anugrahsharma4Jan 12, 20213 minParts of the Paper (STRIPS)All investments have a goal. The broadest investment objective, irrespective of the type of investment or asset class used, is the...
The Fixed IncomeJan 5, 20213 minA Bond Market GlossaryJust to ensure that we are speaking the same language, rather than the “Greek and Latin” that my Physics Professor accused me of rattling...
anugrahsharma4Dec 31, 20203 minDay Count Conventions Peeking into the bond market we have found a few quirky terminology and interesting practices. As the market has developed it has grown...
anugrahsharma4Dec 26, 20203 minDirty and Clean PricesThe debt market, both at a global and India level is second only to the foreign currency market in size and in India is probably the...
anugrahsharma4Dec 22, 20202 minDeep Discount bonds and Zero Coupon BondsIn 1992 investors were drawn to exciting advertising by Industrial Development Bank of India (IDBI), a Central Government promoted...
The Fixed IncomeDec 11, 20203 minTier 2 Bank BondsA debenture issued by a bank, rather than a corporate could be an easy way to describe the next level of bank borrowings, having less...
anugrahsharma4Dec 8, 20203 minYield CurveAn inverted yield curve indicating a severe market crash seems to be a forgotten news item recently. But it did create a lot of waves and...
anugrahsharma4Dec 4, 20203 minThe Returns on a Bond - YTMThe bond investor actually has a focus on the ultimate returns by a bond (the market treats those who require the regular cash payouts...
anugrahsharma4Dec 2, 20203 minMeasuring Bond RiskMutual fund factsheets provide a good amount of data. Some of the material given is very useful, especially that related to fixed-income...
-Nov 2, 20202 minMaturity and duration - how they impact our investments!Risk and return drive our investment goals. Of course, greed and fear are the psychological factors that influence us, but we will not...
-Oct 30, 20202 minA measurement of returns!The best way to double your money is to fold it in half and put it back in your pocket. Besides the smart and lazy way of doubling money,...
-Oct 28, 20203 minBond Market Language!The little club of us fixed income market players, like just about every other profession, has built-in some jargon to make us seem smart...
-Oct 26, 20203 minThe Debt Market & what happens when markets crash?There are two ways of getting returns from the “fixed income” or debt market. 1. Give a loan, which really means to make a fixed deposit...
-Oct 19, 20202 minHow the Bond Market makes profits, or losses?You, my good friend, have bought some high-quality corporate bonds of Rs. 100 each that earn interest of 10% per annum, and will mature...
-Oct 1, 20202 minA little bit goes a long way!“You say it best when you say nothing at all” is a touching and very romantic line from an Alison Krauss hit song. This is in line with...
-Sep 7, 20202 minBank investments and risksTradition in our culture often seems to equate economic comfort with having money in the bank. Even western literature mentions banking...
-Sep 7, 20203 minAT 1 BondsBank fixed deposits are traditional, vanilla investments in banks, fetching a pre-stated interest rate, having a definite maturity date....
-Aug 31, 20202 minDebt market and making real money!A big enemy of the value of money is inflation. It is like cancer that chews into the ability of money to represent its true character –...
-Aug 24, 20203 minTypes of fixed income instruments in the debt market!The menu that the fixed income market offers up is almost as long and varied as a yummy Gujarati thali. The issuer of the bond, that is...
-Aug 24, 20202 minWhat is the fixed income market?“My word is my bond” is a common English statement that suggests a promise that is strongly backed by the character of the person making...