Couple of weeks I did an article on Fixed Income Investments in Indian Market. And provided some caveat. Before getting back to the Indian bond market let’s try to see the key components of Fixed Income securities, It’s the Credit quality, yield, and maturity are key components of fixed-income securities.
Well Credit quality is an indicator of the ability of the issuer of the fixed income security to pay back his obligation. The credit quality of fixed-income securities is usually assessed by independent rating agencies Continue reading “Investing in Bond or Bond Fund”
Came across an interesting paper on the risk ascertain by the International Banks.
The risk had been divided on the basis of 5 ratings that are issued to access country risk:
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… Continue reading “2012 Mid Year World economy towards the path of Bailouts & Bankruptcies”