Introduction Investors are diligently looking for the necessary and sufficient information regarding their investment goals and the financial instruments they have chosen. Bond investments have been the talk of the town in recent years, and sufficient information is being made available through numerous means. However, some early investors are still unclear about the notions of […]

Introduction Everything has a price, and every price has its return. Fixed Deposits (FDs) are the embodiment of safety for Indian investors. They have existed since the time of our grandparents and parents and have been their preferred choice for savings. For a more in-depth look at ‘Why Your Parents Chose Fixed Deposits,’ click here. […]

The meaning of fixed income instrument in financial markets is as simple as the definition of the word itself – you get a prescribed income from this which is mostly fixed (decided) at the time of investment and when held till maturity of the instrument. For those of us who are interested in receiving a […]

In everyday life, a “floor” is something that supports you — it’s the base you stand on. In finance, the idea isn’t much different. A floor simply means a minimum value something shouldn’t fall below. Whether it’s interest rates, returns or the price of an asset, having a floor helps protect investors from bigger losses. […]

Introduction The Liquidity Adjustment Facility is a daily window through which the central bank adds or absorbs short term money from banks. It helps anchor overnight rates, keeps liquidity orderly, and signals policy intent. When conditions are tight, the tool supplies funds. When money is surplus, it soaks up liquidity wisely. What Is a LAF? […]

Local governments issue municipal bonds to raise funds for public projects like schools, hospitals, bridges etc. Bonds are loans that an investor makes to issuers. On purchase of a bond, an investor receives regular pay-out of interest and the amount is redeemed when the bond matures. However, liquidity in muni markets is not that high […]

Introduction Bonds can be issued by corporations or governments to serve as a source of financing. Those that buy bonds are effectively providing the issuers with a loan. In this case, the issuer promises the bond purchaser periodic interest payments in exchange for the loans. A bond’s maturity date is when your investment will be […]

Introduction Bonds are a great investment tool, both for investors looking to diversify their portfolio and for bond issuers as a way to raise funds. It is a loan that is given by you as an investor to the borrower. Bonds are a fixed income instrument that can be used by a company, governments, and […]

Introduction Money markets are the plumbing of finance: quiet, essential, and mostly out of sight. A Repurchase Agreement—or “repo”—is one of those pipes that keeps cash flowing smoothly. Think of it like borrowing a friend’s scooter for a day and leaving your watch with them until you return it. In a repo, the borrower gets […]