Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Maturity Profile
Even though there is no ideal theory/concept of the maturity of the instruments, some important issues that should be considered while balancing the long-term and short-term maturities are: market preference, government costs, grouping of maturities, and development of yield curve. Benchmarking of the government securities is necessary considering its well-functioning market. This requires a careful approach to avoid disintegration and increase consolidation. The typical benchmark securities in our market are of 2, 3, 5 and 10 year's maturity, whereas in countries like the USA, the securities can have a maturity period up to 30 years.
When the government in 1992-93 revived the borrowings at market rates, the maturities of most of the securities were made below 10 years. High interest rate cyclic implementation of the auction system to achieve the market determined interest rates has made this compression necessary as it requires a market with short maturity structure. The result is the bunching of maturities with a tough task of managing liquidity. Since the last three years the RBI has made efforts towards longer maturities, and fixed rates to balance the maturity pattern. Some situations exist when the government does not confine to the perceived high rates of interest, and large mismatches occur between the asset liability of the banks and also greater risk of interest rates. The RBI has developed floating rate bonds and also taken steps to develop the STRIPS market in the Government Securities segment. To consolidate the maturity profile of the securities the RBI followed the method of re-opening the existing securities on price-based auction approach. Thus, the large borrowing (gross) program has proved advantageous to RBI to elongate and strengthen the profile.
If a credit manager experience no bad debt losses over the past year. Would this be an indication of proper credit management? Why or why not
Maturity Profile Even though there is no ideal theory/concept of the maturity of the instruments, some important issues that should be considered while balancing the long-term
Consider a currency swap in which the domestic party pays a fixed rate in foreign currency, the UK pounds sterling, and the counterparty pays a fixed rate in US Dollars. The not
Basic Assumptions of Cost of Capital The Cost of Capital is a dynamic concept affected by a multiplicity of economic and firm factors and assumes the following assumptions rela
Q. Advantages of Just-in-time inventory management? JIT inventory management methods look for eliminate waste at all stages of the manufacturing process by minimising or elimin
Q. Show the Objectives of Inventory Management? Objectives of Inventory Management- The objectives of Inventory Management are: To maintain a adequate large size of inventor
Institutional Clearing Member (ICM) A Financial Institution has to subscribe to at least 100 equity shares of Rs.10,000 each to become an Institutional Clearing Member of COFEI
Why do financial managers calculate the marginal tax rate? Financial managers utilize marginal tax rates to calculate the future after-tax cash flows from investments. Ever si
What are the types of theft threats? Describe the methods to access and overcome theft threats. Types of theft threats - Mass theft, Pilferage theft. Steps to assess threats
(a) Lonesome Gulch Mines has a standard deviation of 42% per year and a beta of 0.10. Amalgamated Copper has a standard deviation of 31% a year and a beta of 0.66.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd