WEATHER DERIVATIVES – CONCEPT, CHALLENGES, AND FEASIBILITY

By  Ishan Kekre & Girish C Introduction A weather derivative is a tool for managing weather risk. It is a financial contract that allows a firm to hedge itself against unexpected and adverse weather. A weather derivative contract or WD derives its value from future weather conditions. Contrary to stereotypical weather insurance, the payout of […]

Impact of The Insolvency and Bankruptcy Code,2016

By Aditya Alamuri With the Insolvency and Bankruptcy Code 2016, Indians can finally go legally broke. The new code will step into the shoes of existing bankruptcy laws and cover individuals, companies, LLP’s, and partnership firms. The code will repair laws including those mentioned in the Companies Act, to become an overall legislation to deal with […]

MASALA BONDS: Elixir to the ailing PSB’s?

By GANDHALI INAMDAR After playing host to Yankee, Bulldog, Samurai & Dim sum, foreign bonds market witnessed the entry of a new member, “Masala Bonds”. The first Masala bond (Rs.1000 Cr.) was issued by the World Bank backed International Finance Corporation (IFC) in November 2014. In July 2016, HDFC raised Rs.3000 Cr. from Masala bonds becoming the first Indian company […]

Shadow Banking

By Monica V What is Shadow Banking?  Paul McCulley of PIMCO coined the term “shadow bank” in 2007. The Financial Stability Board defines the shadow banking system as “credit intermediation involving entities and activities (fully or partially) outside the regular banking system”, servicing assets worth $80 trillion globally. Components of the shadow banking system broadly […]