https://www.msn.com/en-us/finance/other/softbank-to-sell-up-to-2441-bn-in-assets-to-buy-shares-lower-debt/ar-BB11z5Va

SoftBank Group said Monday it would sell up to $41 billion in assets to finance a stock buyback, reduce debts and increase its cash reserves after weeks of heavy losses in its shares.

The firm said it would buy back $18 billion of its stock, with the remaining money to be used on paying down debt, bond buybacks and cash reserves, setting a timetable of a year to complete the transactions.

News of the massive buyback sent SoftBank stock limit-up, soaring 18.61 percent to 3,187 yen in the last hour of trade in Tokyo.

"This programme will be the largest share buyback and will result in the largest increase in cash balance in the history of SBG, reflecting the firm and unwavering confidence we have in our business," chairman Masayoshi Son said in a statement.

"This will allow us to strengthen our balance sheet while significantly reducing debt," he added, saying the assets being sold account for "less than 20 percent of the company's current asset value".

The firm believes its shares are currently "substantially undervalued" and that the buyback would "further strengthen its balance sheet and enhance its credit rating."

SoftBank has seen its stock sink in recent weeks on worries about the liquidity of the heavily indebted company, as global financial markets are roiled by fears about the economic consequences of the pandemic.

It had already announced a massive share buyback that prompted S&P Global Ratings to cut the firm's outlook to negative, a move some analysts said misinterpreted the company's health.

Some said Monday's move should also be viewed positively.

"It's not a bad strategy to use their cash for buying back shares when the outlook of the market and the economy is very uncertain," Yoshihiro Okumura, general manager at Chibagin Asset Management, told AFP.

"The market took the surprise announcement positively at a time when it's hard to find good investment destinations."

SoftBank Group is attempting to improve its financial standing after booking massive losses related to the performance of key investments such as WeWork and Uber.

The company has used its $100 billion Vision Fund to pour enormous resources into the world's hottest start-ups.

But Son's audacious decision-making approach has faced criticism over his commitment to start-ups some say are overvalued and lack clear profit models.

The group last year announced its long-mooted Vision Fund 2, again targeting funds of around $100 billion, but investors have been slower to commit.

In the latest statement, SoftBank Group said it will appoint new independent board members to improve its governance.

https://www.msn.com/en-us/finance/markets/mortgage-bond-sales-flood-market-amid-pleas-for-us-help/ar-BB11yrXU

Bloomberg) – A crisis in credit markets deepened on Sunday as a cluster of funds that own mortgage bonds sought to sell billions in assets to meet investor redemptions, sparking pleas for government intervention.

The sales included at least $1.25 billion of securities being listed by the AlphaCentric Income Opportunities Fund on Sunday, according to people with knowledge of the sales. It sought buyers for a swath of bonds backed primarily by private-label mortgages as it sought to raise cash, said the people, who asked not to be identified discussing the private offerings. The fund plunged 17% on Friday, bringing its total decline for the week to 31%.

“The coronavirus has resulted in severe market dislocations and liquidity issues for most segments of the bond market,” AlphaCentric’s Jerry Szilagyi said in an emailed statement on Sunday. “The Fund is not immune to these dislocations” and “like many other funds, is moving expeditiously to address the unprecedented market conditions.”

The best way to obtain favorable prices is to offer a wider range of securities for bid, Szilagyi said.

The AlphaCentric Income Opportunities Fund plunged 31% last week

Funds that buy up bonds of all kinds – from debt of America’s largest corporations to securities backed by mortgages – have struggled with record investor withdrawals amid choppy trading conditions in fixed-income markets. The rush to unload mortgage-backed securities signals that a credit meltdown that began with corporate bonds is spreading to other corners of the market.

Real estate billionaire Tom Barrack said on Sunday that the U.S. commercial-mortgage market is on the brink of collapse and predicted a “domino effect” of catastrophic economic consequences if banks and the government don’t take prompt action. The chief executive officer of Colony Capital Inc. warned in a white paper of a chain reaction of margin calls, mass foreclosures, evictions and, potentially, bank failures due to the pandemic.

Amid the selling, the Structured Finance Association, an industry group for the asset-backed securities market, asked government leaders on Sunday to step in and help boost liquidity in the market.

In a letter to U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell, the industry group said that “the future path of the pandemic has significantly disrupted the normal functioning of credit markets.”

The group asked them to “immediately enact a new version of the Term Asset-Backed Securities Loan Facility,” a financial crisis-era program that helped support the issuance of securities backed by consumer and small-business loans. Such a measure, the group said, would help enhance the liquidity and functioning of crucial credit markets.

“We can most likely expect a continuation of price volatility across the bond market spectrum until the panic selling and market uncertainty subsides or government agencies intervene to support the broader fixed-income market,” Szilagyi said in the AlphaCentric statement.

KJV 17-39 39 39

Acts 5: 17 Then the high priest rose up, and all they that were with him, (which is the sect of the Sadducees,) and were filled with indignation,

18 And laid their hands on the apostles, and put them in the common prison.

19 But the angel of the Lord by night opened the prison doors, and brought them forth, and said,

20 Go, stand and speak in the temple to the people all the words of this life.

21 And when they heard that, they entered into the temple early in the morning, and taught. But the high priest came, and they that were with him, and called the council together, and all the senate of the children of Israel, and sent to the prison to have them brought.

22 But when the officers came, and found them not in the prison, they returned, and told,

23 Saying, The prison truly found we shut with all safety, and the keepers standing without before the doors: but when we had opened, we found no man within.

24 Now when the high priest and the captain of the temple and the chief priests heard these things, they doubted of them whereunto this would grow.

25 Then came one and told them, saying, Behold, the men whom ye put in prison are standing in the temple, and teaching the people.

26 Then went the captain with the officers, and brought them without violence: for they feared the people, lest they should have been stoned.

27 And when they had brought them, they set them before the council: and the high priest asked them,

28 Saying, Did not we straitly command you that ye should not teach in this name? and, behold, ye have filled Jerusalem with your doctrine, and intend to bring this man’s blood upon us.

29 Then Peter and the other apostles answered and said, We ought to obey God rather than men.

30 The God of our fathers raised up Jesus, whom ye slew and hanged on a tree.

31 Him hath God exalted with his right hand to be a Prince and a Saviour, for to give repentance to Israel, and forgiveness of sins.

32 And we are his witnesses of these things; and so is also the Holy Ghost, whom God hath given to them that obey him.

33 When they heard that, they were cut to the heart, and took counsel to slay them.

34 Then stood there up one in the council, a Pharisee, named Gamaliel, a doctor of the law, had in reputation among all the people, and commanded to put the apostles forth a little space;

35 And said unto them, Ye men of Israel, take heed to yourselves what ye intend to do as touching these men.

36 For before these days rose up Theudas, boasting himself to be somebody; to whom a number of men, about four hundred, joined themselves: who was slain; and all, as many as obeyed him, were scattered, and brought to nought.

37 After this man rose up Judas of Galilee in the days of the taxing, and drew away much people after him: he also perished; and all, even as many as obeyed him, were dispersed.

38 And now I say unto you, Refrain from these men, and let them alone: for if this counsel or this work be of men, it will come to nought:

39 But if it be of God, ye cannot overthrow it; lest haply ye be found even to fight against God.

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