The storm of defaults in debt funds that happened—since the collapse of IL&FS in September 2018 till the Yes Bank additional tier 1 perpetual bonds write-off in March 2020—was the…
Posts TaggedCredit Risk
Debt Fund Risk: Best Solutions Are The Simplest
The types of risk in fixed income funds are many: interest rate/volatility risk, credit risk, counterparty risk, concentration risk, liquidity risk, etc. But the two major risks, going by the…
Bad Loans And Investment Climate: Not As Bad As It Seems
SYNOPSISSome data indicates that banks’ bad assets are near to bottoming out When we are bombarded with something every quarter, we end up believing it. In fact, sometimes it seems…
Rating Agency Default Study: What Is In It For Investors?
Till date, no long term instrument rated AAA by CRISIL has ever defaulted. For instruments rated AA, the average 3-year default rate is less than 1 percent, which means if…
FIIs Have Limited Relevance In The Indian Bond Market
SYNOPSISSome recent events are fresh in memory: demonetization and the US election result in November. The bond markets in US and India went on distinctly divergent directions The movement of…