CHINA’S MORTGAGE  DEBT DEFAULT- TRILLION DOLLAR RISK!

Day in and day out we have read that the Mortgage default in China has started but none of the article is able to give detailed explanation that why the borrowers are defaulting against loans. Not only borrowers but business loans defaults are also taking place in China. The only reason given at present isContinue reading “CHINA’S MORTGAGE  DEBT DEFAULT- TRILLION DOLLAR RISK!”

Puttable Bonds of China-A new threat to Financial System!

Before starting with the detailed analysis of Puttable Bonds, we must learn what does Puttable Bonds actually means? A put bond is a bond with an embedded put option, giving bondholders the right, but not the obligation, to demand early repayment of the principal from the issuer or a third party acting as an agentContinue reading “Puttable Bonds of China-A new threat to Financial System!”

 Analysis Fed’s latest Balance sheet to determine Quantitative Tightening by Fed

While the programme of Quantitative Tightening by FED has started wherein $47.50 billion of QT will happen each month starting from June to August 2022 wherein $30Billion per month will be from Treasury Securities and $17.50 billion per month will be from Agency Debt and Agency Mortgage Backed Securities. Though size of this QT isContinue reading ” Analysis Fed’s latest Balance sheet to determine Quantitative Tightening by Fed”

          Section 13(3) of Federal Reserve Act,1913-What does that mean for Economic revival?

Before starting with our Blog, lets analyse one important section from Federal Reserve Act,1913. Its Section 13(3) which states: “In unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, by the affirmative vote of not less than five members, may authorize any Federal reserve bank, during such periods as the saidContinue reading ”          Section 13(3) of Federal Reserve Act,1913-What does that mean for Economic revival?”

Indian Iron and Steel- What Exports really means for India?

On 22.05.2022, Indian Government increased exports duty on Export of Steel to 15% and for Iron ore the export duty has been increased to 50%. In case of Pellets the export duty has been increased to 45%. Post Corona times all commodities have bull run which crazily increased the margins of these companies. Such windfallContinue reading “Indian Iron and Steel- What Exports really means for India?”

Start-up Bubbles- Why Mutual Funds are betting to give Exit to PE Participants?

Today when I saw newspaper, I saw Delhivery coming with IPO. When I saw twitter, I got to know that roughly 2346 crore have been raised from 64 Anchor Investors. Prominent names like Goldman Sachs, Amansa, Aberdeen, Tiger Global, Schroder and Baillie Giffors were international participants. Domestic Institutional funds like SBI, HDFC and ICICI areContinue reading “Start-up Bubbles- Why Mutual Funds are betting to give Exit to PE Participants?”

HOUSING MARKET BUBBLE OF US,CANADA AND AUSTRALIA-2022

Source: BIS (Bank of International Settlement) Mortgage Rate Chart Household Debt and Credit Developments as on Q4 2021 The Total Mortgage debt is $10.93 Trillion at present. Flow into Serious Delinquency (90 days or more delinquent) Source: New York Fed Consumer Credit Panel/Equifax – By Nishant Maheshwari & Vishal Vora Disclosure: The above article isContinue reading “HOUSING MARKET BUBBLE OF US,CANADA AND AUSTRALIA-2022”

Japanese Yen- Silent Killer Development in Global Economy

One of the most interesting development happening in currency market currently is Depreciation in Japanese Yen. While the global media is focussed on probable economic impact of Russia-Ukraine war, effect of sanctions, supply chain shortage, energy crisis and many more such things The anticipated effect on Russian Rubel was very high but the same recoveredContinue reading “Japanese Yen- Silent Killer Development in Global Economy”

Update on Yield Inversion, Credit Default Swaps and Credit Spread-Sign of recession

Update on Yield Inversion On 16.03.2022, Fed announced rate hike of 0.25%. All of a sudden, we saw some huge action in Bond and equity market. While equity market cheered this move like there is no tomorrow and the Bond yields spiked all of a sudden. What was most awaited was the yield inversion. TheContinue reading “Update on Yield Inversion, Credit Default Swaps and Credit Spread-Sign of recession”

Currency Crisis – 2022

In our first two articles published on the blog( here and here), we had highlighted how fragile the global economy was with its constant need for stimulus and lack of demand drivers. It was informed that the dependence on the equity and debt markets would increase and stock market would become the economy as assetContinue reading “Currency Crisis – 2022”

Inflation or Stagflationary Deflation?

A quick look across the commodities pricing for the past one year reveals an inflationary picture. Source: Visualcapitalist.com This will certainly seem a lot given the returns posted here. Given that we have been through a pandemic induced supply shock and now a war like situation threatening additional supply sources, it is a general expectationContinue reading “Inflation or Stagflationary Deflation?”

UKRAINE AND RUSSIA-GLOBAL EXPOSURE

While the western world is busy with sanction policies these days on Russia and Russian Stock Exchange historically had a nightmare over Putin’s diplomacy. With Russian Stock Exchange like Moex or RTSI falling like a pack of cards (Single day downfall of more than 30%) Russia banning trading in Stock Exchange, freezing asset prices ofContinue reading “UKRAINE AND RUSSIA-GLOBAL EXPOSURE”