When Interest rates go down, bond prices go up. Almost all MBA students will tell you this. However many of them will be parrotting this without understanding what this means. Let us see what actually happens. When Interest rates go up, ASSET prices go down. This is the originally correct statement. Why and how does […]
Predicting is risky, especially if it is about the future. – Anon I said Anon because too many people have attributed it to Mark Twain, Oscar Wilde, etc. And the truth is, I do not know who said this, but it is an awesome statement. Having said that let me predict certain things that will […]
The government keeps talking about Inflation Indexed bonds – we are not clear when it will come. We have no clue as to how it will be structured in India. However this is how it should work if they do a cut and paste from the US – TIPS is the US product. Principally this […]