Story: Cyberstark Industries “Cyberstark Industries” was a large corporation that was growing quickly and required additional funding to support its expansion goals. However, the CEO of Cyberstark didn’t want to dilute the ownership of the current shareholders by issuing more stock. Instead, the CEO decided to issue bonds to raise the needed capital. Cyberstark Industries issued […]

Introduction In our earlier write-up about bond valuation, we addressed how the concept of time value of money plays a big role in figuring out what an asset is truly worth before you decide to invest. Now, let’s take it a step further. I really recommend giving the first part a read if you haven’t […]

Introduction Bengaluru is known for its delightful weather, notorious traffic, vibrant nightlife and its delightfully far distance from the city to the airport! Beyond these features, Bengaluru is also celebrated for its IT hubs, affectionately known as ‘tech parks’. Among these hubs stands Embassy Manyata, fondly known as “Manyata Tech Park”. Covering 120 acres and […]

Introduction What comes to your mind when you hear the term ‘bond valuation’, do you immediately think of complex mathematical calculations or mind-boggling fixed-income concepts? When it comes to fixed-income securities or financial investments in general, we tend to shy away from concepts and strategies because they can be difficult to comprehend and what we […]

Introduction SEBI’s chief Madhabi Puri Buch, predicted at the News18 Rising Bharat Summit on 20th March 2024, that “Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs) and municipal bonds combined will become as big as India’s equity markets in the next 10-15 years”. Why this emphasis on infrastructure? Well, in a bustling city where […]

Glossary 1. Accrued Interest Accrued interest is the interest that accumulates on a bond between coupon payments. For example, if you buy a bond between its payment dates, you may owe the seller accrued interest for the time they held the bond. 2. Accretion of Bonds Accretion of bonds means that over time, the value […]

Introduction The earlier generation of retail investors had their financial assets base spread across FDs, real estate, gold, EPF, PPF, Post Office schemes, etc. Nowadays, thanks to technology and financial awareness, the current cohort of retail investors have diversified their financial portfolios to include MFs, equities, commodities, bonds, insurance, ULIPs, etc. With this diversification, even […]

Introduction Bonds are like the steady hand in your financial journey, providing a reliable stream of revenue and helping to shield your investments from the ups and downs of the market. They’re like your safety net, ensuring that even when other assets in your portfolio are fluctuating, you have something secure to rely on. Just […]

The only free lunch in finance is diversification – Harry Markowitz How impactful is the quote by the Nobel Prize laureate and pioneer of the Modern Portfolio Theory in today’s world? Portfolio diversification is at the heart of a successful investment strategy. By spreading investments across various assets, one can navigate the ups and downs […]