25 September 2018 FT — Articles to Read

25 September 2018


Question: According to MSN:Money, what are 15 ways your life is better when you have good credit?


Buoyant American groups drive $50bn global dealmaking spree – Pg. 1

–          Boardroom confidence, cheap debt and record stock prices have spurred a wave of activity that left global dealmaking at a record high of $3.2tn in 2018

–          Global mergers and acquisitions totaled $3.24tn so far this year, 40% higher than the same time a year ago and ahead of the record pace set in 2007,

–          A rally in global stock indices has assuaged concerns that the intensifying trade dispute between the US and China would dent economic activity and, in turn, dealmaking.  The S&P 500 has climbed 16.5% over the past 12 months, while the DJIA rose by 19%, and both sat near record territory yesterday


Machines are coming for property valuers now – Pg. 9

–          The pioneers of big data are promising to revolutionise the property valuation business, nudging it further along the spectrum from art towards science.

–          At present, about 82,000 appraisers are employed in the US property valuation business, which is worth about $12bn a year

–          Commercial properties are inherently harder to value because of the lack of transparency over lease terms and income streams.  A property owner’s own financial condition and access to capital can also be critical determinants of price


Investors buckle up for longer Fed tightening cycle – Pg. 19

–          The US central bank is set to raise rates for a third time this year tomorrow, with another increase in December widely expected. But investors are also beginning to gird themselves for the possibility that Fed policymakers will not sit still in 2019 either, as many had until recently expected.  And that reappraisal has rattled the market

–          This month the10-year Treasury yield rose cleanly above the 3% market for the first time since May, and at 3.07% it is currently within a whistker of hitting a new seven-year high.  The 30-year Treasury yield, known as the long bond, has also climbed sharply this month, to a four-month high of 3.22%

–          Should the 10-year and 30-year Treasury yields both close above 3% and 3.25%, it will signal a “game changer” for markets


Answer: (1) You can more easily qualify for loans; (2) You pay lower interest rates on your loans; (3) You can access better credit card rewards; (4) You can live where you want to; (5) You can get better auto insurance rates; (6) You are often pre-qualified for credit offers; (7) You might get more job offers; (8) You are less likely to need security deposits; (9) You have more negotiation power; (10) You can refinance your mortgage; (11) You can access low-cost cash in an emergency; (12) You have higher loan limits; (13) You are not beholden to others; (14) You may have a better love life; (15) You feel more in control of your finances