Month: March 2021

Prince Harry tells Oprah Winfrey he worried history would repeat itself

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prince Harry, who shocked Britain last year when he and his wife Meghan stepped back from royal duties, told US interviewer Oprah Winfrey that he had worried about history repeating itself, according to excerpts released on Sunday.

The CBS broadcast network released two brief clips from Winfrey’s interview of the couple, which is scheduled to air on March 7. It is the first TV interview the couple, formally known as the Duke and Duchess of Sussex, have given since making their homes in California last year.

”My biggest concern was history repeating itself,” Harry said, apparently referring to his mother Princess Diana, who was hounded by the British press and died at age 36 in a car crash in Paris after her divorce from Prince Charles.

Harry, 36, was seated next to Meghan, 39, and holding her hand. The couple announced this month that they are expecting their second child.

”I’m just really relieved and happy to be sitting here talking to you with my wife by my side,” Harry said. ”Because I can’t imagine what it must have been like for her (Diana), going through this process by herself all those years ago. ”It’s been unbelievably tough for the two of us, but at least we had each other,” Harry added.

In the clips, Winfrey said that no subject was off-limits and at one point tells the couple ”you have said some pretty shocking things here,” including that their situation had been ”almost unsurvivable.”

Before they moved to California, the couple had complained about the British tabloids’ treatment of Meghan, whose father is white and mother is African-American, some of which they said amounted to bullying or racism.

Earlier this month, Buckingham Palace announced that the couple would not be returning to their lives as working members of the royal family.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s all you need to know about debt index funds

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Authored by Radhika Gupta

Your investment portfolio would ideally serve a primary purpose, i.e., to meet your financial goals and ensure future financial stability. However, the economic and investment landscape undergoes periods of troughs and peaks which lead to volatility and create uncertainty in investment returns.

Thus, along with wealth creation, wealth preservation becomes an imperative part of financial planning. From the perspective of wealth preservation and portfolio protection, debt investments have long played an integral role in delivering these imperatives.

However, it is important to note that even within the wide gamut of debt investments, not all categories of investment will provide the desired safety or risk-adjusted returns. For example, bonds issued by the government or public sector undertakings (PSUs) are likely to be less risky than those issued by investment-grade corporates.

Further, the way the bond portfolios are managed, i.e., actively or passively, can have a strong bearing on its risk and returns. A unique debt product that Indians should now actively consider for inclusion in their portfolios is debt exchange-traded funds (ETFs) or debt index funds.

What is a debt index fund?

Taking a step back, let us first understand an ETF / Index fund. These are passively managed funds that mirror the composition of the underlying benchmark index. The main aim of these funds is to generate returns in line with the benchmark index, with less tracking error. A debt index fund is simply a fund that tracks an underlying debt index. This means that the fund holds the securities by the same issuer and same duration as the underlying index. However, there are norms that lend it some flexibility.

For example, if a specific debt paper in the index is not available, the debt index fund can choose to invest in another paper by the same issuer. However, the maximum allowable deviation is within 10 percent of the weighted average duration of the securities in the index. The overall duration of the debt index fund cannot deviate by more than 5 percent from the duration of the underlying index. In case the debt index fund is unable to meet these conditions then it can purchase papers of issuers outside the index, up to 20 percent of the corpus.

However, the credit rating, duration, and yield of such issuers should be in line with the paper that is not available. The market for debt index funds in India is currently in its nascence. This is perhaps reflective of the fact that retail (investment of less than Rs 5 lakh) participation in even debt funds in India is fairly low. Of the total debt mutual fund assets under management (AUM) of Rs 14 lakh crore, retail AUM stands at a minuscule Rs 1 lakh crore. This needs to change.

Benefits of debt index funds

Safety

A well-diversified investment portfolio is one that can generate the required returns within the specified risk parameters. By investing in a debt index fund, you are investing in the safety of a high-quality portfolio comprising state government bonds and AAA-rated PSU bonds.

Mitigating risk

The two main risks in debt investments are credit or issuer-related risk and interest rate risk. The issuer-related risk is minimal in these funds since the investment is largely in government and PSU bonds. The interest rate risk is minimized through a target maturity structure that will bring predictability in returns if you stay invested till maturity. A defined or target maturity means that the bonds in the portfolio will mature within a fixed term.

Transparency

Since debt index funds replicate an underlying debt index, they offer better liquidity and transparency in terms of investments, issuer ratings, and maturity.

Ease of transacting

Unlike in ETFs, you do not need to transact through a Demat account to buy or sell units in an index fund. You can simply buy the units through the fund house like you would for any other mutual fund scheme.

Debt index funds can prove to be a good alternative to fixed deposits

They offer similar or better returns, come with a target maturity, and are relatively safe.

Considering the myriad benefits that debt funds and specifically debt index funds can add to an investment portfolio, it is imperative that such solutions are now offered to Indian investors.

Radhika Gupta is MD & CEO at Edelweiss Asset Management Limited (EAML). Views expressed are personal

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

AstraZeneca has sold its stake in Moderna for more than $1 billion: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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AstraZeneca Plc has sold its 7.7 percent stake in Moderna Inc for more than USD 1 billion after the US biotechnology company’s shares soared on the back of its coronavirus vaccine breakthrough, The Times reported. The report added that it was not clear over what period British-based AstraZeneca sold its holding in Moderna.

AstraZeneca and Moderna did not immediately respond to requests for comment.

AstraZeneca is retaining a partnership with Moderna on other disease treatments and could sell its AstraZeneca/Oxford University COVID-19 vaccine on a commercial basis in the future if the virus becomes endemic, the report added.

Also Read: US FDA gives emergency use authorisation to COVID-19 vaccine from J&J

Moderna, whose vaccine is cleared for emergency use against COVID-19 in the United States, said last week it was expecting sales of USD 18.4 billion from its coronavirus vaccine this year.

Also Read: COVID-19 vaccination drive for people above 60 in India to begin today

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stock Market Highlights: Sensex rallies 750 points, Nifty ends above 14,750; auto, metals shine

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stock Market Highlights: Indian equity indices, Sensex and Nifty ended with strong gains Monday led by broad-based buying across sectors. Broader markets, Nifty Smallcap100 and Nifty Midcap100 supported the rally. All the sectors indices ended in green.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PM Narendra Modi takes first dose of COVID-19 vaccine as vaccination drive starts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prime Minister Narendra Modi on Monday took his first dose of the COVID-19 vaccine at AIIMS Delhi. Sister P Niveda, from Puducherry, administered the COVAXIN, developed by Bharat BioTech to PM Modi.

Informing in a Twitter post, PM appealed to the eligible citizens to take the vaccine.

“Took my first dose of the COVID-19 vaccine at AIIMS. Remarkable how our doctors and scientists have worked in quick time to strengthen the global fight against COVID-19. I appeal to all those who are eligible to take the vaccine. Together, let us make India COVID-19 free,” PM Modi wrote.

Took my first dose of the COVID-19 vaccine at AIIMS.

Remarkable how our doctors and scientists have worked in quick time to strengthen the global fight against COVID-19.

I appeal to all those who are eligible to take the vaccine. Together, let us make India COVID-19 free! pic.twitter.com/5z5cvAoMrv

— Narendra Modi (@narendramodi) March 1, 2021

The government will commence the COVID-19 vaccination drive for people above 60 years and those aged 45 and above with comorbidities from today in the second phase of inoculation.

The registration for the same will be done on the Co-WIN2.0 portal from 9 am on Monday. People will be able to register and book an appointment for vaccination, anytime and anywhere, using the Co-WIN 2.0 portal or through other IT applications such as Arogya Setu.

Apart from 20,000 government hospitals, 10,000 private hospitals, more than 600 hospitals impanelled under CGHS and other private hospitals empanelled under State Government’s Health Insurance Schemes have been roped in for the vaccination drive.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil prices climb after progress on huge US stimulus bill

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Oil prices rose more than USD 1 on Monday on optimism in the global economy thanks to progress in a huge US stimulus package and on hopes for improving oil demand as vaccines are rolled out. Brent crude futures for May rose USD 1.07, or 1.7 percent, to USD 65.49 per barrel by 0042 GMT. The April contract expired on Friday. US West Texas Intermediate (WTI) crude futures jumped USD 1.10, or 1.8 percent, to USD 62.60 a barrel.

”Oil prices are recovering this morning in line with most risk assets on the back of the US stimulus bill passing the House and as central banks continue to sabre rattle to ward off market-implied financial tightening,” Stephen Innes, chief global markets strategist at Axi, wrote in a note on Monday.

US House of Representatives passed a USD 1.9 trillion coronavirus relief package early Saturday. Democrats who control the chamber approved the sweeping measure by a mostly party-line vote of 219 to 212 and sent it to the Senate, where Democrats planned a legislative manoeuvre to allow them to pass it without the support of Republicans.

More positive news on the coronavirus vaccination front and signs of an improving Asian economy also boosted prices.

A US Centers for Disease Control and Prevention advisory panel voted unanimously on Sunday to recommend Johnson & Johnson’s COVID-19 shot for widespread use, and US officials said initial shipments would start on Sunday.

J&J expects to ship more than 20 million doses by the end of March and 100 million by midyear, enough to vaccinate nearly a third of Americans.
Over in Japan, a private survey showed factory activity expanding at the fastest pace in over two years in February, adding to signs of a rebound in Asian growth.

On the flip side, investors are betting that this week’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies, a group known as OPEC+, will result in more supply returning to the market.

”More supply needs to come onto the market to ensure OPEC+ meets incremental demand and keeps internal discipline ducks in a row,” Innes added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Govt can help push down bond yields by cancelling a few auctions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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This once it is not the RBI but the government that can help push down bond yields. The fiscal data for April to January released on Friday shows that the government is most likely to overshoot its tax revenue targets by about Rs 1.5-Rs 1.8 lakh crore, while it could fall short of spending the revised budgeted amount of Rs 34.5 lakh crore, since it has only a month to go.

Given these numbers, the government may post a fiscal deficit well short of the Rs 18.48 lakh crore that it has estimated. The government can thus easily cancel the extra Rs 80,000 crore it said it would borrow from the market this year; such cancellation can lead to a rally in bond prices, helping banks, borrowers, and the economy.

Gross Tax Revenues (GTR) from April to January stand at Rs 15.15 lakh crore, only 1 percent below tax collected in the same period last year. Since October, the year-on-year increase in tax collections has been close to 30 percent.

In January itself, the total tax collected was Rs 1.77 lakh crore, 20 percent higher than year-ago levels. It stands to reason that tax collections in Feb- March this year will also be at least 20 percent higher, perhaps even more since March of 2020 was a washout in terms of economic activity.

Even assuming tax collections are flat in Feb-March, the FY20 tax collection will be higher by Rs 1 lakh crore than the revised budget estimates of Rs 19 lakh crore. If taxes in Feb-March grow in the same proportion they rose in January, tax revenues will be Rs 1.8 lakh crore more than the revised budget estimates. It is hence easy for the government to forego the extra Rs 80,000 crore of borrowing announced in the Budget 2021.

From the expenditure side as well, some shortfall vis-a-vis budgeted FY20 estimates cannot be ruled out. The Apr-Jan expenditure stands at Rs 25.1 lakh crore, and the full-year estimate is Rs 34.5 lakh crore. This means the government has to spend Rs 9.4 lakh crore in two months — February and March. Last year, in the same period it could spend only Rs 7.74 lakh crore.

Let’s assume the government expenditure rises at the same pace it rose from April to January this year, i.e by 11 percent. Then the total expenditure for FY20 rises to about Rs 33.6 lakh crore — still a good Rs 90,000 crore short of the revised budgeted expenditure for FY20.

FISC – APRIL-JAN

EXPENDITURE

1. Government gets a lower borrowing cost
2. Banks, including PSU banks, Will avoid mark-to-market losses
3. Borrowers – corporates and retail – can enjoy lower borrowing costs and this, in turn, will benefit the economy.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow