In today’s fast-paced financial landscape, securitization plays an important role in how capital moves and risk is managed. But are we talking about something about a backbone of modern finance? At its essence, securitization converts bundle of illiquid assets—think home loans or outstanding credit card payments—into marketable securities, opening up new sources of funding and […]

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 […]

Markets can look calm until they are not. Banks and businesses in India prepare for rough weather with Stress testing. Think of it like a rehearsal for a storm where systems are pushed hard to see if they hold up. Regular Stress testing builds confidence before trouble arrives. What Is Stress Testing? So what is […]

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 […]

Introduction For a retail investor exploring the financial markets, a nuanced understanding of the mechanisms that drive asset prices is essential. This is particularly true for bonds, an asset class known for its complexity and subtlety. In this article, we explore why bond prices and yields move in opposite directions—a fundamental concept that is crucial […]

Introduction Over the past two years, India’s investment market has seen a sharp rise in the number of retail investors beginning to populate their portfolios. There has been an influx of liquidity into India’s financial markets, including equities, derivatives and commodities. However, not all financial instruments are made the same. Equities with higher returns are […]