Fixed income - on interest rate going up scenero

[TradeB2B]

@Bhuvan there is lot of doubt i have

1-if interest rate goes up - money market returns will go up or not

2-SDL are accepted as colleterial , because there yield are very good

3- if intrest rate goes up , my holding GOI bonds will go down , if yes how can i buy in down bond rates

[Bhuvan]

@TradeB2B

if interest rate goes up - money market returns will go up or not

All debt funds will fall but some recover faster than others. Since money market funds hold papers with maturity less than 1 year they recover faster.

@TradeB2B

2-SDL are accepted as colleterial , because there yield are very good

Here’s the instruments that are accepted for pledging

What is pledging, and how does it work?

@TradeB2B

3- if intrest rate goes up , my holding GOI bonds will go down , if yes how can i buy in down bond rates

Coin by Zerodha