Why Smart Home Products Could be a Wise Investment

It has been revealed in a recent report that homeowners could benefit in a number of ways by spending some money on converting their home into a ‘smart home’. One design expert, who has converted his own home into a smart home without spending a fortune, has said that this is something that homeowners can do for just a few hundred dollars at a time but that they can reap the benefits both in terms of convenience and financially.

Smart HomeThe Colorado designer, Carlos Espinosa, said that he is now able to control his lights using his smart phone, has had moisture detectors installed so that he is quickly made aware of any leaks around the home, and has a smart security system installed. He said that he is now able to use his phone so that the lights in his home come on and the front door unlocks as he turns the corner to his property, which he said was particularly useful when coming home in the evenings when it was dark.

An increase in property value

According to Espinosa, these various systems that have helped to turn his home into a smart home cost just a few hundred dollars a time adding that the rewards more than make up for the cost. He said that he felt more secure and was able to benefit from total ease and convenience in terms of controlling many of the functions in his home. Continue reading

Loan Trading Strategies on the Secondary Market

Global MarketsHow does loan trading actually work? Loans that are purchased and sold in the secondary market are classified based on their price. There are 2 main ways that loans are traded, either by par or distressed trading. Par trading occurs when the sale or purchase of a loan is above or at 90 cents on one dollar. Loans that are trading with a value of “par” are categorized as “performing loans,” as the borrower is making timely interest and principal payments.

All loan trade prices are reported as a percentage of par value. To calculate the real purchase price for a term loan to see if it is valued properly, is the purchase rate multiplied by the funded amount of the loan on the actual settlement date. When buying this loan, the purchaser is entitled to all the interest and accruing fees that are distributed after the settlement date. That said, the seller is entitled to receive all accrued but unpaid interest and fees up until the settlement date.

Distressed trading is when the sale or purchase of a loan occurs below the 90 cent threshold on the dollar. Loan prices for distressed securities are formulated the same exact method as they are for par trades.

There are three primary institutions that dabble in online trading trading, which includes banks, finance companies and institutional investors. In Europe it is a bit more toned down, as only banks and institutional investors are active. In the Eurozone, the banking sector is more comprised of commercial banks, while in the U.S. it is much more diverse and can include a commercial bank, a savings and loan institution, or perhaps a securities firm. Loan market trading is growing in both the investment-grade and high-yield markets, as companies feel more comfortable borrowing in this market. Continue reading