SAP Capital Care
321 posts

SAP Capital Care
@SAPCAPITALCARE
Option seller,Trader. Investor. Tech enthusiast , ALGO/Manual execution https://t.co/OyNmNs7joq

Have you ever seen bond prices quadrupling? India issued first sovereign gold bond in Nov 2015. India”s trade deficit was going up because Indians in their wisdom were constantly shorting INR vs USD to buy gold which was putting pressure on INR. Somebody in finance ministry who got counsel from over smart people decided to create a synthetic instrument to satiate the Indian appetite for Gold via a structured product which was only backed by the confidence of Indian govt but did not have real gold to back the bond. So on one hand Indian household were going long on gold and on other hand Indian govt was going naked short on gold. Rest is history




















