Sequestration Threatens Direct-Payment Bond Subsidies for Issuers
Local governments that have issued direct-pay bonds, such as Build America Bonds, should be aware that their subsidies from the federal government on those bonds are potentially subject to the budget cuts mandated as part of the so-called “fiscal cliff.” Those subsidy payments cover 35% of the interest costs on direct-pay bonds. Should the scheduled sequestration take effect, subsidies on direct-pay bonds would be cut an average of 7.6%, according to the Office of Management and Budget.* Issuers would typically be responsible for making all interest payments on their own. Build America Bonds have not been issued since 2010.
Change in FDIC Deposit Insurance
Noninterest-bearing transaction accounts, used by many small businesses, local governments, and nonprofit organizations, have had unlimited deposit insurance from the Federal Deposit Insurance Corporation since the 2008 financial crisis. However, that program is scheduled to expire as of December 31, 2012. The previous limit of $250,000 on a single account will be reinstated unless new […]
Mixed Week as Markets hit Post Thanksgiving Lull
The “Money Talks” hosts discuss the possibility of a fiscal cliff deal as well as the week’s economic releases.
Q&A Time: Microsoft, Sherwin-Williams and Consolidated Edison
Dr. Gene and Ted Parrish, CFA, answer listeners’ questions on Microsoft, Sherwin-Williams and Consolidated Edison.
Helping Your Child Acquire a Home
We offer some financial strategies for parents who are interested in helping their children acquire a home.
Money Talks – December 9, 2012
This week on “Money Talks” the hosts answer listeners’ questions on Microsoft and Sherwin-Williams, and discuss how to help your children buy a house.