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Analysis-For Goldman Sachs, SVB’s Botched Stock Sale Had a Silver Lining
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Analysis-For Goldman Sachs, SVB’s Botched Stock Sale Had a Silver Lining

By Echo Wang, Lananh Nguyen and David FrenchNEW YORK (Reuters) - As SVB Financial Group wrestled with a capital shortfall and the prospect of a downgrade to its credit rating last week, it went to Goldman Sachs Group Inc and worked out an unusual two-part plan, according to people familiar with the discussions.The investment bank would buy a $21.5 billion bond portfolio from SVB to boost its coffers, after startups began pulling their deposits from the technology-focused lender, which does business as Silicon Valley Bank.But there was a hitch. Goldman's offer for the portfolio was worth $1.8 billion less than the book value SVB had assigned to it, because a rise in interest rates had made it less valuable. SVB would have to book a loss on the portfolio, which comprised U.S. Treasuries a...
Collapsed FTX Owes Nearly $3.1 Billion to Top 50 Creditors
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Collapsed FTX Owes Nearly $3.1 Billion to Top 50 Creditors

(Reuters) - Cryptocurrency exchange FTX, which has filed for U.S. bankruptcy court protection, said it owes its 50 biggest creditors nearly $3.1 billion.The exchange owes about $1.45 billion to its top ten creditors, it said in a court filing on Saturday, without naming them.FTX and its affiliates filed for bankruptcy in Delaware on Nov. 11 in one of the highest-profile crypto blowups, leaving an estimated 1 million customers and other investors facing total losses in the billions of dollars.The crypto exchange said on Saturday it has launched a strategic review of its global assets and is preparing for the sale or reorganization of some businesses.(Reporting by Juby Babu in Bengaluru; Editing by Angus MacSwan)Copyright 2022 Thomson Reuters. Source link
A Portfolio Built for the Next Decade | Financial Advisors
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A Portfolio Built for the Next Decade | Financial Advisors

This Nov. 9 marks the 402nd anniversary of the Pilgrims' first glimpse of the New England coastline. And while Plymouth, Massachusetts was not the original destination choice for the Mayflower passengers – it was actually northern Virginia – their journey to America was marked by, among other things, remarkable courage, curiosity and a willingness to quickly adapt to their new surroundings.At first glimpse, the investment landscape for financial advisors today appears to be characterized by more problems and less promise. The current investment landscape includes both high inflation and the low probability that we'll emerge from the Federal Reserve's rate hikes – five and counting so far this year – without an economic recession of some kind.Beyond these gray clouds, though, remains an ...
Is the 60/40 Portfolio Dead? | Financial Advisors
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Is the 60/40 Portfolio Dead? | Financial Advisors

As stocks and bonds sank in tandem this year, market watchers couldn't help but wonder aloud: Has the traditional 60/40 portfolio outlived its usefulness?"Considering the tough year for the markets, the chorus of the 'death of the 60/40' portfolio tends to get louder," says Melissa Shaw, wealth manager at TIAA in Palo Alto, California. Shaw notes that the 60/40 portfolio is down more than 20% for the year, causing many financial advisors and investors to question the viability of the mix. Here are some factors for financial advisors and others to weigh as they consider changes to the way assets are allocated in their portfolio: Pros and cons to a 60/40 portfolio now. Finding a suitable mix of assets. There's no one-size-fits-all strategy. Pros and Cons to a 60/40 Portfolio NowA portf...
Child Care Advocates Bemoan Lack of Funding in Budget Reconciliation Deal | Education News
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Child Care Advocates Bemoan Lack of Funding in Budget Reconciliation Deal | Education News

Outrageous. Unacceptable. Foolish. Devastating.Those are just some of the words early education advocates are using to describe the $400 billion reconciliation package unveiled in the Senate last week – a package being framed as an inflation reduction package but one that includes zero funding for child care, one of the largest expenses for families and once a pillar of the President Joe Biden’s Build Back Better proposal.When the coronavirus pandemic eviscerated the country’s child care infrastructure – forcing the closure of tens of thousands of centers and pushing millions of women out of the workforce – mothers and caregivers across the U.S. let out a primal scream that seemed to finally get the attention of lawmakers in Washington.As part of the $1.9 trillion COVID-19 relief packag...