Vodafone Idea-Update on Bond yields(Junk Bond) and Liabilities

Before going into depth of Vodafone Idea Debt, let us look at the Bond yields of Vodafone Idea. Out of 7500 crore, Rs 6000 crore is required to be paid by company before 14th February 2022 (Can be claimed as Valentine Stock). The details of Bonds are as under: Vodafone Bond Yeilds ISIN No MaturityContinue reading “Vodafone Idea-Update on Bond yields(Junk Bond) and Liabilities”

SREI-More than 35000 crores exposure for Banks

While Banking Index is making new high but people and Banks are missing some great exposure of SREI group. Lets look at the exposure on combined basis, individual Company basis and detailed individual basis: Combined Exposure of SREI Group S.No Name of Bank Amount in Crores 1 UCO BANK                    12,578.00 2 Axis Bank LimitedContinue reading “SREI-More than 35000 crores exposure for Banks”

Role of Yuan in Influencing value of Dollar

Overview As on date much has been talked about Evergrande and its contagion effects but how does contagion effect get triggered is the key point. While the whole media claims that “What happens in China remains in China” but the situation as on day is telling us different Scenario. Before going into depth of ContagionContinue reading “Role of Yuan in Influencing value of Dollar”

Reverse Repo Data

For last two months we have seen huge spike in Reverse Repo Market where in the size of reverse repo is touching trillion dollars and more daily. The charts attached below gives a eagle eye view of what is happening with this liquidity: The excess liquidity which Central Banks have created is now being parkedContinue reading “Reverse Repo Data”

Collateral Loan Obligation in China-Is it similar to Lehman?

CLO-Overview It is a form of securitization where payments from multiple middle sized and large business loans are pooled together and passed on to different classes of owners in various tranches. In short investors will have first claim on cash flows from the underlying loans. Eg: Suppose a Bank has advanced Loan to following persons:Continue reading “Collateral Loan Obligation in China-Is it similar to Lehman?”

Update on China Debt

SAFE Releases China’s External Debt Data at the end of March 2021 Annexed table:China’s Gross  External Debt Position by Sector,End of March 2021 End of March 2021 End of March 2021 (Unit:100  million RMB) (Unit:100 million US dollars) General Government 26596 4047    Short-term 957 146      Currency and deposits 0 0      Debt  securitiesContinue reading “Update on China Debt”

Global Update – Evergrande (Part 2)

We all know that major world economies are roiling in debt. Recently published figures indicate the global debt has reached 296 trillion dollars in the second quarter of 2021 (IIF Global Debt Monitor Sept 14, 2021). Debt to GDP ratio is now around 350%. What is interesting is that from 2014 to 2020, the GlobalContinue reading “Global Update – Evergrande (Part 2)”

Global Event Update- Evergrande

The global markets are on a high given the fiscal stimulus and central bank profligacy. Since March 20 fiasco, market is making daily new highs in less than one and a half year without caring about the events looming all around the globe. During this euphoria, certain markets too have entered into bearish zones. ButContinue reading “Global Event Update- Evergrande”

Indian Manufacturing – Impact of PLI Scheme

Asian economies have generally been a manufacturing base for most of the European & American consumers. China, Japan, South Korea, Thailand all have significant contribution of GDP from the manufacturing sector. India, on the other hand, generates 60% of its GDP from the service sector. Manufacturing has been stagnating in the range of 13% toContinue reading “Indian Manufacturing – Impact of PLI Scheme”

Gamma Squeeze

The concept of short Squeeze is prevalent in market these days but the correct terminology to define this concept is Gamma Squeeze. Before describing the events of Gamma Squeeze, we need to emphasize on the real meaning of Gamma Squeeze. “Gamma Squeeze” as the term suggests is an outcome where investors using many options driveContinue reading “Gamma Squeeze”

Money- Evaluating its value in the 21st Century

Summary Since ancient times, money has meant several things to several civilizations. The history of money is quite old and dates back to period before Christ. The concept of money revolves around its use as a medium of exchange for goods and services. It started in the form of the barter and later evolved intoContinue reading “Money- Evaluating its value in the 21st Century”