Bad bank- a lantern at the end of a Tunnel

Securitization is an aspect of asset reconstruction. The recent budget exuded a sense of amelioration by hinting at establishing a “Bad Bank @ Asset Reconstruction Company” Modus Operandi of an Asset Reconstruction Company (ARC) ARCs purchase bad loans at deep discounts. The bank transfers its right to receive interest, principal, collaterals et al to theContinue reading “Bad bank- a lantern at the end of a Tunnel”

Growth & inflation – two sides of the same coin

Liquidity in the economy is a double-edged sword. Policy makers stimulate growth, as well as arrest inflation using it. The expected results are to be achieved by sustaining the abundance / crunch in liquidity. The initiative starts with printing more currency notes; bond buybacks & Long-Term Repo Operations (LTRO) are frequently used methods to infuseContinue reading “Growth & inflation – two sides of the same coin”

Deceptive prominence of annualised yield

Have you come across “annualised yield” in FD (Fixed deposit) advertisements? A granular search for the term would make you find it, at the bottom of the notice, printed in miniature font. Lets’ ponder on what is deceiving with the term’s usage in advertisements. Annualised Yield draws its foundation from the concept of compounding. So,Continue reading “Deceptive prominence of annualised yield”

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