Best Stocks to Trade For Tomorrow with logic 08-Sep | Episode 589

Open your Trading account in mintues with Zerodha

The development of bond market in India has amazed a lot of people. The corporate debt market in India has seen growth of asset backed securities which were found to be quite innovative in the recent past. The inception of corporate bond has witnessed greater innovations. Instruments such as floating rate instruments, convertible bonds, step redemption bonds, zero coupon bonds gained greater recognition.

Debt securities issued by the US Treasury, the US government sponsored enterprises, the US government agencies, and the US government enterprises are one of the world’s most liquid bond markets and also one of the world’s largest bond markets. Treasury securities cover the lowest risk in the bond market as they are guaranteed by the US governments taxing authority. Treasury securities are used to finance the federal government debt whereas government sponsored enterprises and government agencies issue debt to enable Americans to own homes.

Bonds are debt instruments issued by a government, corporation, or governmental agency which covers money the bondholder has lent. A person who owns a bond of a company is actually a creditor of that company. Bonds can be taxable or non taxable. If a person buys a taxable bond he takes some risks.

As a newcomer to investing, it is quite possible that you will make investing mistakes. However, big mistakes can cost you a bundle. Therefore, it is a must that you avoid investing mistakes in order to be a successful investor.

Many people are not aware that there are three different kinds of investments. These are stocks, bonds and cash. As simple as it may sound, it is not so as each investment has many other sub-investments under its realm.

There are many different types of stocks and for newbies this is a major turn off as they get confused and can end making the wrong investment decisions. If you are interested in the stock market, you should first take the time to learn what ever you can about the types of stocks available and what these stocks can do for your investment.

When it comes to investing, the importance of diversification should not be negated. In fact, diversification of your portfolio is the key to being a successful investor.

The US bond market, an oligarchic having great power, is made up of few number (about 50)of primary dealers, several thousand secondary dealers and thousands of customers competing to buy and sell goods at the best possible price. There is a domination of primary dealers as these dealers trade $50 billion among customers and $100 billion worth of government securities among one another. The primary dealers help in shaping the policy as well as ply the market.

The international capital market has seen Croatia becoming an established issuer of bonds and securities since its debut. The first small international bond of US$60 million issued in its local currency — kunas –was in December 1996 and there was no looking back after that. In February 1997, Croatia issued its first Eurobond in the US dollar sector only after obtaining its first credit rating of Baa3 and BBB, from Moody’s, and Standard and Poor’s.

Floating bonds are bonds whose rates are tied to the market or whose rate of interest is pegged to a benchmark, such as Treasury bill rate and adjusted periodically. In other words, these bonds are bonds whose interest rates rise and fall with the interest rates in the investment market.