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

To: Mohan Marette who wrote (2558)	8/25/1998 5:48:00 PM
From: ratan lal	Respond to of 12475

Mohan - The key is whether SBI that is floating the bonds at 9 1/4 compounded can make 9 1/4 plus overhead plus profit. I know that if I had a sure fire plan to make the above, I would float bonds / borrow as much money as I could safely utilize to make the above goals. I do believe that SBI does have the capability to make a profit on the bonds. All you have to do is looka at the profitability of the Indian Companies. 100 to 500% is not unheard of. Some of the product is so much in demand that they could charge almost any amount and still seel all of their production. Most Money lenders safely lend at 24% and take a small risk when they lend at 48%. In early 1990's a lot of LEASING companies sprang up mainly because their rate of return calculated at 48% after incuding the reinvestment of monthly payments.