Comments on: Discontinuous Yield Curves http://noenthuda.com/blog/2009/11/21/discontinuous-yield-curves/ Wed, 10 Mar 2010 13:13:51 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Bak2skool http://noenthuda.com/blog/2009/11/21/discontinuous-yield-curves/comment-page-1/#comment-3693 Bak2skool Sun, 29 Nov 2009 05:03:11 +0000 http://noenthuda.com/blog/?p=1522#comment-3693 In most cases, private sector bank rates are 1-1.5% lower than the public sector banks for the same tenure. These rates may be to give some semblance. Also, not sure if these rates have a rider about early cashing out options ( The detail may be in the fine print, even if they have, the fact that the days are mentioned as tenure, it gives an impression to the depositor otherwise) In most cases, private sector bank rates are 1-1.5% lower than the public sector banks for the same tenure. These rates may be to give some semblance. Also, not sure if these rates have a rider about early cashing out options ( The detail may be in the fine print, even if they have, the fact that the days are mentioned as tenure, it gives an impression to the depositor otherwise)

]]> By: Mayank Jain http://noenthuda.com/blog/2009/11/21/discontinuous-yield-curves/comment-page-1/#comment-3641 Mayank Jain Mon, 23 Nov 2009 06:11:53 +0000 http://noenthuda.com/blog/?p=1522#comment-3641 Also might have to do with the fact that Recurring Deposits are not available for tenure of 390 days, 590 days 790 days and 990 days. So banks might need have specific funding requirements on those particular dates. Begs the question as to why these particular dates and why the RDs are not available on these dates. There's nothing in particular in the Interbank money market about these tenors that I know of. Also might have to do with the fact that Recurring Deposits are not available for tenure of 390 days, 590 days 790 days and 990 days. So banks might need have specific funding requirements on those particular dates. Begs the question as to why these particular dates and why the RDs are not available on these dates. There’s nothing in particular in the Interbank money market about these tenors that I know of.

]]> By: Allen http://noenthuda.com/blog/2009/11/21/discontinuous-yield-curves/comment-page-1/#comment-3631 Allen Sat, 21 Nov 2009 19:05:09 +0000 http://noenthuda.com/blog/?p=1522#comment-3631 Regarding the SBI teaser rates, no doubt it is a disaster in the making. However, the public sector banks have been giving out loans to farmers who have no hope of paying them back for decades due to govt pressure and then the govt basically absorbs the losses. So in that sense nothing new - now instead of only farmers, some city people will also get a chance to benefit.. Regarding the SBI teaser rates, no doubt it is a disaster in the making.

However, the public sector banks have been giving out loans to farmers who have no hope of paying them back for decades due to govt pressure and then the govt basically absorbs the losses. So in that sense nothing new – now instead of only farmers, some city people will also get a chance to benefit..

]]> By: Sandhya http://noenthuda.com/blog/2009/11/21/discontinuous-yield-curves/comment-page-1/#comment-3628 Sandhya Sat, 21 Nov 2009 10:21:23 +0000 http://noenthuda.com/blog/?p=1522#comment-3628 I think that its a small-no matter how small-feel good factor the customers get, on the 990th day,(and the 990th day is a fair amount of time-neither too early,nor too late-after the opening of an account.. Something like a small gift, the bank doesn't lose too much, we don't gain too much, and yet there is a teeny veeny bit of satisfaction among the customers.. And ultimately, they gain, coz frm the 991st day its back to 7%, n' after a substantial period,it is inc. to 7.5%, and apparently its working..yes, I think it does prevent early closure,as mentioned. I think that its a small-no matter how small-feel good factor the customers get, on the 990th day,(and the 990th day is a fair amount of time-neither too early,nor too late-after the opening of an account.. Something like a small gift, the bank doesn’t lose too much, we don’t gain too much, and yet there is a teeny veeny bit of satisfaction among the customers.. And ultimately, they gain, coz frm the 991st day its back to 7%, n’ after a substantial period,it is inc. to 7.5%, and apparently its working..yes, I think it does prevent early closure,as mentioned.

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