The financial world does not seem that pleasant beginning last week and early this week. Markets tanked much more. Sentiments dropped.
Something more worrisome on the home front for people with loans. Especially home loans.
The date to watch is 17 Sep 2015, US time where FOMC meeting with a press conference is slated.
I think 25bps by Yellen would kill it.
Some people have been asking. How? Interest rates will rise boh? Will it be volatile? How will it affect my bank loan?
This afternoon's nugget of news from the Association of Banks in Singapore seem to confirm that.
If rates do not change much and stays at rock bottom lows, what's there need to know about it?
ABS decides now a good time to charge people for information on the ever changing (and likely) rising SIBOR.
See bor?
See liao bor?
The Straits Times' Money section had the following headline boldly emblazoned on page C5 this morning: 'Borrowers upset over hike in margin for Sibor loans'.
The article goes on to explain that the anger was directed to the larger spreads and subsequent increase in payments to be borne by the borrower.
CASE felt that the increase in spreads should be clearly explained and justified by the banks in question.
Citibank seemed to have caved in slightly at the end of the article by making some concessions. I wonder if they were under any duress then.
But in any case, that's how banks make money from the retail borrower. Scalping you via the spreads.
Perhaps it is time to refinance or reprice for some of those who took up loans in 2010 and 2011.
The swinging good times of cheap credit is ending. Yellen reiterated that it would be sometime in 2015.
