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SPEECH
The current economic situation
-- Stefan Ingves
Governor of the Sveriges Riksbank, Stockholm
© 2009 Speech by Stefan Ingves, Governor of the Sveriges Riksbank, at Avanza Bank, Stockholm, May 05, 2009.
COVER STORY
It's All About Hedge Funds!
-- Sandeep Verma
While hedge funds have been around for a very long time and can be dated back to the 1940s, when the
first hedge fund was established, their stellar growth has been a far more recent phenomenon. Despite
its undoubted growth, the industry suffered a setback last year owing to the global financial slowdown.
Especially, the Asia-focused funds suffered the worst in 2008, underperforming their peers in the West. However,
these funds seem to be rebounding once again this year with gains of over 8.5%.
© 2009 IUP. All Rights Reserved.
COVER STORY
Will Regulations Kill Hedge Fund Returns?
-- A Suryanarayana
As a response to the global economic crisis, legislators are in the process of formulating proposals to bring
the hedge funds within the regulatory ambit. These private investment vehicles that have been less
regulated compared to the other traditional investment companies, so far, are all set to come under greater
regulatory scrutiny. However, there is an argument that excess regulation is in some sense incompatible with
the fundamental role and character of hedge funds. As hedge funds are designed to operate with
maximum flexibilty, regulating them could actually stifle innovation and threaten the core of the industry itself.
© 2009 IUP. All Rights Reserved.
COVER STORY
Hedge Funds Industry: An Indian Perspective
-- Rakesh Gupta
Conventionally the term `hedge fund' is used to refer to a type of private investment vehicle that invests
all or most of its assets in publicly traded securities and hedges the investors' risk from market exposure.
Today the term `hedge funds' takes on a much broader connotation and is considered to be an asset class that
aims at producing absolute returns, irrespective of how the markets perform. Unlike private equity firms,
hedge funds are not very active in India as compared to in the US.
© 2009 IUP. All Rights Reserved.
TREASURY
RBI's Annual Credit Policy for 2009-10
-- Anis Sheikh
In its annual credit policy for the fiscal 2009-10, RBI, has yet gain reduced its key policy rates and
interest rates, so as to boost the faltering growth momentum of the country in the present financial crisis. This
Credit Policy is noteworthy not only for signalling reduction in interest rates but also for the directions given to
banks to transmit these signals to actual lending rates. RBI's Credit Policy measures will, if properly
implemented, enable the economy to resume its growth trajectory.
© 2009 IUP. All Rights Reserved.
TREASURY
The Financial Crisis and the Financial Sector Reforms in India
-- Subash Chandra Misra
Contrary to the `decoupling theory', the impact of the financial crisis has not been confined to the
developed countries. Developing countries, including India, are feeling the heat of the crisis. The Government and the
RBI have responded to the crisis through aggressive and unconventional measures. While the main plank of
the government's response was the fiscal stimulus, RBI's actions comprised monetary accommodation
thereby ensuring that the domestic money and credit markets functioned normally and were able to meet
the legitimate credit needs of different sections of the society.
© 2009 IUP. All Rights Reserved.
TREASURY
US Treasury: Is A Bubble in the Make?
-- Ravi Kant
The US government has been spending money feverishly on economic stimulus, bank bailouts and
other programs over the past couple of months. To finance all this spending, it is issuing an ever-growing mountain
of treasury bonds. Investors, across the world, are subscribing to these bonds frantically because they are
backed by the full faith and credit of the US government. Little are the investors realizing that this market for
US government treasury bonds could be another investment bubble in the making.
© 2009 IUP. All Rights Reserved.
TREASURY
Reverse Mortgage in India: Issues and Challenges
-- Renu Verma
With the National Housing Bank coming up with guidelines for Reverse Mortgage (RM) products and
some banks offering the products to the customers, the market for RM is set to grow in India This article
explains the concept of RM and how it is relevant for the Indian markets today. It also describes the various issues
and challenges involved in offering this product.
© 2009 IUP. All Rights Reserved.
RISK
Corporate Disclosures
-- Kirti Ranjan Swain
The wave of bankruptcies that have followed one after the other in the recent years as a result of the
financial scandals have given rise to a search for mechanisms suitable for protecting investors and regulating
growing capital flows. Regulators are looking at disclosures as a very important tool in this context. This article
analyzes the factors that affect the voluntary disclosures made by the firms.
© 2009 IUP. All Rights Reserved.
RISK
G-20 Summit: A Humble Beginning
-- Y Bala Bharathi and Sanjoy De
Leaders of the 20 nations met in London to give an elixir to the ailing world economy. They have come out
with many packages to bring the global economy back to health. But the success of the meet depends on
the outcome of the follow-up measures.
© 2009 IUP. All Rights Reserved.
SHORT BOOK REVIEW
The First Decade of Euro: Issues and Challenges
Editor: Katuri Nageswara Rao
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