Market will be positive after T Bill announcement

salt · 1 Market will be positive after T Bill announcement Wed May 15, 2013 11:21 am

salt

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market will be positive after announcement of cut off rates in the treasury bill auction today

salt

salt

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marked decline in rates across all (3) maturities

VISA · 3 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:02 pm

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http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20130515e.pdf

good for cse

salt · 4 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:19 pm

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Yes,
Fixed Income down - big profits for banks through dealing of GOSL securities (capital gains) and good for equities ( equity investments)
Interest rates down - good for business to borrow and investment in new business & expansion

Bond · 5 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:27 pm

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!@#! all the foreigners who bought govt bonds from January onwards will be laughing to the bank. Not only do they win on the stocks. The bonds which they borrowed from will now give profits as well.

Now the spread between the US$ SL bond and a LKR SL bond is only 2.5%

Adequate compensation for LKR exchange risk? Wink

salt · 6 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:34 pm

salt

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@Bond (rainmaker)
Now the spread between the US$ SL bond and a LKR SL bond is only 2.5%

Adequate compensation for LKR exchange risk?

you are talking about 5 year bond?
I don't think its adequate. One year gap, yes.
many of those foreigners are hedge funds - short term focus
CBSL can hold FX rates in the short run
am i correct Mr rainmaker , sorry Bond?

Bond · 7 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:43 pm

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salt wrote:@Bond (rainmaker)
Now the spread between the US$ SL bond and a LKR SL bond is only 2.5%

Adequate compensation for LKR exchange risk?

you are talking about 5 year bond?
I don't think its adequate. One year gap, yes.
many of those foreigners are hedge funds - short term focus
CBSL can hold FX rates in the short run
am i correct Mr rainmaker , sorry Bond?

If the CB holds FX rates at 126 all the banks will lose and continue to lose big time.

Look at the forward rate market (which unfortunately is controlled by HSBC). The 3 month and 6 month are still at 133.

Every bank has to buy forwards as per CB guidelines and internal risk management policy.

BTW rainmaker is a horse. A very stupid horse

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Market will be positive after T Bill announcement

1 Market will be positive after T Bill announcement Wed May 15, 2013 11:21 am

salt

2 Re: Market will be positive after T Bill announcement Wed May 15, 2013 12:51 pm

salt

3 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:02 pm

VISA

4 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:19 pm

salt

5 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:27 pm

Bond

6 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:34 pm

salt

7 Re: Market will be positive after T Bill announcement Wed May 15, 2013 1:43 pm

Bond

8 Re: Market will be positive after T Bill announcement

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