FIXED INCOME TRADING

The clearing corporation of India Limited (CCIL) is a leading electronic securities clearing corporation in India. It is a wholly-owned subsidiary of the National Stock Exchange Limited (NSE). Key Features: Benefits: Challenges: Overall, the Clearing Corporation of India Limited (CCIL) is a key infrastructure company in the Indian stock market, providing a centralized and efficient […]

Riding the Yield Curve The yield curve is a graphical representation that plots the interest rates on various maturities of a country’s government securities. It is a powerful tool used by investors to gauge the overall health of the economy and to make investment decisions. Key Concepts: Yield: The return on an investment, typically measured […]

Fixed-Income Trading Fixed-income trading is a type of investment trading that involves the purchase and sale of debt securities, such as bonds, Treasury bills, and mortgages. These securities are considered to be less volatile than stocks, but also offer lower returns. Key Participants in Fixed-Income Trading: Retail investors: Individuals who invest their savings in fixed-income […]

A negative bond yield occurs when the interest rate on a bond is lower than the inflation rate. This means that the bond is not providing enough return to compensate investors for the inflationary erosion of the purchasing power of the money they are investing. Here are the key points to know about negative bond […]

Normal Yield Curve A normal yield curve is a term used in finance to describe an interest rate curve that follows the general trend of increasing interest rates from short-term to long-term securities. Characteristics of a Normal Yield Curve: Ascending: Interest rates rise from left to right, starting with short-term rates and increasing to long-term […]

Asset-Backed Commercial Paper (ABCP) Asset-backed commercial paper (ABCP) is a type of asset-backed security that is backed by a specific pool of assets, such as accounts receivable, inventory, or other debt obligations. How ABCP Works: Borrower submits a request: A company, known as the borrower, submits a request for ABCP funding to a bank or […]

A non-marketable security is a type of security that cannot be easily traded on a public market. This is because the security does not have a readily available market, or the trading volume of the security is so low that it is not commercially feasible to trade. Examples of non-marketable securities: Private company securities Company […]