India takes big step to internationalise the Rupee

[kaykay]

Rupee is just recovering good.
Rupee ends at over 2-month high | Business Standard

 

[Fattyacids]

And you have the gall to call others uneducated...

Gaining benchmark entry would increase forex inflows, causing ease in BOP situation which is the driver of credit status.

Economics 101, Demand increases value. S one member said, Rucking Fetards!!!

Gaining benchmark entry would attract more capital, theoretically it would strengthen the rupee. But only fools would think that is going stabilize your rupee. The weakness of rupee is mainly due to high inflation and import, unless these issues are addressed, you're not going to be able to attract more capital even if you're gain entry into the index. As these capitals are coming from savvy institutional investors, not your retail investors. LOL

 

[Jade]

You know, I know, high yield bond = junk bond. Higher yield indicates higher risk. Although not all investors are risk averse, buying into indian sovereign bond exposes you to forex risk. This additional risk is not priced into the bond yield. Considering the Fed is going to taper QE program soon, I doubt many investors would go for it unless Rajan can somewhat shore up the Rupee.

One good thing going for Rajan, incoming new Fed chairwoman, Janet Yellen, is a dove.

Investors don't invest in individual assets, but a portfolio of assets. Unlike investment grade bonds, high yield bond are not exactly correlated with other asset classes. This less than perfect correlation brings down the volatility of the total portfolio, hence if you examine portfolios of institutional investors you will observe high yield bonds always a part of their portfolio.

And you are wrong. Bond yields are dynamic. They change according to all the new information that market absorbs that also include currency risk. A heightened currency risk will effect the price of the bond, and a marginal investor makes a decision whether to buy a bond on return-risk characteristic of the bond on the said day and not on par value of the bond.

 

[Fattyacids]

Investors don't invest in individual assets, but a portfolio of assets. Unlike investment grade bonds, high yield bond are not exactly correlated with other asset classes. This less than perfect correlation brings down the volatility of the total portfolio, hence if you examine portfolios of institutional investors you will observe high yield bonds always a part of their portfolio.

And you are wrong. Bond yields are dynamic. They change according to all the new information that market absorbs that also include currency risk. A heightened currency risk will effect the price of the bond, and a marginal investor makes a decision whether to buy a bond on return-risk characteristic of the bond on the said day and not on par value of the bond.

Do not state the obvious. Which savvy investor put all eggs into one asset class?

Again, you're stating the obvious. Which asset classes are not dynamic? Bond yields are as dynamic as forex rate or commodity price. The forex risk I'm talking about is idiosyncratic to each sovereign country bond. If you want to buy Japanese govt bond, you'll have to first convert your USD to JPY, then you can buy the bond. Thereby exposing your investment to USD/JPY fluctuation. If the outlook of JPY is strong, all is good. If it is as gloom as rupee, investor thinking twice about investing in Japanese bond. simply because a drastic swing in the forex could easily wipe out any gain he can make from the bond yield.

Bond yield will never able to fully price in forex risk. Once you buy in the bond, the yield-to-maturity is fixed, however forex rate will continue to fluctuate based on idiosyncratic risk and market risk. So in real world, most investors are not going to buy into a currency that is heading south, no matter how much bond pricing theory he had learnt. Unless that investor has a need for that currency, e.g. the American has some business in Japan, he needs to hold JPY for long term.

 

[bandit]

Gaining benchmark entry would attract more capital, theoretically it would strengthen the rupee. But only fools would think that is going stabilize your rupee. The weakness of rupee is mainly due to high inflation and import, unless these issues are addressed, you're not going to be able to attract more capital even if you're gain entry into the index. As these capitals are coming from savvy institutional investors, not your retail investors. LOL

THEORETICALLY! WTF is that supposed to mean. Theory doesn't translate to practical in China, Rucking Fetard!

The weaknes in rupee WAS due to higher import and decreased demand for rupee. Attracting more capital INCREASES demand for rupee, causing it to appreciate, that is capital u FR.

Institutional investors, you think throwing around big terms make you sound smarter you FR, only people who invest in benchmark bonds are Institutional investors, you wanna know why you RF, because they are the only one's allowed to do so,you FR.

Do not state the obvious. Which savvy investor put all eggs into one asset class?

Again, you're stating the obvious. Which asset classes are not dynamic? Bond yields are as dynamic as forex rate or commodity price. The forex risk I'm talking about is idiosyncratic to each sovereign country bond. If you want to buy Japanese govt bond, you'll have to first convert your USD to JPY, then you can buy the bond. Thereby exposing your investment to USD/JPY fluctuation. If the outlook of JPY is strong, all is good. If it is as gloom as rupee, investor thinking twice about investing in Japanese bond. simply because a drastic swing in the forex could easily wipe out any gain he can make from the bond yield.

Bond yield will never able to fully price in forex risk. Once you buy in the bond, the yield-to-maturity is fixed, however forex rate will continue to fluctuate based on idiosyncratic risk and market risk. So in real world, most investors are not going to buy into a currency that is heading south, no matter how much bond pricing theory he had learnt. Unless that investor has a need for that currency, e.g. the American has some business in Japan, he needs to hold JPY for long term.

Hahaha you moron, so you read an article at investopedia and get balls to copy paste here, and try to throw your limited pea brain on display for people to mock.

People do not need to convert into INR you moron, thats what the whole article was about, if you had the pea brains to read through it.
The re-payments WILL be in USD.

The IFC will sell the bonds in dollars, convert the proceeds to rupees and invest them in India. It will guarantee to make repayment in dollars but the size of the return will reflect rupee interest and exchange rates.

Source: http://www.defence.pk/forums/centra...tep-internationalise-rupee.html#ixzz2hSOYR8HE

Damn you RF!!!

desi bhaiyo, aj friday hai,thodi lene do

 

[Fattyacids]

THEORETICALLY! WTF is that supposed to mean. Theory doesn't translate to practical in China, Rucking Fetard!
The weaknes in rupee WAS due to higher import and decreased demand for rupee. Attracting more capital INCREASES demand for rupee, causing it to appreciate, that is capital u FR.

Institutional investors, you think throwing around big terms make you sound smarter you FR, only people who invest in benchmark bonds are Institutional investors, you wanna know why you RF, because they are the only one's allowed to do so,you FR.

The strength of a currency is not entirely dependant on JUST foreign capital.
Is there a better reason why ave Indian IQ is 82?

Hahaha you moron, so you read an article at investopedia and get balls to copy paste here, and try to throw your limited pea brain on display for people to mock.

People do not need to convert into INR you moron, thats what the whole article was about, if you had the pea brains to read through it.
The re-payments WILL be in USD.

Damn you RF!!!

desi bhaiyo, aj friday hai,thodi lene do

A currency-hedged bond fund will still eat into the portfolio, hedging cost money. There is no free lunch in the financial world. You're truly dumb, your IQ must be lower than Indian ave

 

[bandit]

Is there a better reason why ave Indian IQ is 82?

So we done with all the pretentious knowledgeable discussions eh. Good, nothing better is expected out of chinese anyways, lets get down to personal mud slinging.

A currency-hedged bond fund will still eat into the portfolio, hedging cost money. There is no free lunch in the financial world. You're truly dumb, your IQ must be lower than Indian ave

HOW will a currency hedged fund eat into a portfolio you RF, when the invested currency gives on average a three times return. Thats why they don't exist, you moron.

This isn't hedging you RF, its pure profit.

Well when its get down to IQ, I can tell you one thing, it is as fake as the apple showrooms you run their you moron.

 

[mastaan]

So we done with all the pretentious knowledgeable discussions eh. Good, nothing better is expected out of chinese anyways, lets get down to personal mud slinging.


HOW will a currency hedged fund eat into a portfolio you RF, when the invested currency gives on average a three times return. Thats why they don't exist, you moron.

This isn't hedging you RF, its pure profit.

Well when its get down to IQ, I can tell you one thing, it is as fake as the apple showrooms you run their you moron.

Don't waste your time educating a stone, bro... IT has no brain... IT is just conditioned to say that whatever Indians do is doomed to fail and when contested, he'll say oh your IQ is blah blah (not that it has anything to do with anything around structure financial products)... I'd say, quit trying...

 

[Fattyacids]

So we done with all the pretentious knowledgeable discussions eh. Good, nothing better is expected out of chinese anyways, lets get down to personal mud slinging.

I knew you were pretending all along.

HOW will a currency hedged fund eat into a portfolio you RF, when the invested currency gives on average a three times return. Thats why they don't exist, you moron.
This isn't hedging you RF, its pure profit.
Well when its get down to IQ, I can tell you one thing, it is as fake as the apple showrooms you run their you moron.

LOL, you don't even know what is hedging. Buy a call or sell a put is free?

All the IQ test were done by either Americans or Europeans, are they fake too?

 

[bandit]

I knew you were pretending all along.

LOL, you don't even know what is hedging. Buy a call or sell a put is free?

All the IQ test were done by either Americans or Europeans, are they fake too?

Call? Put? Where the **** did options come in here ... More investopedia copy pasting at work here RF.

Ofcourse I knoe the white master worshipping chinese like you believe what the europeans said. BUT, they didnt actually measure chinese IQ, they extrapolated it. Maybe you wanna go back and read the IQ report again Guailo RF

 

[Fattyacids]

Call? Put? Where the **** did options come in here ... More investopedia copy pasting at work here RF.
Ofcourse I knoe the white master worshipping chinese like you believe what the europeans said. BUT, they didnt actually measure chinese IQ, they extrapolated it. Maybe you wanna go back and read the IQ report again Guailo RF

Facing up to a high IQ chinese, indian axx combusted. LOL.

English is not our national language or medium of instruction in school. You adore your white master so much yet they gave a low IQ score

 

[bandit]

Facing up to a high IQ chinese, indian axx combusted. LOL.

Don't confused indian with chinese. We never use English as national language or medium of instruction in school. You adore your white master so much yet they gave a low IQ score

But all chinese rich want to run away from dirty china to the evil west

Plan B for China's Wealthy: Moving to the U.S., Europe - WSJ.com

Chinese are still slaves of western culture

BTW, are we done with the rupee exchange rate and economics thereof, chinese?

 

[Fattyacids]

But all chinese rich want to run away from dirty china to the evil west

Plan B for China's Wealthy: Moving to the U.S., Europe - WSJ.com

Chinese are still slaves of western culture

Rich people have multiple homes all over the world, including rich indian. But only India has the highest remittance in the world. All the smart indians are working overseas, LOL.

 

[bandit]

Rich people have multiple homes all over the world, including rich indian. But only India has the highest remittance in the world. All the smart indians are working overseas, LOL.

China is too dirty for chinese itself....

Food safety, pollution, and infrastructure are just a few of the reasons that some affluent Chinese are considering emigration.

Why China's Rich Want to Leave - Rachel Wang - The Atlantic

BTW, I assume we are done with the rupee issue then and will only argue over dirty china from now on.

 

[Fattyacids]

China is too dirty for chinese itself....
Why China's Rich Want to Leave - Rachel Wang - The Atlantic

BTW, I assume we are done with the rupee issue then and will only argue over dirty china from now on.

Foreign currency exchange is too complex for your intellect. Dirty and ***** suits you better. Modi says to build more toilets less temples.