| Private equity deals put squeeze on mutual funds
LOS ANGELES: At first glance, the boom in private equity buyouts looks like a boon to traditional investors like mutual funds. Demand from the private equity crowd gets a lot of credit for the rise in stock prices this year. Every time the market starts to sag, along comes a new bid for one company or another, reinforcing the idea that stocks are a bargain. What's more, the high-yield bonds commonly sold to finance these buyouts have added some quality names to the menu of issuers in the junk bond market. And junk bond mutual funds are thriving these days. The average U.S. high-yield bond fund returned 11.9 percent in the past year to the middle of last week; their annual return is 9.3 percent for the past five years. On closer inspection, however, private equity firms make dubious friends for old-line fund managers.
Credit One Financial Services, New Debt Consolidation Company ...
NEWARK, Del.--(BUSINESS WIRE)--Credit One Financial Solutions (www.creditonefs.com), a new financial services company formed by five former MBNA executives, held a Grand Opening today attended by Gov. Ruth Ann Minner. The new company, which already employs 51, offers debt consolidation solutions to responsible consumers with prime credit. At a ribbon-cutting ceremony today, the company said market demand for its products would result in a doubling of its workforce by the end of next year. "We see a real need among financially responsible consumers who want to consolidate their debt in a way that saves them money and enables them to pay off their debt faster," said Joseph DePaulo, Chief Executive Officer of Credit One Financial Solutions. "Unlike many traditional debt consolidation providers, Credit One can grant an immediate loan approval over the phone, allowing a customer to have his or her debt consolidated into a Personal Line of Credit by the time they hang up the phone." DePaulo said a Credit One Personal Line of Credit had two advantages over the better known method of transferring debt to a new credit card.
California Water Services gets up to $75M credit
California Water Services Group entered into an unsecured agreement for an up to $75 million revolving line of credit, the company said late Thursday. San Jose-based California Water (NYSE:CWT) and its subsidiaries reached an agreement with Bank of America for a $55 million line of credit. .
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