Posted at 12:25 PM , on April 22, 2019
Fixed maturity plans (FMPs) came under a cloud in the last few weeks after leading AMCs admitted to their inability to honor their FMP commitments. The reason was a huge exposure to the Essel Group, which is owned by Subhash Chandra of the Zee Group. The Essel group had made some disastrous investments in infrastructure and most of it was irrecoverable. Chandra had sought time from the fund managers to redeem these bonds.
Posted at 12:21 PM , on April 22, 2019
Just around midnight on the 16th of April Jet announced temporary suspension of all its flights. That was a euphemism for a shutdown in operations due to paucity of funds with the airline. When the airline sent an SOS for an infusion of Rs.1000 crore and the bankers refused, it was clear that Jet Airways would have no option but to shut down.
Posted at 11:40 AM , on April 15, 2019
The government was almost celebrating when the full year fiscal deficit came in at the targeted rate of 3.4% of GDP. Of course, this is a revised target because the original target of 3.2% was modified in the interim budget. In a tough year, stemming fiscal deficit at 3.4% is surely no mean achievement but there is more to it than meets the eye. One must break up the revenue and expenditure side to get a granular picture.
Posted at 11:35 AM , on April 15, 2019
Most investors thought of fixed maturity plans (FMPs) as something that was absolutely safe. After all, they were debt securities and the funds were locked in so there was no maturity mismatch. Most Indian FMP investors were in for a rude shock when a couple of mutual funds unilaterally decided to extend the date of their FMP maturity by more than one year. The reason was that these funds had invested heavily in Zee group bonds and most of that had soured. What are the options now?
Posted at 11:27 AM , on April 15, 2019
The first phase of elections has taken off and the fate of 91 seats is sealed. Over the next 6 weeks, we will get to see 6 more phases of polling before the final results are announced on May 23rd. What exactly will drive the outcome of Elections 2019 this time around?