Featured Posts

Real estate Investment Trusts Put Their Money on the... We all (us that are involved in the real estate industry) obsess over the statistics, over economic indicators and house price trends, trying to work out whether they are pointing to a recovery....

Read more

The Power Futures Strategy The Ultimate Futures Trading Strategy! Brand New Web Site & Copy! High Conversions And 50% Per Sale! Affiliate Resources! Unique Niche Product! The Power Futures Strategy

Read more

The Challenges Ahead Of Banks THE CHALLENGES AHEAD OF BANKS                                                                      *G.JAYALAKSHMI., Ph.D...

Read more

Short Term Stock Trading > Day Trading Stocks Picks... By.-  http://www.ProfitableStockMarket.com A beginner usually feels very attracted to the stock market while for example discovering a short term stock that's being reported in CNBC or...

Read more

How to Choose the Best Online Brokers for You Choosing the best online broker isn't as easy it you will want it to be. You can't just look at a single review chart of the best online brokers and pick the one that easily stands out as...

Read more

  • Prev
  • Next

Real estate Investment Trusts Put Their Money on the Global Recovery

Category : Islamiv investment

We all (us that are involved in the real estate industry) obsess over the statistics, over economic indicators and house price trends, trying to work out whether they are pointing to a recovery. At the moment the consensus of opinion — among us that are involved in the real estate industry — is that the world’s major property markets have passed the trough and are currently making their way back up. But out opinion is treated with a pinch of salt, because we are involved in the real estate industry.

But… We can prove it. There is a group of people and entities that are involved in the real estate industry, but that can say markets are bottoming without it being treated with dubiousness; (what, it’s a word) Real Estate Investment Trusts (REITs) and institutional investors. This is because they do the talking with their wallet, thus instantly putting their money where their mouth is.

During the downturn, it was a commonly held belief that there was literally billions of dollars, Pounds and Euros sitting in REITs waiting to be invested in markets as they hit bottom. If you look at the industry press and even the economic and financial papers from around the world you will find many stories about this money starting to be spent in the US, UK, Australia and Europe.

Arab News, Saudi Arabia’s largest English language daily tells of investors and funds looking back at real estate for high returns in the imminent recovery. The article tells how Gatehouse Bank PLC, the latest Islamic investment bank to be authorized by the Financial Services Authority (FSA), has launched a GBP350 million Shariah-compliant London Office High Income Recovery Fund.

The article explains that: “The investment strategy of the fund is to purchase real estate in the London office sector as well as greater London and the London Orbital Sector locations let on long leases to high quality tenants. The fund will distribute excess rental income on a quarterly basis and seek an exit strategy after four to six years.”

The Street.com has featured two articles on the major rebound of real estate funds, one on the major rebound of REITs in the last 3 months, it reads:

“Not only have real estate investment trusts been among the best performers, but their dividends are at least twice that of the benchmark index. Three of the 20 top-performing industry groups in the past three months are REIT-related. Industrial REITs have surged 54%, diversified REITs have jumped 46% and office REITs are up 39%.”

And another on the 33% returns from real estate mutual funds in the last 3 months, it reads:

“Real estate mutual funds, ground zero for the financial meltdown and housing bust, returned 33% in the past three months, ranking as the top-performing category, according to Morningstar.”

All this positive data has led to the head of Hargreaves Lansdown one of the biggest bears (market pessimist) is turning Bullish (optimistic) about commercial property markets for the first time in 6 years The Telegraph reveals.

These funds are doing the talking with their wallets and putting their money where their mouth is, and their mouths are saying that real estate in the markets that took the biggest battering is looking like a bargain that will generate substantial returns during the global recovery in the next 4-6 years.

View overseas property for sale

About Azure Overseas

Azure Overseas is a member of the National Association of Estate Agents (Overseas) and adheres to the highest standards of customer care and stringent market research/due-diligence. To find out more email Frank Crowley on info@azureoverseas.com.

Write About Property is an SEO copywriting services company specialising in the property industry


MAKE MONEY MAKING

Related Products:

The Power Futures Strategy

Category : Futures trading

The Ultimate Futures Trading Strategy! Brand New Web Site & Copy! High Conversions And 50% Per Sale! Affiliate Resources! Unique Niche Product!
The Power Futures Strategy


MAKE MONEY MAKING

Related Products:

The Challenges Ahead Of Banks

Category : Banking

THE CHALLENGES AHEAD OF BANKS

                                                                     *G.JAYALAKSHMI., Ph.D Research Scholar

  

INTRODUCTION 

           

 

India’s banking industry is at a watershed. Evidence from across the world suggests that a sound and evolved banking system is required for   sustained economic development. India has a better banking system in place Vis a Vis other developing countries, but there are several issues that need to be ironed out.

           

A strong performance in the current year, strengthening the positive trends of the past, will certainly improve the short-term risk perception but focus must rest on key structural changes that have to occur if Indian banking is to be a positive force and not a drag on the rest of the economy.

           

It has met and successfully overcome several challenges over the last decade. But bigger challenges lie ahead. In this paper, we try and look into the challenges that the banking sector in India faces.

 

Interest rate risk

           

The first and most obvious challenge will come from rising interest rates. The current perception is that interest rates have stopped falling and are likely to remain steady, but if demand for resources picks up as firms start to invest in new capacity and boom conditions fuel consumption demand, then there may be a tightening of liquidity and upward pressure on interest rates.

 

Interest rate risk can be defined as exposure of bank’s net interest income to adverse movements in interest rates. A bank’s balance sheet consists mainly of rupee assets and liabilities. Any movement in domestic interest rate is the main source of interest rate risk.

           

            Over the last few years the treasury departments of banks have been responsible for a substantial part of profits made by banks.

 

Now as yields go up (with the rise in inflation, bond yields go up and bond prices fall as the debt market starts factoring a possible interest rate hike), the banks will have to set aside funds to mark to market their investment. This will make it difficult to show huge profits from treasury operations. This concern becomes much stronger because a substantial percentage of bank deposits remain invested in government bonds.

           

Banking in the recent years had been reduced to a trading operation in government securities. Recent months have shown a rise in the bond yields has led to the profit from treasury operations falling. The latest quarterly reports of banks clearly show several banks making losses on their treasury operations. If the rise in yields continues the banks might end up posting huge losses on their trading books. Given these facts, banks will have to look at alternative sources of investment.

 

 

 

Non-performing assets

           

The best indicator of the health of the banking industry in a country is its level of NPAs. Given this fact, Indian banks seem to be better placed than they were in the past. A few banks have even managed to reduce their net NPAs to less than one percent (before the merger of Global Trust Bank into Oriental Bank of Commerce, OBC was a zero NPA bank). But as the bond yields start to rise the chances are the net NPAs will also start to go up.

 

This will happen because the banks have been making huge provisions against the money they made on their bond portfolios in a scenario where bond yields were falling.

 

Reduced NPAs generally gives the impression that banks have strengthened their credit appraisal processes over the years. This does not seem to be the case. With increasing bond yields, treasury income will come down and if the banks wish to make large provisions, the money will have to come from their interest income, and this in turn, shall bring down the profitability of banks.

 

Capital adequacy norms

           

            A third and a key challenge will be the introduction of Basle II capital adequacy norms. These will make two demands on banks.

 

They will have to measure the risks they bear much better. For this they will need to overhaul their management information systems so that they have a clear and quantifiable idea of their risks.

 

            Then they will have to look for capital to back that risk and ultimately earn enough to be able to service that capital. R Ravimohan, managing director of Crisil, feels that the future is all about technology and risks.

 

There is a huge potential for undertaking risk assessment by using technology. It is imperative for banks to grow but the key issue is deciding where and how.

 

            New ways or managing risk and asset-liability mismatches, like asset securitization, which unlocks resources and spreads risk, are likely to be increasingly used.

 

Competition in retail banking

           

            The entry of new generation private sector banks has changed the entire scenario. Earlier the household savings went into banks and the banks then lent out money to corporate. Now they need to sell banking. The retail segment, which was earlier ignored, is now the most important of the lot, with the banks jumping over one another to give out loans.

 

The consumer has never been so lucky with so many banks offering so many products to choose from. With supply far exceeding demand it has been a race to the bottom, with the banks undercutting one another. A lot of foreign banks have already burnt their fingers in the retail game and have now decided to get out of a few retail segments completely.

 

The nimble footed new generation private sector banks have taken a lead on this front and the public sector banks are trying to play catch up. The PSBs have been losing business to the private sector banks in this segment. PSBs need to figure out the means to generate profitable business from this segment in the days to come.

 

Conclusion

           

Over the last few years, the falling interest rates, gave banks very little incentive to lend to projects, as the return did not compensate them for the risk involved. This led to the banks getting into the retail segment big time. It also led to a lot of banks playing it safe and putting in most of the deposits they collected into government bonds.

 

Now with the bond party over and the bond yields starting to go up, the banks will have to concentrate on their core function of lending.

           

The banking sector in India needs to tackle these challenges successfully to keep growing and strengthen the Indian financial system.

 

            Furthermore, the interference of the central government with the functioning of PSBs should stop. A fresh autonomy package for public sector banks is in offing.  The package seeks to provide a high degree of freedom to PSBs on operational matters. This seems to be the right way to go for PSBs.

 

            The growth of the banking sector will be one of the most important inputs that shall go into making sure that India progresses and becomes a global economic super power.

 

 

 

G.Jayalakshmi M.com.,M.phil.,
Ph.D scholar
Department of Commerce
Periyar University
Salem- 11


MAKE MONEY MAKING

Related Products:

Short Term Stock Trading > Day Trading Stocks Picks – Stocks for Short Term Trades

Category : Stock trading

By.-  http://www.ProfitableStockMarket.com

A beginner usually feels very attracted to the stock market while for example discovering a short term stock that’s being reported in CNBC or the news program and watching it rise steady fast and make new highs from $10 to $70 in just 2 months.

While learning about this successful news story he’s saying to himself “Oh boy if I was one of those lucky guys who bought that stock back when it was priced at $10 I easily would have tripled my money by now… That means my 10 grand would transformed in to a whooping 70 K! hassle free … I would have been able to grab one of those big HUMMERs on the spot and probably pick up a nice Rolex by the way!”

The stock market news constantly reports of hot short term stocks that are breaking out and making tremendous gains on the same day or doubling in price in just a few hours. Back in the bull market of the late 90′s you could easily see a good number of hot stocks sprouting out every week.

Those years surely made it look like every body could easily take LONG SHOTS and make a shiny pile of gold every day in the stock market. But today’s market is a different story. A totally different animal.

Some say that the stock market has gotten more realistic. Fantasy land is over and GAMBLING YOUR WAY TO RICHES is not an option anymore. You might get lucky a few times, but your constant loses can wipe you out sooner or later.

The fact that the bull market period has ended for now doesn’t mean that you can’t make a great deal of money in today’s market. A lot folks from many walks of life keep making excellent profits on a daily basis, pocketing hundreds & thousands of dollars by trading stocks online.

Success in short term day trading starts by applying a wiser and REALISTIC methodology for choosing hot stocks as well as for getting in and out of them with profits in mind.

You need to look at the stock market more realistically. You got to learn that you can benefit when stocks go up and also when they FALL down.

You got to WORK SMARTER and get more selective about the hot stock trading opportunities that you choose. You need to embrace the nature of day trading and be fully prepared to take advantage of stocks that are poised for a BIG RISE on the same day.

The bottom line is you have to PREPARE YOUR SELF to be successful, just like you would do it in other areas of your life in order to achieve success.

Profitable Stock Market helps stock traders and investors take advantage of practical stock trading opportunities every day at http://www.ProfitableStockMarket.com


MAKE MONEY MAKING

Related Products:

How to Choose the Best Online Brokers for You

Category : Brokers

Choosing the best online broker isn’t as easy it you will want it to be. You can’t just look at a single review chart of the best online brokers and pick the one that easily stands out as the best. The various brokers have different prices for different areas and each online brokerage firm features a unique set of strengths and weaknesses.

Towards the end of my article here I shall provide a link to my thorough guide to who I feel are the best online brokers. Yet before you reach that point, you must understand that the most vital part of picking an online broker is picking one that best matches your needs.  In order to pick one that best matches your needs, you first need to sit down and clarify exactly what you require as an investor and why.

For example, are you just looking for an online channel to manage your existing investments? Or do you hope to aggressively invest in penny stocks with day trading? You’ll find different pricing for these different area at almost all brokerages, so you need to understand which fees will apply to your particular needs and interests.

And don’t just be smitten by the first low fee you see. Most brokers offer some remarkable deals in one particular area… but that doesn’t necessarily mean they are the cheapest overall.  And sometimes expense isn’t the most important issue.  Rather, what sort of services does that broker provide for the price?

If you’re a wet-behind-the-ears novice looking to build a solid foundation of understanding, I urge you to consider spending a little more for a full-service brokerage. I know the cheaper trades at a discount broker can be awfully alluring, but when you’re starting out it is vital that you have experienced professionals helping you understand the market and helping you establish good research habits.

Later when you have developed your skills and knowledge, you can take advantage of those cheap trades through discount brokers.  But don’t be cheap when you first start.  I assure you it will cost you more over the long haul.

Most important, treat this like a real professional business. Be organized and thorough when you start and in how you select and work with the best online brokers. I know some of you may have reached articles like mine because you’ve read some ridiculous hype about making money online with online trading of some kind (usually penny stocks).  Try to put that dreamy hype aside and treat this with a serious professionalism.

Learn everything you must know about the top brokerages by reading my comprehensive online broker review: Best Online Brokers


MAKE MONEY MAKING

Related Products:

Home Study Course For Profitable Trading

Category : Commodity trading

The Beginners Home Study Course for Profitable Trading reveals the best investment methods to fit your personality and starting capital. Quickly move through the basics of Swing-trading Day-trading Options Futures and commodities Forex
Home Study Course For Profitable Trading


MAKE MONEY MAKING

Related Products:

Ads Plugin created by Jake Ruston's Wordpress Plugins - Wordpress Plugin made by Hostgator Review and ImHosted Review.