Backdrop In 2013, India experienced dangerously high levels of inflation that drove the central bank to action. CPI inflation which measures the price that the consumer pays for a basket of goods, shot up to a dangerous 10.9% in 2013. CPI stands for Consumer Price Index. Since it measures the…
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…
If you feel like 2021 is proving to be more challenging than you expected, you’re not alone. At the start of the year, most of us believed that we could put the pandemic behind us. Now, we have found a way to coexist. Lockdowns are back, but this time is distinctly…
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…
Imagine you’re driving late into the night on a foggy road. There’s limited visibility, you slow down and stay on high alert. You can’t afford mistakes and you have less time to respond to changes on the road. You want to get to your destination without any accidents. Is investing…
This month marks one year since Franklin Templeton closed the doors on six of its fixed income schemes. In this blog for Finesse, we are going to look at exactly what happened. This blog is divided into five parts: Introduction to Franklin Templeton What happened? What went wrong? Who is…
Buckle up! 2021 is going to be a bumpy ride. If you haven’t noticed the volatility in your fixed income portfolios yet, it’s only a matter of time before it begins to worry you. No one is willing to talk about the fact that returns will be low and yet…
Patience is a virtue, but how long can you wait? It’s been almost a year since the repo rate fell to 4%. And it looks like rates aren’t in any rush to rise. Do you feel like you’ve been backed into a corner with nowhere to go? It’s time to…
We’re familiar with the animal spirits of equity market cycles. We know that bulls rage on, while bears hibernate leaving market activity in a lull. But what about fixed income markets? The animals of debt markets are hawks and doves. Hawks soar high, leaving room for massive gains. Doves lay…
Dear Reader, It’s a new year and we have a fresh outlook on fixed income markets. Here’s what we’re exploring this month: The Pitfalls of Past Performance When Credit Risk Works Beating Inflation in Retirement Mutual Fund Past Performance Investors often take comfort in a fund’s performance track record. We…
Here’s what we’re exploring this month: How to beat low FD returns? Conservative investors have a common enemy: low returns. And this isn’t a near-term phenomenon. They’ve been grappling with this problem since demonetisation when FD rates plunged. We’re sharing three options to beat low Fixed Deposit returns. Always consult…
Fixed Income Investment Strategy Medium-term bond yields are elevated compared to their short-term counterparts. If interest rates remain lower for longer, selective medium-term strategies could work well. However, these strategies could become volatile when the interest rate cycle turns. Investors will reap the benefits only if they stay invested through…
