Dover Delaware Structured Settlements Feed

June 26, 2019

Genex Capital Bizarre Explanation of Why Discount Rates For Cases Are So High When Rates Are So Low

by Structured Settlement Watchdog

Genex Capital Basic Economics

"Sellers of structured settlements have been asking why are discount rates for their cases so high when the Federally set interest rate is so low.

The answer to this is basic economics:

1. The Fed rate is low because there is reduced market activity and the Fed is trying to stimulate such activity.

2. Demand for money is high but lending supply is low (this is what they mean when they say money is tight). 

3. While the Fed rate is low, try to get a mortgage or loan, or worse yet a credit card interest rate that is in the single digits". 

Source: Genex Capital website, retrieved 6/26/2019

Comments

The St Louis Fed chart here show not much tightening for commercial or industrial loans for large and middle market firms. Is Genex Capital one of those, or is Genex Capital just small potatoes?  JG Wentworth has a 4% cost of money. And RSL Funding claims that "you've likely been ripped off by JG Wentworth" in its latest marketing message, implying a low cost of money. What does that mean in the context of what Genex Capital has stated?   Why are deals getting done in the 5-6% range, when Genex Capital appears to be trying to justify rates much higher?

Percentage of Banks Tightening Standards for loans 2009-2019
The data straight from the Fed seems to conflict with the Genex Capital explanation


Moving on to the Mortgage Rates Mosh Pit.  The statement "While the Fed rate is low, try to get a mortgage or loan, or worse yet a credit card interest rate that is in the single digits" is a

Genex capital discount rates
Double Digit Rates Are a "Ribbit" Off in 2019

figurative toad stool.  The Mortgage Reports editor does an excellent job of what's driving current mortgage rates. Doesn't jive with what Genex Capital has posted on its website.

The structured settlement factoring industry has a preponderance of "sucks" when it comes to dissemination of accurate information. In doing so, with a few exceptions,  the structured settlement secondary market does a real disservice to consumers and has done so for a very long time.


 

 

 

Posted at 11:44 PM in Dover Delaware Structured Settlements, Financial Literacy, Genex Capital Commentary, Misinformation about Structured Settlement Factoring, Secondary Market For Structured Settlement Payment Rights, St. Louis Structured Settlements, Structured Settlement Factoring News, Structured Settlement Payment Rights, Structured Settlement Watchdog®, Vancouver Structured Settlements |

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