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This is your daily pension announcement. The "Minister of Finance Travis Toews declined an on-camera interview request for this story" edition. Yes, you read that right Travis declined @TimmCTV's request for an interview on pensions. #Handsoffmypension #decline #AbLeg #abed
Travis has declined every interview related to pensions since this began. He has made one (misleading) Facebook post, written one Op-Ed and referred all questions to a spokesperson. He has never faced questions. #noquestions #noquestionsiamchicken #diedown
I believe that this is a further abrogation of our democracy. Ministers of the Crown need to make themselves reasonably available to the press to answer questions of public importance. Not so much with Travis. #pissondemocracy
Corporate Bond Market in India - A snapshot
Corporate Bond Market comprises of all the debt fund-raising/ financing/ fund mobilisation activities by Corporates through debt capital market instruments - Debentures or Bonds. Read on to know more about this market. Thread 1/12
Corporate Bond Market comprises of all the debt fund-raising/ financing/ fund mobilisation activities by Corporates through debt capital market instruments - Debentures or Bonds. Read on to know more about this market. Thread 1/12
As per SEBI data, the total outstanding corporate bonds in India aggregate to ~ Rs. 30.63 lakh crore.
This is about one third the size of the G-Sec market as well as the aggregate of Bank credit (i.e. total outstanding loans of banks). 2/12
This is about one third the size of the G-Sec market as well as the aggregate of Bank credit (i.e. total outstanding loans of banks). 2/12
The accumulated value of all the Corporate Bonds outstanding is only about 16% of the GDP.
In comparison, the size of the US corporate bond market to GDP is ~124%. It shows that the corporates in India rely heavily on banks. 3/12
In comparison, the size of the US corporate bond market to GDP is ~124%. It shows that the corporates in India rely heavily on banks. 3/12
I am revisiting the topic of Public Issue of Non-Convertible Debentures (NCDs) covered a couple of days back. Only this time, I am focusing on Subordinated (Tier II) NCDs that are slipped in (sometimes slyly) along with senior secured NCDs of NBFCs. Thread (1/9)
Refer to the picture, below (the pic is representative only). A subordinated NCD (circled in red) appears as one of the many maturity options. A naive investor may think that it is similar to other NCDs on offer, just that it has a longer maturity. (2/9)
What many investors are unaware of is the fact that subordinated NCDs are paid after senior NCD holders in-case the company goes into liquidation i.e. subscribers to option I to VIII NCDs, in the pic above, would be paid before payments are made to option IX to XI NCDs. (3/9)
There have been a flurry of public issue of NCDs lately. These issues are primarily from NBFCs who are finding it tough to raise funds though banks and MFs. Here, I explain why the public issue NCDs are not in the interest of retail investors. Thread (1/9)
A) There is a common misconception that public issue NCDs are akin to Fixed Deposits (FDs). FDs of PSU banks are covered under the umbrella limit of 1 lakh deposit insurance. NCDs are not. A case in point is the expected loss to retail investors in DHFL public issue NCDs. 2/9
B) The rate offered by these NBFCs in public issue is much lower than what they offer in privately placed deals. Further, a substantial fee is cornered by brokers for selling these NCDs to retail investors. 3/9
