Finance

Until about 1.5 years back, Investment banker was one of the hottest and wealthiest job anyone could ever have. It was the ‘Angelina Jolie’ of all campus placements. But today, if there is one profession you want to bash and kick at and get an applaud – just lash out at any top executive employed with one of the global financial institutes or banks. continue

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Well we all keep cribbing about the Government, and ofcourse this has been going on and will go on for many many years. But since the past one year the world has been looking at all companies in a different light, we are seeing companies restructure, de-leverage themselves (remove their debt), and a lot of strategic rethinking. The Governments across the world have done a lot in terms of financial stimulus, bailouts and many more things. continue

This is a guest article by Saswata Das. He graduated from IIM Calcutta earlier this year and works in the Financial sector. We thank him for his article and look forward to his future articles!

With trade volumes of IRFs in NSE barely touching the 1000 mark these days, it seems that all the initial excitement has fizzled out. This apparently dismal performance doesn’t bode well for the second edition of Interest Rate Futures introduced after a long hiatus of six years. continue

As some of my batch mates went from IITs to MITs and other US Universities around the world, the number of publications in their resumes started to increase at an exponential speed. To me this phenomenon really did not make a lot of sense as how can a student or his research change within a couple of months to take their number of publications from non-existent (in IIT years) to innumerable (in US Universities). The simple answer I got from my friends was funding and resources available. Ofcourse IITs being one of the best institutes in the world in terms of students still lack the resources for producing world class research. continue

NHPC oversubscribed by about 23 times. Adani Power oversubscribed by about 21 times. And there will be a long queue of public issues to tap risk capital in primary markets. Usually IPOs are the instruments through which new retail investors enter equity markets. Why? Because these are advertised on Televisions, Toll check posts, big banners as part of OOH advertisements. We see IPO application forms being distributed as some product pamphlets. Are IPOs really that great tool for new retail investors or the investors which are around for some time to invest in equity? I think they are not! Let me present my thoughts through following points: continue

With every passing day I think when the recession will take back its curse. When will the potential candidates get employed without having to behave like beggars on street – those who spent huge amount of money to enhance their skills and knowledge so as to beat the other competitors fighting for the same positions? continue

These days, as soon as one steps out of the house, it is amazing how quickly a 500 or 1,000 Rupee note turns into meager change. Everybody is talking about rising prices, inflation, increased ‘essential’ expenditures etc. I think it is still prudent to talk about lowering the highest denomination notes available in India … and I would try to argue why. continue

There are many retail investors in the stock market who do not necessarily understand the market, but still want to participate and profit from it. One of the good avenues that these people had were IPOs (Initial Public Offerings). I know of many who have demat accounts just for the purpose of investing as and when IPOs hit the markets. They subscribe to these, and if they are alloted some shares, they sell those on the day of listing. These investors are not willing to be exposed to the market risk by remaining invested in stocks and are happy with the listing gains (difference in the listing price and the IPO issue price). continue

Transaction Costs, Incentive Structures, Free Markets and the Nature of Investment Banking

Disclaimer: This is not a post about life in an investment bank (The books, Monkey Business and Liar’s Poker have done a great job describing that). It is also not about investment banking bonuses about which lot has been written (My personal take is that much of the criticism is absolutely justified), though some inferences about the culture surrounding bonuses could be derived from it. And finally, it is not about those parts of investment banks that sold worthless, toxic assets to the poor, (well, not really …) unsuspecting buyers and almost ruined the world. This is about the mythical, much glorified advisory business of investment banks. continue

When iPhone 3GS was released in the UK and US a few months ago, the sales went soaring. The number of phone connections spurred! I was also one of those people who were able to get their hands on one and I am really quite happy about it. But lets consider in India, will anyone be able to buy such a device? A device worth Rs 35,000! continue