#Essential
What Is A Fixed Income Instrument
The meaning of fixed income securities in financial markets is as simple as the definition of the word itself – you get a prescribed income from this which is mostly fixed (decided) at the time of investment and when held till maturity of the instrument. For those of us who are interested in receiving a […]
What Are Municipal Bonds?
Local governments issue municipal bonds to raise funds for public projects like schools, hospitals, bridges etc. Bonds are loans that an investor makes to issuers. On purchase of a bond, an investor receives regular pay-out of interest and the amount is redeemed when the bond matures. However, liquidity in muni markets is not that high […]
What Is A Perpetual Bond
Introduction Bonds can be issued by corporations or governments to serve as a source of financing. Those that buy bonds are effectively providing the issuers with a loan. In this case, the issuer promises the bond purchaser periodic interest payments in exchange for the loans. A bond’s maturity date is when your investment will be […]
Public and Private Placement of Bonds
Introduction Bonds are a great investment tool, both for investors looking to diversify their portfolio and for bond issuers as a way to raise funds. It is a loan that is given by you as an investor to the borrower. Bonds are a fixed income instrument that can be used by a company, governments, and […]
What is a State Government Guaranteed Bond?
In the realm of structured finance, credit enhancement is a term used to describe a set of techniques employed by financial institutions to reduce the credit risk associated with a particular transaction or asset. There are two types of credit enhancement: internal and external. External credit enhancement, particularly the credit enhancement guarantee, has gained popularity, […]
What is After Market Order (AMO)?
Imagine it’s late at night, and you’re finally relaxing after a long day. As you browse through financial news, you spot a promising bond opportunity. But the market is closed, and you’re left wondering if you’ll miss out by morning. If this sounds familiar, we have great news for you! IndiaBonds is excited to announce […]
What is Bond Yield?
Introduction Investors prefer having at least one debt-based investment to give their portfolio a hedge against equity market fluctuations. One such investment option, bonds, is considered a relatively safe form of investment. Investors who are slightly risk-averse and are satisfied by getting lower returns usually prefer bonds to those who prefer high returns with unknown […]
What is Clean Price and Dirty Price in Bonds?
Mr. Grover recently purchased a bond from a company. The bond promises to pay him a fixed amount of interest every six months, with payments due on the 30th of June and the 31st of December. He enjoys these regular payments and he’s also aware that he can sell the bond to another investor at […]
What is G-Sec and State Guaranteed Bond?
Generally, in a developing economy, the expenditure of the central government surpasses its earnings, resulting in an outflow of funds that exceeds the inflow, which is known as a fiscal deficit. To address this deficit, the central government can resort to two measures: printing notes or issuing government securities (borrowing money). However, consistently printing notes […]