The Nifty Auto Index has been lagging the Nifty 50 for the last five years. The five-year return of the Nifty Auto Index has been 7% whereas, during the same time, the Nifty 50 has delivered close to 85%. There is no question that the auto sector has been in…
December’s US CPI came in at 7%. On a monthly basis, it has increased 0.5% and 7% was the annualized increase. This was the fastest spike in 40 years. Core inflation increased 5.5% YoY and 0.6% from the previous month. The 10 years at the end of 2021 was at…
The Monetary Policy Committee of the RBI has unanimously voted to keep the rates unchanged at 4% and hold their accommodative stance by a vote of 5:1. This has been backed by GDP and Inflation being in line with their projections. GDP had expanded by 13.70% in the first half…
The federal reserve has been a strong pillar of support for the stock market since the onset of the pandemic in 2020. It has lowered long term interest rates and kept liquidity loose. Currently, the asset purchase programme includes $80 billion in treasury securities and $40 billion in Mortgage-Backed Securities.…
DHFL was a housing finance company established and incorporated in Mumbai by Rajesh Kumar Wadhwan on 11th April 1984. The company was established to provide affordable housing finance for lower and middle-income groups in semi-urban and rural India. On June 5th 2019, almost a year after the high profile IL&FS…
Over the last three weeks, the Federal Reserve and the RBI’s Monetary Policy Committee have released updates on the monetary policy. In this month’s Fixed Income note, we’re taking a look at what the commentary is. Federal Reserve Policy The federal maintained its stance on the transitory nature of elevated…
Infrastructure Leasing and Financial Services or IL&FS serves as a holding company and is at the core of several infrastructure and finance themed subsidiaries. It was founded in 1987 and was funded with equity from the Unit Trust of India, Central Bank of India and HDFC. Over the years, several…
When we talk about the cyclicality of different assets, the first thing that comes to mind is equity. Everyone knows that metals, automobiles, and financials may have up-cycles and down-cycles, but what if I told you there is a cyclical aspect to fixed income? In this blog, we explore the…
Lakshmi Vilas Bank was founded in 1926. After 94 years of operation, it was placed under a moratorium in 2020 and was subsequently merged with the Indian subsidiary of DBS Bank. In this blog, we explore this journey. Origin Lakshmi Vilas Bank was incorporated in 1926 by a group of…
The federal reserve released the conclusion of their July 2021 meeting on the 28th of July. In this month’s note, we will be exploring their decision and its implications. The federal reserve had its fifth FOMC meeting of the year to discuss monetary policy last week. The outcomes were neither…
In this month’s fixed income note, we are going to be looking at one of the most significant events that happened in recent times. The ‘Taper Tantrum’ as it is popularly referred to is what happened when the federal reserve ‘tapered’ or slowed down in their quantitative easing. Let us…
What happens when a borrower runs out of all options and is on the verge of financial collapse? Nobody wants to bail them out. Their only hope is a ‘Lender of last resort. Usually, the lender of last resort s a Central Bank. Rana Kapoor, the co-founder of Yes Bank…
