposits (incl. state deposits) for equity in a failing bank; The Public Banking model based on the Bank of North Dakota; The specific state bill for New York state; What the Fed can and can't (or won't) do to save municipalities
The recent $1.3 billion state bond sale is not as successful as it appears. First, the bond sale was only possible because of $600 million in tax increases imposed by the Abercrombie administration. Second, the money will be used to repay hurricane relief and rainy day funds, breaking a promise to taxpayers. Third, the bond success relies on the strong financial report from the previous Lingle administration, which cannot be credited to Abercrombie given his criticism of Lingle's financial management.
Noted national author, attorney and entrepreneur/social entrepreneur and L3C guru discusses key issues to keep in mind when deciding whether to be a for-profit or a not-for-profit organization. He also discusses the lasted events in the growing L3C movement for the social sector.
The Social Enterprise Alliance North Texas Chapter convened entrepreneurs, nonprofit executives and social enterprise practitioners in June to learn about new legal and tax structures for social enterprise organizations. New hybrid organizations are adopting emerging social enterprise models, employing innovative strategies, and creating business alliances to drive positive social change. This interactive presentation helped nonprofit leaders and social entrepreneurs understand a myriad of legal, tax, and governance challenges in the Fourth Sector and learn ways to overcome them by using business efficiencies to achieve nonprofit goals. Marc Lane, a national-recognized expert on social enterprise law, led the discussion and offered his practical advice and answered questions about these issues and others:
The L3C business model and how social enterprises are already benefiting
Relieving legal tension between financial and social objectives
Understanding social enterprise legal issues
· Reducing the risks and financial burden of earned-income social ventures
· Leveraging foundations' "program-related investments" to attract private-sector capital for earned-income ventures
Converting nonprofit funders into social venture capitalists
This briefing note explores ongoing macro-level changes at the World Bank. It focuses on four major trends: (1) changes in lending, including amount of lending, type of lending, and recipient countries; (2) changes in income sources; (3) the growth of trust funds; and (4) trends in staffing. The findings presented here are intended to help shape future engagements with the Bank by placing its operations in a broader context. Major findings: (1) Total World Bank lending has declined in real terms in recent years, driven by a significant decline in International Bank for Reconstruction and Development (IBRD) lending. IBRD commitments averaged more than $25 billion per year during the 1980s and 1990s, but commitments have since declined and are expected to average around $15 billion per year in the near term. This decline is the result of a number of factors, including insufficiently large capital infusions and reduced borrower demand stemming from low global interest rates and the growing availability of alternative funding sources. Declining Bank lending coincides with declining profitability. President Kim has recently announced plans to nearly double IBRD lending over the next several years, but it is not clear how this will be achieved. (2) International Development Association (IDA) lending has continued to increase in real terms, but IDA funding is increasingly dependent on donor contributions. Declining IBRD income limits the size of the subsidy IBRD can provide to IDA and increases the importance of individual IDA donors. (3) World Bank Group funding to support the private sector has increased dramatically, both in absolute terms and relative to overall spending. In 2013, the International Finance Corporation (IFC) accounted for 35% of World Bank Group commitments, compared with 18% in 2009 and only 13% in 2000. IFC support for financial intermediaries has also increased rapidly over the last several years. Multilateral Investment Guarantee Agency (MIGA) commitments have doubled in the past five years, albeit from a low base. (4) The Bank has always faced a pressure to lend, stemming from structural factors (administrative costs are covered by profits from loans), institutional factors (the real or perceived importance of ‘moving money’ for staff promotions), and external factors (demands from donors and shareholders). But while lending has declined, the pressure to expedite disbursements remains stronger than ever. This is because of the increasing pressure from both clients and donors to be more efficient and because of the increasing availability of alternative funding sources for national governments. While these changes have the potential to make the Bank more responsive and effective, they also pose a potential risk to policies, like the suite of safeguards, which could be perceived as impediments to speedy disbursement.
This document summarizes estimates of charitable giving in Kent County, Michigan for the year 2012. It finds that a total of $947.2 million was donated, a substantial increase from 2011. The majority (64.8%) came from individuals, while foundations contributed significantly at 25.8%. Foundations in Kent County contributed a higher percentage than nationally (14.5%). Kent County individuals donated 10% of Michigan's total individual giving despite Kent County households making up only 6% of the state.
The City of Houston faces significant financial challenges, including over $3.3 billion in unfunded pension liabilities and another $3.3 billion in general obligation debt that must be repaid in the coming years. Workforce costs, including payroll and pension contributions, account for over half of the city's annual budget. While revenues have increased in recent years, expenses have risen at a faster rate, leading Moody's to issue a negative outlook on the city's finances due to concerns about its ability to balance budgets going forward.
David Rubenstein posed 10 key questions facing the private equity world. These questions addressed issues like whether leverage for buyouts would return, the potential for major defaults of deals completed during the "golden age" of private equity, what areas private equity firms would pursue to achieve targeted returns, and whether now is the right time for investors to pursue private equity investments. The document also discussed sovereign wealth funds and their potential impact on private equity, as well as ways the industry could work to improve its public image.
Individuals across all income levels and demographics sometimes need access to funds quickly to cover unexpected expenses. However, lower-income individuals often face more stringent lending terms and rely on higher-cost sources of emergency funds such as overdrafts, payday loans, pawn shop loans, and title loans. New financial technologies allow employees to access a portion of earned wages before payday, which could help reduce the need for expensive emergency loans while improving financial wellness especially for those living paycheck to paycheck.
Pyatt Boardmark Investor Presentation Fund IIAlan Chu
This document provides information on Broadmark Real Estate Lending Fund II ("Fund II"), which makes short-term, first lien mortgages against real estate projects in the Mountain West region. Fund II is managed by Pyatt Broadmark Management ("PBM") and aims to minimize risk of principal loss while providing high yields to investors. Fund II maintains a diversified loan portfolio of over 100 loans, has been in operation since May 2014, and has achieved an annualized return of 11.76% in its first 12 months. The document outlines the fund's investment strategy, portfolio and performance details, as well as the investment terms available to investors.
Pyatt Broadmark Real Estate Fund I Presentation Oct 2015Alan Chu
This document provides an overview of the Pyatt Broadmark Real Estate Lending Fund I (PBRELF I). PBRELF I invests in short-term, first lien loans secured by real estate projects in the Pacific Northwest. The goal is to provide high-yield returns while minimizing risk. PBRELF I has $136.4 million in assets under management. It offers diversification, consistent performance, and monthly distributions to investors.
imapct of financial crisis and role of financial institutions in this crisisRanjith Reddy
1. The document discusses the 2007-2008 global financial crisis, which originated from the subprime mortgage crisis in the United States. Risky subprime loans were bundled into securities and spread widely throughout the global financial system.
2. As housing prices declined and subprime borrowers began to default, the value of these securities plummeted. This caused the failure of banks and other financial institutions highly exposed to subprime mortgages.
3. The crisis had ripple effects across borders, with investments devalued and economies impacted around the world. Governments enacted massive bailouts to stabilize the financial system and prevent a global economic depression.
The Case for AAA Underlying Municipal BondsIan Welch
4
Intent
• Create AAA Underlying Portfolio
• Create Default Resistant Portfolio
• Take advantage of sell side pressure
• Take advantage of negative perception of municipal bond market to amass AAA bonds
The document discusses stocks and bonds as the two main types of marketable securities, noting that while they have some similarities as financial instruments that enable investment, they differ significantly in aspects such as ownership structure, cash flow predictability, and risk level. Stocks represent ownership in a company and have uncertain dividends and capital appreciation, while bonds are essentially loans that guarantee periodic interest payments and return of principal, making them generally less risky than stocks.
Crowdfunding Basics and the Impact on Angel InvestorsLynn M. Miller
Crowdfunding allows companies to raise funds from many small individual investors online rather than from traditional sources like venture capitalists or business angels. There are four main types of crowdfunding: microfinance, peer-to-peer lending, donor-based funding, and investment crowdfunding. New JOBS Act regulations will allow investment crowdfunding in the US through regulated online portals. This may compete with or complement traditional angel investors by providing an alternative source of funding for startups. However, angels may still provide advantages like business expertise and mentorship that "dumb money" crowdfunding alone cannot. The crowdfunding landscape is still developing and will change the investment environment significantly.
The Case for AAA Underlying Municipal Bondsmauiwelch
This document provides an overview of the municipal bond market and makes a case for investing in bonds with underlying AAA credit ratings from states and municipalities. It notes that there is currently limited supply of bonds directly rated AAA. The strategy proposed is to create a portfolio of only AAA-rated underlying bonds to take advantage of their strong credit quality and limited supply. Key data on default rates and credit fundamentals are presented for AAA-rated states and municipalities to demonstrate the historically strong credit performance of these issues.
This document provides an overview of how to use the Electronic Municipal Market Access (EMMA) database to research municipal bond information. It discusses navigating EMMA to find offering statements and financial reports, and how to interpret data on revenues, expenses, debt repayment. It also describes how to set up alerts on EMMA to receive notifications when new financial disclosures become available.
1. The document discusses structuring a Social Benefit Bond (SBB) between Westpac, the Benevolent Society, and the NSW Government.
2. Key terms of the proposed SBB include a $10 million bond with $7.5 million in moderate risk Class P notes and $2.5 million in high risk Class E notes to fund family preservation services over 5 years.
3. Investor returns are linked to performance outcomes, with Class P notes protected but interest returns variable, and Class E notes having 100% capital at risk but higher potential interest returns.
This document provides an overview of Broadmark Real Estate Lending Fund II. Fund II makes short-term, first lien mortgages against real estate projects in the Mountain West region, focusing on Colorado, Utah, and Wyoming. Fund II has $15 million in assets under management as of July 2015 and has achieved an annualized return of 11.76% in its first 12 months. The document outlines Fund II's investment strategy, portfolio, loan underwriting process, and management team experience.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to less time for compound growth. It also explains the "Rule of 72" for estimating how long it takes investments to double at a given interest rate.
The document provides information about investing and financial planning. It discusses the importance of starting to invest and save early due to the power of compound interest over time. It shows that investing $78 per month starting at age 25 can result in $500,000 by age 65, while waiting until age 35, 45, or 55 requires saving much more each month due to losing years of compound growth. It also explains the "Rule of 72" for how long it takes investments to double at different interest rates.
This document provides an introduction to major investment vehicles and concepts, focusing on fixed income securities. It defines different types of fixed income investments such as Treasury securities, agency bonds, municipal bonds, and corporate bonds. It discusses risks associated with fixed income investments like interest rate risk, price risk, liquidity risk, and reinvestment risk. The document also reviews historical returns of government bonds and notes that future returns are likely to be more subdued given current low interest rates.
Ladder Capital - Bond Investor Presentation (Sept. 2020)David Merkur
Ladder Capital Corp is a commercial real estate investment trust that provides a presentation on its business. It has a diversified portfolio consisting of $3 billion in commercial real estate loans, $1.3 billion in CRE equity investments such as net lease properties, and $1.5 billion in investment grade CRE securities. It has a conservative leverage ratio of 3.1x adjusted debt to equity and focuses on using unsecured debt and non-recourse financing. The company is led by an experienced management team that has been with the company since inception.
Ladder Capital - Bond Investor Presentation (Sept. 2020)David Merkur
Ladder Capital Corp is a commercial real estate investment trust that provides concise summaries of its business in investor presentations. This 3-sentence summary covers the key points:
Ladder has a diversified portfolio of $3 billion in commercial real estate loans, $1.3 billion in CRE equity investments such as net lease properties, and $1.5 billion in highly-rated CMBS; it maintains a conservative leverage ratio of 3.1x and focuses on unsecured debt and non-recourse financing; and the company is led by an experienced management team that has been with Ladder since inception.
Veteran Silicon Valley attorney Roger Royse will discuss, compare and contrast the various options available to entrepreneurs when it comes to funding their startup.
The speaker will address some common questions when it comes to funding for startups, including:
What are the best funding options for entrepreneurs to scale their business?
When should entrepreneurs pursue external funding?
How do entrepreneurs choose the right investor?
What alternative sources of funding are available?
How and why should a founder stage their funding rounds?
When should a founder think about exiting?
How can advisers help with the funding process?
and more!
This document provides an overview of raising capital through equity crowdfunding. It discusses the growth of crowdfunding and the different types, with a focus on equity-based crowdfunding. Legislative changes like the JOBS Act that enabled equity crowdfunding in the US are explained. Popular equity crowdfunding platforms are listed and described briefly. Considerations for companies undertaking an equity crowdfunding campaign like costs, targeting networks and friends/family, and creating an effective pitch video are covered at a high level.
This document provides an overview of municipal debt and how to research it using the Electronic Municipal Market Access (EMMA) database. It discusses how municipal debt has increased dramatically over time, and why cities have taken on more debt. The key reasons discussed are decreasing tax revenues but increasing expenses, forcing cities to borrow more. It then provides instructions on how to use EMMA to find municipal bond offering statements and financial reports, which disclose details on revenues, expenses, debt levels, and more. The objective is to educate people on interpreting municipal financial information to support activism and organizing.
The document provides an overview of the American Investment Council (AIC), which advocates for the private investment industry. It discusses the AIC's mission to promote long-term investment and economic growth. It also summarizes the AIC's accomplishments, including research reports, meetings with lawmakers, and defending beneficial tax policies. Finally, it outlines some of the top legislative and regulatory issues facing private equity in 2017, such as tax reform and maintaining deductions for interest expenses.
Murtha Cullina - Crowdfunding and Angel Investors 2012Paige Rasid
This document provides an overview of crowdfunding and its potential impact on angel investors. It defines crowdfunding as aggregating funds from a broad base of donors/investors toward a common goal, and outlines the four main types: microfinance, peer-to-peer lending, donor-based funding, and investment crowdfunding. It discusses upcoming SEC regulations for investment crowdfunding in the US and how this may compete with or complement traditional angel investors. It concludes that the investment landscape will change significantly and questions remain about how crowdfunding will develop and what type of opportunities it will provide for both investors and companies seeking funding.
The patent pending Ball Anti-Mine (BAM) drone.
There are 110 million land mines worldwide and current technology and personal can't keep up. The simple BAM uses AI and possibly flying drone to sweep across suspected minefields, blowing up anti-personal/anti-tank mines at it goes.
"IMPLAND: AN ALIEN UTOPIA
A 40th Anniversary Retrospective"
Scott Baker Manuscript (46 pp.)
KIRKUS BOOK REVIEW
In this illustrated SF book, a writer revisits the alien world that he imagined and built throughout his childhood.
Baker first conceived of the Imps when he was only 3 years old. These intriguing aliens, who reach all of 1 foot as adults, somewhat resemble beans, with noses almost as long as their spindly legs. They live inside a climate-controlled cavern in "Imp World"-one of the 25 moons of the planet Obor in the Milky Way galaxy. In this volume, the author looks back at different "editions" of his Imp writings, dating from when he was a child in the 1960s through his early 20s. He compiles old, sketched diagrams of spaceships and Imp World as well as typewritten specifics on the aliens' biology, ecology, government, and transportation system. Much of the material is gleefully inventive; all Imps are born female, and those whose eggs are fertilized eventually turn male. They are various colors, although "Color Changing Tanks" allow an Imp to choose a different one. The author's drawings are wonderfully and meticulously detailed, from the Imps' anatomy to the layout of the Surface Center, which rests between a subterranean city and Imp World's surface. But in other instances, this world mirrors familiar sights on Earth. Additional creatures on Imp World, for example, include the electric snake, the striped bird, and tyris, which are fish. Imps get around in floating trucks and buses and even simple boats and submarines. Baker cohesively ties together all of the alien facts and diagrams and earnestly discusses his decadeslong creation. But his retrospection comes with a bit of welcome humor, as when he notes the parts he ""never got around to doing,"" and some clear sources of inspiration (for instance, maglev trains and the author's fascination with caverns). In the end, Baker has the foundation of an SF saga that's waiting for a story and a hero.
An entertaining retrospective that explores a smart and innovative alien civilization."
Investor Summary for the RiverArch.
The RiverArch is like no other building on Earth…or water. An arched and immediately iconic residence or workspace for over 21,000 New Yorkers. Energy-producing, efficient,
cosmopolitan, and supportive of all income levels and lifestyles, the RiverArch defines its own neighborhood: BERM – Brooklyn – East River – Manhattan.
Located in downtown New York City, the RiverArch would offer equal multi-accessibility to Brooklyn and Manhattan and introduce soaring under-arch public elevators capable of transporting 5 million people per year.
300,000sf of public space, a 900-student High School, clinics, and 50 stores and professional offices round out the experience of one of the most innovative buildings on Earth.
Currently fund-raising $5m for a campaign to get to the Pre-Application Statement Round 1 goal. We will hire lawyers, lobbyists, and other professionals, most already interviewed and in agreement to promote the RiverArch, once funding is provided.
Investor brief for one of the most innovative & profitable buildings ever designed. EBITD = $10.9b @ 68 months. Pro Forma, team, etc. at Hatcher: https://bit.ly/RiverArch-Hatcher
East Coast Greenway Alliance is sponsoring 4 bike rides this year, including one new one to City Island! All are welcome to join the ECGA and ride for free thereafter for the full year!
This document describes using a customized Excel workbook with 3 spreadsheets to model the financial projections of a proposed public bank over 8 years. The workbook is based on an existing model for a simple commercial bank but modified for a public bank and includes existing city/state assets. It provides details on startup costs, operating ratios, deposits that will increase over time, dividend payouts beginning in year 3, and profitability projections showing the bank will be solidly profitable by year 8 without needing outside investment.
Based on a contracted assignment from the Oakland, CA chapter of the Public Banking Institute, a real-world model was created to simulate a Public Bank for that city.
A document utilizing a custom spreadsheet, based on an established simple bank spreadsheet, that considers a Public Bank's: Startup Costs, Sources of funding for both capitalization and deposits, fixed costs, operating ratios, performance metrics, loan loss scenarios, ROE & ROA. Comparisons are made to commercial banks and advantages of the public banking model are described in real results.
The main main is a hypothetical Bank of Oakland (pop. 413,000), using real data from their 2015 CAFR, 8 years of returns and dividends to repay initial equity to the pension fund.
A second result is used to test the model for New Hampshire, showing economy of scale for that State Bank.
The model spreadsheet's screenshots are included in the document.
This document summarizes and promotes several upcoming bicycle tours along the East Coast Greenway in New York City and surrounding areas. The tours include a 5-Island Tour riding through Manhattan, Randall's Island, Ward's Island, Roosevelt Island and the South Bronx; a National Park Service anniversary tour from Castle Clinton to Grant's Tomb through the Bronx; the annual Manhattan Loop ride around the island with views of the Hudson River; and a joint New York-New Jersey Hudson Loop ride over the George Washington Bridge with views of Manhattan and improving riverfront paths in both states. Details are provided for each tour such as distances, highlights and meeting locations and times to encourage participation.
This document announces four cycling events along the East Coast Greenway in the New York metro area in 2016. The events include a 29-mile ride through 5 islands of New York City in May, a 26-mile ride from Castle Clinton to St. Paul's Church in June stopping at historic sites, a 32-mile loop around Manhattan in August, and a 22-mile loop from Manhattan to New Jersey along the Hudson River in October. Riders of varying abilities are welcome across the different events. Details on dates, start/end times and locations are provided for each event.
This document presents four multi-trillion dollar paths to a thriving America based on the book "America is Not Broke". The four paths are: 1) Sovereign Money, which argues the government should create debt-free money; 2) Land Value Taxation, which advocates taxing the value of land; 3) Public Banking; and 4) Ending Government Financial Asset Hoarding. The document focuses on explaining Sovereign Money and Land Value Taxation in more detail. It argues that governments could fund public services through collecting $5.3 trillion in economic rent from land rather than through other taxes.
The document proposes four multi-trillion dollar paths to a thriving America: 1) Sovereign money or debt-free money, 2) Land value taxation (Georgism), 3) Public banking, and 4) Ending government financial asset hoarding. Each path is estimated to be worth over $1 trillion per year. The document then provides more details on sovereign money, land value taxation, and public banking. It argues that sovereign money could fund infrastructure and social programs without inflation. It explains how land value, not buildings, determines home values and proposes taxing land values instead of wages and sales. It also outlines the benefits of public banking compared to private banks, using the Bank of North Dakota as an example
Proposal to pay for $200m 1-mile expansion of East Side NYC Greenway/Esplanade by United Nations through creation of a Special Improvement District with 10-year tax assessment.
Slideshow presented November 22, 2013 & February 5, 2014, at the Henry George School. Shows the effect of under-taxing land and over-taxing buildings and improvements. Based on the Henry George Single Tax theorem.
This document presents a slideshow about case studies in New York City property development. It examines development projects in NYC and the economic benefits provided by the city to encourage development. It discusses issues like vacant and underused land, including parking lots and low-rise "taxpayer" buildings near subway stations. It analyzes specific properties in Manhattan and Brooklyn that are assessed at much lower values than comparable properties, suggesting property owners are benefitting from low tax assessments. The slideshow argues that raising land value tax assessments would not reduce affordable housing and would incentivize more efficient use of land.
This document presents the argument for establishing a public bank. It begins by outlining budget problems faced by states and municipalities, noting that the Federal Reserve will not bail them out. It then discusses why a public bank, like North Dakota's, is a solution. North Dakota's bank earns profits for the state while supporting community banks and economic growth. In contrast, large private banks engage in risky derivatives trading and do not significantly support local communities through lending. The document advocates for states to establish their own public banks as a safer alternative.
More from Scott Baker - Senior Advisor to Public Banking Institute (18)
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
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After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
1. No More Detroits: The Philadelphia Public Bank
Solution
Saturday, October 12 / 8:30 AM
The Arch Street United Methodist Church
50 North Broad St.
Philadelphia, PA
Using Existing Government Funding to create a Public Bank in Philadelphia
Presented By:
Scott Baker
SSBAKER305@YAHOO.COM
2.
3. What is a Comprehensive Annual Financial
Report (CAFR)?
It is not the “Budget.”
A "Budget Report" is a selective funding of x accounts from y resources - set up to be primarily funded with
taxation and done for the year.
An ”Comprehensive Annual Financial Report" is the showing of all income: Investment, Taxation, and
Enterprise, plus the accumulated wealth over decades . Budgets are for the year, a CAFR is for it all since
creation of the government entity.
There is a big difference between the two. A correct analogy would be: The annual budget to operate your house vs.
your statement of net worth.
Every Government entity has a CAFR – there are ~184,000* of them,
totaling 10s of trillions of dollars, almost all online.
CAFRs describe the assets of government agencies and pensions.
•
Note, due to GAAP, and especially due to some recent “standardizing” rule changes, CAFRs tend to project future
liabilities years, even decades, out, while offsetting them only with current assets and revenue projections based on
current receipts. This leads to a false deficit projection. It’s as if you were expected to pay your entire 30-year
mortgage with only the assets you have now and the income you will have based on your current level of income
(…and sometimes not even that!)
CAFR sources:
http://www.phila.gov/investor/CAFR.html and
http://www.phila.gov/investor/Financial_Reports.html
* As of 2007: http://cafr1.com
4. How is money raised for Philadelphia currently, besides taxes and
investments? The city issues Bonds.
Types of City Issued Debt (http://www.phila.gov/investor/Homepage.html)
The debt program managed by the City includes general obligation debt, lease and contract debt
issued by related authorities,* debt of the Water and Sewer and Aviation Departments, and debt
of the Philadelphia Gas Works (PGW). Debt of the Pennsylvania Intergovernmental Cooperation
Authority (PICA), School District of Philadelphia (SDP), and the Philadelphia Parking Authority
(PPA) is managed independently. Types of debt managed by the City include the following:
General Obligation Debt
The City can issue general obligation debt, backed by the full faith, credit and taxing
power of the City, subject to voter approval and subject to adherence to the
Commonwealth Constitution….
Contract and Lease Debt
In addition to general obligation debt, the City issues tax-supported obligations
through the use of its related authorities….
Revenue Bonds
The City oversees the issuance of revenue bonds for the Water and Sewer
Department, the Aviation Department, and Philadelphia Gas Works (PGW).
* Related authorities include 8 separate entities we will discuss later
5. Philadelphia Bonds, rated by Moody’s, Standard &
Poor’s, and Fitch (page 23):
Bond Type
Moody’s
Investor Service
Standard &
Poor’s
Corporation
Fitch IBCA
General Obligation Bonds
A2
BBB+
A-
Water Revenue Bonds
A1
A
A+
Aviation Revenue Bonds
A2
A+
A
The City is subject to a statutory limitation established by the Commonwealth of Pennsylvania as to the
amount of tax supported general obligation debt it may issue. The limitation is equal to 13% of the
average assessed valuations of properties over the past ten years. As of June 30, 2012 the legal
debt limit was $1.622b. There is $1.543b of outstanding tax supported debt leaving a legal debt
margin of $79.8m.
Philadelphia is paying 2% to 5% interest on bonds for credit it could create
itself from a Public Bank that pays the city dividends.
If the city can issue debt (bonds), why can’t it
deposit tax dollars in a public bank?
6. We are NOT interested in changing fund uses, we are interested in
changing fund investments.
In fact, we are trying to preserve the ability for government
agencies and pensions to cover their expenses in the future.
Can investments in a Public Bank be more:
Prudent and safe?
Counter-cyclical?
Able to provide consistent returns?
Supportive of the local community/job-creation?
Fiduciarily responsible?
Note: Although money will be used throughout the year, this usage is
predictable and the remainder can form the deposit base for making loans
from a Public Bank until then. (this is how North Dakota does it with the
Bank of North Dakota).
The real question is: Is this strategy safer and better, for reasons listed
above, than current investment strategies?
7. Philadelphia CAFR Investment holdings – as of June, 2012
(not including 8 separately reporting agencies)
Breakdown by investment type on CAFR – page 47: (amounts in thousands)
Classifications
Corporate Equities
Fair Value
% of Total
1,745,706
27.29%
Corporate Bonds
900,314
14.07%
U.S. Government Agency Securities
863,478
13.50%
Miscellaneous - Limited Partnership
739,073
11.55%
U.S. Government Securities
720,264
11.26%
Other Bonds and Investments
421,599
6.59%
Mutual Funds
361,789
5.66%
Commercial Paper
309,068
4.83%
Short-Term Investment Pools
257,360
4.02%
Collateralized Mortgage Obligations
52,973
0.83%
Financial Agreement
21,047
0.33%
Certificate of Deposit
5,000
0.08%
Total
$6,397,670
100.00%
8. Partial Breakdown of Pension Fund Investments. What
kinds of risks are there?
2 Examples:
•
Equity Securities subject to Foreign Currency Risk (in thousands of USD) – page 49
Currency
Fair Value
Euro Currency
135,856 22.14%
Japanese Yen
87,656 14.28%
Pound Sterling
97,963 15.96%
Australian Dollar
22,324
3.64%
All Others
269,861 43.98%
Total:
$613,660 100.00%
•
Broker-Dealer Repayment Risk: “Statutes permit the Municipal Pension Fund to lend its
securities to broker-dealers and other entities with a simultaneous agreement to return the
collateral for the same securities in the future. The Pension Fund has contracted with a thirdparty securities lending agent to lend the Pension fund’s securities portfolio. The agent lends
securities of the type on loan at June 30, 2012 for collateral in the form of cash or other
securities at 102% of the loaned securities market value plus accrued interest. The collateral for
the loans is maintained at greater than 100%. Securities on loan as of June 30 are unclassified
with regards to custodial credit risk.” Securities of securities – it’s risk, squared!
9. What about hedge funds?
Is investing in hedge funds safe and prudent?
Discussion from the minutes of a June 27, 2013 meeting of the Board of Pensions and Retirement Investment Committee (emphasis added):
Agenda Item #2 – Additional Capital Recommendation – Mason Capital Management (the pension's chief investment officer) Mr.
Handa stated that Staff and Cliffwater are recommending additional allocation to Mason Capital, to bring the total allocation up
to $50,000,000. Mr. Handa said they believe it is between $26,000,000 and $27,000,000 million will be added but are not sure
and that is why the recommendation is up to $50,000,000. They have invested with Mason Capital almost four years and the
returns over that period of time have been very good. The performance from 2013 has been extraordinary. The hedge fund has
made money on both sides, long and short. At the end of May they were up 13%. In 2012 they were down when
the market went up.
(Chairman & Director of Finance) Mr. Dubow asked Mr. Handa how they were doing this month.
Mr. Handa said he spoke with Michael Martino on Tuesday. Mr. Martino said they were doing fine and
would not give specific numbers. Over a four year period they’ve done very well for us. Over the last six
plus months the results have been fairly consistent.
Mr. Dubow asked Mr. Handa how does this fit in our asset allocation.
Mr. Dubow wanted to know where the funding would come from.
Mr. Handa said the funding would come from domestic equity, where we are currently over allocated at 28%. Mr. Handa said it
would come from the S & P 500. We have approximately a little fewer than 6.9% of our portfolio in the S & P 500. One of the
reasons why the plan has done well is because of our over allocation to domestic equity.
Mr. Albert made a motion to allocate up to $50 million to Mason Capital. (Trustee) Mr. Stagliano seconded it.
There was no discussion. All were in favor. There were no oppositions or abstentions. The motion passed.
To Recap:
1. Invest in funds based on past performance, even though this is no guarantee of future performance.
2.
Invest in hedge funds that go both long and short, even though most of them never beat the S&P,
and they charge high fees. (During the FY 2012 being discussed, the pension fund returned 12.8%,
while the S&P was up over 20%).
3.
4.
Assent to motions without discussion to remain “team players.” (Groupthink)
Above all, don’t invest in anything that might help the local community!
Swell. I feel safer already, don't you?
10. From the Philadelphia Inquirer:
Philly Deals: Hedge fund loses money for Pa.*
“A hedge fund based on New York's Park Avenue that
failed to deliver the profits that Pennsylvania's state pension
system had been counting on has decided to cut its losses
and shut down - even after the state begged it to try again.
The Pennsylvania State Employees' Retirement System
(SERS) gave New York-based Tiger Management $250
million in 2012, expecting Tiger's genius investors would
generate 8 to 12 percent annual profits. That would be $20
million to $30 million a year, without the usual up-and-down
volatility of stock investments.
But instead of performing to hype, Tiger's custom-built Tiger Keystone Partners portfolio lost
$1 million in its first year. One of Tiger's managers bet on gold, which fell, more than wiping out
the profits its other managers made from the rising stock market…The system has about $26
billion invested, more than $17 billion short of its target if it is to keep paying all the pensions it
owes. It can't afford losses.”
Tiger lost money in a year (2012) when the S&P rose by 13%. Most S&P index funds charge <0.2%
* http://www.philly.com/philly/business/20131006_PhillyDeals__Hedge_fund_loses_money_for_Pa__pension__then_closes.html
11. What about the safest kinds of investments?
Breakdown of Non-Pension City Fund Investments
(in thousands)
City investments in U.S. Government Securities or Corporate Bonds
<1 year: $ 159,819
1-3 years: $1,705,906
Total:
$1,865,725
“The City’s policy to limit credit risks is to invest in US Government securities
(11.26%) or US Government Agency obligations (13.50%). The US Government
Agency obligations must be rated AAA by Standard & Poor’s Corp or Aaa by
Moody’s Investor Services.” – page 48
Question: Could an investment of some of these funds in a Public Bank meet the
city’s ratings policy for safety?
Standard & Poor's (S&P) maintained Bank of North Dakota's (BND) credit ratings in its latest
review of the Bank released July 23, 2013. Its long-term issuer credit rating remained "AA-"
and its short-term issuer credit rating to "A-1+” http://banknd.nd.gov/financials_and_compliance/credit_rating.html
Proper risk analysis should include more than that for the BND and should account for the
community banks. North Dakota has not had a bank failure in over 20 years, while
nationwide, there have been 517 through the end of Sept, 2013, since 2000, says the cashstrapped FDIC which has to pick up the pieces:
http://www.fdic.gov/bank/individual/failed/banklist.html
12. The 2012 Philadelphia CAFR lists 8 Philadelphia Agencies With
Separate Investment Portfolios, reported apart from the financial
information presented for the primary government (page 12), in
thousands (page 36):
Government Entity
Total assets, excluding
capital
Philadelphia Gas Works
$708,391
Philadelphia Redevelopment Authority
$196,491
Philadelphia Parking Authority
$171,747
School District of Philadelphia
$635,492
Community College of Philadelphia
$63,537
Community Behavioral Health, Inc.
$88,792
Delaware River Waterfront Corporation
$11,913
Philadelphia Authority for Industrial Development
Total
$125,644
$2,001,997
13. Additional Investment Sources in CAFR 2012
In thousands. Capital Assets not listed
Governmental Funds - Page 26
Assets
Governmental Activities & Business Type
Activities
Cash on Deposit and on Hand
8 Agency Component
Units
82,679
310,248
0
40,022
Equity in Treasurer's Account
927,436
0
Investments
109,377
112,841
69,246
0
Due from Primary Government
0
69,617
Amounts Held by Fiscal Agent
56,965
109,544
0
34,324
490,998
335,973
1,440
20,438
459,647
113,670
47,316
118,398
4,295
215,406
Deferred Outflow - Derivative Instruments
144,229
0
Restricted Assets: Cash and Cash Equivalents
241,769
211,148
Restricted Assets: Other Assets
862,766
310,368
$3,498,164
$2,001,997
Equity in Pooled Cash and Investments
Due from Component Units
Notes Receivable - Net
Accounts Receivable - Net
Interest and Dividends Receivable
Due from Other Governments - Net
Inventories
Other Assets
Totals
Total of Governmental Activities & Business Type Activities + Component Units = $5,500,161
14. Additional Investment Pools in CAFR 2012 (continued)
In thousands - Capital Assets not listed
Enterprise Funds: Water & Sewer, Aviation, Industrial & Commercial Development – page 31
Current Assets (includes $195,634 in Equity in Treasurer’s Account)
Deferred Outflow – Derivative Instruments, Non-Current Assets (Restricted) (includes
$862,766 in Treasurer’s Account)
Non-major governmental fund (Combined) – page 123
Debt Service, Capital Improvement, Permanent Funds Total
Combining Statement of Fiduciary Assets - Page 126
Gas Works Retirement Reserve Fund Total
Municipal Pension Fund Total
Totals
$381,811
$1,104,535
Totals
$418,694
Totals
$445,868
$4,590,877
Enterprise Funds + Non-major Gov. Fund + Combining Statement of Fiduciary Net Assets: $6,9 41,785
Gov’t Activities/Business Type Activities + Component Units (previous page): $5,500,161
Grand Total of Governmental/Bus Activities, Enterprise Funds, and Fiduciary Assets: $12,441,946
Note: Asset classes have various restrictions, penalties, and other factors affecting reallocation
strategies using a Public Bank. What are these and how easy is it to change them?
15. Management fees for pension
Investments
Standard fund management fees – there are >100 investment managers
paid by the pension board! Are there too many cooks?
Broker fees or trading costs
Reporting fees to JP Morgan for “City of Philadelphia Municipal Pension
Fund Excess Return Report” that lists pension fund returns.
What other fees are there? Hedge fund 2 and 20? – 2% for “showing
up” and 20% of any profits? Fund expenses? Fees states pay for
withdrawing from certain hedge funds?
18. A typical Megabank like
JP Morgan has just a
31% Loan to Asset
ratio – less than ½ of
what ND’s community
banks have. Large
banks don’t make many
loans!
19. Learning from the example of the Bank of
North Dakota
Standard & Poor's (S&P) maintained Bank of North Dakota's (BND) credit ratings in its latest
review of the Bank released July 23, 2013. Its long-term issuer credit rating remained
"AA-" and its short-term issuer credit rating to "A-1+” http://banknd.nd.gov/financials_and_compliance/credit_rating.html
Proper risk analysis should include more than that for the Public Bank itself.
North Dakota has not had a bank failure in over 20 years, while there have been 517 bank
failures through the end of Sept, 2013 nationwide since 2000, says the cash-strapped FDIC
which has to pick up the pieces: http://www.fdic.gov/bank/individual/failed/banklist.html
What about “key man” risk? What is the risk of key executives leaving and what does that
portend for the safety of the bank? Maybe this is an over-rated fear. While Jamie Dimon
makes millions running JP Morgan Chase, the president of the Bank of North Dakota – a
Civil Servant - makes less than $300 thousand a year. Which is the safer, better-run bank?
Well, JP Morgan recently paid over a billion dollars in fines related to multiple government
agency Civil violations (not criminal…so far). The BND has never been found guilty of
securities or bank fraud.
What are we paying for?
20. Other Municipalities are Investigating
alternate CAFR Investment strategies
Detroit, MI and Stockton, CA are in bankruptcy
proceedings. Funding and outlays from pensions and
agencies will be cut, yet their CAFRs contain billions.
See Detroit is Not Broke:
http://www.opednews.com/articles/Detroit-is-Not-Broke-byScott-Baker-130805-986.html
22 States* are considering some form of State
Banking Legislation – and many municipalities are too.
Many of these proposals look to fund a Public Bank
with CAFR funds.
•
By law, all taxes from North Dakota and the
Chickasaw Indian Nation Banc2 in Oklahoma, go first
to the Public Banks.
Existing Public Banks in Green:
North Dakota: Bank of North Dakota
Oklahoma: Chickasaw-owned Bank2 of Oklahoma City.
Is it a better fiscal solution for Philadelphia to reallocate some CAFR Funds into a
Public Bank?
* http://www.nytimes.com/roomfordebate/2013/10/01/should-states-operate-public-banks/many-states-see-the-potential-of-publicbanking - citing National Conference of State Legislatures
21. The biggest banks are
now even bigger than
ever.
Are they still Too Big To
Fail…or will they actually
Fail next time?
The operations of the TBTF
banks have been compared to
a Casino, but this is unfair…to
Casinos! In a Casino, you have
consistent rules, and if you go
bust, you don’t get bailed out,
you get thrown out.
Editor's Notes
This is as of the end of FY 2012, but we had a pretty good year in the markets since then, so the total is probably higher.
Do managed investments outperform benchmarks like the S&P? Well, maybe on a risk-adjusted basis, or maybe not. But not on an absolute basis, with strict comparisons.
City of Philadelphia Board of Pensions and Retirement:
http://www.midatlanticplansponsors.org/City-of-Philadelphia-Board-of-Pensions-and-Retir.html
Hedge funds underperform. According to Matt Taibbi of Rolling Stone: “And underperforming is likely. Even though hedge funds can and sometimes do post incredible numbers in the short-term – Loeb's Third Point notched a 41 percent gain for Rhode Island in 2010; the following year, it earned -0.54 percent. On Wall Street, people are beginning to clue in to the fact – spikes notwithstanding – that over time, hedge funds basically suck. In 2008, Warren Buffett famously placed a million-dollar bet with the heads of a New York hedge fund called Protégé Partners that the S&P 500 index fund – a neutral bet on the entire stock market, in other words – would outperform a portfolio of five hedge funds hand-picked by the geniuses at Protégé.
Five years later, Buffett's zero-effort, pin-the-tail-on-the-stock-market portfolio is up 8.69 percent total. Protégé's numbers are comical in comparison; all those superminds came up with a 0.13 percent increase over five long years, meaning Buffett is beating the hedgies by nearly nine points without lifting a finger.”
http://www.rollingstone.com/politics/news/looting-the-pension-funds-20130926?2013
What does the repeated shutdown of the federal government (closed as of October 1, 2013….again) do to the ratings of Government Securities (Treasuries)? What about the impending debt ceiling October 17? Are Treasuries still really AAA or Aaa? Is anything? S&P downgraded Gov’t debt to AA in August, 2011. Moody’s has an Aaa rating.
Capital Assets are not listed since they cannot be used to fund a public bank. I don’t mean to imply that money could simply be swapped from certain investments into a public bank. However, two of the biggest categories – Treasurer’s Accounts and Restricted Assets – are often highly liquid pools of cash and short-term investments, which could be reinvested elsewhere at will, or through a simple change in the law.
Substitute “City” for “State” and add community banks in between City Bank and City Projects. Don’t forget community banks! In North Dakota, there hasn’t been a bank failure in over 20 years. Nationwide, there have been over 500 bank failures just since 2000 (FDIC). Public Banks support community banks! Which system is more risky?
Banks with low levels of loans to assets, like JPMorgan Chase & Co. (JPM - Free JPMorgan Stock Report), where loans are 31% of assets, have more diversified sources of revenue, including from investment banking and asset management.
“It seems likely that larger, mostly out of state, banks were the big loan generators for the oil and gas exploration companies as they ramped up operations in the state; thus the effect on smaller, in-state banks (the BND’s target audience) was minimal.” http://www.valueline.com/Tools/Educational_Articles/Stocks/Getting_To_Know_A_Bank_With_Financial_Ratios.aspx
“CSI analysis shows that banks in North Dakota reduced lending 33%-45% less than comparable states, and we believe that this is in no small part due to the stabilizing effects of its state bank.”
Center for State Innovation - State Bank Legislative Guide, pg. 59
Does anyone still believe the money center banks are a safe place to store the public’s money? (A show of hands)
From the Office of the Comptroller of the Currency:
Just in case you have forgotten what kinds of things the TBTF banks were speculating upon…Note the multi-trillion dollar notional value of derivatives of the top 8 banks trading in that space. Don’t forget to add 6 zeros.
Source: Office of the Comptroller of the Currency, 2 qtr, 2012 report: http://www.occ.treas.gov/topics/capital-markets/financial-markets/trading/derivatives/derivatives-quarterly-report.html
The TOTAL size of the Derivatives market? $1.2 Quadrillion: http://www.dailyfinance.com/2010/06/09/risk-quadrillion-derivatives-market-gdp/
Think about this the next time a large commercial bank says there’s no need for a Public Bank because they have “everything under control.” Where do you think the state’s money is safer?