"Savers are earning very little on their fixed income assets. Risks are higher and yields have collapsed. Financial conditions are more benign than pre-Covid levels. Domestic savings are not being deployed for essential expenditures."
"Private banks have been like an Achilles heel because of lazy lending and not providing credit to middle tier. We need to fix governance and dilute stakes of the government rather than coming up with adventurous solutions."
"The long end of the yield curve has become unhinged from the relatively benign shorter end. This causes collateral damage that further leads to the undercapitilisation of the banking system."
"The moratorium and restructuring window have contributed to things going back to normalcy. Restructuring requests have been lower than expected. I don’t think there has been an incentive to lie (about these facts)."
(1/2)"Corporate NPAs may rightly not be as large as anticipated. However, I remain worried about individual and retail loans. The Pandemic has caused the most loss to services. If we can create fiscal room, there should be a demand push."
(2/2)" There should be focus on quality of infrastructure and NREGA, and we can use our digital network to deploy direct benefits to those in the lower income sections. There should be rolling out of subsidies and massive divestment."
"MSMEs have been struggling every year for the past five years. Restructuring relief has also been released every year for their losses. I fail to see how they can sustain without equity injections."
"We have credit-to-GDP ratio of ~50% and have nearly the highest NPAs in the world. The burden of this paradox falls on common borrowers who either face higher costs while borrowing or have the quantity rationed."
"Between 2006-08, our credit was 3 times the GDP. Credit grew by 30%. The credit growth is low now because of undercapitalisation and the PCA framework of the RBI. Public sector banks should be treated as business enterprises rather than socio-political instruments." @TamalBandyo
"More than 80% of the incremental credit is from private banks, which were far lower in number (until public sector consolidations). Public sector banks are eroding their market share faster than expected."
"The fiscal indiscipline in the US started back in 1971, when the gold standard was broken, and a huge wedge between debt and GDP was seen during the GFC.”
"While building a portfolio using Relative Rotation Graphs (RRG), it shows relative trends for performance of multiple securities in a universe against a common benchmark and each other. They DO NOT show relative performance."
The number of combination balloons in a one-on-one comparision. For example, to compare Nifty 50 stocks, we would have to analyse 1225 charts. RRG consolidates this into just one chart.”
How should one tackle their fixed income investments? Ms. @Lakshmi1876 is live addressing such questions in her current session. Tune in at bit.ly/39NG5jv.
"Data from 43,000,000 daily fx trades shows average loss per trade far outweighs average profit. We naturally lock in profits early while running losing trades."
"Overly positive people focus on profits instead of the risk. Most people simply say whether I should buy or sell, they don't look at the process. Only 4% investors use 3 steps of strategic thinking."
"I believe what happened in February-March 2020 was a panic attack. As soon as the US Fed came in and resolved it, not only did the market overcome its March lows, but has also seen several new highs over the past few months."