Introduction Investing in bonds or debt instruments involves evaluating the creditworthiness of issuers—a task that can feel daunting without the right guidance. This is where credit rating agencies step in, offering a trustworthy way to assess the financial trustworthiness of entities issuing debt. In India, these agencies are vital to the financial ecosystem, empowering investors […]

Looking for stable returns beyond traditional options? Let’s decode Non-Convertible Debentures (NCDs). These are debt instruments companies use to raise funds, offering fixed interest payouts without the option to convert into equity. Unlike convertible debentures, NCDs are repaid in full at maturity, making them a go-to for investors craving predictable income. With interest rates often […]

Capital markets are the backbone of economic growth, acting as bridges between those who need funds and those looking to invest. Whether you’re a business expanding operations, a government funding infrastructure projects, or an individual planning for retirement, these markets keep money flowing where it’s needed most. Let’s break down how they operate, their different […]

Introduction: Two Friends, One Bond Conversation Imagine two friends, Rohan and Priya, sipping chai at a Mumbai café. Rohan, a seasoned investor, boasts about earning steady returns from bonds. Priya, intrigued, asks, “But how does taxation on bonds work? Will I lose half my profits to taxes?” Rohan smiles, “Ah, that’s where strategy comes in!” Like Priya, […]

The global financial ecosystem in 2024 was riddled with turbulence, yet the fixed-income landscape, particularly in India, emerged as a beacon of stability. With markets reeling from geopolitical unrest and economic volatility, Indian bonds delivered calm, steady returns. By the end of September 2024, the Indian bond market had grown to an impressive $2.69 trillion […]

RFQ stands for Request for Quote, a platform that allows investors to buy and sell bonds by requesting quotes from multiple dealers and choosing the best one. Consider this: You’re in a busy marketplace filled with sellers offering nearly identical goods or services. Instead of haggling with each seller, you ask a select few for […]

Introduction   In our previous blog, the impact of inflation on bond investments, we discussed how inflation can significantly erode the real value of bond investments. Imagine earning 8% interest on a bond, but with inflation running at 4%, your actual gain in purchasing power is only 4%. As a response to this issue, Inflation-Indexed […]

Introduction Here’s a fun fact: In 1970, a cup of coffee in India cost about 50 paise. Today, the same cup would cost you anywhere between ₹20 to ₹50, depending on where you buy it. That’s over a 4000% increase in price! Now, I know there’s nothing fun about this fact, but what’s undeniable is […]

Introduction The Great Indian Financial Market is colossal and serves as the backbone of the nation’s growth and development. While many are familiar with capital markets, which are one of its segments, there is another well-functioning arm of the financial market that operates in the background: the money market. Though not widely recognized by retail, […]