April, 2009
POST RBI RATE CUTS
I had mentioned about one rally happening in the current quarter due to supply neutral situation, overhang of liquidity & lean credit season. 10 year was at 7% on April 8’2009 and the yield curve was extremely steep which I had predicted it to flatten in the current quarter. RBI has aided this rally by [...]
BORROWING CALENDAR FOR CURRENT FISCAL & OTHER FACTORS AFFECTING DEBT MARKET
Yield Curve post the announcement of Borrowing Calendar for the current Fiscal Year has become extremely steep. Consider the following: 1 day 3.50% 91 day T Bill 4.00% 1 year T Bill 4.70% 3 Year Bond 5.90% 5 year Bond 6.77% 10 Year G Sec 7.00% Traditionally the spread between 1 to 10 year [...]
SOME MORE INTERESTING HISTORICAL FACTS ON ARBITRAGE SCHEMES
Hi, Of late ( once again since February 2009) I have been recommending to invest in Arbitrage schemes with an intention to earn steady tax free returns Q on Q with negligible or no down side. Instead of timing your entries & exits in this asset class, if one would have invested in [...]