Yesterday a simple question in the parliment made Icici bank scrip lose about 10% of its value – and recovered 5%. What really happened is a simple accounting necessity for marking down the investment. Let us take an example, I have “bought” a CDO (collatarised debt obligation)- this is a bunch of borrowers of a bank securitised […]
When markets fall, Price Earning ratios correct. Including the PE ratios of candidates who attend job interviews! Already one is hearing about a big broking firm closing down 100 branches. I have lost track of how many branches they have, so this is an absolute number and not a relative number. What it means is […]
A senior executive from a leading private sector bank met up for lunch. One of the topics that came up was “Will gold prices go up?”. He immediately said, YES, it will shoot up if we sell more gold. Intrigued, I asked him to explain. He told me a story of one PYT that the […]