Chicago
stuck in pension funding squeeze - (www.cnbc.com) Despite tax hike, Chicago still faces huge
pension fund gap. Chicago's recent tax hike will help fill a
multibillion-dollar hole in its public pension funds, but it won't be enough to
close the gap, according to a report Tuesday by bond rater Moody's. "Despite
significantly increasing its contributions to its pension plans, Chicago's
unfunded pension liabilities could grow, at a minimum, for another 10
years," the report said. Last month, the Chicago City Council approved a
$7.8 billion budget that includes a highly unpopular tax hike proposed by Mayor
Rahm Emanuel to make up for years of underfunding city workers' pensions. The
package included a $543 million property tax hike, phased in over four years,
increases in other fees, and spending cuts aimed at filling a $20 billion hole
in the city's pension obligation.
Greece told to do more on reforms before it
gets next bailout payment - (www.theguardian.com) European
leaders have told Greece that it must do more to prove it is pushing through
the reforms its
creditors have demanded before it can receive a €2bn (£1.4bn) aid payment. The
debt-stricken country has been at odds with its lenders over the protection it
can offer families at risk of being made homeless because of mortgage defaults.
Greece clinched an €86bn bailout in
the summer, in return for promising measures to reduce its deficit such as
higher VAT rates and pension cuts. Its lenders have also demanded new laws to
help banks repossess homes from people who cannot meet their loan repayments. The
new sticking point turned the buildup to a key Brussels meeting of eurozone
finance ministers on Monday night into a series of tit-for-tat briefings
reminiscent of the height of the bailout crisis earlier this year.
EU Warns of Refugee 'Catastrophe' as Winter
Closes In - (www.ap.org) The
European Union warned on Monday of a looming humanitarian
"catastrophe" with tens of thousands of people traveling through the
Balkans to northern Europe as winter closes in. More than 770,000 people have
arrived in the EU by sea so far this year, overwhelming border authorities and
reception facilities. Many have made the arduous land journey on foot through
the Balkans in search of sanctuary or work in countries like Germany or Sweden.
The EU's 28 member nations have pledged to provide experts and funds to help
manage the emergency, and to share refugees among them. But the resources have
been painfully slow in coming.
Hedge Funds + Leverage Are Hot Formula for
Canada Pension Funds - (www.bloomberg.com) The words “bold” and “pension fund” don’t
always go together easily. Then again, neither do bold and Canada. But Canadian
public pension funds are once again employing bold strategies in a world where
interest rates have remained persistently low at the very moment that aging
baby boomers are increasingly drawing down their retirement funds. With
traditionally safe pension investments such as bonds no longer yielding enough
to cover obligations, a number of Canadian plans are ramping up leverage
strategies -- approaches intended to squeeze more profit from their investments
by doubling down with debt. They are mortgaging some of their swankiest
skyscrapers and forming in-house hedge funds that invest in complex derivatives
like forwards, swaps and options, accepting more risk in an effort to keep
their promises to retirees.
China Builder Wuzhou's Bonds Fall to Record Low
Amid Share Halt - (www.bloomberg.com) Wuzhou
International Holdings Ltd. bonds slid to a record low as the builder of malls
in China halted trading of its stock following an unprecedented plunge in the
shares Monday. The developer’s 13.75 percent notes due in 2018 dropped 3.6
cents on the dollar to 94.2 cents as of 10:32 a.m. in Hong Kong, the lowest
since issuance in 2013, according to data compiled by Bloomberg. The company
halted trading pending an announcement in relation to certain share transfers
by controlling holders, it said in a filing Tuesday. Its stock plunged 32
percent in Hong Kong on Monday, the steepest decline on record. Wuzhou’s
shareholders include Boom Win Holdings Ltd., which has a 69.7 percent stake in
the developer, the data show. Wuzhou Chairman Shu Cecheng owns 60 percent of
Boom Win and Chief Executive Officer Shu Cewan holds 40 percent, according to a
company interim report filed to the Hong Kong stock exchange in September.
Asian Stocks Join Global Selloff on Fed Concern Before China
CPI - (www.bloomberg.com)
Gundlach Says December Rate Increase a Threat to Stocks, Bonds - (www.bloomberg.com)
Euro zone won't release new money for Greece until reforms done - (www.reuters.com)
China's Big Banks Have Longest Road to Meet Loss-Absorbing Needs - (www.bloomberg.com)
Draghi Replaces Yellen as Savior for Borrowers Before Fed D-Day - (www.bloomberg.com)
China is sailing into a sea of troubles - (www.ft.com)
Gundlach Says December Rate Increase a Threat to Stocks, Bonds - (www.bloomberg.com)
Euro zone won't release new money for Greece until reforms done - (www.reuters.com)
China's Big Banks Have Longest Road to Meet Loss-Absorbing Needs - (www.bloomberg.com)
Draghi Replaces Yellen as Savior for Borrowers Before Fed D-Day - (www.bloomberg.com)
China is sailing into a sea of troubles - (www.ft.com)
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