Treasure of Insights & Research
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 agent…
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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 is…
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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 said…
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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 windfall…
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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 are…
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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 is…
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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 recovered…
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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. The…
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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 asset…
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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 expectation…
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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 of…
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EVENTS LOOMING AROUND IN INDIAN MARKET
In the time of rampant market volatility, it is difficult for everyone to clearly see the directions of market. With mere news related to war or no war, interest rate hike or no hike, etc market is showing volatility of more the 300 to 500 points upward or downward in a day’s time. The recent…
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WHY FED APPEARS CONFUSED?
It is not known to men what is good for them. I read that lines in school in my English textbook. I keep remembering that sentence every now and then. The Fed appears to have me recollect it. Since last many months we are hearing that Fed will hike interest rate 5 times while others…
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Banking analysis-Analysis on RBL Bank and Yes Bank
While in our previous blog of Update on Estimated loss of 563 Crore to Mutual Fund for holding RBL Bank Share, lots of readers have requested us to give a detailed analysis on how to analyze a Banking company and what all aspects we should cover to understand Banking fundamentals. So in this blog, we…
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