MY BIZ: Finance Ministry may back RBI’s ‘moral’ rescue route

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August 8, 2013 by apicomely

Fix the mortgage finance system

This money has tendency to flow out at short notice. The moral suasion approach has also gained ground as RBI is opposed to issuing sovereign bonds as it feels that the cost of such an issue would outweigh the benefits. RBI governor D. Subbarao had said that he had reservations about the sovereign bond issue as it would compromise the country’s financial stability. Subbaroa was of the view that it would be more prudent for the government to borrow from domestic markets given the volatility in the international markets.

Fifth Street Finance Corp. Expands Its Syndicated Bank Credit Facility to $480 Million and Lowers Pricing to LIBOR + 2.25% Per Annum

After five years, though, there is movement toward reforming a big part of the system. At the moment, the market for new mortgages is almost entirely government-backed through Fannie Mae, Freddie Mac or the Federal Housing Administration. In Phoenix on Tuesday , Mr. Obama rightly argued that the situation must change, that private finance should again be the backbone of the system. He supported slowly but steadily winding down Fannie and Freddie, so-called government-backed enterprises meant to drive investment to mortgages, and replacing them with a more modest government role in the market.

About Fifth Street Finance Corp. Fifth Street Finance Corp. is a specialty finance company that lends to and invests in small and mid-sized companies, primarily in connection with investments by private equity sponsors. Fifth Street Finance Corp.’s investment objective is to maximize its portfolio’s total return by generating current income from its debt investments and capital appreciation from its equity investments. About ING Capital LLC ING Capital LLC is an indirect U.S.


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