India produces the maximum no. of MBA’s in the world, graduate students finds it an attractive opportunity and wants to join the bandwagon which has been sold through the expensive coaching’s like TIME, Career launcher, PT, PF and so on . But paying huge amount of coaching fees doesn’t guarantee your place in the IIMs or in Tier 1 B schools. Every year the CAT, XAT, SNAP, MAT takers are raising but vice-versa the good B schools intake capacity is not proportional to the candidates.
This led a good opportunity for many of the (Master-Mind) punters to have their own colleges. Few of colleges not AICTE approved have proved themselves by quoting the best placements in the country with very high proficient level of standards. But there are colleges which are like a charlatan fooling the students (even the AICTE approved ones) by charging a huge amount of fees. This culture is well versed in the metros. View full article »
The Stock Twits did a great job on the never ending Quantitative Easing . As T.S. Eliot said The end is where we start from.
Below are nine points believe are the key going forward:
- The Fed is not uncomfortable yet with the level of market speculation, complacency and asset price reflation – but it is totally and completely aware of what we’re up to.
- The castigating rhetoric of hedge fund managers emanating from both Sohn and SALT, whose tongues loll out of their mouths from their break-neck pursuit of the runaway benchmark indexes, has not been lost on the FOMC. Voting members are not only aware of the effects their policies are having, they are aware of the perceptions surrounding them as well. View full article »
Thanks to all the visitors who came and appreciated the maverick thoughts yesterday.I am sharing the links of articles that where displayed on the board for your convince :
Your thoughts feedback and remarks are most welcome .
Some thoughts displayed at my office . Credits:- Shraddha Borole & Rinal Shrimankar for helping and putting up the great show.
There are a lot of things you can read about the Brown-Vitter bill recently, though it’s a really nice day out and you probably shouldn’t. It’s not … it’s not like a real thing is it? When the text of the bill, which would raise the equity capital requirements on big banks to ~15% on a non-risk-weighted basis and forbid U.S. regulators from implementing Basel rules, first leaked, I sort of assumed it was a temper tantrum not intended to become law, and the fact that its official title is the “Terminating Bailouts for Taxpayer Fairness (TBTF) (Get It?) (GET IT?) Act of 2013″ doesn’t exactly change my mind.
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I do not know why but somebody wanted me to define some basics on Yield spreads, that whether Yield spreads can judge the risk environment in an economy ?
Yield spreads are good tools to judge the risk environment in an economy a lower yield spread means that the issuer of debt is in a situation to demand loans at a lower spread above the yield of government security which in turn shows the presence of ample liquidity.
As far as economic growth is concerned a lower yield spread indicates greater amount of liquidity available for growth and entrepreneurial practices as well as a negative impact on the front of inflation. View full article »
I have quarried in the past that risk free rate for doing the valuation of equities and got some interesting answers, wanted to share here.
This is holistic view where an average of 10 year debt YTM of five lowest ratio of govt debt to GDP:
The 10yr Treasury is still a decent risk free rate, but the U.S.’s sovereign debt load will soon match Greece‘s. It may already exceed that level if you count the unfunded liabilities of entitlement programs. View full article »
The FT has recently done a timely article-on the consequences of the EU‘ ban on the naked CDS.
Investors are buying protection on European banks on the basis that banks and sovereigns are so intimately linked that any increased risk of a sovereign default will increase the value of a bank CDS in a similar way to a sovereign CDS.
“The big downside of the ban is that it is likely to increase borrowing costs for financials,” said Michael Hampden-Turner, Citigroup credit strategist. View full article »
Rama cont and Thomas Kokholm have published a paper We study the impact of central clearing of over-the-counter (OTC)transactions on counterparty exposures in a market with OTC transactions across several asset classes with heterogeneous characteristics.
The impact of introducing a central counterparty (CCP) on expected interdealer exposure is determined by the tradeoff between multilateral netting across dealers on one hand and bilateral netting across asset classes on the other hand. View full article »
In financial markets, craziness creates opportunity. It affects only prices, not values. And one of the craziest afflictions I
know of is our faith in our ability to see the future. Indeed, there isn’t even an appropriate opposite to the word ‘foresight’ in the English language. So I’m going to make one up. And rather than build a portfolio based on the pretence we have foresight, let’s explore some ideas for building one that is robust to our fore-blindness.
Here are some things I think are true:
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