Discover and read the best of Twitter Threads about #dhfl

Most recents (9)

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)
Read 13 tweets
Here is a list of lemons (troubled assets) held by debt schemes of various Mutual Funds -

Qualification - at least 3 lemons post Aug 2018

1. BoI AXA - 6
a) Sintex
b) DHFL
c) Kwality
d) ILFS
e) Coffee Day
f) Avantha Holdings

Thread (1/10)
2. Reliance Nippon - 6
a) ZEE LAS
b) DHFL
c) Morgan Credit (Yes Bank promoter)
d) Reliance Commercial Finance (ADAG)
e) Reliance Home Finance (ADAG)
f) Avantha Realty

(2/10)
3. Birla Sunlife - 5
a) ZEE LAS
b) Wadhawan Global (DHFL Promoter)
c) ILFS Tamil Nadu Power
d) Jharkhand Road Project (ILFS)
e) ILFS Education

(3/10)
Read 14 tweets
Day 2 on Twitter. Coming to the next set of awards - The "Foot in Mouth" Awards. A clear winner in this category is DSP Mutual Fund. I have shortlisted them for their sheer cockiness. Thread. (1/10)
In September, 2018, the Fund House triggered a panic by selling DHFL bonds at distressed levels. It was a business call; and hence a benefit of doubt could be given. (2/10)
What cannot be forgiven though, is the brazenness with which the Fund house eulogised their portfolio selection capabilities. 3/10
Read 17 tweets
Alright! Here I am, making my debut on Twitter. To mark the occasion, I am handing out the "Lemon of the Year" Award to one of the worst performing Debt Mutual Funds.

A clear winner in this category, by a mile, is BoI AXA Credit Risk Fund. Thread (1/9)
The fund has achieved a rare feat of burning almost 90% of its AUM within a span of last 11 months i.e. the AUM contracted from ~1700 Cr in Aug 2018 to ~200 Cr in Jul 2019.

The one year return is a whopping minus 48%. 2/9
The Fund Managers successfully caught all the lemons that fate threw at them viz DHFL, IL&FS, Kwality, Sintex, Cox & Kings, Coffee Day etc. 3/9
Read 15 tweets
#DHFL #NBFC Had a conversation with a large institutional investor. Some interesting points
1.DHFL poses systematic risk which regulators are taking very lightly
2.The problem in DHFL if not checked in time can spill over to broader financial sector and have a cascading effect
3.The next two big weak links – India bulls and Yes Bank
4.Cumulatively among the 3, there is a 5 lac crores exposure at risk.
5.Sensible thing would be for the RBI to look at the books of DHFL
a. If no skeletons – then give them a line of credit to tide over any liquidity issues
b.If problem in the books – then takeover and run down the book in a way that does not put the whole system at risk.
Read 6 tweets
BIG BREAKING!
Kapil Wadhawan #DHFL to @CNBCTV18Live
- Delay in NCD payment is not a solvency issue
- Have underlying assets generating cashflow
- There was a sudden stoppage of availability of credit for DHFL post the Sep 2018 crisis
1/many
Kapil Wadhawan #DHFL to @CNBCTV18Live
- On track to pay 100 cr redemption due today
- Delayed 960 cr NCD payment due to asset-liability mismatch; something that banks could also face
- Can understand that investor confidence is shaken
2/many #mutualfunds
Kapil Wadhawan #DHFL to @CNBCTV18Live
- Only source of funds for last 9 mths have been selling down of assets
- Since Sep 2018, have paid 35,000 cr of interest & principal
3/many #mutualfunds
Read 5 tweets
#FakeParadise
#ReversalSetup

Before i share this setup, let me tell you this is not a easy setup to trade without deep understanding.

So let's discuss the setup and what does it mean!!

(1/n)
Rules For Sell

1. New 20 period high should have been made today.

2. Previous 20 period high should have been made minimum 3/4 days before.

3. Close above previous 20 day high or not is optional.

(2/n)
How to implement?

1. Once we get new 20 period high stock, on same day/ next day we place sell stoploss order few ticks below previous 20 period high.

2. Stoploss : few tick above Latest high

3. Target : 1:5 R:R achievable (trail stop after 1:2 R:R)

(3/n)
Read 27 tweets
#DHFL broke down on 29th Jan from 4 months of rectangle consolidation & straight gave 60-70 points move. All the selling is "possibly" absorbed on 4th Feb (see the vol).

Above 127 it can shoot up swiftly & can 141/152/161. Watch out!

#TradeWithPAL
This view stands invalid below 113/112 range
This trade didnt trigger today. High made 122.75 & post that low made 114.55
Read 3 tweets
#Breaking: Thread on the Anatomy of India’s biggest financial scam—Rs 31,000 cr, (not a notional value but actual, public money). Cobrapost Investigation reveals major financial scam by an NBFC, bigger than Mallya or NiMo.
Watch the video: bit.ly/2DIhpbB
#LooteraDewan
Dewan Housing Finance Corporation Limited (#DHFL) has siphoned off Rs 31,000 crore into promoter companies to create private wealth through a network of shell companies. Probe reveals the NBFC under-reported Rs 20-cr donation to @BJP4India
Dewan’s financial credentials: Rs 8,700 crore net worth, Rs 96,000 crore money raised through loans and public deposits.
Read 8 tweets

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