Page 2 - Debt Instruments News Today

Banks have access to long as well as short-term debt instruments for raising funds from market.

A new Eurobond issue has elicited sharp reactions from financial analysts

Comprehending and utilizing debt instruments such as bonds is crucial for Indian investors, providing stability, risk mitigation, safety, consistent income, and protection against inflation.

Understanding and leveraging debt instruments like bonds is essential for Indian investors, offering stability, risk management, safety, regular income, and inflation protection.

Vijai Mantri says: “People do not understand the difference between coupon rate and compound rate. So I will just take a very simple illustration. I was part of the HDFC Mutual Fund team when we launched HDFC liquid fund in October 2020. In October 2000, that fund completed 23 years. In a 23-year period the fund generated 6.9% CAGR. If I convert them into simple rates of interest, it is close to 15% per annum.”

FPI investment in debt remained positive in all months of 2023 except in March, which experts attributed to year-end outflows.

As per the draft directions, transactions in bond forwards shall be undertaken on Central Government dated securities and state government securities.

A resident and non-resident, who is eligible to invest in Government Securities under the Foreign Exchange Management (Debt Instruments) Regulations is eligible to undertake transactions in bond forwards.

The RBI is anticipated to uphold the current policy stance for the next five to six months. This brings positive news for investors in debt funds, as they stand to gain from potential increases in Net Asset Values (NAVs) over the long term.

SBI Mutual Fund announced the launch of the SBI Fixed Maturity Plan – Series 91. The scheme opened for public subscription on December 26, 2023, and will close on December 28, 2023.