Meaning A collateralized debt obligation is a kind of financial pool that brings together all the available debt instruments, such as loans, mortgages and bonds, compiles them and ranks them according to their risks and returns. Later, the investors can delve upon these tranches and purchase them as per their profit analysis. They also gain …
When debt exceeds what a person or organization can properly handle, it becomes an issue and may result in financial instability. A number of things must be taken into account when deciding how much loan is too much. The capacity to make prompt payments is also essential. Financial distress is indicated by a pattern of …
A methodical and calculated approach is necessary to overcome financial obstacles and become debt-free. Making a detailed budget that accounts for debt commitments, expenses, and income is one useful tactic. This gives a clear picture of the state of the economy and makes it easier to find areas where spending can be cut in order …
Debt Management Strategies – Overcoming Financial Challenges and Achieving Debt Freedom Read More »
A debt elimination plan is a methodical process that people and companies can use to gradually pay off their obligations and become financially independent. Reducing and eventually getting rid of existing debts—, which could include loans, credit card bills, and other financial obligations—is the main objective. Evaluating the existing financial condition is the first stage …
When evaluating their financial alternatives, people frequently struggle to decide between debt and equity mutual funds. As we know that each of these investment varieties have their own distinct qualities and advantages of their own, as an investor and having an aim of a safe financial goal, you must make an important decision regarding this. …
Which Mutual Fund Should Investors Select—Debt or Equity? Read More »
For Long-term investors a Yield to Maturity (YTM) works as a crucial factor. It indicates the maximum potential returns of a debt fund that one acquires until it gets matured. As the predictability is low in this case, the returns can be calculated by using yield to maturity. The simple formula helps a lot in …
In the world of financial investment, credit default swaps (CDS) is one of the most popular terms. It refers to the buying of credits from another lender or to exchange the debts in case of default of payment. A derivative product assists investors to nominate any other investor to reimburse the amount at the time …
Credit Default Swaps (CDS) – Everything You Need to Know! Read More »
Mutual funds have a range of classifications. One of the most discussed funds are equity and debt funds. Equity funds are often associated with securities, bonds or shares, whereas debt funds comprises of corporate deposits, government bonds , treasury bills, etc. Equity funds may have potential risks while higher in returns compared to debt funds …
Life is full of uncertain circumstances. So, it’s imperative to build a fund that can save you at times of emergencies. Emergency Funds are set apart from other savings, as it can help you to handle unfortunate circumstances like job loss, loss of family members, or medical bills. So, it’s always prudent to keep your …
What is the Best Place to Keep Your Emergency Funds Aside From Bank Accounts? Read More »
The Finance Bill 2023 proposes substantial changes to debt fund taxes in India. The revisions are intended to close tax loopholes utilized for investment by high-net-worth people and family offices. The proposed revisions have unfolded varied reactions, with some experts predicting a negative impact on the bond market and investments in debt mutual funds. Investments …
Finance Bill 2023 – Big Challenges on Debt Funds Read More »
