Who are the issures, How it trades, About the credit ratings, Growth over the years of fixed income market, What Does the future hold.

1. Living Big On Fixed Income
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2.  Then To Now
 Broader View
 Digging Deeper
 Issuance
 Trading
 Credit Rating
 Growth Over The Years
 Let’s Talk
 What Does The Future Hold
 Conclusion
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3. 3International College Of Financial Planning02-Jan-17
 Indian government has had a strong role in the domestic
banking sector. Most Indian banks were nationalized in
1969
 Government bonds dominate the debt market due to -:
 Banks must invest 23% of their deposits in
government bonds.
 Limiting capital available to invest in corporate bonds
 The Reserve Bank of India manages government bond
yields
 Indian Sovereign and Debt markets are 3rd largest in Asian
peers. Markets are opening up further to Foreign investors
with reforms

4. 4International College Of Financial Planning02-Jan-17
Debt Market In India
Govt. Securities Corporate Bonds
Central Govt.
State Govt.
Public Sector
Undertaking
Private Corporate
Bonds

5. International College Of Financial Planning 5
 Type ‘s of Govt Bond’s in India
 Dated Securities
 Zero Coupon Bonds
 Floating rate Bonds
 Callable/ Putable Bonds

 Types of Corporate Bonds in India
 Based on Maturity
 Based on Coupon
 Based on Option
 Based on Redemption

Corporate BondGovernment Bond
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6. 6International College Of Financial Planning02-Jan-17

7. 7International College Of Financial Planning
Issuance
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The Sovereign
Issuer
Central Govt.
State Govt.
Govt. Agencies
& Bodies
PSU’s
Commercial
Bank
The Public
Issuer
The Private
Issuer
Corporate
Pvt. Sector
Banks
GOI dated securities, T-
Bills, State Govt.
Securities, Index Bond,
Zero Compound Bonds
Govt. Bonds &
Debentures
PSU Bonds &
Debentures
CD Debentures & Bonds
Bonds, Debentures, CP
Bonds, Debentures, CD
& CP
RBI
DFI
Banks
Pension Funds
FII
Corporate
Individual
PF
Insurance
Market Segment Issuers Instruments Investors

8. 8International College Of Financial Planning02-Jan-17
RBI Auction
Primary
Dealer
Exchange
AGM
Creation
of Security
SEBI
Approval
Book
Building
Allotment
of Issue
Government Debt
Corporate Debt

9. 9International College Of Financial Planning02-Jan-17
There are 4 Credit Agencies in
India which are registered with
SEBI & accredited by RBI :
 CRISIL ( Credit Rating
Information Services of India)
 ICRA ( Information and Credit
Rating Services)
 CARE ( Credit Analysis and
Research )
FITCH India

10.  The Indian bond market has witnessed a significant
growth in the past few years.
 Primarily because of its high liquidity nature.
 The increasing stability of the stock market has fuelled the
growth of bonds.
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11.  Masala Bond
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 Should you pick G-Secs or Gilt funds to invest in government
debt?

12. 12International College Of Financial Planning02-Jan-17
Shriya Khanna Mohit Mittal
Suryansh Dhawan

13. Along with numerous advantages, bonds come with fair
number of dangers as well some of them being inflation,
interest rate risk, default risk, downgrade risk,
reinvestment and rip-off risk. To sum it up, the Indian
bond market, consisting of Government and Corporate
Bonds is a very liquid market. It has provided healthy and
stable returns for years and we have seen gush of money
entering the Bond Market over last few years. Owing to
the expected fall in interest rates, many financial experts
are now very upbeat on Bonds. To get the best results, it is
imperative that you carefully weigh and compare risks
with the expected returns before investing in bonds.
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14. Thank You !
14International College Of Financial Planning02-Jan-17
By,: Shriya Khanna, Suryansh Dhawan,Mohit Mittal
MBA-FA 2016-18