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May 12, 2020 • 14 tweets • 4 min read
Gilt MFs - Busting the Trader’s myth
These days many debt MF investors are looking at GILT funds for investment purpose - lets decode the GILT Funds (1/n)
These funds invest in government securities of various maturity periods - thus too less credit risk but factors such as change in interest rate and gsec valuation etc. drive the volatility in NAV of these funds. (2/n)
Apr 17, 2020 • 9 tweets • 6 min read
Finally, after so much wait, @RBI Governer comes out to provide much needed relief to economy - key announcements thread:
#RBI#economy#rbigovernor1. Yes, even after all the projections of economic growth slip, India might still stay at the top of global economic growth chart (As per IMF).
Finally rating agencies sprung into action on Future Group.
Reflecting upon the high debt levels of the Future Group, ICRA has downgraded the rating of its investment holding company (Future Corporate Resources Private Limited) by ONE notch below investment grade. (1/n)
The rating was already BBB (Negative), now stands at BB+ (Stable).
In July 2019, CARE also changed the outlook to “Negative” and then put it “Under Credit watch with Negative Implications”.
The mother of all QEs is here - @federalreserve has announced:
a. Interest rate cut by 100bps to 0% - 0.25%
b. Emergency lending rate cut by 125 basis points to 0.25%,
c. Increased the emergency lending term of loans to 90 days.
d. Buying of $500 BN of Treasurys and $200 BN of agency-backed mortgage securities.
e. Pushed major banks to use the equity + liquid buffers ($1.3 TN + $2.9 TN) for lending and manage credit expansion.