How Private Medium Term Note Offerings Are Regulated And Governed

Depending on how active corporations are in the MTN market, the Federal Reserve will survey these programs. Being that these corporations provide data of the confidential nature, it is their responsibility to show the amount of MTNs they issue with monthly, quarterly or annual reporting. At year end, all MTN issuers are asked to provide date with regards to their ‘outstandings’. The Federal Reserve obtains information on new programs on new programs from the announcements of SEC Rule 415 registrations as well as their contacts from MTN agents. The data on ‘outstandings’ began being collected in 1989 while the data on gross issuance began in January 1983.

With a 100% participation rate, an accurate measure of MTN financing volume by U.S. corporations is able to be analyzed. Notwithstanding, while the U.S. corporate sector is the largest segment of the MTN market, MTNs are issued in other markets as well as by non-U.S. corporations. As an example, several U.S. corporations have issued MTNs in the Euro-market. This participation rate does not include MTNs issued in the U.S. public market by government-sponsored agencies, such as the Federal National Mortgage Association, by supra-national institutions, and by non-U.S. corporations.

Being that these securities are exempt from SEC registrations, while the database includes MTNs issued by bank holding companies, it does not include deposit notes and bank notes offered by banks. More importantly, the database does not include privately placed MTNs. The private placement market is particularly attractive to issuers who wish to gain access to U.S. investors without having to obtain SEC approval for a public offering. According to MTN agents, non-U.S. corporations are the largest borrowers in the market for privately placed MTNs because the financing costs are usually lower in the public market than in the less liquid private market. This transcends into most U.S. corporations choosing to issue public, SEC-registered MTNs though with recent events, there appears to be a shift in the norm.

If you want to increase the longevity of your desktop PC contact 1st Compucare Computer London Cleaning Services and postpone the need for your computer's to be repaired.

Issuers Industry and Issuance Volume
In the financial sector, major borrowers who participate within the MTN markets are auto finance companies, bank holding companies, business and consumer credit institutions, and securities brokers. In the nonfinancial sector, participants in the MTN market include utilities, telephone companies, manufacturers, service firms, and wholesalers and retailers. While it is safe to say that this is not the composite group as a whole, predominantly, these industries are what are involved with these MTNs.

Financial firms tend to issue MTNs with maturities matched to the maturity of loans made to their customers since maturities on MTNs reflect the financing needs of the borrowers. Consequently, in the financial sector, maturities are concentrated in a range of one to five years, with only a small proportion are longer than ten years. Maturities on MTNs issued by nonfinancial corporations cover a wider range as a result of often allocating MTN usage towards financing long-lived assets.

The MTNs Market Relative Size
One measure of the size of the market is the ratio of outstanding MTNs to the amount of outstanding public debt (MTNs plus public corporate bonds). As the MTN market accounts for a significant share of borrowing by U.S. corporations, MTNs represent an increasingly important source of credit to non-financial corporations, as these companies have shifted funding from alternative credit markets. In general, nonfinancial corporations that borrow in the MTN market have access to other major credit markets: corporate bonds, commercial paper, bank loans, and privately placed bonds. The shift to long-term financing (MTNs and bonds) over this period is a typical, cyclical phenomenon that occurs in periods of slow economic growth and falling long-term interest rates. However, some of the growth of the MTN market reflects a secular decline in the role of banks as financial intermediaries.

An alternative measure of the size of the market is the volume of investment-grade MTN issuance as a percentage of total investment-grade debt issuance (MTNs plus underwritten straight bonds). This ratio of debt issuance may overestimate the size of the MTN market because MTNs typically have shorter maturities than corporate bonds.

Carmaxx — 10 Reasons To Buy Today And One To Make You Run Away!

CarMaxx Auto Sales is most well known for their No Haggle Pricing, but they offer many more excellent benefits to their customers than just a fixed pricing model.

I have found that there are 10 great benefits of doing business with them and only one, but a big ONE, factor that may cause you to look elsewhere.

The key question here is does this one negative factor outweigh all of their benefits? It just may…

Let’s start with the 10 reasons to buy today:

1) No Haggle Pricing.

Same price for everyone with no negotiating necessary.

2) CarMaxx Auto Finance.

When a dealership has their own source for financing, this can help customers with credit problems to get approved more easily.

This also gives CarMaxx Auto Finance the ability to offer special low rate financing to their more qualified buyers.

3) Huge Inventory.

You would be hard pressed to not find the vehicle you were looking for. They have over 90 locations and can have inventory shipped from store to store.

4) Huge Inventory of Vehicles Under 12,000 Dollars.

In addition to an overall large inventory, they specifically stock up on thousands of vehicles that can be sold for under 12,000 dollars.

This is great for customers wanting less expensive vehicles to buy for cash, or looking to keep their monthly payments low.

5) 125 (plus) Point Inspection.

I really like the way they inspect and recondition their vehicles. The 125 point inspection is by far one of the most comprehensive inspections I’ve heard of.

6) Free, 30 Day Limited Warranty.

Extra piece of mind for your new purchase. They definitely stand behind the vehicles they sell.

7) Clean Title Guarantee.

This protects you against:

* Flood title.
* Salvage title.
* Frame damaged vehicles.

8) Free Vehicle History Report.

With their thorough inspection process, they are definitely not scared to show you the full recorded history of the vehicle you are looking to buy, and it’s Free!

9) Fixed Commissions.

CarMaxx pays their sales people the same (excludes CA) no matter what vehicle you decide to buy. This should eliminate a sales person from trying to force a vehicle on you that you may have no interest in buying.

This certainly makes the buying process less stressful and gives you more freedom to browse their inventory.

10) 5-Day Money Back Guarantee.

Very strong offering…Don’t like it, then take it back. A guarantee like this drastically reduces any chance of you having buyers remorse after the sale.

Most dealerships do not offer any kind of return policy and once you sign the contract you are locked in…I hope you like your new car, because you may be driving it for awhile.

Those are some great benefits and I would have to say that you are working with a good dealership if they offer only half of those benefits, let alone all ten.

Kudos CarMaxx.

“After all of those great benefits why would anyone buy a car anywhere else?” You ask. Great question.

Simply put, the number one benefit of CarMaxx is also, in my opinion, their number ONE drawback.

Their “No Haggle Pricing” business model gives them a great angle for advertising to customers that dislike the negotiating aspect of buying a car, but certainly does not qualify them as the “Low Price Leader” of car sales.

Quite frankly, if I owned a dealership and had the mark up that I feel they have in their prices, then I wouldn’t want customers to haggle over price either.

I have reviewed many of the vehicles that they have listed for sale on their website and found that there were no special discounts to speak of.

In fact, I found that some vehicles were priced for over the retail book value. Ouch!

I am personally a big fan of service over price and am willing to pay more for a quality product and top notch customer service, but I do have my financial limits.

Is CarMaxx for you?

That will depend on what you are looking to do.

If your goal is to get rock bottom price, then probably not. If your goal is to buy a good, well inspected/reconditioned vehicle and have as pleasant an experience as possible when buying a car, then they may be of great benefit to you.

However, I would suggest that you do some pricing research prior to buying and compare the CarMaxx price to that of their competitors with similar vehicles for sale.

Top 10 Things To Look For When Choosing A Car Leasing Broker

What is a Car Leasing Broker?

A Car Leasing Broker acts as an intermediary between the Finance Company and the company or person wishing to lease a vehicle. He checks a number of funding providers on a daily basis (similar to an insurance broker) to see which is the most competitive on a particular vehicle. This is in contrast to the Main Dealer who is usually tied to using only his Manufacturer’s finance terms, which may be uncompetitive.

In addition, due to the large volume of business the Car Leasing Broker introduces to Main Dealers, he has negotiated the best possible discount on the vehicle. This preferential vehicle discount, together with the low Finance Company rate, means that he can usually offer a much lower lease rental than is available direct from a Main Dealer, although there are exceptions such as when a dealer is running a special promotion.

Furthermore, a good Car Leasing Broker can often provide a much higher level of Customer Service and personal attention than either the Finance Company or the Main Dealer, because he is acting primarily on your behalf. He is there to give you any help you may need and to resolve any issues you may have with your vehicle or contract during the course of the rental period, and will help you liaise with the Finance Company if problems arise.

So, what are the Top 10 things to look for when choosing a Car Leasing Broker?

1. Independence – a Vehicle Leasing Broker should not be tied to any one finance company or vehicle manufacturer
2. Broad portfolio of finance company funding partners to ensure the most competitive quote – a broker should be well placed to compare the market to find you the best deals
3. Member of the British Vehicle Rental & Leasing Association (BVRLA). This accreditation means that a Broker must offer you the highest levels of service, honesty and integrity, and must handle any customer issues promptly and efficiently (conciliation service is available if necessary)
4. Well established business with a proven track record – ask to see testimonials from satisfied customers
5. Should be able to supply all makes & models of cars and commercial vehicles, and offer all the main types of Business Car Leasing and Personal Car Leasing Contracts – your one-stop shop
6. Should be happy to give free impartial advice on the most suitable option for each individual customer, including VAT & company car tax (e.g. helping private individuals opt out of their Company Car Scheme)
7. Should keep you fully informed as to the progress of your order and provide one convenient point of contact for all your queries or issues about your vehicle or contract, so you have no need to contact the finance company or supplying dealer directly.
8. Should offer Free Delivery to your home or office, and Free Collection at termination of contract
9. Should offer pooled mileage arrangements, as this could potentially make substantial savings for companies with a number of vehicles
10. Should offer a full range of Car Leasing services including Fleet Management, Maintenance Contracts, Accident Management, Duty Of Care legislation compliance, Gap Insurance, Fuel Cards and Short Term Rental

So, it’s definitely worth speaking with a reputable Car Leasing Broker if you’re looking for a competitive leasing quote and you value good Customer Service.

How Does Floor Plan Financing Work For Car Dealerships

Floor plan financing is a key element of the auto industry in both Canada and the United States . Exactly what is floor plan financing and how does it work?

This type of financing is in effect a short term inventory financing for both new and used car dealerships . Traditionally the floor plan industry was geared towards what we know as franchise dealers, i.e those dealers representing product for the likes of GM, CHRYSLER, FORD, etc .

The financing allows the dealers to carry sufficient inventory to satisfy customer needs and demands re model types, accessories, options, etc . It is an extremely large market in what is of course a multi billion dollar industry .

When floor planning financing works properly it is effective, has a reasonable cost attached to the financing, and is totally transparent to the consumer . As consumers when we drive past auto dealerships, either new or used, we don’t care how the inventory got there, we just know its there for us to examine and purchase .

Floor plan financing is executed on both a small and large basis . It is not unusual for finance firms to use more esoteric finance vehicles such as asset backed commercial paper, Special Investment Vehicles ( commonly called SIV’s ) etc. to finance the billions of dollars of inventory that the industry needs to move product through .

Naturally, whether we are talking about the largest GM dealer in town, or a small used car dealership with multi lines of vehicles there has to be a finance program that can grow and backstop that inventory .

In the Canadian marketplace as an example, with which this writer is more familiar , the independent dealers have as much need as franchise dealers for this valuable type of financing .

We have all read recently that many of the tier one floor plan firms such as GMAC and CHRYSLER CREDIT have withdrawn substantially from the market . This has allowed a number of private firms to enter the market and capitalize on the withdrawal of the ‘ big boys ‘ . Additionally, as the banks perceived the auto market as significantly more risky in the current 2008-2010 economic turmoil they also have scaled bank in their previous focus on floor plan financing for car dealerships .

Finance firms that execute well on floor plan financing initiatives are those that of course properly funded ; they also know how to collateralize the inventory through proper legal documentation and registration. The average term for a car being on the auto lot tends to be within 30-90 days . The floor plan financier registers liens on the vehicle, and when the vehicle is sold that lien is removed . The finance firm of course profits from the ability to charge the dealership interest over that 30-90 day period . Naturally this process repeats itself continuously . Lenders must have reasonable confidence in the financial viability of the dealer, more experienced and financially solvent dealers can naturally command larger floor planning facilities . Dealers also are subject to rigorous audits of the inventory . The lender wants to know the car is still there and hasn’t been sold and not paid for of course! Therefore VIN ( vehicle identification numbers ) are checked regularly by finance company personnel , insurance is validated, and random inspections are common

Overall the auto floor plan facility is a key aspect of the automotive market , and is a significant benefit to both new an car dealers alike .