Receiving Swaps Over Bonds: A Strategic Shift for Indian Investors
Thursday, 12 September 2024, 03:38
The Emerging Preference for Receiving Swaps
In India, receiving swaps seem to hold a competitive edge over adding bonds in investment portfolios. Recent insights from a BNP Paribas executive reveal that over overnight indexed swaps (OIS) provide potential profits that surpass traditional bond investments.
Why Investors Should Prioritize OIS
- Higher Returns: The projected gains from OIS may offer investors a more lucrative opportunity compared to long positions in bonds.
- Market Trends: With the shifting economic landscape, the demand for more dynamic and responsive investment strategies is notable.
- Risk Mitigation: Engaging in swaps can help manage exposure to interest rate fluctuations that typically impact bonds.
As investors re-evaluate their strategies, prioritizing receiving swaps could be a pivotal move to capitalize on evolving market conditions.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.