SoftBank Mobile IPO: 30B planned largest listing

SoftBank Group Corp, known for its  $110B dollar fund, led by charismatic Masayoshi Son, is planning to come out with the largest IPO in the history for its wireless company. Masayoshi is a visionary who as an investor funded Alibaba. I saw his interview at the David Rubenstein show and had shared it with my father a few months back. Found the interview to be very thought provoking, inspiring and at times funny.

Aadhaar Inclusion and Causality Inference

According to a report published today in Economic Times, 92% of the population in India (based on 2018 consensus) with nearly all adults barring 3.5 million have an Aadhaar card. This is a phenomenal achievement in bringing underprivileged people for social and financial inclusion. Aadhaar card’s unique identification number will soon work as a social security number for the population. Making aadhaar card essential for all monetary dealings ultimately aids in widening tax bracket. Over a period of time, casual inference using multivariate analysis will help in measuring the social impact of aadhaar inclusion.

Coming to multivariate analysis which is correlation analysis using multiple variables to measure causality. Although Random Control Trial (RCT) is the gold standard to measure causality between two randomly selected samples sizes i.e. control group and treatment group,  in this case, it will not be possible to make two groups randomly selected i.e. two groups with very similar demographic profile randomly selected, one sample without aadhaar card and one sample with aadhaar card. However, a time series data of the population over a decade before and after aadhaar implementation might lead to useful insights. This form of statistical analysis is not a form of RCT analysis.  Continue reading

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


One for FIFA World Cup

FIFA World Cup starts on 14 of this month. According to FIFA, 44% of world’s population watched at least one minute of soccer during the last world cup. Not sure how the statistics i.e. the sampling worked out for this figure but the biggest sporting spectacle would start in two days.

One for Science

Electrical charge can neither be created or destroyed.

Energy can neither be created or destroyed.

There are four fundamental forces in nature: Gravity, Electromagnetism, The Strong Force and The Weak Force.