“Details create the big picture.” – Sanford I Weill There is a stark contrast in investor sentiment between fixed income and equity. Equity investors are quick to digest negative news and eager to participate in the asset class. On the other hand, fixed-income investors are taking their time to…
“One must choose in life between boredom and suffering.” ~ Madame de Stael Often, the market is an exciting place for investors. There’s always something happening, a new idea to explore, or an old lesson to relearn. Despite transitioning into a new regime of higher inflation and an impending…
This month’s outlook explores why 2023 is a year for fixed income and how opportunities change every cycle. As a bonus, we’re also sharing a framework for product selection. Talk to your investment adviser today to prioritise safe investments. The Market Cycle The nature of fixed-income returns often trips investors…
In March, investors rushed to allocate money into fixed-income mutual funds due to a change in tax rules. The motivation behind these allocations had more to do with tax than merit. The questions investors need to ask and answer in 2023 are: Is this the right time to invest in…
Background and Decision All eyes were on the Federal Reserve this month as the markets intently anticipated their next move. The markets were spooked by the bank run on Silicon Valley Bank and this triggered a sell-off of smaller, regional banks in America. Amidst all this, in Europe, Credit Suisse…
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…
