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Fixed Income

RBI – Banks Selling “Hold To Maturity” Securities

RBI’s latest notification: In terms of our Master Circular No. DBOD.BP.BC.18/21.04.141/2010-11 dated July 1, 2010 on ‘Prudential Norms for Classification, ...
General

Currency Options, Base Rate, Powers of Time

You can trade currency options, says the RBI. Banks ask for “sunset” clause on base rate. Don’t be fooled. They only want to attract people who earlier ...
Premium Portfolio

How does Option “Exercise” work?

Reader M writes in: I read your article “Of Options and Choices” posted today. It would be helpful if you can through some more light on American Options ...
Opinion

Of Options and Choices

My latest at Yahoo is about the Options Market, and volatility assumptions: When the headlines go “Market volumes more than 100,000 crores!” it ...
Economy

Deflation is Really Bad: Or, What Is Krugman On?

Paul Krugman explains why deflation is bad: So first of all: when people expect falling prices, they become less willing to spend, and in particular less ...
Foundations

Inflation Adjusted Investment

Manish has an excellent article on Jago Investor: How Inflation eats your money. What I was thinking – yes, you could save a constant amount today to try and ...
General

VIX at or near lows

So the VIX – NSE’s volatility index – is very close to all time lows. With the indices having not moved much this entire year, is volatility gone? Does ...
General

Weekend: Market Myths, Macro, Fin Data Security

Ten Stock Market Myths that Just Won’t Die – Wall Street Journal What I really liked was #4: 4 "Investing in the stock market lets you participate in ...
Stocks

Mahindra Holidays EPS drops 63%

Club Mahindra (Mahindra Holidays) announced results on the 26th and the stock’s been seeing bad days. They highlight an occupancy ratio of 85%, but ...
Foundations

On Yahoo: Credit Default Swaps

I write on Yahoo about Credit Default Swaps: A week of fantastic weather and gridlocked traffic in Bangalore makes the old garden-city-dweller in me long for ...