Fixed Income

Securities
By: Archit Bhatt BMS 2065
Aunshree Gaikwad BMS 2073
Sharon Saldanha BMS 2093
PUBLIC
SECTOR
 ISSUERS INSTRUMENTS INVESTORS

Government Corporates
Govt. Agencies &
Statutory bodies guaranteed and Pension
bonds funds

Foreign institutional
Public Sector PSUs PSU Bonds, investor
Debentures, CP

Commercial
banks / Certificat
Development
financial institution e of Banks
(DFI) Deposit
 Introduction to Public Sector
➜ The part of the economy.

➜ Provide services that a non- payer.

➜ Public enterprises or state owned enterprises are self- financing

commercial enterprises.

➜ Organization is not a part of public sector.

 INVESTOR
ISSUER
➜ An investor is any
person or other entity
➜ An issuer is a legal
who commits capital
entity that develops,
with the expectation of
registers and sells
receiving financial
securities to finance
returns.
its operations.
➜ Investors may also be
➜ Issuers make
oriented toward either
available securities
growth or value
such as equity shares,
strategies.
bonds, and warrants.
 INSTRUMENTS
* GOVERNMENT GUARANTEED BONDS:

*> The repayment of the principal amount and interest if the issuer defaults.

*> Helps the issuer to raise capital and provide security to the investors.

*> The interest paid on government guaranteed bonds is 2.50%.

* COMMERCIAL PAPER:

*> A short- term unsecured debt obligation .

*> Fixed interest rate.

*> Denomination and the size.

* PSU BONDS:
*> Medium or long term debt.
*> Owned and managed by the government.
*> High interest rate than fixed deposits.

* CERTIFICATE OF DEPOSIT:
*> offered by banks and credit unions.
*> It is more safe and more conservative investment than stocks
and bonds.
*> Time duration to issue.
* DEBENTURES :
*> Used by a lender.
*> It is unsecured by collateral.
*> Issue debentures to raise the capital.
*> Converted into equity shares.
THANK
YOU !