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| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
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S&P National Bond Index
|
3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
|
3.13% |
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S&P National 0-5 Year Municipal Bond Index
|
0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
|
848.03 |
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S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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Why Does Anyone Pay Off Debt? |
CNBC - May 23, 2011 - By John Carney
Debt has become such an important feature of so many aspects of our lives that it is worth expending a bit of effort on understanding the basic operations of debt.
So today let’s look at the question: why does anyone repay their debt?
This might seem like a dim question. People repay their debts because they made a repayment promise when they borrowed money. They incurred a duty—legal and moral—to make payments according to a repayment schedule. The lender only agreed to extend the loan on promise of this repayment.
But there’s something a bit thin to this way of looking at things. It no doubt explains a lot about why we repay our debts in good times.
But when times are tough, often our obligations to our creditors interfere with other legal and moral obligations—such as providing for our families, or even paying off other debts.
To put it a bit abstractly, in a world of unlimited abundance, the choice to pay off debt is obvious and easy. In a world of scarce resources, it is more difficult. So the question really is why we choose to meet certain obligations rather than others?
It helps to think about debt not a single loan and repayment transaction—but as a series of purchases. The lender purchases a promise to pay—and perhaps security rights in collateral—in exchange for a special kind of payment called a loan. The borrower purchases back this promise to pay—and perhaps security rights in collateral—with a special kind of payment called a “repayment.”
What Is a Mortgage?
When you take out a mortgage, for example, you are really selling something to the bank—security rights in your home and your promise to pay the loan back with interest. When you make payments on your mortgage, you are working toward the total repurchase of those security rights on an installment plan. While you are making those payments, you are also purchasing the right to continue to reside in your home. Eventually, you pay off your mortgage and complete the repurchase of what you sold to the bank.
For the complete article.
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| Stuff to look at |
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S&P Commentary and Newsletters: S&P
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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