The series of defaults by IL&FS and the new electronic bidding platform have caused disruptions to the Rs 7.56 lakh crore market
Residual maturity is the time pending for the bond’s maturity.
Investments in employees provident fund earn a higher rate of interest than bank fixed deposits and also taxfree interest.
Retail investors should invest in the top notch names such as HDFC, LIC Housing Finance or the bonds issued by central government undertakings since there is a little credit risk, says Vikram Dalal, Founder of Synergee Capital Services
CPs are unsecured money market instruments issued by corporates to raise short-term funds and are usually for a period up to one year
Demand for and supply of money, government borrowing, inflation, Central Bank’s monetary policy objectives affect the interest rates.
The market has been looking at quite a few positives, including easing crude prices, stable INR, global central banks taking easy policy stance, inflation consistently lower than RBI’s own projections.
SEBI held a meeting with stock exchanges and intermediaries to enable the mechanism of public issuance of debt through shelf offer document.
The gross market borrowing for FY20 has come in slightly higher at Rs 7.1 lakh crore, compared to the market expectation of around Rs 6.5 lakh crore.
"The transaction was the first 10-year issuance out of India for a corporate issuer since March 2018 and the largest 10-year issuance of an Indian investment grade issuer in the Reg S only market since January 2017," it said.
Laddering your fixed deposit also help you take care of the re-investment risk.
In its last bond issue in February 2018, Greece raised 3.0 billion euros at 3.5 percent via a 7-year bond.
Prices of long term bonds are more susceptible to the changes in bond yields, compared to bonds maturing in near term.
Its housing finance subsidiary Piramal Capital & Housing Finance also raised Rs 4,000 crore of term loans in the same period.
Continue your asset allocation and ensure at least around 5-10 percent of your portfolio in gold
After years of volatility, gold makes a comeback, fixed income investors look ahead
Hopefully, with spread of investor base, with more people holding G-Secs, the requirement of trading and hence liquidity will start developing.
It's true that global storm clouds are gathering, but the India Vix shows the Indian market has not paid much attention to them as yet
Individuals with low-risk appetite can consider lock-in rates at current level.
For borrowers, the new framework is aimed at making loan pricing more transparent. But it may also mean more volatility in their EMIs
RBI Governor hinted in the post-policy media conference that if the upside risks to inflation projections do not materialize, there is scope for review of the policy stance sometime going forward.
If expectations come true, after a three-day meet from December 3 to 5, the 6-member Monetary Policy Committee will keep its key policy repo rate unchanged at 6.5 percent
"The board of directors of the bank, have by circular resolution... approved the raising of tier II capital by issue of tier II Basel III compliant bonds for an issue size of Rs 200 crore with green shoe option of additional Rs 100 crore aggregating Rs 300 crore in one or more tranches on a private placement basis," Indian Overseas Bank said in a regulatory filing.
The rating downgrade considers the series of resignations from the board of directors, which raises concerns on corporate governance at the bank, ICRA said in a note.
The Board of Directors at their meeting held on Thursday, November 22, 2018 has considered and approved to augment the capital, the bank said in a regulatory filing.