Fin-tech World Report: CapGemini

Check out the new world fin-tech report by Capgemini. Capgemini, is a world leader in  financial and technology consulting and yearly publishes the prestigious fin-tech report.  The report can be downloaded on Capgemini’s website.

The Innovative Finance Revolution: Private Capital for the Public Good (Foreign Affairs Special Edition)

Foreign-Affairs-Inn-Fin-cover-440x367.jpgThe Innovative Finance Revolution is one of the best reports on innovation in social finance. Social finance was evolved over the years and with philanthropy and corporate social responsibility evolving through evidence-based social impact, attracting private capital has been imperative for sustainable work in the social sector. I read this report while I was in Seattle and found it to be one of the most comprehensive reports on different projects and modes of financing used by various foundations, multilateral organizations and nonprofits in implementing sustainable social projects in emerging and poor economies or sustainable infrastructure projects in Americas. From social impact bonds, green bonds to vaccine immunization bonds, report chronicles articles by leading experts and practitioners in developmental finance. UN estimates $50 to $70 tr of capital to implement Sustainable Development Goals over the next 25 years, a huge task which can only be achieved by attracting private capital. Rockefeller Foundation is the world’s leading foundation and a bellwether in innovating impact capital in philanthropy. To achieve UN Sustainable Development Goals, a gap of approx. $2.5 tr annual funding gap is required from the $200 tr pool of private capital. Continue reading “The Innovative Finance Revolution: Private Capital for the Public Good (Foreign Affairs Special Edition)”

Winning Strategies For Parents: Do you have one…

winning-strategies-for-parents-original-imaf6bbz59zcpyzkI have known Gayatri for sometime and when I came  to know about her new book, titled Winning Strategies For Parents, I knew I had to read it although I am a bachelor. To begin with, Winning Strategies For Parents , is a very detailed, insightful, comprehensive and hands on work on parenting your children until preschool.
Gayatri is brilliant in her research and her book, serves as a primer for parents in guiding them through the nuances of child’s development.  I learnt different preschool philosophies governing children and the role they play in transforming children over the years. Born and bred on Montessori pedagogy as a preschooler, the book gives an excellent overview of other philosophies esp. importance of music and art in Waldorf teachings while the emphasis on parental involvement in Reggio Emilia. Its heartening to know that many preschool philosophies encourage creativity and collaboration right from the preschool stage which leads to a more holistic development of an individual as compared to philosophies which encourage undue peer competition. The book is serious read and best be read over a period of few days to in-digest the plethora of qualitative information on child’s development.
Gayatri, artistically articulates journey of child’s development with key milestones, obstacles and proposes profound strategies to overcome bottlenecks for a win win relationship between children, parents and education system.”

Book reviews coming soon…

downloadI am presently reading, The End of Poverty by Jeffrey Sachs which includes a foreword by Bono, one of the greatest musicians of our time. From I still haven’t found what I am looking for to Staring at the Sun, Bono of U2 group is a quintessential pop and rock musician, known among other things to be a great philanthropist and humanitarian.The End of Poverty gives an in-depth analysis of the various factors that led countries on different paths to prosperity and poverty. Jeffrey Sachs, an imminent development economist, shares both practical and pragmatic overview of international development and policies pursued in eradicating poverty. A detailed review would also come up. The other book which deals with eradicating poverty and on my reading list is Banker To The Poor, by Muhammad Yunus of Grameen Bank. Dr. Yunus, a Nobel Peace Prize laureate, revolutionized micro-finance in Bangladesh and is known as father of modern micro-finance.  Continue reading “Book reviews coming soon…”

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 “Aadhaar Inclusion and Causality Inference”

Articles Ahead

I will resume writing again after a break for sometime now. An article on Fed rates is pending which will give a good overview on importance of Fed rates and how Fed manages fed rate.

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