POST RBI POLICY REVIEW & IT’S IMPACT ON SHORT & LONG END OF THE YIELD CURVE
RBI Policy Review had sprung a major surprise by cutting CRR by 50 bp to 5.50% . This was done to infuse permanent liquidity to address the structural pressures on liquidity. In the initial phase, this will infuse liquidity to the tune of Rs.32,000 crs; and over longer period to the tune of almost Rs1.50 [...]
JPMORGAN INDIA SHORT TERM INCOME FUND
CURRENT MARKET SCENARIO: 1 MONTH PRIME CD 8.25% 3 MONTH PRIME CD 9.00% 1 MONTH PRIME CP 10.50% 3 MONTH PRIME CP 10.75% Fund Managers are at an advantageous position of creating very high accrual, high credit quality without resorting to any MTM papers and generate very healthy returns for their investors. JPMorgan Short Term Plan is [...]
DEBT MARKET JOURNEY SINCE BUDGET IN FEBRUARY 2010
BLOG NOTE DATED: March 03’2010: POST BUDGET: We had recommended the following: To stay away from long end of the curve for following reasons Fiscal stimulus roll back Petrol price hike CRR hiked by 75 bps since February 13’2010 Reverse REPO figures started coming down from Rs.1 lac cr to Rs.30,000 crs & likely to [...]
PROMISES DELIVERED : AXIS STP
Axis STP NFO closed on January 20’2010. Theme of the NFO was to capture: Higher accrual Capture attractive spreads between 1 & 5 year corporate bonds; which were at historical highs Compression in CD/CP portfolio post March ‘2010 Roll down effect Initially the Fund Manager created a portfolio of 50:50 of 2-5 year corporate bonds [...]
J P MORGAN – SHORT TERM INCOME PLAN
J P Morgan came out with an NFO of their short term income plan which closed for subscription on March 26’2010. When the general perception of the market was that if the said NFO would have collected money prior to the advance tax out flows i.e. before March 15’2010 & then created a portfolio at [...]