Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: sea_biscuit who wrote (2556)	8/25/1998 5:00:00 PM
From: Nandu	Read Replies (2) \| Respond to of 12475

No prizes for guessing what alternative India has chosen to take! :-) Do you guys mind giving references or links to the original article when publishing excerpts, please? Dipy, I think the connection you are trying to make is wrong. The higher interest rate on the RIBs is specific to the RIBs and does not mean interest rates have gone up in general in India. In fact, I believe the reserve bank has recently cut bank rates by a percentage point. Not that I completely agree with Ratan's statement that the bonds are very safe. They are safer than junk bonds, but not as safe as US treasuries. Moody's rating, I think was too pessimistic, and the interest offered on the RIBs is probably about right for the rating given by Moodys. Thus, I agree that the interest offered is better than what the risk factor would imply, and that is the reason I put some money in them. I will go so far as to say that I would not have applied for them if the interest offered was only 6%, which is still higher than US treasuries.