Every month, we study what’s happening in fixed-income markets. This month, we’re delving into: Federal Reserve Meeting – Setting The Tone For Global Monetary Policy? Tax Loopholes: Should You Exploit Them? (MLD) Equity Savings Funds: How Do They Measure Up? Federal Reserve Monetary Policy – May 2023 All eyes are…
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…
In this month’s Fixed Income note we will be taking a look at the outcomes of January’s Federal Reserve policy meet. Highlights Indicators of economic activity and employment have continued to strengthen considerably. The federal reserve is keeping up with the decided pace of reducing asset purchases and will stop…
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…
