Fixed Income Market in India

IAIP organized a speaker event in Mumbai in association with NMIMS University at Juhu Jagruti Hall, NMIMS University, Mumbai on August 22, 2014 titled “Fixed Income Market in India”. The speaker for the event was Jayna Gandhi, CFA, Chief Manager Treasury with National Stock Exchange of India Limited. Jayna has been managing large fixed Income portfolio for past 10 years and have end to end experience in Treasury Management. This event was organized under the new initiative, “IAIP Workshop Series” for the spreading the quality education and imparting knowledge for budding young professionals, keen to make career in the Fixed Income Industry. The event received an overwhelming response with more than 100 attendees and was highly appreciated by professionals managing Fixed Income Portfolios.

During the event, Jayna made a very comprehensive presentation on the Indian fixed income arena covering history of fixed income market, major participants, role of RBI, structure and size of the current fixed income market. She explained the dynamics of a small fixed income market in India along with key macro economic variables such as GDP and Output Gap, Inflation, Fiscal deficit, Market Borrowing, Oil Prices, Currency Movement and Liquidity effect on the interest rates. Apart from these, demand supply factors also contribute to the interest rates movement such as high demand from FII can push the bond prices up and interest rates down. Jayna also explained the specifics of the bond fundamentals, relationship between bond prices and yield, yield curve, various shape of the yield curve and how it can be used to forecast the future state of the economy. She also explained the fine difference between the yield curve and treasury spot rate curve which is mostly overlooked in the practical scenario. She comprehensively covered PVBP and Duration properties. The presentation by her also covered what are the risk associated with bond investment along with portfolio strategies such as passive, semi active and active and also bond strategies such as ladder, barbell and bullet. She finally concluded with fixed income portfolio performance measurement, attribution and evaluation and bench-marking.

The presentation was well appreciated by the participants.

– JG

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