Monday, 2 January 2017

Indian Bond Market - An Overview

Indian Bond Market - An Overview .

Indian Bond Market unlike its peer Equity Market has been characteristically predictable and measurable.  It is especially in context of Bond investor and Mutual Fund Investor, Who found great value while investing in Bond Portfolio with measured risk only.

While changing macro variable have thrown enough challenges for ordinary investor, the professional Fund Manager from Fund houses and Security houses have summarily prejudged and benefited from the rally.

Besides a sequential understanding of Macro Obstacle, it is also imperative for   investor to understand the impact of major policy impact - Monetary and Fiscal on the Bond Market.

Much have been written on style and functioning of Monetary managers specially when multiple and non linear macro have led to sudden and unpredictable change in Policy direction.  Mr Y V Reddy in 2008 and Mr Raghuram Rajan 2014 is possible great case study to engage with.

But still the silver line rest with our ability to measure the Bond Market unlike Equity. While Equity is seemingly immeasurable, Bond is contrast opposite.


Investors have great return in all these previous year at A/B/C/D. The moot point whether D still holds value for investor or the rally is over.