Introduction When it comes to fixed-income investments, the maturity date is an important factor investors need to be aware of. Whether you’re investing in a bond, a fixed deposit or even a recurring deposit, the maturity date marks the end of the investment period and indicates when the principal amount is due to be repaid. […]

Whenever money changes hands in lending, the biggest question is simple: will it come back? That’s where the Probability of Default (PD) steps in. Rather than leaving repayment to gut feeling, PD gives lenders and investors a way to measure the risk of not getting their money back. Understanding Probability of Default At its core, […]

In financial news, you must’ve heard the term “repo rate”, but what exactly does it mean for you and how does the repo rate affect a common man? Let’s understand. Imagine banks occasionally need quick cash—just like we do. Instead of a friend or relative, they turn to the Reserve Bank of India (RBI). But […]

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 […]

So, what is Risk Management in plain words? It is the discipline of spotting possible threats, judging their size and likelihood, and deciding how to handle them. Risk Management meaning is practical, not academic: be ready rather than reactive. A common Risk Management definition is “identify, assess, and control risks through structured actions.” Companies use […]

Sovereign Gold Bonds (SGBs) – Introduction Imagine a world where your investments are not only secure but also backed by the lustrous assurance of gold. This isn’t a fantasy; it’s a reality offered by Sovereign Gold Bonds (SGBs). A flashback to 50 years ago reveals a global economy where currency notes were as good as […]

Introduction If you’ve ever guessed the outcome of a cricket match with friends, you already know the thrill of backing your judgment. Markets are no different. Some people invest slowly, while others try to read tomorrow’s move today. That second group lives on speculation, for better or worse. What Is Speculation? So, what is speculation […]

Introduction Imagine being the owner of a thriving ice-cream company. Your brand has become a sensation, captivating the hearts of numerous customers who simply can’t get enough. However, a competitor has emerged in your niche, necessitating an increase in marketing expenses. Additionally, it’s time to upgrade your mixing machine and freezers, and there’s a surging […]

Non-Convertible Debentures (NCDs) or simply ‘Debentures’ are long-term debt instruments issued by companies to raise funds from the public or institutions. These are also commonly referred to as ‘Bonds’. A debenture trustee is an independent third party appointed by the company to safeguard the interests of debenture holders. Debenture trustees play a critical role in […]