ECB, Loan & Bonds
Explore Insights on ECB, Loans & Bonds
Understanding SORA Outlook and Hedging Strategies: A Forecast for Singapore’s Interest Rate
Understanding SORA Outlook and Hedging Strategies: A Forecast for Singapore's Interest RatePublished on: 28th February 2023The Singapore Overnight Rate Average(SORA) is an interest rate benchmark that reflects the average rate at which banks in Singapore borrow funds overnight from one another. It...
India GSEC Curve Dynamics
India GSEC Curve DynamicsPublished on: 1st December 2022 By Srinivas Puni • Yields of different tenors typically have different triggering factors – short term yields are governed by the RBI rate action and the related expectations (say up to 2y or so) and bond yields move based on the demand...
India’s Inclusion in Global Bond Indices
India’s Inclusion in Global Bond Indices Updated on: 10th May 2022 The Indian bond market which is estimated to have a size of around USD 1 trillion is a major emerging economy in the world but has absolutely no presence in any of the global bond indices. Moreover, only about 2% of Indian...
ECB Hedging
ECB HedgingUpdated on: 3rd May 2022 ECB stands for External Commercial Borrowings (ECB). ECB helps Indian corporations to raise funds from overseas lenders/foreign branches of Indian banks. ECB includes commercial bank loans, notes, bonds, debentures (not fully and compulsorily convertible),...
Long Term ECB Loan Hedging Cost
ECB & its Regulations and Long Term Hedge Costs Written by QuantArt MarketForex Hedging | 10 min ReadUpdated on : 11th April 2022What is External Commercial Borrowing? External Commercial Borrowing (ECB) is a type of loan availed by Indian companies in which they raise funds outside of India...
Managing Fx risk on Masala Bond Investment
Managing Fx risk on Masala Bond InvestmentForex Hedging Published on: 14th December 2020Updated on: 22nd January 2021Search for good USD yield is on given the abundant liquidity and near-zero deposit rates in the US. Masala Bonds or in other words INR bonds listed overseas where coupons are paid...
Correlations between Bonds and Stocks: The Seen and the Unseen
Correlations between Bonds and Stocks: The Seen and the UnseenWritten by QuantArt MarketForex Hedging | 02 min ReadMost people use statistics as a drunken man uses lamp-post, for support rather than for illumination” - Andrew Lang, 19th-century Scottish poetOur brains have been evolved to prefer...
Is it possible to get a 10% return in the Indian bond market
Is it possible to get a 10% return in the Indian bond marketForex Hedging | Uploaded on: 1st February 2021Under the current scenario in the Indian banking system, Fixed Deposit rates vary between 3% and 7%. It is quite obvious that FD rates have collapsed. This means that Fixed Income investment...
FAQs on ECB Hedge Regulation
FAQs on ECB (External Commercial Borrowings) hedge regulationForex Hedging | Updated on: 1st November 2021Q. Is hedging of FCY (foreign currency) denominated ECB, mandatory for a manufacturing company? A. No Q. Is hedging of FCY denominated ECB, mandatory for an infrastructure space company? A. If...
RBI LIBERALISATION ON ECB END-USE NORMS
RBI LIBERALISATION ON ECB END-USE NORMSOn July 30 2019, The Reserve Bank of India relaxed the end-use stipulations under ECB guidelines for corporates and NBFCs. It was a long pending demand by the industry to relax the end-use restrictions and allow ECBs for refinancing of rupee loans and funding...
ECB Hedging Guidelines and ECB Framework
ECB Guidelines and ECB Framework Written by QuantArt MarketForex Hedging | 10 min ReadThe existing ECB guidelines can be seen as a rationalized and liberalized framework. RBI had started relaxing much-needed rules from 2018. The expanded list of eligible borrowers, Lower minimum average maturity...
LONG TERM USD LOAN HEDGING COST
Long term USD Hedging costWritten by QuantArt MarketForex Hedging | 10 min ReadIndian borrowers and bankers often need to understand the hedge cost of USD ECBs.Here we are listing down some common hedge costs which provide a fair idea to start with. If you have an ECB at USD 6MLibor + 200 bps the...
