Latest news with #EMBondIndex
Time of India
6 days ago
- Business
- Time of India
RBI to hold buyback auction of 3 G-Secs
Mumbai The government has announced buyback of three government securities worth ₹25,000 crore, the Reserve Bank of India said on Friday. This is the third buyback announcement in this financial year. The buyback auction of three government bonds-yielding 7.27%, 5.63% and 6.99%-all maturing in April 2026 will be held on July 17. Buybacks are a way for the government to pay off debt for next fiscal year to reduce its gross borrowing and manage fiscal deficit, according to bank treasury officials. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thao Dien: Repossessed Houses For Sale At Prices That May Surprise You Foreclosed Homes | Search ads Search Now Undo It also results in RBI infusing durable liquidity in the system. The previous two buyback auctions conducted in June had seen strong demand. The total notified amount was ₹51,000 crore, of which the RBI had accepted bids worth ₹49,600 crore across two auctions. Bonds Corner Powered By NSE, BSE issue advisory to bond investors. Here are 10 things to know BSE and NSE have jointly advised investors using online bond platforms to understand key concepts like Yield to Maturity, credit risks, and interest rate effects, as bond investments carry no guaranteed returns. The move comes amid rising popularity of OBPPs. The case for fixed-income investments: What Gen-Z investors should know Vedanta Resources dollar bonds see minor uptick JPMorgan considers cutting China, India share in EM Bond Index Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal Browse all Bonds News with
Time of India
7 days ago
- Business
- Time of India
NSE, BSE issue advisory to bond investors. Here are 10 things to know
Stock exchanges BSE and NSE on Friday issued an advisory to investors dealing with Online Bond Platform Providers (OBPPs) to explain to them the underlying features of bonds, risks and costs associated with such investments, in order to help them make informed decisions. In a joint press release issued today, the exchanges said that it is crucial to understand the concepts of the bond markets including the factors affecting the yield of the bonds. The release was issued amid a growing popularity of online bond platforms and easier access to investors to various fixed-income instruments. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Here's Why This 1 Day Garage Floor Coating Is Sweeping Texas Garage Flooring USA Learn More Undo 10 things to know: 1) Yield to Maturity (YTM): One of the most important concepts to understand is the YTM, which represents the total annualized return an investor can expect if the bond is held until its maturity. YTM takes into account the bond's current market price, its periodic coupon payments and the time remaining until maturity. Bonds Corner Powered By The case for fixed-income investments: What Gen-Z investors should know Fixed-income investments offer Gen-Z investors stability and predictable returns, complementing a diversified portfolio. Experts advise understanding risk, utilizing mutual funds, and timing investments based on interest rate cycles. With increased accessibility through platforms like Bond Central, young investors can leverage fixed income for financial growth, balancing risk with disciplined investing through SIPs to achieve long-term security. Vedanta Resources dollar bonds see minor uptick JPMorgan considers cutting China, India share in EM Bond Index Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal ETMarkets Smart Talk: Fixed income still has a place in FY26 - 15–20% allocation ideal for most, 70% for seniors, says Aamar Deo Singh Browse all Bonds News with 2) No guaranteed returns: It is important to note that YTM is not a guaranteed return. It can fluctuate based on factors such as changes in market interest rates, liquidity conditions, time to maturity, and the creditworthiness of the issuer. Live Events 3) If the bond is sold before maturity, the actual return may differ significantly from the indicated YTM. 4) Generally, when a bond's price is below its face value, its YTM is higher than its coupon rate, and vice versa. 5) The coupon rate of a bond refers to the fixed annual interest paid by the issuer, calculated as a percentage of the bond's face value. This provides regular income to investors, usually on a semi-annual or annual basis. 6) Risks: The payments by issuers are not risk-free. They are dependent on the financial health and credit reliability of the issuer. Any delay or default in payments can adversely affect investor returns. 7) Relationship between bond prices and yields: Bond prices and yields move in opposite directions. When interest rates in the market rise, bond prices fall, leading to higher yields, and when interest rates fall, bond prices increase, lowering the yield. This inverse relationship is fundamental to assessing interest rate risk and understanding potential price movements in the secondary market. 8) Impact of brokerage: Brokerage reversal or zero brokerage can have a direct impact on the YTM by lowering the overall cost of investment, thereby slightly enhancing the effective return. The final return should always be assessed after considering all associated costs, fees, and applicable taxes. 9) Before investing through any online bond platform, investors must take into account several important factors such as checking the bond's credit rating, the issuer's track record in timely repayments, the liquidity of the instrument, settlement timelines, and the tax implications of the investment. 10) It is crucial to verify that the platform is a SEBI-registered Online Bond Platform Provider (OBPP). Investors should carefully read platform disclaimers, understand the terms and conditions, and ensure that transactions are carried out through properly regulated and secure systems.
Time of India
10-07-2025
- Business
- Time of India
JPMorgan considers cutting China, India share in EM Bond Index
JPMorgan Chase & Co. is considering cutting the weight of the largest bond issuers in its flagship emerging-market index — including China and India — as it seeks to reflect a broader range of developing-nation debt. The Wall Street bank has been soliciting feedback from clients on amendments to its GBI-EM Global Diversified index, the benchmark for local-currency developing-nation debt that's tracked by more than $200 billion of funds, documents seen by Bloomberg show. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cheras: SUV Sale, Click Here to See Prices Luxury SUV Deals | Search Ads Search Now Undo One of the proposals envisages lowering a cap on individual countries from 10% to 8.5%, a move that could increase the average yield of the benchmark as nations with higher borrowing costs gain a bigger presence, according to the documents. While a loftier yield implies greater risks, it also means higher potential returns. Bonds Corner Powered By JPMorgan considers cutting China, India share in EM Bond Index JPMorgan is considering lowering the country cap in its GBI-EM index from 10% to 8.5%, potentially reducing China and India's weight while boosting smaller emerging markets. The proposal aims to diversify exposure and enhance index yield. Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal ETMarkets Smart Talk: Fixed income still has a place in FY26 - 15–20% allocation ideal for most, 70% for seniors, says Aamar Deo Singh India's Rs 50 lakh crore bond market grows, but retail investors still sit on the sidelines: Experts Adani Enterprises' Rs 500-crore NCD issue oversubscribed 3x Browse all Bonds News with The amendments are preliminary proposals, the documents show, and are not guaranteed to be adopted. In a consultation last year, JPMorgan initially floated a methodology change which would have resulted in China's index share falling to 6%, only to later withdraw the proposal. If the latest amendments are implemented, however, the weighting reductions would affect the largest bond sellers in emerging markets, including Indonesia, Mexico and Malaysia, as well as China and India, according to the documents. Brazil, South Africa, Poland and Colombia would be among the biggest beneficiaries, they show. Live Events Frontier Gauge JPMorgan is also previewing a new frontier local markets index, with $344 billion of debt across 521 bonds eligible, according to the documents. The new frontier gauge would cover 21 markets across 20 currencies. A spokesperson for JPMorgan declined to comment when contacted by Bloomberg. JPMorgan's index is the main benchmark for developing-nation debt funds and changes to its composition can affect global investment flows . Chinese bonds were phased into JPMorgan's indexes in 2020 while Indian debt was added last year. Bloomberg LP, the parent company of Bloomberg News, also offers index products for various asset classes through Bloomberg Index Services Ltd.
