The more you read write, the lesser it is. I have done number of articles on this topic as it’s a hot selling cake in 
moribund financial market. The Standard & Poor’s 500 Index sank 1.1 percent to 1,338.35, the lowest level since February, as Greece struggled to form a new government amid mounting concern the nation may leave the euro.
Well the latest is Facebook IPO: Oversubscribed, social network set to close books – WSJ reported. View full article »
Picking up from the CDX.NA.IG indices are composed of 125 North American corporate credits that are investment 
grade when the index begins trading understanding JP Morgan loss. As derivative’s are zero sum game so if JP Morgan lost $2 billion from April 2012, than who made a $2 billion profit in the same time, well I don’t know.May be some unidentified hedge funds apparently. It was like once the sharks smelled blood in the water, they started betting against the whale, making his losses much bigger. The huge size that traders were complaining about
As I am trying to communicate from my last post that the market for OTC derivatives is mammoth in size. I have tried to 
put my views in my past articles over OTC.Derivatives Central Clearning & Dodd – Frank .Central Clearning Of derivatives & Dodd – Frank continues… , Credit derivatives Cat bonds & Cat Swaps ,OTC derivative series CDS, Bonds and Basis Trade
I got the opportunity to read one of the recent paper on Reforming the OTC derivatives market by William C Dudley .
Dudley believes the pre-crisis OTC derivatives market needed reform. Let’e examine his case. View full article »
It’s not mandatory that all good investors are good writers and visa viz that all good finance writers are good investors. It’s the experience of the people who is good or bad that counts . Here again some of the best remarks from Peter Lynch :
Greed is good !! well that’s the tag line on the wall street but how much that is more dependent on your emotion.In the past I did some stories on it and here is great work by Edward zones on the human emotions and market cycle..
I would like to dedicate today’s post to Rahul Dravid but the time is constraint will write for him soon :- I just don’t like that he is retiring, and people are talking about Sachin tendulkar! The Tragedy of his Life. Few more thing for him If Sachin Tendulkar was the Best thing to happen to Indian Cricket :Rahul Dravid was the Best thing to happen to Sachin tendulkar. ( I think that describes all for him)
The post is for my juniors, who wanted to have few jargon’s simplifications here you go :-
LEASE -BACK : Its an arrangement under which a company, in order to raise cash, sells a piece of equipment, ‘ land, or building on condition. that the buyer will lease it back to the seller for an agreed rental for a fixed term.
LEVERAGED BUYOUT : Taking over a company, using borrowed funds.
LEVERAGED COMPANY : If a company with borrowed funds in its capital structure. if the debt component is more than a third of the capitalization it’s called a highly leveraged company. View full article »
When Greece is trying to reach a deal with private sector creditors that would pave the way for additional bailout funding. S&P confirming even after the deal Greece “in all likelihood” qualify as a default.
IMF warned yesterday and reduced its forecast growth for the world 2012 amid concerns with the European Crisis and the IMF chairman confirmed that the debt crisis in Europe is the biggest threat, Christine Lagarde also pointed to the challenges facing the U.S. economy.
Yesterday the talks fall apart and Greece is stuck with Troika (EU/ECB/IMF) on the one hand and Bondholders on the other.So here Greece acting as an intermediary( reference entity) where the Bond holders demanding 4% coupon on the restructured debt that is not acceptable by the Troika.
1) Paris Pasu http://wp.me/pc3rd-f
2) RPL METHODOLOGY TO LURE THE RETAIL INVESTOR http://wp.me/pc3rd-i
3) HDFC all set to buy CBOP http://wp.me/pc3rd-k
4) Typical spinoff situation http://wp.me/pc3rd-l
5) MUTUAL FUNDS SURVEY BY BUSINESSWORLD http://wp.me/pc3rd-m
6) INDIA : THE EMERGING GIANT a book by Arvind Panagariya’s http://wp.me/pc3rd-n
7) Process of passing the Budget http://wp.me/pc3rd-o
8) THE ECONOMIC SURVEY 2007-08 http://wp.me/pc3rd-p
9) Things Which appears First to me http://wp.me/pc3rd-q
10) ICICI overseas losses mount to $264m credit exposure…http://wp.me/pc3rd-v
11) CRITIQUE FOR THE BUDGET 2008-09 http://wp.me/pc3rd-z
12) WHAT TO READ IN AN OFFER DOCUMENT ?? http://wp.me/pc3rd-A
13) Sensex down 27.5% ..just in 2 months time frame http://wp.me/pc3rd-B
14) YET AGAIN! FED CUT RATE BY 0.75%, Mayhem in markets http://wp.me/pc3rd-C
15) CAT Bonds and CAT Swaps http://wp.me/pc3rd-D
20 Years back our current Prime minister and then the Finance minister, explained and addressed the need of urgency to implement the economic reforms.
India was on the verge of bankruptcy on the sovereign debt, because of the high current account deficit. The fault that is directly proportional increase levels of foreign debt and steep fiscal deficit ( gap b/w government’s exp and earnings). The country’s Foreign exchange reserves were not enough to pay the debt.
The reforms proposed by Dr Singh in 1991 got India out of the mess and lead to a growth of 8% in the GDP.
As of today, the govt targeted 9% has slowed down to 6.5% for the current year ending March 2012.The reform process has all but stalled. India’s current and fiscal deficits are both high, and a recent government bill to provide food security to India’s masses, will likely worsen India’s financial burden.
Current Account Deficit (The difference between a nation’s total exports of goods, services and transfers, and its total imports of them)
THEN: The current account deficit was estimated to be “more than 2.5% of gross domestic product in 1990-91,” said Mr. Singh in his speech. He described India’s balance of payments situation as “exceedingly difficult.”
NOW: For years after the 1991 crises, the Indian government contained the current account deficit to less than 2% of GDP. But in recent years, the deficit has ballooned to 1991-like levels, thanks partly to higher imports and more recently lower exports. For the year through March 2012, economists expect the deficit to come at around 3% of GDP
Fiscal Deficit (The difference between the government’s total revenue and its expenditure)
THEN: The fiscal deficit is “estimated at more than 8% of GDP in 1990-91,” said Mr. Singh in his speech, calling it “a cause for serious concern.” He said “It should be our objective to progressively reduce the fiscal deficit of the Central Government…and to reduce the current account deficit in the balance of payments.”
NOW: The fiscal deficit for the year-ended March 2012 is expected to come in at 5.5% or 6% of GDP, much higher than the government’s targeted 4.6%. The food subsidy bill will add to this burden, say economists, unless the government cuts back on its expenditure proportionately.
Inflation
Then: 12.1% the poorer section of the society where the worst sufferers of the high prices.
Now: The Reserve Bank of India has been battling 9% to 10% inflation, by increasing benchmark interest rates 13 times
No Power on earth can stop an idea whose time has come. I suggest that the emergence of India as a major economic power in the world happens to be one such idea. Let the whole world hear it loud and clear. India as a nation wide awake, we shall prevail, we shall overcome.
