Also, once invested, bond proceeds can generate additional investment income that is potentially higher than the pension fund's assumed interest rate
However, HMFI's higher proportion of fixed-rate policies with a higher assumed interest rate
puts pressure on HMFI's long-term business profitability, considering the current low interest rate environment.
However, HMFI's higher proportion of fixed rate policies with a higher assumed interest rate
may pressure HMFI's long-term business profitability, considering the current low interest rate trend.
Fitch's opinion is based on the small share of county debt outstanding represented by variable rate debt, the county's financial flexibility as demonstrated in early debt repayment in several recent years, and the cushion included in the assumed interest rate
for these bonds in the county's fiscal 2009 budget.
59 which reflects 48 days of interest at a maximum assumed interest rate
of 12% per annum based on a 365 day year.
The substitute LOC covers the principal amount outstanding in the amount of $44,630,000 and interest coverage in the amount of $929,792 which reflects 50 days of interest at a maximum assumed interest rate
of 15% per annum based on a 360 day year.
The negative interest spread margin has recently been narrowed due to the decrease in the average assumed interest rate
and improvement of investment return.
In the case of POJ, although the gap between assumed interest rate
and investment yield has decreased, the absolute amount of negative spread did not decrease.
Best believes that the company's current investment yield is well above the assumed interest rate