Bonds

Bonds - Both Government and Corporate

Inverted CD Yield Curve

Quick post about CD yields today. CDs are Certificates of Deposit, trade in the fixed income markets at sizes of a crore or more, and are issued by banks. Think of them as big fixed deposits. This data is for 29 March 2011.

CD Yields 29 March 2011

SBI Bond Yield Calculator

SBI's four bonds listed today. First question: Why are there four bonds? Well, each of the two types - 10 and 15 years - had two options: for retail (individuals, 5 lakhs or less) and the rest.

Also see: "SBI Will Sell Bonds at 9.95%"

 

HDFC Bk and ICICI Raise Rates, CDs quoting at 10%+

HDFC Bank and ICICI Bank have both hiked up lending rates by about 50 bps, says ET. This takes ICICI's base rate to 8.25% and HDFC Bank's base rate to 8.2%. Banks can't lend below the base rate. Most existing customer loans are linked to a "Benchmark Prime Lending Rate" (BPLR) which has also been raised appropriately.

The commercial paper (CP) and Certificates of Deposit (CD) markets seem to have gone berserk; government owned bank CDs are trading above 10% yields.

SBI Will Sell Bonds at 9.95%

State Bank of India has a new bond issue out (Shelf Prospectus).

Size: Upto 10,000 crores from retail, but official issue size is 2,000 crores.
Listed: Yes, on the NSE/BSE.
Interest rates:

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9.95% for retail on the 15 year bonds, and 9.75% for retail on the 10 years.

Short Takes: What are Bond Yields?

When they say "The 10 year bond is at 8.19%" what do they really mean? Deepak Shenoy takes you through:

(Watch the Short Take, 9 Minutes)

  • The ultra basics of bonds
  • The concept of Yields - it's simply a way to indicate what bonds return.
  • Current Yields and Yield to Maturity (YTM)
  • The Price, Yield/YTM and Time relation
  • How to use Excel to calculate Yields
  • Why Yields and Prices change in the Bond Market.

What are Bond Yields?

Learn about the term "Bond Yield". When they say "The 10 year bond is at 8.19%" what do they really mean? Deepak Shenoy takes you through:

  • The ultra basics of bonds
  • The concept of Yields - it's simply a way to indicate what bonds return.
  • Current Yields and Yield to Maturity (YTM)
  • The Price, Yield/YTM and Time relation
  • How to use Excel to calculate Yields
  • Why Yields and Prices change in the Bond Market.

(9 Minutes)