Some bonds do not always run till the final maturity date. The issuer may have the right to repay the bond earlier. This is common in callable bonds. Yield to call helps investors understand what return they may earn if the bond is called before maturity. Key Takeaways What Is Yield To Call (YTC)? The […]

A bond may pay on time. The principal may also come back on time. Still, the investor may face a return problem later. This is called Reinvestment Risk. It happens when money received from an investment has to be invested again at a lower rate. Key Takeaways What is reinvestment risk? Reinvestment risk is the […]

Credit derivatives can be useful, but they are not simple products. The first risk is counterparty risk. The protection buyer depends on the protection seller to honour the agreement. If the seller is unable to pay when a credit event happens, the protection may not work as expected. Valuation is another challenge. The price of […]

Bond SIP Meaning: What Exactly is a SIP in Bonds? A SIP in bonds is not a SIP in a debt mutual fund. When you invest through a debt fund, you own units of a pooled scheme and the fund owns the bonds. In a Bond SIP, you own the bonds themselves. Each one sits […]

A Bond SIP is a systematic investment plan for bonds. A fixed amount is invested automatically into listed bonds (NSE/BSE) that you own directly in your demat account, with the interest paid straight into your bank account. Indians already trust the SIP habit with their equity money, routing more than ₹28,000 crore into mutual fund […]

Understanding Covered Bonds Definition, Benefits & Key Examples Some bonds have only one repayment support: the issuer. Covered bonds add another layer. They are backed by the issuer and also by a pool of assets. So, while checking such bonds, investors do not look only at the company. They also look at what sits behind […]

Many investors first look at the coupon of a bond. That is useful, but it is not enough. Bonds can trade above or below face value. So the income on today’s price may be different. Current Yield helps investors see that number clearly. Key Takeaways What Is the Current Yield? How Does Current Yield Work […]

Bond investors usually look for two things. Regular income and stability. But sometimes, they may also want an exit option before maturity. Puttable bonds are built for that purpose. These bonds allow investors to sell the bond back to the issuer on fixed dates, as per the bond terms. Key Takeaways Puttable bonds come with […]

In the complex world of global finance, capital flows are the lifeblood of economic growth. Among these, Foreign Portfolio Investment has become a vital engine for market liquidity and development. As countries look to draw in international interest, it is increasingly important for everyone—from policymakers to everyday investors—to grasp how these mechanisms actually function. What […]