#Essential
What are Fully Accessible Route (FAR) bonds
Introduction In a landmark development for India’s debt market, on June 28, 2024, JP Morgan added 29 Indian government securities under the FAR program to its highly regarded Emerging Market Bond Index (EMBI). This development is expected to enhance foreign investor participation and attract substantial inflows into the Indian bond market. The decision marks India’s […]
What Are High-Yield Bonds?
Bonds are debt instruments where the issuing entities promise to pay the investor a specific amount of interest over the tenure of the bond and return the principal amount at the end of it. In high yield bonds the interest rates are higher than other fixed income instruments with similar tenure. As the risk factor […]
What are Inflation-Indexed Bonds?
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 […]
What are Infrastructure Bonds?
Introduction Mumbai’s skyline, with its skyscrapers piercing the clouds, shows ambition and modernization. As the financial capital, the city has seen an infrastructure boom over the past decade. The Trans Harbour Link, Metro, and Coastal Road projects will make the city more interconnected. However, the current infrastructure still doesn’t provide enough relief. Traveling 6 kilometers […]
What Are Listed and Unlisted Bonds?
The idea of a good investment is one that is relatively safe and stable, gives high and regular returns all while allowing you wriggle room to exit in case of emergencies. Nowadays, conventional forms of savings do not ensure financial security and adequate returns. Therefore, you might go for securities like equities all in the […]
What are Market Linked Debentures
Introduction There are various investment avenues in the fixed-income segment and one popular investment option among them are Bond or Debentures. Debentures are issued by companies to raise funds that could be used for either capital expansion or working capital needs. Debentures usually have a coupon payment. It means that as an investor you will […]
What are Masala Bonds?
The international bond market presents a compelling opportunity for various entities seeking to raise funds for specific foreign projects. Firstly, the international bond market provides access to a potentially vast and diverse investor base, expanding the pool of potential funding sources. This broader reach can enhance the likelihood of securing financing for projects that may […]
What are Non-Convertible Debentures (NCDs)?
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 […]
What are PSU Bonds?
Introduction Investment is an essential aspect of long-term wealth creation. However, not everyone has the risk appetite for investing in equity and other market instruments. When it comes to secure investment avenues, fixed deposits are a popular choice but do not always yield inflation-beating returns. For risk-averse investors, Public Sector Undertaking Bonds (PSU Bonds) offer an […]