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The US treasury market reaches breaking point

The US treasury market reaches breaking point

The structural issue that could cause the world's market of last resort to grind to a halt

Bank atlas: World's largest banks in 2008

Bank atlas: World's largest banks in 2008

Data provided by Moody's Investors Service

Tuesday, September 4, 2007

Reserve Bank of India likely to re-introduce inflation linked and floating rate bonds.





Reserve Bank of India likely to re-introduce inflation linked and floating rate bonds. The Business Standard reported that according to the annual report of the Reserve Bank of India (RBI) for 2006-07, the RBI is planning to reintroduce inflation-indexed bonds and floating rate bonds (FRBs) besides introducing Separate Trading of Registered Interest and Principal of Securities (STRIPS). The government had earlier introduced inflation indexed bonds in 1997, but since these protected only the principal amount from inflation, they did not become popular. FRBs were introduced in 2001, but they also failed to gain popularity because of their lack of liquidity. STRIPS will provide for the interest payment component and the principal payment component to be held as separate zero-coupon bonds.







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