Thursday, May 19, 2011

Negative rates again, this is starting to get too common

I have written about them before here and here, and they are back...negative repo rates in US Treasuries.
Supply demand one thing, this monetary experimentation in US is causing a lot of issues for the whole world.

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Sunday, May 8, 2011

Waking up to the Insider trading reality

There are certain markets where insider trading laws are strong. There are some where such laws are strictly enforced. I was uncertain that India was one of either or had a chance of getting there anytime soon, however SEBI's suo moto action of probing for possible breach of insider trading rules or hammering by a bear cartel of the SKS shares last week is a ray of hope.

There was a steep plunge of 20% in SKS Microfinance shares, hours ahead of its fourth quarter results on Friday. Any casual market observer would have guessed that it cannot happen without some form of bear cartel hammering due to confirmed news anticipation of news of its losses.

Ofcourse, the mere fact that it is being probed is not even a indication that the guilty will be bought to book, but the fact that the probe started so quickly gives hope, especially since it is SEBI. Lets keep our fingers crossed




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