this appeared in the personal finance section of reuters.in under my byline Escape from Debt If all the people who talk to me are sensible, well educated people, how is it that the Human Relations Managers of many companies call me for asking questions like “Can we do a 3 hour session on how to […]
So you quickly repaid a big part of your home loan because the interest rates went up did you? Welcome to the world of fluctuating interest rates! Interest rates play an important role in your personal finances. The RBI tries to raise or lower key interest rates that trickle down and affects everything – from […]
No, this is not a class on futures and options, nor equity. However long term bonds also have a put and a call option. An option that can be exercised by the issuer of the bond whereby the bond can be extinguished prior to the date of expiry is called a CALL option. An option […]
YOU may have heard of LIBOR – if you replace London by Mumbai, you will know what is MIBOR. A committee was set up for the development of debt market. According to their suggestion, NSE had developed MIBID (Mumbai Interbank Bid Rate) AND MIBOR (Mumbai Interbank Offer Rate) for the overnight market. This was launched […]
With interest rates stagnant – and perhaps moving south bonds may become an interesting option for some investors. Though I am not a great lover of bonds, I do hold some in my Dad’s portfolio. If you are investing in bonds, look out for the following: 1. Are there call and put options – if […]
If you have wondered what is a CDO, CMO, CP, CD…welcome to the first lesson. A commercial paper is a short term unsecured negotiable issuance promissory note instrument issued by corporate bodies to meet short term requirements of working capital. It was issued for the first time (I think) in 1991 – maturity varies from […]
Government guaranteed bonds are medium to long term bonds (securities) issued by government agencies and in some cases by PSU (public sector undertaking). The interest and the principal in such instruments is guaranteed by the Central Government or the State Government. Since most state government guarantees mean nothing, largely people buy these bonds because there […]