Introduction There are various investment avenues in the fixed-income segment and one popular investment option among them are Bond or Debentures. Debentures are issued by companies to raise funds that could be used for either capital expansion or working capital needs. Debentures usually have a coupon payment. It means that as an investor you will […]

The international bond market presents a compelling opportunity for various entities seeking to raise funds for specific foreign projects. Firstly, the international bond market provides access to a potentially vast and diverse investor base, expanding the pool of potential funding sources. This broader reach can enhance the likelihood of securing financing for projects that may […]

Introduction Investment is an essential aspect of long-term wealth creation. However, not everyone has the risk appetite for investing in equity and other market instruments. When it comes to secure investment avenues, fixed deposits are a popular choice but do not always yield inflation-beating returns. For risk-averse investors, Public Sector Undertaking Bonds (PSU Bonds) offer an […]

Introduction The Government borrows funds from the public to finance its various economic and developmental activities. This borrowing takes the form of bonds. The Government issues bonds to the public at a guaranteed interest rate. When the public invests in these bonds, they lend money to the government and earn guaranteed investment returns. There are […]

Introduction Behavioral finance studies how psychological factors influence people’s decisions and behaviors in the financial markets. It recognizes that people often make irrational decisions based on emotions, biases and psychological factors. One significant bias in this context is availability bias, where decisions are based on the most easily available or memorable information rather than all […]

Introduction If you’ve ever skimmed through a bond’s term sheet, you may have encountered something like this: “Unsecured, Rated, Listed, Government Guaranteed, Redeemable, Taxable Non-Convertible Debentures in the nature of Bonds to be issued in the form of Separately Transferable Redeemable Principal Parts (STRPP)”. While this might seem like dense financial jargon, it’s essential to […]

In one of the previous articles, we learned about how the government issues g-secs to fulfill its fiscal requirements. Similarly, state governments issue bonds, commonly known as State Development Loans (SDLs), to meet their budgetary needs. State development loans are debt instruments issued by state governments in India to fund its developmental activities. In the […]

Introduction Tax-free bonds are the only fixed-income form with no associated tax liability on the interest earned. You can invest in tax-free bonds and keep 100% of the interest you receive each year. In India, the government or any public sector undertaking can issue tax-free bonds to the public. These bonds are a safe choice […]

A bond can be viewed as a debt security issued by a company or governments to finance their capital expenditures and fund growth projects. Simply put, it is a form of loan taken by corporations or governments.  Bonds usually offer regular and fixed returns, which make them one of the most stable investment options in […]