Star News

Companies issued the lowest level of bonds in a decade this month as concern over whether Europe's debt crisis might slow the global economy, in turn negatively impacting corporate borrowing costs.

Borrowers issued $66.1 billion of debt in currencies from dollars to yen, a third of April's tally and the lowest since December 2000. At least 14 companies withdrew offerings, including New York-based retailer Jones Apparel Group Inc., and theater chain operator Regal Entertainment. Spreads widened 44 basis points to 193 basis points. The extra yield that investors demanded from corporate bonds over government debt demonstrated the highest increase since November 2008.

Corporate credit lost 0.65% this month, a figure that includes reinvested interest; interrupting 4 months of positive returns. We will keep you posted…

Lender Originating Non Recourse Loans Nationwide

Penstar recently identified a capital source originating non-recourse loans to 70% loan to value from $10,000,000 on stabilized commercial properties located throughout the United States. This institutional lender is seeking office, industrial, and retail properties located in major metropolitan areas; and owned and managed by strong sponsors. Pricing for a 5-year term is currently 5.50%; a rate of 5.75% is priced for a 7-year balloon; and a 10-year term is available for a fixed interest rate of 6.0%. The loans will offer up to a 30-year amortization schedule. To learn more, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.

Helpful Humor

The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week

“The Results Were In”

Bob applied for a position at a world-renowned banking firm in New York. Steve applied for the same job and because both applicants had similar qualifications, they were asked by the firm's Manager to complete a test consisting of 20 questions.

When the results were in, both men had scored 19 of the questions correctly.

The Manager approached Bob, declaring, “Thank you for coming to the interview, but we've decided to offer the position to the other candidate.” “Why have you chosen the other candidate?” asked Bob, puzzled. “We both answered 19 of the questions correctly.”
“We have made our decision based not upon the correct answers, but on the question you answered incorrectly.” explained the Manager.

“How is it one incorrect answer can be ‘better’ than another?” asked Bob, visibly anxious.

“Simple,” responded the Manager. On question number 7, Steve responded, ‘I don't know.’” You wrote, ‘Neither do I’.”