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Upset

For the first time in 16 outings, the Rockets finally lost with Chris Paul in uniform. They began yesterday’s set-to with just about as much energy as a tortoise at rest, spotting the Lakers — the very same underperforming Lakers who carried nearly twice as many setbacks as wins — 37 points in the first quarter. To be fair, they did pick up steam from the second period on, to the delight of the 18,104 who filled the Toyota Center expecting a 15th consecutive triumph and 21st in 22 matches. Unfortunately, they expended too much energy getting back into the match that they ran out of it in the crunch.

To be sure, the National Basketball Association is talent-laden to the point where an upset is possible on any given meeting. And, make no mistake, the Lakers posted exactly that, belying their standing as the fifth-worst team in the West to display inspired hoops on the road against the league’s supposed best. They were active from the get-go, no doubt buoyed by their close call against the vaunted Warriors on the day living legend Kobe Bryant’s jerseys were retired. And featuring red-hot Kyle Kuzma, who took advantage of a rare start to puncture the hoop with authority, they managed to hold off the comebacking Rockets until the final buzzer.

Parenthetically, the Rockets wound up being victims of circumstance. First, they had Paul at far from a hundred percent; he didn’t even get to finish the contest due to a sore left leg. Second, they caught Kuzma, arguably the best rookie in the pro scene not named Ben Simmons, on a career night. That said, there is simply no excusing their poor effort from the opening tip. In stark contrast to head coach Mike D’Antoni’s preference for “getting [opponents] right at the beginning,” they seem to be content with coasting of late, perhaps showing too much confidence in their capacity to recover under pressure.

So, yes, the Lakers deserved to come out on top, just as the Rockets deserved to be handed their backsides. Interestingly, both view the outcome as lessons for improvement. As to whether progression, or avoidance of regression, is the better claim, only time will tell.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

PSEi recovers as investors pick up select stocks

SHARES bounced back on Thursday as investors went on selective buying of some stocks. 

The bellwether Philippine Stock Exchange index (PSEi) gained 0.18% or 15.67 points to finish at 8,378.28.

On the other hand, the all-shares index was flat at 4,892.80, just 0.01% or 0.82 point lower.

“There’s nothing significant market-moving news today, but I think it’s just a bargain hunting of selected stocks,” IB Gimenez Securities, Inc. Head of Research Joylin F. Telagen said in a text message on Thursday.

SM Investments Corp. was the most actively traded stock for Thursday, losing 0.21% to P971.50 apiece, followed by BDO Unibank, Inc with a 0.86% decline to P150.10 each.

Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) saw its shares jump 0.60% to P6.75, with a total trading volume of 37.52 million following its disclosure that it will be submitting an unsolicited proposal to the Department of Transportation to form a super consortium that will rehabilitate the Ninoy Aquino International Airport. 

MPIC will be joining Alliance Global Group, Inc., Filinvest Development Corp., JG Summit Holdings, Inc., Aboitiz InfraCapital, Inc., and AC Infrastructure Holdings Corp. for the proposal.

Regina Capital Development Corp. Managing Director Luis A. Limlingan said the market’s movement was similar to that of indices in the United States, as both are currently instituting reforms to their taxation schemes.

“It was a typical sell on news session as both countries have undergone huge overhauls in their tax system to hopefully boost growth and welfare,” Mr. Limlingan said.

Sectoral counters ended mixed, with four advancing and the other two declining.

The industrials sub-index posted a 0.47% uptick or 52.74 points to 11,151.34, followed by holding firms with an increase of 0.32% or 27.36 points to 8,508.89. The property sector added 0.16% or 6.38 points to 3,889.20, and financials gained 0.03% or 0.68 point to close the session at 2,140.68.

Meanwhile, the mining and oil sub-index gave up 1.24% or 140.78 points to 11,189.84 and services shed 0.18% or 2.94 points to 1,598.29.

A total of 1.13 billion issues switched hands, for a total value turnover of P6.31 billion, higher than the P5.26 billion recorded the day prior.

Losers narrowly outpaced gainers, 104 to 101, while 41 names closed flat.

Foreign investors turned net buyers amounting to P1.86 billion on Thursday, reversing the four-day net outflow that ended at P225.82 million on Wednesday.

MPIC is one of three Philippine units of Hong Kong-based First Pacific, along with PLDT, Inc. and Philex Mining. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Arra B. Francia

Your Weekend Guide (December 22, 2017)

The Ayala Museum presents Christmas for Kids — free admission to the museum for children 12 years and below — from Dec. 26 to 30. Enjoy the museum’s kid-approved exhibits like the Diorama of Philippine History and the museum’s cutting-edge Rizal virtual reality experience. Open the gift of creativity by trying out the Christmas art stations, and use audio guides to unwrap the mystery hidden inside the museum collection. Children must present their school ID or any valid ID indicating their birthday to avail of free access. Museum hours are from 9 a.m. to 6 p.m. For inquiries contact (759-8288) or send an inquiry to hello@ayalamuseum.org.

Megaworld Lifestyle Malls bring over Pinkfong, the creator of dance craze “Baby Shark,” for a Christmas tour: Dec. 22 at the Eastwood Mall Open Park, Dec. 23 at Uptown Mall Atrium, and Dec. 24 at Lucky Chinatown Walk. Activities include interactive performances, meet and greet opportunities, and games. All mall shows begin in the afternoon.

Pinkfong mall show

Globe Live and 9Works Theatrical present A Christmas Carol the Musical at the Globe Iconic Store Bonifacio High Street Amphitheater in Bonifacio Global City, with performances on Dec. 22, and 24 to 27. Directed by Robbie Guevara, the musical is based on the novel by CharlesDickens, about the miser Scrooge who gets a new outlook in life after being visited by the Ghosts of Christmas Past, Present, and Future. Tickets and schedules are available at TicketWorld (www.ticketworld.com.ph, 891-9999).

A Christmas Carol the Musical

The Ayala Museum’s ArtistSpace presents Cheryl Hironaka’s 13th solo exhibition, La Maison Coquette, featuring designs of homes, furniture, interior spaces, and objects. The exhibit runs until Dec. 28. The museum is open from Mondays to Sundays, 10 a.m. to 7 p.m. Admission is free.

The display of Mark Justiniani’s The Settlement, presented by CANVAS and the Ateneo Art Gallery, has been extended until Jan. 2 at the Unionbank Plaza of Areté, Ateneo de Manila. The Settlement is part of the artist’s current series of assemblages and installations which creates an illusion of infinite space through the careful manipulation of light and mirrors. The external features of artwork look like a shanty while the inside is rich in Philippine historical and cultural references such as martial law, the Marcos burial, the Aguinaldo Hall in Malacañang, Andres Bonifacio, a manananggal, and a mob of rallyists. The work is on view daily until Dec. 24 from 9 a.m. to 8 p.m. (it is suggested to visit The Settlement before Simbang Gabi at Ateneo’s Church of the Gesù), then from Dec. 25 to Jan. 2 from 9 a.m. to 5 p.m.

LANTERNS at Robinsons Starmills

Its showtime nightly at Robinsons Starmills Pampanga as giant lanterns remain on display for nightly shows at the rear parking area of the mall. There are shows every evening at 6 p.m. until Jan. 2.

Emerging market debt trading volume up 15% in Q3 vs Q2

EMERGING market debt trading volumes totaled nearly $1.3 trillion in the third quarter of 2017, a 15% climb from $1.13 trillion in the second quarter, according to a survey released on Wednesday.

However, the third quarter total was down 6% from nearly $1.38 trillion during the same time last year, according to EMTA, the emerging markets debt trading and investment industry trade association.

The turnover in local market instruments dropped 16% year over year to $736 billion in the third quarter from $878 billion during the same time last year, EMTA said.

Turnover of local market instruments made up 57% of total reported volume in the three months ended Sept. 30.

In a statement, EMTA said survey participants reported greater trading in the Asian region than in Latin America, the first time this has happened in the two decades the association has compiled quarterly trading volumes.

Brazilian instruments were the most frequently traded instruments overall, totaling $143 billion in turnover, or 11% of overall third quarter volumes. Trading in Brazilian instruments dropped by 7% year on year.

Indian instruments were the second most frequently traded at $138 billion, down 36% year on year.

However, volumes rose 81% versus the second quarter. Overall, Indian instruments made up 11% of total volumes.

Chinese assets were the third-most traded with volume of $129 billion, an 18% increase year over year and up 34% from the second quarter of 2017.

Eurobond trading increased 11% from the same time last year to $553 billion in the third quarter, EMTA said.

The survey compiled data from 45 leading investment and commercial banks, asset management firms and hedge funds and includes trading volumes from over 90 emerging market countries. — Reuters

The lame Jedi

By Noel Vera

Movie Review
Star Wars: The Last Jedi
Directed by Rian Johnson

(WARNING: plot twists and overall narrative discussed in explicit detail.)

YOU THOUGHT The Force Awakens was clumsily stitched together from the cold leftovers of the first Star Wars movie*? Get a load of this carcass —

In the hokily written opening crawl (But aren’t they all?) we learn that the Republic has collapsed and its loyalists have formed not a Rebellion but a Resistance; we learn that Supreme Leader (as opposed to Emperor) Snoke is in charge of not the Empire but The First Order. Basically business as usual only under different names.**

We have Empire ships laying siege to a hidden Rebellion base, Rebellion fighters scrambling to escape — Oh sorry — mixed the storyline up with the opening to The Empire Strikes Back.

The Reb — sorry Resistance — fleet is on the run with the Emp — First Order — ships in hot pursuit. One of the good guys devises a plan to infiltrate the lead ship, turn off the device the Em — sorry — First Order ships are using to keep our heroes on a leash and —

Sounds familiar?

Okay: young Jedi wannabe seeks out the old master, finds him; leaves woefully unprepared on the naive belief that dark villain everyone is afraid of still has good in him and can maybe just maybe be turned.

Hmmm.

Okay, okay, okay — say we’ve never seen a Star Wars movie before and we’re going into this cold (which I’m not but, hey, mental exercise right?). How does the movie hold up?

Too long (or has seriously slow patches); cuts between too many action sequences (a problem since the third movie).

Some of the characters use cowboy tactics, are slapped down or demoted for it; later turns out cowboy tactics save the day (or Resistance or whatever) — so what’s the official stance? Cowboy or no cowboy? Even “feeling undecided” would help clarify things.

Though when you think about it, why is General Carrie Fisher telling her subordinate to follow orders when, hey, this is Star Wars — a movie all about going cowboy and saving the day at the last minute. If we’re about following orders and using intelligent tactics and teamwork, why, this would be Star Trek.

The villain is a clueless unstable wimp — pretty much knew what was going on once I noticed Mark Hamill wasn’t leaving any footprints and Adam Driver’s character is too much into his “kill daddy” thing to notice (first Ford now Hamill — predictable much?).

And Benicio del Toro? Looks completely trustworthy. I’d give him my credit card number any time.

Best performances? Mark Hamill has a grandeur and dignity — if not sly wit — that recalls Alec Guinness. Laura Dern (Yay Diane!) looks by turns compassionate and iron-nails tough — you almost expect her to say “Fuck you Poe” a few times (which she manages to do, in so many words). She does get to fuse both looks in a poignant last expression before turning on the hyperdrive and seriously fucking over the bad guys.

Carrie Fisher has her moments of drily delivered humor but there’s something off — like she’s been digitized or anesthetized or something. Can’t quite put my finger on it. Sad, considering this is her last role.

Loved Adam Driver since Scorsese’s Silence, my respect for him taking a quantum leap after Logan Lucky (Deadpan comedy too?). He acquits himself well here; I mostly have a problem with his character as written,**** not his acting.

Rian Johnson stages effective fight sequences — thinking mostly of the melee in the red-lit throne room (long takes in medium shot, to better see the moves and stances) and on the salty sands of Crait; as I’ve noted writing about a previous work, he’s good at action, script not as. The special effects are first rate, the production design extravagant — you know how much I value that sort of thing, preferably in the hands of a visual artist with distinct ideas of what his world should look like (otherwise: not a lot). My vote for best special effect (in a movie crammed full of effects) goes to Frank Oz’s character which they finally stopped rendering as a bland full-figure digital animation figure and went back to Empire’s handheld muppet. There’s a warmth and substance to Oz’s performance vocally and physically that the rest of the movie, hell, the entire franchise is missing and sorely needs.

The final confrontation, with rank upon rank of Emp — sorry, First Order — walkers facing the lone figure on the ground? It’s been done, and done better, in Doctor Who: “Come on, look at me: no plan, no backup, no weapons worth a damn. Oh, and something else I don’t have: Anything. To. Lose.” *****

There’s awesome and there’s awesome and then there’s awesome; Last Jedi doesn’t come anywhere near any of those categories. It’s a lot of expensively rendered sound and fury signifying “meh.”

* And let’s not call it A New Hope. First saw Star Wars on its first commercial run and keep thinking of it as Star Wars, the original director’s pronouncements and directives notwithstanding. Since when did I let some filmmaker tell me what to think or do?

** Has the Republic ever ruled successfully for any length of time? You start wondering if maybe the problem isn’t people like Palpatine or Snoke but the Republic.***

*** The Federation of Planets endured a few hundred years; Time Lords have been around since the beginning of time. Hell, even the US of A has lasted for over a century.

**** In Empire, Darth Vader, as carefully shot by Irvin Kershner’s cinematographer Peter Suschitzky, was a huge towering presence who could not be negotiated with, slowed down, or stopped. He cornered Luke, lopped off his hand, and, when the hero had nothing left but a righteous cause to fling in his nemesis’ face, Vader took that away too. Call the process “test to destruction (Keith Laumer anyone?),” it’s a darker more intense confrontation scene than anything in any other ’Wars movie. Driver’s character? Played from minute one.

***** www.youtube.com/watch?v=Pa74e8oAvIM

MTRCB Rating: G

Work performance review guide for the New Year

had a roller-coaster ride with our supervisors and employees this past year. About 37 (out of 53) of my workers failed to meet their respective targets, which also reflects badly on my work performance as a department head. Top management has given me a last chance to improve our work this coming year, except that I don’t know where to start. From the time that I assumed this post two years ago, my work is dominated by many fire-fighting activities, mostly correcting errors by workers who are not qualified to do their jobs. Can you help me with some ideas that we can use for the New Year? — Back to Basics.

There’s an old story about a scorpion and a frog that could help us understand your work relationship with people. The scorpion wanted to cross the pond to discover other opportunities elsewhere. Knowing that it could not swim, he talked to a frog and begged for his help: “Please, Mr. Frog. Can you help me cross the pond? I can ride on your back and you can carry me to the other side.”

The frog resisted: “I’m sorry, Mr. Scorpion. I must decline your request as you might sting me as we swim across.”

“Why would I do that?” asked the scorpion. “It’s not in my interest to do just that. If I stung you to death, then I will die by drowning.” The frog was convinced by the logic of the scorpion. And so they agreed. The scorpion climbed into the frog’s back, and together they set off across the pond.

In the middle of the pond, the scorpion failed to control himself and stung the frog, who immediately cried in pain: “Why did you sting me? Now, both of us are going to die.” As they both sank, the scorpion uttered his last words: “I’m very sorry. I’m a scorpion and I can’t control myself. I must sting you to death as it’s my nature to sting, no matter the circumstance is.”

Many command-and-control managers think like the scorpion. Most of the time, managers think it’s their nature to directly control the actions of their workers to do what they can so they can reach their performance target. The trouble is that these managers can’t control themselves. They believe they know everything and the workers have no choice but to follow their dictates.

Indeed, as a manager it is your responsibility to direct your workers. But that’s only possible if the workers are consulted on the best way to do the job. You can devise reasonable office rules and standard policies to control the workers’ possible unruly inclinations. However, before you can do that, you need the workers’ ideas to make things possible under the principle of co-ownership and shared responsibility.

The words employee empowerment and engagement explain everything, no matter how trite they may have become. If you do it without serious thinking, chances are your efforts will simply go to waste. Besides, you can’t simply apply it to all workers who have different inclinations and needs, depending on where they are coming from.

And so, what can we learn from great managers? If you Google that question, you’ll be directed to the work of Marcus Buckingham in his March 2005 article “What Great Managers Do?” as published by the Harvard Business Review. Buckingham says “there is one quality that sets truly great managers apart from the rest: They discover what is unique about each person and then capitalize on it. Average managers play checkers, while great managers play chess.

“The difference? In checkers, all the pieces are uniform and move in the same way; they are interchangeable. You need to plan and coordinate their movements, certainly, but they all move at the same pace, on parallel paths. In chess, each type of piece moves in a different way, and you can’t play if you don’t know how each piece moves.”

Buckingham uses this argument based on his Gallup-supported research involving 80,000 managers. In playing chess with your workers, he says in First, Break All the Rules (2005) which he coauthored with Curt Coffman, you have to answer the following questions: “Do I know what is expected of me at work? Do I have the materials and equipment I need to do my work right?

At work, do I have the opportunity to do what I do best every day? In the last seven days, have I received recognition or praise for good work? Does my supervisor, or someone at work, seem to care about me as a person? And lastly, is there someone at work who encourages my development?”

Pretty basic, huh? But nothing can happen if you don’t explore these questions with your own boss. And of course, these same set of questions should be answered by all workers under your command.

In closing, let me focus on your statement that you’re preoccupied mainly correcting employee errors. Allow me to quote once again Buckingham and Coffman: “(I)t is tempting to believe that some roles are so simple that they don’t require talent. Hotel housekeepers, outbound telemarketers, and hospital service workers are all examples of roles that conventional wisdom suggests ‘anyone can do.’

“Misled by this wisdom, many managers don’t bother selecting for people who have talent for these roles. They hire virtually anyone who applies. Consequently they end up with a hopelessly miscast work force.” You can’t blame the human resources department on this, as I’m sure that your department had the ultimate decision in choosing the best workers for your own needs.

Once again, change your mind-set of being a scorpion whose nature is to sting people. Otherwise, you’ll drown with the frog.

elbonomics@gmail.com

How PSEi member stocks performed — December 21, 2017

Here’s a quick glance at how PSEi stocks fared on Thursday, December 21, 2017.

Nation at a Glance — (12/22/17)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

How much do families spend on Noche Buena?

China signals 3-year financial risk campaign

CHINA’S top leaders said they are taking a three-year approach to winning “critical battles” against financial risk, pollution and poverty, and signaled that monetary policy will remain “prudent and neutral” next year in support.

Economic policy makers led by President Xi Jinping agreed to “fight the battle of preventing and resolving major risks, with a focus on preventing and controlling financial risks,” according to a statement following the annual Central Economic Work Conference in Beijing, released by the official Xinhua news agency late Wednesday. In the coming three years, China will seek to control financial risks and foster a “virtuous circle” between finance and the real economy, the statement said.

Policy makers didn’t repeat language on outright deleveraging from the previous two years, but instead focused comments on risk in the financial system, signaling that’s where pressure will continue to be applied in the coming year. The reiteration of a prudent and neutral monetary policy stance for next year signals that policy makers again seek to balance the goals of reining in the nation’s rampant credit growth and polluting industries while ensuring growth doesn’t slow too drastically.

“The statement doesn’t mention corporate deleveraging, suggesting financial de-risking takes priority for the moment,” said Yao Wei, chief China economist at Societe Generale SA in Paris. “This is a more practical approach, as the economy would not be able to handle both financial and real economy deleveraging at the same time.”

The nation also must build and improve mechanisms for pushing ahead high-quality development and further supply-side structural reforms, the statement said. Policy makers also agreed to move faster to put in place a housing system that ensures supply through multiple sources and encourages both purchases and rentals in 2018, the news service reported.

President Xi and his top policy lieutenants gathered for the three-day meeting after a robust economic performance this year with growth on pace to expand 6.8%, the first annual acceleration since 2010.

“The top priority of the past five years has been power consolidation. For this purpose, stimulus in property and infrastructure has been used to provide a stable economic backdrop,”  Larry Hu, chief China economist at Macquarie Securities Ltd. in Hong Kong, wrote in a note. Authorities are now “keen to curb the risks accumulated over the past five years, so that growth could be more sustainable over the next five years without having a financial meltdown.”

Fielding Chen, a Bloomberg Economics economist in Hong Kong, noted that preventing financial risks has a more prominent spot in this year’s statement with a specific time-line and to-do list. “It highlights the increasing importance of this objective,” he said.

The People’s Bank of China has increased borrowing costs in the inter-bank market this year, while keeping steady the benchmark rate that governs lending rates in the wider economy. — Bloomberg

When to avoid holiday traffic in Metro Manila

Using data collected in 2016, Waze has come up with the date and the hours of the day when traffic is at its worst during the holidays. Waze also cited cities across the country that will experience increased traffic.

waze-key cities
Data source: Waze

Four decades of providing liquidity and stability

In 1977, the National Home Mortgage Finance Corporation (NHMFC) was created to develop and provide for a secondary market for home mortgages granted by public and/or private home financing institutions. That secondary market, which would enable home financing institutions to optimize the leverage of funds earmarked for housing and loan development, was one of the Philippine government’s responses at the time to the urgent need to increase the funds committed to the housing effort.

Almost 10 years after its creation, in 1986, under the Executive Order No. 90, NHMFC was given the task of operating a viable home mortgage market, purchasing the mortgages originated by both public and private institutions. The funds it used came primarily from the Social Security System (SSS), the Government Services Insurance System (GSIS), and the Home Development Mutual Fund (HDMF). But the corporation stopped operating under the order in 1995. Then, by virtue of another executive order, issued just before the turn of the millennium, NHMFC returned to developing a secondary mortgage market to finance mortgage take-out and fast-track the disposition of existing mortgages.

The succeeding years saw NHMFC take important steps to better meet the affordable housing needs of the Filipinos. In 2003, its nonperforming loans (NPLs) were auctioned off. The following year, Social Housing Finance Corporation (SHFC) was created as its subsidiary. Since 2005, SHFC has been running the Community Mortgage Program (CMP), which provides affordable financing to underprivileged citizens, that its parent company used to administer, as well as the developmental component of the Abot-Kaya Pabahay Fund (AKPF) program, which helps finance housing site development and improvement, among others.

In 2007, the transformation of NHMFC into a secondary mortgage institution began with the maiden securitization of the corporation with help of a financial advisor. Two years after, NHMFC launched the maiden securitization issue of the P2.06-billion Bahay Bonds 1 (BB1), the first-ever residential mortgage backed securities issued in the Philippines by a government agency. It was interesting to note that this happened amid the global financial crisis gripping many of the world’s economies. Still, Bahay Bonds were oversubscribed not just once but twice. They even earned NHMFC a best securitization deal award at The Asset’s Triple A Regional Awards in 2009.

Also in 2009, NHMFC’s board of directors approved the proposed guidelines on Housing Loan Receivable Purchase Program (HLRPP) that granted the president of the corporation the authority to approve all purchases under the program and allowed the purchase of housing loan receivables from originating institutions, which would later be turned into an asset pool for an eventual issuance of securities.

Following the success of Bahay Bonds, NHMFC issued Bahay Bonds 2 or BB2 in 2012, which, like BB1, earned high credit ratings from the local credit watcher Philippine Rating Services Corp. For the issuance of the BB2 Special Purpose Trust, the corporation was awarded the Innovative Listed Corporate Bond Issue of the Year by the Philippine Dealing System Holdings Corporation in 2013.

That year also saw NHMFC receive an ISO 9001:2008 certification for its accounts servicing divisions for Rizal. The certification attested to the corporation’s ability to consistently provide product that met customer, statutory and regulatory requirements. The corporation managed to secure the same certification for its Borrower Counseling System the following year.

Constantly thinking of ways to satisfy the housing needs of many Filipinos, NHMFC launched two new subprograms last year with the specific aim of expanding the target market of HLRPP. One, the Socialized Housing Loan Take-out of Receivables (SHeLTer) program was rolled out in the second quarter of 2016. This aims to ease the country’s socialized housing backlog by offering a liquidity facility to originators — nongovernment organizations, cooperatives, microfinance institutions, local government units, national government agencies, and private corporations — which are currently or still planning to conduct a housing program for their employees, constituents or members. The terms SHeLTeR offers are affordable: 4.5% for the first 10 years.

Released in the last quarter of 2016, the MAginhawang BUhay dahil sa baHAY (MABUHAY) is the first-ever reverse mortgage program in the Philippines. It seeks to address the needs of senior citizens of the country by allowing them to convert a portion of their home equity into cash that they can use at their discretion.