Sign Up

Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.

Have an account? Sign In

Have an account? Sign In Now

Sign In

Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.

Sign Up Here

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

Sorry, you do not have a permission to ask a question, You must login to ask question. Please subscribe to paid membership

Forgot Password?

Don't have account, Sign Up Here
Please subscribe to paid membership

Sorry, you do not have a permission to add a post. Please subscribe to paid membership

Forgot Password?

Don't have account, Sign Up Here
Please subscribe to paid membership
Sign InSign Up

Bondsindia Forum

Bondsindia Forum Logo Bondsindia Forum Logo

Bondsindia Forum Navigation

Search
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • User Profile
  • Communities
  • Questions
    • New Questions
    • Trending Questions
    • Must read Questions
    • Hot Questions
  • Polls
  • Tags
  • Help
Home/ Questions/Q 1733
In Process
dolly
  • 0
dolly
Asked: October 12, 20222022-10-12T16:02:28+05:30 2022-10-12T16:02:28+05:30In: Bonds

How does the repo rate affect my bond?

  • 0

How does the repo rate affect my bond?

bonds investmentbonds riskfinancegdprepo rate
  • 4 4 Answers
  • 0 Followers
  • 0
Answer
Share
  • Facebook

    4 Answers

    • Voted
    • Oldest
    • Recent
    • Random
    1. baditya457@gmail.com
      2022-10-14T17:09:31+05:30Added an answer on October 14, 2022 at 5:09 pm

      The repo rate is the interest rate for borrowing securities from a Reserve bank, and it affects Bonds and other debt instruments. When the Reserve Bank wants to increase the money supply, they lower the Fed Funds Rate (or repo rate) and make it easier for banks to borrow money from them. This causesRead more

      The repo rate is the interest rate for borrowing securities from a Reserve bank, and it affects Bonds and other debt instruments. When the Reserve Bank wants to increase the money supply, they lower the Fed Funds Rate (or repo rate) and make it easier for banks to borrow money from them. This causes short-term rates on other types of loans, like mortgages or auto loans, to go down as well. Conversely, when they want to decrease the money supply, they raise the Fed Funds Rate (or repo rate) and make it more expensive for banks to borrow money from them. This drives up interest rates on other types of loans as well.

      See less
      • 0
      • Reply
      • Share
        Share
        • Share on Facebook
        • Share on Twitter
        • Share on LinkedIn
        • Share on WhatsApp
    2. Gautam
      2022-10-25T10:54:59+05:30Added an answer on October 25, 2022 at 10:54 am

      When you purchase a bond, you are lending money to the issuer. A repo rate is just the interest rate that is charged on a loan. If this is high, it will have an adverse effect on your bond. Indeed, when the repo rate goes up, it causes the value of bonds to go down, and vice versa.

      When you purchase a bond, you are lending money to the issuer. A repo rate is just the interest rate that is charged on a loan. If this is high, it will have an adverse effect on your bond. Indeed, when the repo rate goes up, it causes the value of bonds to go down, and vice versa.

      See less
      • 0
      • Reply
      • Share
        Share
        • Share on Facebook
        • Share on Twitter
        • Share on LinkedIn
        • Share on WhatsApp
    3. Chand Agarwal
      2022-10-25T10:55:19+05:30Added an answer on October 25, 2022 at 10:55 am

      As with most things, the repo rate affects bonds in two ways. The first is through its effect on interest rates. Higher interest rates mean higher borrowing costs for companies and governments, which will raise the cost of issuing bonds to finance their activities. This could lead to an increase inRead more

      As with most things, the repo rate affects bonds in two ways. The first is through its effect on interest rates. Higher interest rates mean higher borrowing costs for companies and governments, which will raise the cost of issuing bonds to finance their activities. This could lead to an increase in funding costs and a corresponding fall in bond prices. Secondly, changes in the repo rate can change the price at which a bank lends money over short periods of time. This is because banks are required to set aside some of their deposits as reserves and these reserves earn interest at a rate that’s determined by the repo rate. Over time, this system encourages banks to keep more money available for lending so that they can make more money on their reserves; however, when short-term interest rates rise quickly, banks may be tempted to instead keep up with those higher rates by paying back any loans they have outstanding before their terms expire.

      See less
      • 0
      • Reply
      • Share
        Share
        • Share on Facebook
        • Share on Twitter
        • Share on LinkedIn
        • Share on WhatsApp
    4. Anuj Pandey
      2022-11-09T17:48:50+05:30Added an answer on November 9, 2022 at 5:48 pm

      When rates are higher, it is more expensive to borrow money. If a company's bond is held by someone who needs cash, and the repo rate rises, it becomes more expensive for them to keep their bond on hand. The high cost of borrowing money forces those bondholders to sell their bonds. This drives the pRead more

      When rates are higher, it is more expensive to borrow money. If a company’s bond is held by someone who needs cash, and the repo rate rises, it becomes more expensive for them to keep their bond on hand. The high cost of borrowing money forces those bondholders to sell their bonds. This drives the price of the bonds down. As the price of an investment falls, the yield will rise in order to attract new investors into the trade.

      See less
      • 0
      • Reply
      • Share
        Share
        • Share on Facebook
        • Share on Twitter
        • Share on LinkedIn
        • Share on WhatsApp

    Leave an answer
    Cancel reply

    You must login to add an answer.

    Forgot Password?

    Need An Account, Sign Up Here

    Sidebar

    Ask A Question

    Stats

    • Questions 94
    • Answers 235
    • Best Answer 1
    • Users 74
    • Popular
    • Answers
    • Rajiv Kumar

      Is Sovereign gold bond taxable after 5 years?

      • 9 Answers
    • Bheema Bharti

      Which investment gives the highest return?

      • 8 Answers
    • devlalit42

      What is the difference coupon rate and yield rate?

      • 7 Answers
    • Bhanu Upadhyaya
      Bhanu Upadhyaya added an answer Fixed income securities are investment products that provide a fixed… March 20, 2023 at 4:30 pm
    • Rohitsingh
      Rohitsingh added an answer When choosing an investment portfolio that meets your financial goals… March 17, 2023 at 2:14 pm
    • Akshit1512
      Akshit1512 added an answer Fixed income securities, such as bonds and treasury bills, play… March 15, 2023 at 10:40 am

    Related Questions

    • Chand Agarwal

      What role do bond ratings play in the government's ability ...

      • 0 Answers
    • Chanda Kumari

      How does interest rate risk affect fixed income securities?

      • 2 Answers
    • rohanrajput

      How can you calculate the bond yield if to calculate ...

      • 1 Answer

    Top Members

    kithfOGkE4Y

    kithfOGkE4Y

    • 0 Questions
    • 0 Answers
    zTjnTIEd4mDwbI

    zTjnTIEd4mDwbI

    • 0 Questions
    • 0 Answers
    fsJ4Tro5Qdki056hj

    fsJ4Tro5Qdki056hj

    • 0 Questions
    • 0 Answers

    Trending Tags

    2 year apcrda bonds best debt mutual funds best investment best investment for salaried individuals best investment options for salaried individuals bonds bonds india bonds in india bonds investment bonds market bonds ratings bonds risk bse budget budgeting build wealth buy bonds buy bonds india buy corporate bonds buy corporate bonds india buy corporate bonds in india buy government bonds buy government bonds online buy tax free bonds buy tax free bonds in india buy zero coupon bond in india buy zero coupon bonds india capital gain bonds corporate bond corporate bonds corporate bonds india corporate bonds online corporate bond work coupon rate creditworthiness debentures debt debt funds debt mutual funds decoding tax planning with the fixed income diversification finance financial bonds fixed income securities fixed income security gdp goal of the young investor good investment good time to buy gov bonds government bonds government bonds india government bonds interest rate government bonds work government tax gsec higher returns highest return investment high returns high returns investment high yield income tax indian government bonds interest rate invesment options invest invest 1.5 lakh investing in bonds investing in fixed income securities invest in india invest in ncd ipo invest in zero coupon bonds investment investment for salaried individuals investment in bonds investment portfolio invest money invest money in india investor investors ipo is sovereign gold bond taxable loan against investment loan for investment long term savings maturity ncd ncd bonds ncd ipo ncds nominal non convertible debentures non convirtible bonds nri nri bonds nse online platform perpetual bonds personal finance portfolio ppf in early age primary bonds purchase bonds repo rate retail investors retire retirement retirement plan returns risks risk tolrence safe investment safest bonds save money save tax saving tax saving tax bonds secondary bonds secondary market sell bonds senior citizen senior citizens short term short term investment sovereign gold bond sovereign gold bond 5 years sovereign gold bond taxable after 5 years stable returns stock stock exchange tax tax-saving for senior citizens tax free bonds tax free bonds in india tax free investment tax saving tax saving investments tax savings tax saving schemes in india trade type of bonds types of bonds types of investment way to build wealth what are bonds what is corporate bond yield yield rate young investor zero coupon bond zero coupon bond issued by whom in india zero coupon bonds

    Explore

    • Home
    • Communities
    • Questions
      • New Questions
      • Trending Questions
      • Must read Questions
      • Hot Questions
    • Polls
    • Tags
    • Help

    Footer

    Bondsindia Forum

    #BondsSimplified

    BondsIndia is a part of Launchpad Fintech Pvt Ltd, an e-business platform for fixed income securities that uses technology as a means to provide financial solutions to users.

    About Us

    • Home
    • Blog
    • About Us
    • Contact Us

    Legal Stuff

    • Terms of Use
    • Privacy Policy
    • Cookie Policy
    • Disclaimer

    Help desk

    • Knowledge Panel
    • Customer Service
    • Weekly Report
    • Client Stories

    Follow Us

    All rights are reserved by Launchpad Fintech Private Limited having its brand name Bondsindia , its associates and group Companies.

    Insert/edit link

    Enter the destination URL

    Or link to existing content

      No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.