Imagine a pyt comes to you and is selling you a complex currency and interest rate derivative. Your Director Finance and CFO do not understand the product after 3 rounds of explaining. So the pyt goes to a rating agency and gets a certificate saying this product is “Category B”. Now the ego of the […]

Read More →

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 […]

Read More →