Understanding Bond Trades with Analytics

Mr. Borbon, aged 58 was associated with WIPRO for last 25 years and was currently working as
VP (Marketing). WIPRO had been like a second home to Mr. Borbon given the long association
and an emotional attachment in his heart towards the culture and other employees. Mr.
Borbon was expected to retire by next year, i.e. on 30th November 2021.

But as we have seen in Indian Cinema, no Ending is happy without a climax. In Borbon’s story,
Climax was Corona Virus, i.e., Covid-19 which was increasing in India with each passing day and
increasing uncertainty with respect to jobs, as Government of India has declared Lockdown
amid rising cases of Covid-19, many corporates were not able to pay of fixed & employee costs,
since there was no or low revenue due to curtail of activities in lockdown.

With this growing uncertainty, HR Management of WIPRO has launched Voluntary retirement
Scheme(VRS) for employees with hope that it will reduce pressure on high employee cost and
would gave them an opportunity of faster recovery in coming quarters. From the point of view
of Employees, they can seem it as an opportunity to get relief early from the day-to-day
responsibility and spend precious time with their family without any outside worries. Mr.
Borbon thought about going in for this or not for a while and later decided to opt for the VRS
scheme. He was offered huge amount as part of Gratuity and Provident as per Indian Law.

Now Mr. Borbon was about to retire in next 2 weeks. Now he started worrying about the
uncertainty of cash flow for monthly household expenses, paying college fee for his children,
etc.
He thought of making some investment, so as to have a regular income to sustain monthly
household requirement of money and etc, with another objective of leaving behind huge cash
for his children’s .

He is aware about some investment option which he was already doing like- Savings account,
Fixed Deposit and Recurring Deposits with banks, but he knew his objective of regular income
will not be meet. During his tenure at WIPRO he came across various people of diverse domain-
some were analytics, operations, product division and some financial expert. He thought of
getting in touch with some of his contacts who has expertise in fiancé so as to get better
understanding of things and various instruments available in market that could meet his
objective of regular income as well conservation of cash for his children.

The case has been prepared by Group 9 of Section-B of Batch 10 (PGP19-21) pursuing Business Analytics
Class from Indian Institute of Management, Rohtak. The whole right of using this case is reserved with
members of Group 9 and a legal action would be taken up on those who are using this case without
proper citation and prior approval from group member(s).
He recalled a person named, Mr. Unknown who was working with one of the biggest
investment advisor company in India, named ABC Advisors Pvt. Ltd. Mr. Borbon got in touch
with him and explained about his situation and objectives. Mr. Unknown then told him about
the Bonds (investment instrument / securities) which will help him in meeting both his
objective, i.e. having regular income and conservation of money invested. He explained to him
that in Bonds you deposit an amount and you receive an interest on the Face Value of Bond
over it’s tenor (in years to maturity of that instrument) and giving back principal amounted
invested to Mr Borbon or to his children’s in case he is dead prior to maturity of bonds.

As his advisor, now you have the data for bonds traded in last 2 months and you have to explain
through analytics recent developments in Bond market and its reasons in order to make him
better equip to make informed decision.

The case has been prepared by Group 9 of Section-B of Batch 10 (PGP19-21) pursuing Business Analytics
Class from Indian Institute of Management, Rohtak. The whole right of using this case is reserved with
members of Group 9 and a legal action would be taken up on those who are using this case without
proper citation and prior approval from group member(s).