The roots of what we now call fixed income go back at least 250 years, when the British government issued “Consols”—a type of perpetual bond used to finance wars. These bonds had no maturity date and paid fixed coupons indefinitely, until redeemed by the government. The term gained prominence with the advent of modern portfolio
New Delhi: The next stage of reforms in India demands a gradual withdrawal of lending restrictions to corporates for land, against shares and such, a report said on Tuesday. Real estate, in aggregate, accounts for one-third of investment activity in the country, without access to low-cost funds for most developers. “After RERA implementation, builders’ consolidation,
After a strong rebound in private capital expenditure in the two years following the pandemic, investment by private non-financial corporations stagnated in FY24. In contrast, capital spending by public non-financial enterprises jumped 33%, while central and state governments increased theirs by 25%. Private sector share in GFCF hits 12-year low The shift in momentum underscores
7. What are the prescribed standards for gold loan documentation? The loan agreement executed with borrowers, must be standardised across all branches of the lender, and should detail all key terms, including, the description and value of the collateral taken, the auction procedure (in the event of a default), the notice period provided to the borrower
Mumbai: The Reserve Bank of India (RBI) on Thursday allowed foreign investors greater freedom to buy Indian corporate bonds, giving them a chance to purchase more short-term paper. The central bank removed short-term investment and concentration limits from its rules governing foreign investments in corporate bonds. This, it said, will provide greater ease of investment
Mumbai: The Reserve Bank of India (RBI) on Thursday relaxed norms for investments by foreign portfolio investors (FPIs) in corporate debt securities through the general route by withdrawing certain requirements. At present, investments by FPIs in corporate debt securities through the general route are subject to the short-term investment and concentration limit. “On a review,
The Reserve Bank of India (RBI) has announced the withdrawal of two key restrictions governing investments by foreign portfolio investors (FPIs) in corporate debt securities through the general route, with immediate effect. In a circular issued by the Financial Markets Regulation Department, the RBI stated that FPIs will no longer be required to comply with
Foreign Portfolio Investors’ (FPIs) investment in corporate debt securities will no longer face short-term investment limit and concentration limit, according to RBI. This relaxation comes in the backdrop of the financial markets facing volatility due to geopolitical tensions and tariffs wars. Arvind Kanagasabai, Executive Vice President-Integrated Treasury, Tamilnad Mercantile Bank, said removal of short-term investent
Gold loans have emerged as one of the most accessible and popular forms of short-term credit in India, especially during emergencies or when urgent liquidity is needed. These loans are secured by pledging gold jewellery or ornaments with a bank or a non-banking financial company (NBFC). Since gold is offered as collateral, lenders face lower
By Anand K Rathi With interest rates falling and economic signals aligning just right, long-duration mutual funds are looking like the smart, strategic play. One of the golden rules of fixed income is simple: when interest rates fall, bond prices rise. But here is the nuance—longer-duration bonds benefit more from this trend than shorter ones.