Category Archives: Financial Products

What is a rights issue?

A rights issue is an issue of new shares for cash to existing shareholders in proportion to their existing holdings. A rights issue is, therefore, a way of raising new cash from shareholders – this is an important source of

What is a rights issue?

A rights issue is an issue of new shares for cash to existing shareholders in proportion to their existing holdings. A rights issue is, therefore, a way of raising new cash from shareholders – this is an important source of

How many swaps you know?

Swaps are the archetypal over-the-counter derivative instruments. Although they are highly liquid, traded instruments, they remain privately negotiated contracts between counterparties – though these contracts now take the form of standardized master agreements. They involve the exchange of fixed and/or

How many swaps you know?

Swaps are the archetypal over-the-counter derivative instruments. Although they are highly liquid, traded instruments, they remain privately negotiated contracts between counterparties – though these contracts now take the form of standardized master agreements. They involve the exchange of fixed and/or

Carbon Trading

Emissions trading, a market-based instrument used for environmental protection, has been adopted as one of the primary tools for international cooperation to reduce greenhouse gas emissions under the Kyoto Protocol. As a result, many countries will implement emissions trading programmes

Carbon Trading

Emissions trading, a market-based instrument used for environmental protection, has been adopted as one of the primary tools for international cooperation to reduce greenhouse gas emissions under the Kyoto Protocol. As a result, many countries will implement emissions trading programmes

Indian Mutual Fund Basics

Basics of mutual funds The article mentioned below, is for the investors who have not yet started investing in mutual funds, but willing to explore the opportunity and also for those who want to clear their basics for what is

Indian Mutual Fund Basics

Basics of mutual funds The article mentioned below, is for the investors who have not yet started investing in mutual funds, but willing to explore the opportunity and also for those who want to clear their basics for what is

Calculations of a Basis Swap

In a basis swap counterparties exchange 2 different floating rates instead of regular fixed v/s floating. This means that one of the counterparty in the swap will pay a regular floating rate in exchange for a compounded floating rate as

Calculations of a Basis Swap

In a basis swap counterparties exchange 2 different floating rates instead of regular fixed v/s floating. This means that one of the counterparty in the swap will pay a regular floating rate in exchange for a compounded floating rate as

Asset Swaps

An Asset Swap is an Interest Rate Swap or Cross Currency Swap used to convert the cashflows from and underlying security (a Bond or Floating Rate Note ), from Fixed coupon to Floating coupon, Floating coupon to Fixed Coupon, or

Asset Swaps

An Asset Swap is an Interest Rate Swap or Cross Currency Swap used to convert the cashflows from and underlying security (a Bond or Floating Rate Note ), from Fixed coupon to Floating coupon, Floating coupon to Fixed Coupon, or

All you wanted to know about interest rate futures

What are interest rate futures? An interest rate future is a financial derivative with an interest-bearing instrument as the underlying asset. In India, the underlying is 10-year notional coupon bond bearing Government of India (GoI) security. GoI securities with maturity

All you wanted to know about interest rate futures

What are interest rate futures? An interest rate future is a financial derivative with an interest-bearing instrument as the underlying asset. In India, the underlying is 10-year notional coupon bond bearing Government of India (GoI) security. GoI securities with maturity

All you want to know about hedging

With an increasing number of people becoming interested in finance, and taking the plunge in stock markets, understanding certain financial jargons is of utmost importance. Those of you who frequently dabble in stock markets have often come across the term

All you want to know about hedging

With an increasing number of people becoming interested in finance, and taking the plunge in stock markets, understanding certain financial jargons is of utmost importance. Those of you who frequently dabble in stock markets have often come across the term

Different Asset Classes in Over The Counter Market (OTC)

Credit Derivatives Buyer of the credit derivative gets protection on the underlying asset. If there is a credit event (like bankruptcy, failing to pay etc.) on the underlying asset then the seller of the credit derivatives will make up the

Different Asset Classes in Over The Counter Market (OTC)

Credit Derivatives Buyer of the credit derivative gets protection on the underlying asset. If there is a credit event (like bankruptcy, failing to pay etc.) on the underlying asset then the seller of the credit derivatives will make up the