There are so many products in this global financial market that sometimes a
financial adviser feel more like a bouncer than anything else ……..
- Principal protection funds. ( They are always come out after the market’s been killed and cap your upside on the recovery) View full article »
On6 December 2011Bank of Englandposted on its website information about the new financial instrument, which main goal is to preserve liquidity during the shortage as to save the financial stability of the country.
“In light of the continuing exceptional stresses in financial markets, the Bank of England is today announcing the introduction of a new contingency liquidity facility, the Extended Collateral Term Repo (ECTR) Facility. This Facility is designed to mitigate risks to financial stability arising from a market-wide shortage of short-term sterling liquidity. There is currently no shortage of short-term sterling liquidity in the market. But should that position change, View full article »
Well its the last day of the month and the world economy standing in the mid of year 2012. Lets try to pull the events by connecting the dots and see where the world is :
1) After months weeks years of posturing and denial Spain and Cyprus formally requested aid from Europe bailout funds. More so they have officially confessed to their insolvency and the insolvency of their banking system.
Spain 10 year bond yield breached the worst level and it touched the 7% in return many od the Spain bank ratings got junk by Moodys
2) Over in the US, the city of Stockton, California filed for bankruptcy this week… View full article »
When INR touched the level of 56 against 1$, the first sms I received “Ab Tak – 56″. One of the thriller movie in Bollywood. The other msg that I received which is now trending in twitter the famous dialogue of an Indian flick “Amitabh Bachchan has demanded at all payments to him be made in dollars instead of INR. Kyunki main aaj bhi gire huye paise nahi uthaata”
The Rupee has been trapped in a vicious circle, the free fall is on the roll, View full article »
The post is about entrepreneurship in India where I have tried to put the views.
From the last couple of years Baba Ramdev, Kishore Biyani, Vijay Mallya and Govt. Of India has been making the news and there is lot more things common between them.
Lets begin with Baba Ramdev who became a household name by selling the benefits of yoga to the masses. He claimed that even diseases like cancer could be cured through yoga. Those who have seen his yoga View full article »
Leading financial media broke the story on thursday night about the $2bn trading loss on credit derivatives trading, which chief executive Jamie Dimon blamed on errors,sloppiness and bad judgement” and warned “could get worse”.
Well the Centre of loss in non other than bank’s chief investment office (CIO).It is responsible for managing and offsetting the vast amounts of “credit exposure” the bank incurs through its daily View full article »
The rupee is getting weaker against the dollar and RBI likely stepped in to sell dollars via state-run banks in early trade on Monday after the rupee opened weaker on global risk-off sentiment. The rupee is trading at 53.46.
In the mean time just thought of sharing some basics from RBI : -
Narrow Money (M1) This is a fortnightly compilation. It consists of:
- Currency notes and coins with the public (Excluding cash on hand of all banks). View full article »
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 »
Today the whole financial world is eyeing Spain in fact everyone is Freaking Out Over Spain‘sBond Auction will happen today. The Spanish benchmark bond are into red territory with the yield spiking from an intraday low of 5.717% early to 5.89%, finally catching up with Spanish CDS which have been wider for a while, now that CDS is once again more liquid and credible than cash bonds.
So just thought of sharing few exotic bonds :-
Catastrophe bonds, also known as cat bonds, are a form of securitization used to transfer natural catastrophe risk to the capital market. View full article »
There is a very interesting column done in the mint today on the insurance policies which die due to lapsation or the product cost is too high.
Insurance in India is still a huge commission based business what is interesting the lapsation ration is on the high-rise from the data collected.
In insurance, customers return this product by either letting their policy lapse or by voluntarily surrendering their policy. In case of the non-linked business (term, group, health and endowment plans) for Birla Sun Life Insurance Co. Ltd, the lapsation ratio was as high as 72% for FY11.
Lapsation ratio indicate the number of policies lapsed divided by the average number of policies
View full article »