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Commentary

A New Look, Incentives To Fight and Scary T-Bill Auctions: MarketVision Chronicle

The May 21 MarketVision Chronicle is out! (Needs free registration)

We’ve taken on a new look and would love your comments. Read also about how incentives drive abuse, especially where we get too frightened or lazy to react to such abuse. Also, the situation in T-Bill auctions gets increasingly concerning, and the yield curve is as flat as a blackboard. We end with all at MarketVision.

The New Look MarketVision.In!

 


The new edition of MarketVision.in is here, with a simpler and easier design.
MarketVision Screenshot

 

The navigation now includes the MarketVision Chronicle Archives.

Abhmahnung, and Incentives That Drive Abuse

 


Abmahnung is a German word that means “written warning” (or somewhat close). It’s a formal request made by an attorney to “cease and desist” from an activity that seems to be unlawful, even if the person being wronged is someone else. If you receive such a letter and desist from such activity, the law allows the sender to demand attorney costs from you. Your alternatives, if you receive such a letter, is to either pay up or go to court. Undoubtedly, some people get too scared of actually going to court and pay up.

 

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The Scary T-Bills Situation

 


The government borrows money constantly, and while much of it is long-term (T-bond) offerings, a significant of money is short-term rolling money. Treasury bills are less than a year to maturity and are sold weekly by RBI in auctions.

 

The long term graph of 182 and 364 day T-Bills, for over 10 years, with data I collected, shows a scary trend.
182 and 364 day T-Bill Auctions Yields

 

Editor’s Picks

 


A set of links chosen just for you (Visit our Picks section for a regular update)

 

Websites providing ‘stock-options tips’: By all looks another huge scam in the making – Moneylife

A number of websites have cropped up, trying to lure investors with dubious claims of more than 100% returns—why are the regulators silent?

How Rajat Gupta Came Undone – BusinessWeek

The former McKinsey head was a gilded member of the corporate elite. But a tape of his voice, divulging secret details of a Goldman board meeting to a convicted hedge fund manager, cost him what no amount of money can buy.

RIL funnels money and business to Mukesh’s private companies | Firstpost

Reliance Ports and Terminals received Rs 2,600 crore in 2010-11 from RIL. Reliance Gas Transportation and Infrastructure got Rs 652 crore as hire charges for the use of its pipelines to transport gas.

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