LIQUIDITY RISK
Gold, Silver, Stocks: Why Bonds Deserve a Place on Your Dhanteras Shopping List
Traditionally, investors have turned to gold and silver on Dhanteras, but this trend is shifting. Recent fluctuations in these precious metals and stock equities have raised apprehensions over their reliability. Bonds present a viable alternative with their assured returns and steady interest payouts, offering stability amid market volatility. By including bonds in their investment strategy, individuals can ensure they meet their financial requirements without rushing to liquidate assets.
How Indian investors’ portfolios are changing: From property and gold to SIPs and ETFs
Indian households are re-evaluating their asset allocations as gold holdings rise and equity investments remain stable. Recent data reveals a significant increase in household wealth, particularly in gold and real estate. Households are moving from traditional savings to market investments, notably through systematic investment plans. Meanwhile, financial behaviors are changing, with more monthly contributions being made to equities.
China stocks edge higher as reports of market support lift sentiment
China’s stock market edged higher after reports that regulators would discuss measures to support capital markets. However, concerns over state-backed Zhuhai Huafa Group’s liquidity continued to weigh on related stocks and bond funds.
China's central bank sets up non-bank financial institution bond market swap facility
China's central bank has introduced the Bond Market NBFI Swap Facility as of Monday. This initiative is designed to stabilize the bond market amid potential systemic stress or liquidity issues. Bank wealth management subsidiaries and public fund managers will gain access to central bank bills, enabling them to finance the purchase of qualifying bonds or units facing redemption, which can be pledged for central bank support.
ETMarkets Smart Talk| Redirect fresh SIPs to largecaps if mid and smallcaps dominate your portfolio: Pradeep Gupta
Pradeep Gupta, Chairman & MD, Anand Rathi Share and Stock Brokers Limited, explains why largecaps offer greater valuation comfort, how investors should rebalance their equity portfolios, and which sectors could create the next generation of wealth creators in India's mid- and smallcap space.
Rs 1 lakh crore is chasing small & midcaps, but largecaps have the valuation. Where are India’s next multibaggers hiding?
This year, over Rs 1 lakh crore has been funneled into small and midcap funds, reflecting a surge in investor enthusiasm. While smallcaps have recently taken the lead over largecaps, the latter are drawing attention due to attractive valuations. As growth expectations for largecaps are evening out, it indicates a possible shift in investment returns.
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SEBI Credit Risk-o-Meter for bonds: How the new colour-coded system will help investors assess risk
Sebi has mandated a new colour-coded Credit Risk-o-Meter for all debt securities. This tool aims to provide transparent risk assessment to investors prior to investments. It categorizes risk levels with distinct colors representing credit ratings. Additionally, issuers must comply with standardized disclosures regarding unsecured bonds. This initiative is expected to enhance investor understanding and facilitate informed decision-making in the bond market.
India has gone from half-full to half-empty. That's excessive: Vincent Mortier, Group CIO, Amundi
Vincent Mortier, the chief investment officer of Amundi, reflects on the current state of Indian equities. He believes the recent decline in the market is a temporary issue related to negative narratives. Mortier identifies several potential catalysts for investment in India, including geopolitical resolutions and currency stabilization. He also discusses the intricate capital gains tax system affecting foreign investors' participation.
Anthem Biosciences block deal: Portsmouth Technologies sells 30 lakh shares worth Rs 250 crore
Portsmouth Technologies LLC executed a block deal selling 30 lakh shares of Anthem Biosciences on October 9. The shares were sold at Rs 833 each, totaling Rs 249.90 crore. Following this transaction, Portsmouth's estimated stake in the company would decrease significantly. Anthem Biosciences reported a decline in total income and profit after tax for the first quarter of FY27.
Half of India’s MTF book is in smallcaps; Nithin Kamath flags liquidity risks
Zerodha founder Nithin Kamath warned that small and microcap stocks account for a substantial share of India’s margin trading facility book. He highlighted liquidity risks during market downturns, when smaller stocks may face sharper selling pressure.
Bitcoin near $83,900, Ethereum around $2,680 as crypto markets consolidate: Here is what experts say
Bitcoin consolidated near $83,900 while Ethereum traded around $2,680 as crypto markets experienced macro-driven risk-off pressure. Experts cite rising US Treasury yields, high crude oil prices, and profit-taking for the pullback, while noting strong institutional ETF inflows and key support levels holding steady across major tokens.
NFO Insight: WOC Diversified Equity Small Cap Active FoF NFO opens for subscription. How is it different from a smallcap fund?
WhiteOak Capital Mutual Fund has launched an innovative Fund of Funds that focuses on small-cap mutual funds. This initiative seeks to achieve long-term capital growth by diversifying investments across a variety of active small-cap funds. Skilled fund managers will oversee the portfolio, adjusting investments according to performance and risk dynamics.
ETMarkets Smart Talk: RBI may hike 50-75 bps; Archit Shah on what’s next for bonds
Archit Shah, CIO at Zurich Kotak General Insurance, expects the RBI to hike repo rates by 50-75 bps towards 5.75-6% if inflation, crude, and global yields remain under pressure. Advising patience on duration, Shah recommends carry and roll-down strategies while navigating rising correlation and liquidity risks in portfolios.
ETMarkets Smart Talk| STT, GST, brokerage, UPI charges: Varun Saboo on the hidden cost of frequent trading
In this episode of ETMarkets Smart Talk, Varun Saboo, Head – Equities at Anand Rathi Share and Stock Brokers, breaks down the hidden cost of frequent trading, explains why the impact differs sharply between long-term investors and active traders, and shares what investors should keep in mind when evaluating returns after transaction costs.
ETMarkets Smart Talk | From Anthropic to SpaceX: Mehul Vora on AI valuations, IPO hype and investor risks
The excitement around AI and high-profile IPOs is undeniable—but the bigger question is whether valuations are being driven by current business economics or expectations of what these companies could become five or ten years from now.
Credit where credit's due: India's tokenised bonds must now open the door to global capital
India's pilot tokenised bond issuance successfully settled transactions on a distributed ledger. This innovation improved issuance efficiency and removed settlement risks for domestic investors. Tokenisation offers potential for broader foreign capital access to Indian credit markets. Global investors could hold Indian assets alongside other international debt instruments. This upgrade aims to integrate Indian credit into global capital workflows.
Oh, Let’s Look Beyond AAA: A new market-making framework could make lower-rated corporate bonds more investible
India's financial landscape is undergoing significant transformation with innovative tokenisation efforts. A new regulatory framework is being proposed to enhance the liquidity of corporate bonds. Issues of ₹200 crore and above, rated AA or lower, will benefit from market makers' participation. This initiative aims to establish a robust two-way market, thereby improving liquidity, lowering borrowing costs, and broadening investor options.
Indian property is an NRI favourite—but is it the smartest way to build wealth?
For years, buying a home in India has been almost synonymous with investing for many Non-Resident Indians (NRIs). A flat in Mumbai, Delhi, Bengaluru or another major city has represented not just an investment, but also a tangible connection to the country they left behind.
Understanding futures grid trading and the risks of automated strategies
Futures grid trading presents a methodical way to navigate the unpredictable terrain of crypto markets. By segmenting price ranges into distinct levels for execution, this automated strategy enables traders to efficiently adjust to market dynamics without needing to constantly monitor activities. Nevertheless, the use of leverage and susceptibility to market disruptions introduce important risks; thus, selecting appropriate parameters and applying diligent risk management is essential for effective grid trading.
Liquidity management, asset quality among pillars for NBFC growth: RBI DG
RBI deputy governor Murmu highlighted five key areas for NBFCs and HFCs. These companies must focus on governance and liquidity management for sustainable growth. Asset quality and customer protection are also crucial for the sector's stability. Digital transformation and robust cybersecurity are essential for future operations. The regulator aims for proportional regulation and financial stability to support growth.
US Treasury yields are rising — Why does it matter?
Rising U.S. government bond yields are driving up borrowing costs across the board, directly affecting households, businesses, and government finances. Higher rates on mortgages and auto loans can dampen consumer spending and disrupt the housing market. Furthermore, companies will grapple with increased costs for new debt and projects, while global markets experience repercussions as U.S. Treasuries influence pricing worldwide.
India bonds wobble as supply, RBI cash-drain risks loom
On Thursday, investor appetite for Indian government bonds dwindled amidst fears of increased supply and concerns over RBI's liquidity stance. The results from the treasury bill auction reflected weak demand, driving yields upward. Speculation is building that the Reserve Bank of India may take steps to curtail excess liquidity, preparing for possible policy adjustments as inflationary pressures rise. Market analysts predict interest rate hikes within the next year.
Citi, HSBC, StanChart adopt Ant International's forex AI tool
The Singapore-based fintech giant rolled out its Falcon Time-Series Transformer Model 2.0 and has partnered with six large banks including Citi, HSBC, Deutsche Bank, Standard Chartered, and Barclays, according to Kelvin Li, the firm's general manager of platform tech.
Liquidity risk bigger for NBFCs than asset quality, capital: RBI FSR
Under a baseline scenario projected for one year ahead, based on assumptions of business continuing under usual conditions the gross non performing asset (GNPA) ratio is assessed at 4.1% up from 3.4% in March 2023 with capital adequacy ratio (CAR) at 24.4% down slightly from 25% in March 2023.
US regulators warn banks to be on alert for crypto-related liquidity risks
In a joint statement issued Thursday, the Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency said banks should have robust tools in place to monitor funds placed by crypto-asset related entities.
RBI revises liquidity risk management guidelines for NBFCs
The NBFCs should adopt liquidity risk monitoring tools/metrics in order to capture strains in liquidity position.
5 things you should know about liquidity risk in investments
Liquidity risk means that it is difficult to sell an investment when desired, or it has to be sold below its fair value.
S&P downgrades Amtek Global on liquidity risks at parent company
Standard & Poor's has cut the long term credit rating of Amtek Global, reflecting the "heightened liquidity risks" at its parent company Amtek Auto.
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