Fixed Income Market/Bonds/Debt Capital Market

Govt Companies issue bonds to private financial institutions and raise money in
exchange. The Bonds issued have a coupon rate at which the interest is paid at
the regular intervals.
The principal is returned upon completion of the tenure of the bond. The Bond
prices have an inverse relationship with the Interest Rates issued by RBI.
The Current Rate is 6.5% after a hike of 25bps
A normal 2% fluctuation is observed during volatile periods.
Factors Affecting the Bond Market:-
1. Inflation
2. Economic Growth
3. Global Liquidity
Interbank Broking
As Phronesis deals with it, the banks use it to manage their own exchange rate
and take on speculative positions.
Disadvantage – As it is not regulated the banks and therefore the banks will
collect data from the participants and impact economic stability.
According to BIS(Bank for International Settlement) the daily turnover of forex
capped at $7.5 trillion dollars.
The Currency market has a floating rate system with minimal government
intervention.
Talk about how excited you are to see the bird’s view and the Bloomberg
Terminal.