Module on Structured Products

The first module I published on my blog was on Structured Products. Globally, structured products form an important part of asset allocation and portfolio management. It also a very good way of taking exposures across various asset classes ranging from forex, commodities, equities, interest rates etc. Digital options form an important part of some of the products detailed here. Digital options are binary options i.e. the payout would be zero or predetermined as defined in the investment mandate.

The presentation which was first published in 2015 on this blog, details brief outline on structured products, different types of structured notes, range accrual plans, knout out structured notes and valuation of a NIFTY equity lined structured note.

Check out this link

https://themiddleroad.org/knowledge-tutorials-presentations/

 

Fed Hikes Rate

Federal Reserve today raised the US Fed Fund rates and the rate will range between 1.75% to 2%. Fed rate decides mortgage,  credit card, student loan rates among others. The rates are now close to pre-credit crisis levels. This was widely anticipated, so let’s look at what Fed rate means and Federal Reserve manages to keep the rates with a tight band.

What is dirty float?

Coming up an article on the dirty float not to be confused with Dirty Dancing. Dirty float here alludes to currency intervention by central banks to stabilize currency within a band. This policy is followed by many countries including India.  This term came up during the recent trade rhetoric and have thought about writing a bit on this subject for some time and with this, we come to a concept of Impossible Trinity

Rise of Impact Investing in India

Impact investing in India is the largest in South Asia and second in the world according to a report published in May 2016, titled A decade of impact investing in India. Impact investing or impact capital’s mission is to create a positive social impact related to social or environmental cause along with a financial return. Impact capital has a dual goal, blended, between social (first priority)  and financial return. Continue reading

Jack Ma, Rise of Digital Payments, China, India and Paytm

Ant Financial backed by Jack Ma of Alibaba fame was recently valued at $150bn in a venture capital round, making it one of the most exciting and creative fintech start-up companies in the world. Ant Financial owns Ali Pay, one of China’s largest payment platform. According to an article published in Seeking Alpha, China leads in mobile payments with estimates at $5.5tr and strides over any other country in the world. Jack Ma is also one of the biggest philanthropists in the world and a bellwether philanthropic entrepreneur icon for China.  Continue reading