CFVF What are your predictions ?

dman wrote:Experts Pls comment !!!

dman wrote:Thanks guys !!!

Whats ur prediction for SUN.  and LIOC.  

RPPA wrote:

dman wrote:Experts Pls comment !!!

CFVF will break 60/- in this month or next 10 days.

kabba wrote:

RPPA wrote:

dman wrote:Experts Pls comment !!!

CFVF will break 60/- in this month or next 10 days.

50 pahalata nowetunoth ethi
rppa seen eke innanam api bala nee..

RPPA wrote:Bond rates are dropping. But slow........

yesterday dropped 5 basis points.(0.05%)

OzTRADER wrote:

RPPA wrote:Bond rates are dropping. But slow........

yesterday dropped 5 basis points.(0.05%)

Mr RPPA how does a drop in bond rates bnifit the company can you please give a brief explanation coz i am not very familiar with its meathods.

OzTRADER wrote:

RPPA wrote:Bond rates are dropping. But slow........

yesterday dropped 5 basis points.(0.05%)

Mr RPPA how does a drop in bond rates bnifit the company can you please give a brief explanation coz i am not very familiar with its meathods.

RPPA wrote:

OzTRADER wrote:

RPPA wrote:Bond rates are dropping. But slow........

yesterday dropped 5 basis points.(0.05%)

Mr RPPA how does a drop in bond rates bnifit the company can you please give a brief explanation coz i am not very familiar with its meathods.

We are talking about a primary dealer (PD) here when if comes to CFVF. As PD portion (A subsidiary) of income is the major contributor for CFVF.

PD deals with only T/Bills & T/Bonds. That is a separate market as CSE.When the interest rates come down they make capital gains.

In the market it happens other way around not like shares. Where A Bond will be purchased @ a higher rate (8.50%) & sell @ a lower rate (8.20%). then they will make a capital gain from it.

And the portfolio of theirs will be marked to market. So when the interest rates falls the portfolio value increases.

For any clarifications please feel free to ask.

RPPA wrote:

OzTRADER wrote:

RPPA wrote:Bond rates are dropping. But slow........

yesterday dropped 5 basis points.(0.05%)

Mr RPPA how does a drop in bond rates bnifit the company can you please give a brief explanation coz i am not very familiar with its meathods.

We are talking about a primary dealer (PD) here when if comes to CFVF. As PD portion (A subsidiary) of income is the major contributor for CFVF.

PD deals with only T/Bills & T/Bonds. That is a separate market as CSE.When the interest rates come down they make capital gains.

In the market it happens other way around not like shares. Where A Bond will be purchased @ a higher rate (8.50%) & sell @ a lower rate (8.20%). then they will make a capital gain from it.

And the portfolio of theirs will be marked to market. So when the interest rates falls the portfolio value increases.

For any clarifications please feel free to ask.

opfdo wrote:

RPPA wrote:

OzTRADER wrote:

RPPA wrote:Bond rates are dropping. But slow........

yesterday dropped 5 basis points.(0.05%)

Mr RPPA how does a drop in bond rates bnifit the company can you please give a brief explanation coz i am not very familiar with its meathods.

We are talking about a primary dealer (PD) here when if comes to CFVF. As PD portion (A subsidiary) of income is the major contributor for CFVF.

PD deals with only T/Bills & T/Bonds. That is a separate market as CSE.When the interest rates come down they make capital gains.

In the market it happens other way around not like shares. Where A Bond will be purchased @ a higher rate (8.50%) & sell @ a lower rate (8.20%). then they will make a capital gain from it.

And the portfolio of theirs will be marked to market. So when the interest rates falls the portfolio value increases.

For any clarifications please feel free to ask.

Thank you, but how any future changes of the rates going to be affected to the recorded income ? I am little bit confusing about it...I am do not know anything about this Bills & Bonds

RPPA wrote:

opfdo wrote:

RPPA wrote:

OzTRADER wrote:

RPPA wrote:Bond rates are dropping. But slow........

yesterday dropped 5 basis points.(0.05%)

Mr RPPA how does a drop in bond rates bnifit the company can you please give a brief explanation coz i am not very familiar with its meathods.

We are talking about a primary dealer (PD) here when if comes to CFVF. As PD portion (A subsidiary) of income is the major contributor for CFVF.

PD deals with only T/Bills & T/Bonds. That is a separate market as CSE.When the interest rates come down they make capital gains.

In the market it happens other way around not like shares. Where A Bond will be purchased @ a higher rate (8.50%) & sell @ a lower rate (8.20%). then they will make a capital gain from it.

And the portfolio of theirs will be marked to market. So when the interest rates falls the portfolio value increases.

For any clarifications please feel free to ask.

Thank you, but how any future changes of the rates going to be affected to the recorded income ? I am little bit confusing about it...I am do not know anything about this Bills & Bonds

Any primary dealer has a Bond & a Bill portfolio. As we are holding shares. So when the Bond portfolio marked to market at a certain date the gains will fluctuate accordingly.

Say yesterday a certain bond price is 7.50%
If today it's price is 7.55%.

So the value of the bond has reduced due to rise in interest rates.

So the reported marked to market profits can get reversed when interest rates move up.