30-year mortgages stay at 8.32%Thirty-year, fixed-rate...

BUSINESS DIGEST

November 21, 1992

30-year mortgages stay at 8.32%

Thirty-year, fixed-rate mortgages averaged 8.32 percent this week, unchanged from last week, according to a national survey released yesterday by the Federal Home Loan Mortgage Corp. The rates are the highest since they averaged 8.48 percent during the week ended June 26.

On one-year adjustable-rate mortgages, lenders were asking an average initial rate of 5.32 percent, up from 5.20 percent last week. The rates do not include add-on fees known as points.

2 Honda executives join BMW

Two executives who helped make Japanese automaker Honda successful in the United States were appointed yesterday to head German automaker BMW's first U.S. operation.

Allen O. Kinzer, 51, will become president of BMW Manufacturing Corp. in Greer, S.C., effective Dec. 1. Edwin L. Buker, 39, will become vice president of manufacturing. Mr. Kinzer is senior vice president and manager of Honda Motor Co.'s drive-train plant in Anna, Ohio. Mr. Buker is vice president for auto quality at Honda of America.

Bankruptcy recoveries low

Amid a record number of bankruptcy filings by the nation's businesses, only 6.5 percent will emerge as operating companies and pay off their creditors as promised, according to a study released yesterday.

The nine-year study was conducted by the U.S. Bankruptcy Court in Poughkeepsie, N.Y., part of the Southern District for New York, the busiest bankruptcy court region in the nation. The study also found creditors in Chapter 11 cases have a 10 percent chance of ever getting their money in an average bankruptcy proceeding. The cash will typically cover just 31 percent of their original claims.

In a Chapter 11 bankruptcy, a company is given protection from creditors while it works out a plan of reorganization.

Taubman offering set at $11

Taubman Centers Inc. said yesterday that its initial public offering of 26.8 million shares of common stock has been priced at $11 per share on the New York Stock Exchange.

Real estate magnate A. Alfred Taubman, who also controls the Woodward & Lothrop chain, announced plans in August for an offering that would raise up to $389 million to expand his shopping center management company and retire debt.

Divided Fed backs lower rates

In a sharply divided policy meeting, the Federal Reserve voted last month to lean toward lower interest rates to keep the economic recovery alive, according to minutes released yesterday.

The officials at the Oct. 6 meeting of the Federal Open Market Committee voted 8-4 for a bias toward easier credit. But the central bank decided in the intervening weeks to hold interest rates steady. The Fed's decision marked the resumption of a policy in place for most of the year.

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