Tag Archives: Bond

Can e-trading revitalize corporate bonds?

The mid-2013 stumble laid bare the corporate-bond market’s structural problems. Greater adoption of electronic trading may help if dealers and investors act now.

December 2013 | by Roger Rudisuli and Doran Schifter

See full report at

http://www.mckinsey.com/Insights/Financial_Services/Can_e-trading_revitalize_corporate_bonds?cid=other-eml-nsl-mip-mck-oth-1312

http://www.mckinsey.com/Insights/Financial_Services/~/media/mckinsey/dotcom/insights/financial%20services/can%20e-trading%20revitalize%20corporate%20bonds/corporate%20bond%20etrading%20%20same%20game%20new%20playing%20field.ashx

 

 

 

Indian Fixed Income or Equities: Know your onions!

The fixed income market is quintessential for the growth of the economy. They serve as one of the mediums for the government to raise money. In India the fixed income market has been attaining the depth as well as maturity over the years and the government securities play a dominating role.

The on-the-run 10 year fixed interest rate bond issued by the Reserve Bank of India is treated as the benchmark and serves as a reference point for pricing of the other bonds along a yield curve. The S&P BSE India 10 Year Sovereign Bond Index seeks to measure the performance of the benchmark security and can be considered as the bellwether index.

– See more at: http://www.indexologyblog.com/2014/01/23/indian-fixed-income-or-equities-know-your-onions

Defaulted Municipal Bonds Outperform!

Hard to fathom isn’t it!  With 2013 municipal bond default and bankruptcy headlines casting a dark cloud over the municipal bond market, defaulted bonds actually have been up.  The overall performance of defaulted municipal bonds during this time has been positive as the S&P Municipal Bond Defaulted Index has returned a positive 2.79% year to date.  Meanwhile, the investment grade tax-exempt market tracked in the S&P National AMT-Free Municipal Bond Index has seen a negative 2.85% return year to date. Sectors within the municipal bond market are each unique and have their own set of risks and that holds true for defaulted bonds.  Some of those sectors are down significantly. Healthcare related bonds in default have been down over 8% year to date and multifamily bonds down just under 5%.  These have been offset by a recovery of the distressed corporate backed municipal bond market of over 13% and land backed bonds in distress are up over 7.6%. The graphs and returns below detail the performance of several municipal bond sectors and the bonds markets in general.

Read full post at http://www.indexologyblog.com/2013/11/20/defaulted-municipal-bonds-outperform

 

Centralized Database for Corporate Bonds/Debentures – One more step by SEBI to develop Debt markets

“High Level Expert Committee on Corporate Bonds and Securitization” (“Dr. R.H. Patil Committee”) had recommended creation of “Centralized Database of information regarding Bonds”. While the information in respect of various bonds/debentures issued by issuers is available in a fragmented manner, it is felt that there is a need for having a comprehensive database on corporate bonds at a single place.
Considering the above, SEBI has issued a circular on “Centralized Database for Corporate Bonds/Debentures” on October 22, 2013. SEBI has mandated both the depositories viz. NSDL and CDSL to jointly create, host, maintain and disseminate the centralized database of corporate bonds/debentures. The depositories shall obtain requisite information regarding the bonds/debentures from Issuers, Stock Exchanges, Credit Rating Agencies and Debenture Trustees. The Database can be accessed by the public or any other users without paying any kind fees or charges.

The full text of the Circular is available on the website: http://www.sebi.gov.in

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1382441081969.pdf