two things: 1)doesn't even look like a sponsored video. very genuine. 2) thank you for educating the public with these instruments as it gives more exposure in diversifying our investment.
@@ajaysaxena9697 but srill of you have watched other promotional videos the way of marketing is different. This video doesn't look like the gentleman is not marketing just for the sake of it.
I am not so new to investing, been trying out different things but what I have found most lucrative is ETFs and mutual funds although I lost money initially I have recovered and doing great at it now, so in consistency you will find your way
@@Binsabar I continue to remain on the longer-term buy side I will continue to do so, of course, expecting the normal corrections, or shakeouts or fadeouts, but I am more optimistic on investing in the stock market now than ever.
For information of all viewers : I had sought information from RBI through RTI on the regulatory provisions of Covered Bonds in india. The answer provided by RBI to my queries is reproduced below 1.What are the regulations applicable for Covered Bonds. 2. How RBI ensures that Covered Bonds issued by Indian entities are adequately regulated and rights of the bond holders are protected? 3. Who is the regulator of Covered Bonds in India? Reply to above 3 questions by RBI is as follows 1. Reserve Bank of India has not issued any regulations on covered bonds. My fourth question was as follows 4. Are the proposal on the part of the Indian Securitisation Foundation about legislative or regulatory pronouncements/ changes required for introducing Covered Bonds in India accepted in full or part? RBI Reply : No information Available. Who in India would ensure that deliverables promised by Bond issuer is actually given to investors. 2008 financial meltdown was attributed to similar bonds in US, to get a common mans view, see the Movie " The Big Short " and you would understand how people are manipulated by the financial system.
Very great informative Sir. Small retail investors will never get to know these new things that keep coming up. You are doing a great job by educating & sharing unique financial information in free of cost. Just for your haters: This is how P R Sundar is positively differentiated by all other financial gurus & stock market trainers.
First time coming across the term, “Covered Bonds”….. Fantastically explained…. Thank you so much sir 🙏👏 உங்களிடம் நிறைய கற்றுக்கொள்ளணும்…. பொருளாதாரத்துடன்.. வாழ்வியலும்.. கடவுள் அருள் தங்கள் குடும்பத்திற்கு என்றும் இருக்கட்டும்🙏
From my experience as a banker dealing in credit, I have found that it is really difficult to enforce securities like RC for vehicles and mortgaged property. Even if try, we must be prepared for a haircut.
You absolutely have a point, additionally the nature of vehicles being depreciative asset is another issue. The reliance on enforcement from various institutions for these two collaterals makes them unreliable and varied state to state.
good advice, i will err on side of caution. If it was really good, 20 crs should have been full by now. Vehicle as a collateral is risky. That is precise reason the returns are 10.25 percent. Note more Risk is more Return, do not forget Risk.
Thanks for the information. However few points of concern here. At least for previous 2 issues wint wealth had gold loan as underlying so in case of default, gold could could be disposed off and paying off investors. Needless to say if gold prices spiral down, then investors suffer loss. But in this third issues , having vehicle loans as a collateral looks a disaster to me. What can a vehicle fetch in value being depreciation heavily? Looks for such risky investment only coupon is 10.25% while for gold it was 10%.
Sir as per my understanding with time there is depreciation in value of assets ,if company defaults in payment of interest no collateral can hedge until and unless there is demand for that collateral in the market so it's not 100 percent safe otherwise sub prime crisis wouldn't have happened.....you are doing marketing it's ok
Excellent insight given by Mr. Sundar indeed on Covered bonds in simplified terms, which will be certainly helpful for Retail investors who are looking for all three aspects i.e. SLR ... Very informative video indeed. Thanks Mr. Sundar for this knowledge sharing.👍
Below risk with covered bonds “ Only in the case when the entire bond issue gets sold out and there are more interested people in the waitlist, we will match your withdrawal request with others’ investment request.” Can u explain in detail. Is there any reason for u not explaining this risk ???
It similar to mbs. Except that it is collaterized. The default will occur when gold price falls or if underlying security is a vehicle then the company will get the depreciated value. Worse if underlying is house then if property prices fall or there is lack of liquidity in real estate the recovery rate is low and money received thru distress sale on foreclosure will b used to pay up the investor. Please assess risk.. Before investing and understand the possibility of time period required to get back some principal incase of legal route
Sir, You are valuable for people like me who are learning financial lessons after getting into professional career.. Your efforts are highly apprisiable..
"if most of the vehicles in the collateral are BS4 and Govt says that old vehicles can't run and need to be replaced with energy efficient vehicles.." then we can't say the Bonds are safe...
Thanks for the new learning of covered bonds. What is confusing is, now a days vehicle loans interest itself is less than 10% & the company is giving more than 10% interest at the mortgage of such loan docs
@@WintWealthYT what if the company defaults ...in that situation we will get back the princlple amount plus intrest which is declared during the bond??
In this video covered bonds based on vehicle loan has been explained. The current interest rate is less than 10 %. Why any company would buy money at a high interest rate through bonds and give it at low interest to their customers. Looks like there is a loss even before starting the business. Also please let us know whether this is authorised by sebi
Sir many thanks for providing knowledge of new products. There is one more such product available with 12-15% return with past track i.e. InvITs like IRB InvIT. Really honored if you could give us your thoughts on this.
@@pvvv888 it's traded like any other stock at BSE the difference is lot size, one lot is of 2500 units currently trading at rs 55 per unit. You can place order with your broker. Hope this serves some purpose.
There is no regulatory of such things, you can also go for invoice discounting .. but still same applies to that as well...my advice is only to Invest in regulated environment ...
The post tax returns comes out to 6.99%pa. PPF provides a higher return with SOV credit rating. Learnt something new Sundar sir. Thanks for the information.
@@clintonfernandes5945 let us see..if their quarterly returns goes below 2.5% then I will exit...I give 3 months time for a fund..now I am looking hdfc credit risk fund to invest...
@@tiruppurbulls it's obviously going to fall below 2.5% 🙄 interest rates are headed up. Even with right timing the maximum one will earn is 6%-7% per annum for now. Just accept it or else move to equities. Credit risk funds are not my cup of tea given the kind of dodgy companies.
@@clintonfernandes5945 I better accept for safe returns around 7% annual instead of invest in equity funds...Iam already doing option selling and that is enough risk I am already in..I need something guaranteed income, apart from riskier assets .
Good source of information but currently equity is less risky then anything if you invest for next 23 months in only Niftybess your return will be more then 21%.
In my opinion, Vehicles as Security is not comparable to Gold & even property assets can’t equated with gold. In case of default by the company they lend the Fund will not be in position to pay the Trust. How will the Trust release your gold assets without payment to them. Another aspect is that higher return also inherently indicates higher risks. Many companies are reducing debt and the one in need of finance perhaps are not having a good operative margin or are very ambitious in expansion. History reveals that failure of big companies (big brands) happened due to ambitious expansion or announcement of it.
Thanq for info. I have been watching your post market analysis for quite some time and am enthused by them .l feel that I am getting educated by them. May god bless you for imparting us the valuable knowledge.
Valuable information in the current falling interest rate scenario and thanks for introducing us to a new option for investment in different class of asset. Great learning from you as always.
@@PRSundar64 Sir ... the colateral being vehicle loans ... isnt that risky??? as compared to colatereal being gold? vehicle loans... HIGHLY RISKY... a vehicle easily depreciates by value of 30percent the moment it is purchased... Not even 1 week of usage!... Then when loan borrowers default on the vehicles, they will happily give back the tin-cann of the vehicle it has become... Which gets maybe 40percent if extremely lucky in a second hand market. Though current bond may work out... But not sure if in 2 years because vehicle sales won't pickup until corona is gone...
@@DMangalorian even for gold the prices can fall down and people may default thinking it's better to slow gold to be taken them pay more money to recover it. Need to track this investment how they are managing during down turns out economy before investing. However thanks to PR Sundar sir for letting us know about this investment.
@PRSundar sir - thank you once again for sharing such valuable knowledge with us. Near 2019 ending, i wanted to add a diversification to my portfolio and hence invested in P2P/Peer lending through the online portals available and it was quite a hyped platform as well. But once Corona came into picture, all the borrowers have defaulted and since then the principal amount is held and the company as expected has cut all sorts of communication or giving false hopes. Understanding the situation and the only way left is to take legal action, I highly doubt if at all its worth the time & effort. Coming to Wint Wealth, going through RISK tab, I find something similar and again fear the same. In case of default, i foresee that something similar can always happen. Just sharing my experience but above all, covered bonds would be a very good diversification and a reply would be cheerful!!!!
Sir, I think the risk of default prevails from the borrower , it is like banks lend on collateral which can be liquidated in case of default, provided the current market price is greater than loan amount, but on vehicles since they are depreciating assets, the losses in case of defaults would be greater! One should understand this risk before investing I believe, thanks for your efforts to bring it to light anyways.
Thanks for very useful information. However, I believe other than gold loan in all other asset classes there will be some default and therefore return is likely be impacted and if there is major default even the principal will get eroded.
Please note that Wint Gold schemes are covered by gold loans and not actual gold. Need to understand what will happen in case of default by the NBFC. Can you please explain step by step what will happen in that case?
What happens to the original owner - pleger of gold or mortgager of a house. If the covered bond fails, both original owner of gold and the covered bond holder will have right to claim. I think the covered bond holder gets second charge only. Also, the Lender needs consent of the original owner's before issuing such bonds. It is like pawn broker taking refinance from other financial institutions / banks. The scheme is 'going concern'. It will be disastrous for failing companies.
Can you also tell us how do HNI people invest directly in these covered bonds? It's q good platform but looks like they are taking lot of commission (middle men fees).
Thank you sir. Just a suggestion - If you can open a b-school specifically for students dreaming to make careers in Trading. Also would request u to offer discount for your classes especially for student community.
Though Collateral is available, you have not discussed in detail about recovery of invested amount in case of default by the company because court process is time consuming.
Hello Natarajan! In a covered bond the underlying collateral is bankruptcy remote i.e. the cash flows from the pool do not become part of bankruptcy proceedings. In the live transaction, in case Kogta defaults (or any of the trigger events happen), the cash flows from the pool would be utilized to repay the investors. All the loans in the pool have tenor less than four years from the transaction date hence pool cashflows might take additional two years to completely repay the investors. To compensate for this increase in tenure, the interest rate is also increased by 2%
@@WintWealthYT our understanding of risk is very low. Very few can go deep in to such thing what you said. When considering safety, if people like Mr PR Sundar, Nitin Kamath endorse... We feel it is safe. I'll invest.
Vehicle as a security is not as safe as Gold . Housing value also can be overvalued . What happens if company defaults and the value of vehicles does not cover the repayment ?
I feel its better to invest in debt instruments of known companies rather than unknown companies. DHFL was a known comapny and the NCDs were secured NCDS, AAA rated. Overnight those NCDs were downgraded from AAA to D. Investors are wondering whether they will get their money back or not.
There are some plus and minus, strictly can not compare. Bharath bond, long term, if you go for short term, then interest is very low. Bharath bond is cumulative, you do not get cash flow. Bharath bond prices fluctuate. Bharath bond is not "covered" But there are some plus points for Bharath bond, it can be given as collateral for F&O trading. Though it is not covered, it is more or less "safe" as money is lent to only PSU companies. Even if they default, Govt may step in.
Vehicle have book value as well as real value, the difference is wide in these valuations. Vehicles are depreciating asset. Hence these collateral are more riskier than gold. Hence both risk and return needs to be considered before investing.
Covered asset is Wheels-Vehicles be it commercial or passenger.Tough to recover vehicles during default.Vehicle depreciation.Legalities of RC is another risk.Golad or Home financing better.Iam staying out.Instead I will buy Maruti MM AL Eicher
Please note that the vehicles financed are old vehicles ( more than 80%) and also LTV ie loan to value, is also more than 80% in majority of the loans. If default, recovering the principal ???????
Sir, Great info on how to do savings with good returns........and it is not at all looking like sponsored by you or Company......... thank you so much sir 👍
If it is backed by physical gold, to some extend we can believe that we won't lose money. If it is backed by housing loan it may be dangerous as it is similar to a Mortgage backed securities, which created 2008 economic crisis (see Lehman Brothers fall).
Sir,It's a great product but only problem is that, they are paying monthly interest,so no compounding of the interest money plus there is tax,in the long run if ppf stays at least 7 percent, it will beat this 10 percent return . Sir please your view on this
Bank of Baroda, Karnataka High Court, allows appeal for attaching all assets of BR SHETTY for recovery of RS. 2000 CRORE. Bank of Baroda- transfers bad loans to ARC of Rs. 1,200/- Crores. Short term Target Rs. 75/-. 2021 Target Rs. 112/-
Sir. With due respect. Recheck the example you gave. I have money which I lent against GOLD. Now same GOLD I further use as collateral to Borrow money. Is It not double Hatting. GOLD which i hold is my Liability. How can I further mortgage it. And if I will the underlying value of collateral will be much lesser to cover it's liabilities. Just remember there is no FREE LUNCH. Please focus only on Equities that you are good at. ❤️❤️
Eventually, the companies which are raising funds from Wint in this manner are using leverage : which is OK in a low interest environment. But the dangers of leverage cannot be wished away, that's precisely the reason you are getting elevated returns.
Hello Rahul! This is essentially a bond with the added benefit that the underlying pool of loans is bankruptcy remote. In this structure you have full recourse to NBFC i.e. whether pools are performing or not, NBFC is liable to pay. In the hypothetical scenario, the NBFC goes bankrupt, then the pool will be used to repay the investors. In the US market CDOs, the recourse was only on the pool and there was no skin in the game of financial institution.
two things: 1)doesn't even look like a sponsored video. very genuine.
2) thank you for educating the public with these instruments as it gives more exposure in diversifying our investment.
Its written in video itself... "Paid promotion"... bade log free mein kuch nahi karte
@@ajaysaxena9697 but srill of you have watched other promotional videos the way of marketing is different. This video doesn't look like the gentleman is not marketing just for the sake of it.
If you chase Risk you get Returns and if you Chase Returns you get risk.
Nice one
@@tiruppurbulls maha prabhu neengala ???
@@lakshmir3042 avare than..I am also One of kumba fan..
Whoever said this is damn stupid 😂
Sir you are doing an excellent job of educating the public in a non biased manner 🙏
Hope to see much more of such videos in the future.
Pls see comment by Rachel to know the negatives
@@anoopvarghese4041 Anoop saving another Anoop 👍🏻
I am not so new to investing, been trying out different things but what I have found most lucrative is ETFs and mutual funds although I lost money initially I have recovered and doing great at it now, so in consistency you will find your way
Hi, a beginner here and I get lost trying to understand the rudiments of this even watched several videos but then I don't intend to make mistakes
I have a pro Mr (Eric Arlo) behind me for that that's why I succeed at it, it's that plain maybe he could help you
@@Binsabar I continue to remain on the longer-term buy side I will continue to do so, of course, expecting the normal corrections, or shakeouts or fadeouts, but I am more optimistic on investing in the stock market now than ever.
Great, can I have his number please
Arloeric 1(a)Gmai
Lcom...Is he taking commissions for trades? Yes, he is
For information of all viewers :
I had sought information from RBI through RTI on the regulatory provisions of Covered Bonds in india. The answer provided by RBI to my queries is reproduced below
1.What are the regulations applicable for Covered Bonds.
2. How RBI ensures that Covered Bonds issued by
Indian entities are adequately regulated and
rights of the bond holders are protected?
3. Who is the regulator of Covered Bonds in India?
Reply to above 3 questions by RBI is as follows
1. Reserve Bank of India has not issued any regulations on covered bonds.
My fourth question was as follows
4. Are the proposal on the part of the Indian
Securitisation Foundation about legislative or
regulatory pronouncements/ changes required
for introducing Covered Bonds in India accepted
in full or part?
RBI Reply : No information Available.
Who in India would ensure that deliverables promised by Bond issuer is actually given to investors.
2008 financial meltdown was attributed to similar bonds in US, to get a common mans view, see the Movie " The Big Short " and you would understand how people are manipulated by the financial system.
So one should not invest in this bond😔
Thanks for the information.
Genuine video... I have never even heard of covered bonds till now...Info is wealth...thanks a ton for spreading the knowledge
0p
Before buying covered bond please watch the movie The Big Short..
SHORT SELLING OF GOLD AND SILVER SEEN IN THIS WEEK...
@@raghunandhaan very underrated comment
Genuine video ???🤣
Very great informative Sir. Small retail investors will never get to know these new things that keep coming up. You are doing a great job by educating & sharing unique financial information in free of cost. Just for your haters: This is how P R Sundar is positively differentiated by all other financial gurus & stock market trainers.
First time coming across the term, “Covered Bonds”….. Fantastically explained…. Thank you so much sir 🙏👏
உங்களிடம் நிறைய கற்றுக்கொள்ளணும்…. பொருளாதாரத்துடன்.. வாழ்வியலும்..
கடவுள் அருள் தங்கள் குடும்பத்திற்கு என்றும் இருக்கட்டும்🙏
The sponsored video also sounded like a very genuine educational video. Very nicely done. Thank you for the information.
Very useful one.
From my experience as a banker dealing in credit, I have found that it is really difficult to enforce securities like RC for vehicles and mortgaged property. Even if try, we must be prepared for a haircut.
Sir
Can you explain why NRI cannot invest in Covered Bonds???
@@surendranramesh sorry where did you come across that NRIs cannot invest in Covered Bonds?
You absolutely have a point, additionally the nature of vehicles being depreciative asset is another issue. The reliance on enforcement from various institutions for these two collaterals makes them unreliable and varied state to state.
good advice, i will err on side of caution. If it was really good, 20 crs should have been full by now. Vehicle as a collateral is risky. That is precise reason the returns are 10.25 percent. Note more Risk is more Return, do not forget Risk.
The same website did offer 11% returns on Gold Bonds, which have been filled up. Would you consider gold as risky ?
Thanks for the information. However few points of concern here. At least for previous 2 issues wint wealth had gold loan as underlying so in case of default, gold could could be disposed off and paying off investors. Needless to say if gold prices spiral down, then investors suffer loss. But in this third issues , having vehicle loans as a collateral looks a disaster to me. What can a vehicle fetch in value being depreciation heavily? Looks for such risky investment only coupon is 10.25% while for gold it was 10%.
Excellent.. You're correct... Its risky still.. not 100% covered
Bri what is collateral?
Speaking speed is increased.much appreciate 🙏🏽
I watch every video of pr sundar at 1.5x speed
Yes i use it at 1.75 speed. It really works.
😂
I too 1.5
Watch it on 2x
Sir as per my understanding with time there is depreciation in value of assets ,if company defaults in payment of interest no collateral can hedge until and unless there is demand for that collateral in the market so it's not 100 percent safe otherwise sub prime crisis wouldn't have happened.....you are doing marketing it's ok
Excellent insight given by Mr. Sundar indeed on Covered bonds in simplified terms, which will be certainly helpful for Retail investors who are looking for all three aspects i.e. SLR ... Very informative video indeed. Thanks Mr. Sundar for this knowledge sharing.👍
1. Gold
American Bank (or) PR Sunder
2. Covered Bonds
Both are 100℅ useful teacher
Below risk with covered bonds “ Only in the case when the entire bond issue gets sold out and there are more interested people in the waitlist, we will match your withdrawal request with others’ investment request.” Can u explain in detail. Is there any reason for u not explaining this risk ???
It similar to mbs. Except that it is collaterized. The default will occur when gold price falls or if underlying security is a vehicle then the company will get the depreciated value. Worse if underlying is house then if property prices fall or there is lack of liquidity in real estate the recovery rate is low and money received thru distress sale on foreclosure will b used to pay up the investor. Please assess risk.. Before investing and understand the possibility of time period required to get back some principal incase of legal route
Didn't know this product was available in the market. Thankyou. Well explained
Sir, You are valuable for people like me who are learning financial lessons after getting into professional career.. Your efforts are highly apprisiable..
"if most of the vehicles in the collateral are BS4 and Govt says that old vehicles can't run and need to be replaced with energy efficient vehicles.."
then we can't say the Bonds are safe...
Sir, can pls answer this question ❓
Thanks for the new learning of covered bonds. What is confusing is, now a days vehicle loans interest itself is less than 10% & the company is giving more than 10% interest at the mortgage of such loan docs
Note: As mentioned by him in beginning of video, this video includes paid promotion.
Do your own research before investing.
Hi Maulik!
We advise the same to all our investors. With that said, if you have any queries feel free to reach out to us!
@@WintWealthYT can I pledge this fund with Zerodha for colletral margin for options trading?
@@WintWealthYT what if the company defaults ...in that situation we will get back the princlple amount plus intrest which is declared during the bond??
In this video covered bonds based on vehicle loan has been explained. The current interest rate is less than 10 %. Why any company would buy money at a high interest rate through bonds and give it at low interest to their customers. Looks like there is a loss even before starting the business. Also please let us know whether this is authorised by sebi
Sir many thanks for providing knowledge of new products. There is one more such product available with 12-15% return with past track i.e. InvITs like IRB InvIT. Really honored if you could give us your thoughts on this.
Where can i find this brother?
@@pvvv888 it's traded like any other stock at BSE the difference is lot size, one lot is of 2500 units currently trading at rs 55 per unit. You can place order with your broker.
Hope this serves some purpose.
@@manishagarwal2521 can you mention the ticker symbol please.
@@pvvv888 I don't use ticker. Search by name IRBInvit
@@manishagarwal2521 thanks
There is no regulatory of such things, you can also go for invoice discounting .. but still same applies to that as well...my advice is only to Invest in regulated environment ...
Hello Vshal!
We are regulated.These bonds are listed on BSE
Can you pls tell me how is Muthoot Fincorp MLD : Senior secured (Covered Bond) crisil AA+ PP
The post tax returns comes out to 6.99%pa. PPF provides a higher return with SOV credit rating. Learnt something new Sundar sir. Thanks for the information.
I invest in icici all season bond fund..they give 10% yearly return
It's not fixed. They got lucky by playing it right. Henceforth returns will not be same.
@@clintonfernandes5945 let us see..if their quarterly returns goes below 2.5% then I will exit...I give 3 months time for a fund..now I am looking hdfc credit risk fund to invest...
@@tiruppurbulls it's obviously going to fall below 2.5% 🙄 interest rates are headed up. Even with right timing the maximum one will earn is 6%-7% per annum for now. Just accept it or else move to equities. Credit risk funds are not my cup of tea given the kind of dodgy companies.
@@clintonfernandes5945 I better accept for safe returns around 7% annual instead of invest in equity funds...Iam already doing option selling and that is enough risk I am already in..I need something guaranteed income, apart from riskier assets .
This information is brand new for me
I invested all my gratuity in equity market , because of poor interest in FD
Good source of information but currently equity is less risky then anything if you invest for next 23 months in only Niftybess your return will be more then 21%.
Sirji kidhar se ho? I am also Patidar :)
@@encryptedninja1289 bhai naam to Japani rakha hai aapne.Indore se hoo abhi pune me dera hai.
In my opinion, Vehicles as Security is not comparable to Gold & even property assets can’t equated with gold. In case of default by the company they lend the Fund will not be in position to pay the Trust. How will the Trust release your gold assets without payment to them. Another aspect is that higher return also inherently indicates higher risks. Many companies are reducing debt and the one in need of finance perhaps are not having a good operative margin or are very ambitious in expansion. History reveals that failure of big companies (big brands) happened due to ambitious expansion or announcement of it.
Sir, pls advise if wint wealth is the only platform providing these cover bonds.
Which are the other platforms for HNI investors
Thanq for info.
I have been watching your post market analysis for quite some time and am enthused by them .l feel that I am getting educated by them.
May god bless you for imparting us the valuable knowledge.
Blessed to have you in this platform.. for the priceless knowledge sharing that make a difference from others..
Glad I found your channel. you are like a professor of Stock market :-). Thanks for you educating us.
If it’s less risky why are the returns higher than regular bonds? Think Mates.
Valuable information in the current falling interest rate scenario and thanks for introducing us to a new option for investment in different class of asset. Great learning from you as always.
May it be sponsored video I have learnt something new as ( coverd Bonds) Thank you Sir have a Nice day
We just do not do sponsored videos just for the sake of money
Sir I am your regular follower on TH-cam. I know you share your knowledge with everyone. As an fresher I have learnt a lot from your videos .
@@PRSundar64 Aren't secured NCD / secured bonds, is backed by equivalent collateral? Eg Muthoot Finance NCD.
@@PRSundar64 Sir ... the colateral being vehicle loans ... isnt that risky??? as compared to colatereal being gold? vehicle loans... HIGHLY RISKY... a vehicle easily depreciates by value of 30percent the moment it is purchased... Not even 1 week of usage!... Then when loan borrowers default on the vehicles, they will happily give back the tin-cann of the vehicle it has become... Which gets maybe 40percent if extremely lucky in a second hand market. Though current bond may work out... But not sure if in 2 years because vehicle sales won't pickup until corona is gone...
@@DMangalorian even for gold the prices can fall down and people may default thinking it's better to slow gold to be taken them pay more money to recover it. Need to track this investment how they are managing during down turns out economy before investing.
However thanks to PR Sundar sir for letting us know about this investment.
Good idea. But vehicle cases, if a secured vehicle is sold, due to litigation, resale value is a problem in long run.
Finance market GENIUS Sir I salute your knowledge .
Sir, I really admire your knowledge... please tell us how you acquire this knowledge and keep yourself updated..
@PRSundar sir - thank you once again for sharing such valuable knowledge with us.
Near 2019 ending, i wanted to add a diversification to my portfolio and hence invested in P2P/Peer lending through the online portals available and it was quite a hyped platform as well. But once Corona came into picture, all the borrowers have defaulted and since then the principal amount is held and the company as expected has cut all sorts of communication or giving false hopes. Understanding the situation and the only way left is to take legal action, I highly doubt if at all its worth the time & effort.
Coming to Wint Wealth, going through RISK tab, I find something similar and again fear the same. In case of default, i foresee that something similar can always happen.
Just sharing my experience but above all, covered bonds would be a very good diversification and a reply would be cheerful!!!!
Sir, I think the risk of default prevails from the borrower , it is like banks lend on collateral which can be liquidated in case of default, provided the current market price is greater than loan amount, but on vehicles since they are depreciating assets, the losses in case of defaults would be greater! One should understand this risk before investing I believe, thanks for your efforts to bring it to light anyways.
Thanks for very useful information. However, I believe other than gold loan in all other asset classes there will be some default and therefore return is likely be impacted and if there is major default even the principal will get eroded.
Thanks for educational video .Honest view .Really appreciate ur candid ness telling this is sponsored and u are planning to invest ur personal money
Sundhar sir is very smart...whenever he wants to say something nagative , he says that one of my friend said that .....here the bjp and interest rates
But it is a bitter fact. Though he don't mention people are aware...
I am satisfied with your explanation and tried to invest it says "Rather than investing a huge amount in a single asset, we suggest you invest
Hi PR Sir... can this covered (wint wealth) bond be used as collateral fund for option selling in Zerodha atleast ?
No
Nice question
Superb,thank you,clear understanding of colleratal, liquidity,bonds etc
Please note that Wint Gold schemes are covered by gold loans and not actual gold. Need to understand what will happen in case of default by the NBFC. Can you please explain step by step what will happen in that case?
Oh
Genuine and honest video sir... I love your examples too make its understand the concepts... Like the person giving loans on good... Thank you 🙏
SUNDAR SIR Sir! Could you please make video on SLBM and how to execute it practically?
What happens to the original owner - pleger of gold or mortgager of a house. If the covered bond fails, both original owner of gold and the covered bond holder will have right to claim. I think the covered bond holder gets second charge only. Also, the Lender needs consent of the original owner's before issuing such bonds.
It is like pawn broker taking refinance from other financial institutions / banks.
The scheme is 'going concern'. It will be disastrous for failing companies.
Can you also tell us how do HNI people invest directly in these covered bonds? It's q good platform but looks like they are taking lot of commission (middle men fees).
Where are the commissions? Can you please explain.
Actual this bond yield is 10.8% but wint is offering 10.25% to public. That's 55 bps commission I guess
I see a risk in this arrangement as "They will give your money as loan to such people who are not getting loan from bank"
I wouldn't invest in these until it becomes mainstream under the regulations.
Thank you sir.
Just a suggestion - If you can open a b-school specifically for students dreaming to make careers in Trading.
Also would request u to offer discount for your classes especially for student community.
Though Collateral is available, you have not discussed in detail about recovery of invested amount in case of default by the company because court process is time consuming.
Hello Natarajan!
In a covered bond the underlying collateral is bankruptcy remote i.e. the cash flows from the pool do not become part of bankruptcy proceedings. In the live transaction, in case Kogta defaults (or any of the trigger events happen), the cash flows from the pool would be utilized to repay the investors. All the loans in the pool have tenor less than four years from the transaction date hence pool cashflows might take additional two years to completely repay the investors. To compensate for this increase in tenure, the interest rate is also increased by 2%
@@WintWealthYT our understanding of risk is very low. Very few can go deep in to such thing what you said. When considering safety, if people like Mr PR Sundar, Nitin Kamath endorse... We feel it is safe. I'll invest.
Very detailed explanation, easy to understand for all. Keep up the good work Sir 👏🏼
first to see, was waiting for long for this info
Vehicle as a security is not as safe as Gold . Housing value also can be overvalued . What happens if company defaults and the value of vehicles does not cover the repayment ?
Finally you got a sponsors
I feel its better to invest in debt instruments of known companies rather than unknown companies. DHFL was a known comapny and the NCDs were secured NCDS, AAA rated. Overnight those NCDs were downgraded from AAA to D. Investors are wondering whether they will get their money back or not.
Is this bond is better than bharat bond???
There are some plus and minus, strictly can not compare.
Bharath bond, long term, if you go for short term, then interest is very low.
Bharath bond is cumulative, you do not get cash flow.
Bharath bond prices fluctuate.
Bharath bond is not "covered"
But there are some plus points for Bharath bond, it can be given as collateral for F&O trading.
Though it is not covered, it is more or less "safe" as money is lent to only PSU companies. Even if they default, Govt may step in.
@@PRSundar64 omg... Thansk😅😅😅
Beautifully explained ❣️ Please upload more videos on bonds and safer instruments ❣️
வாழ்த்துகள் சுந்தர் சார்...
Vehicle have book value as well as real value, the difference is wide in these valuations. Vehicles are depreciating asset. Hence these collateral are more riskier than gold. Hence both risk and return needs to be considered before investing.
Yesterday only I predicted what he's going to show 😂
So did he... What's the big deal?
@@kaise_karun mop.kzzk
Try career in astrology bro...Wish you great success there
@@sagarwelekar9948 😂
Covered asset is Wheels-Vehicles be it commercial or passenger.Tough to recover vehicles during default.Vehicle depreciation.Legalities of RC is another risk.Golad or Home financing better.Iam staying out.Instead I will buy Maruti MM AL Eicher
You're a savior
Please note that the vehicles financed are old vehicles ( more than 80%) and also LTV ie loan to value, is also more than 80% in majority of the loans. If default, recovering the principal ???????
I am fan of you 'hii' sir ❤️
Genuine video every one will not have guts to says this is a sponsor video
when your cousin get to know he can become yuva just like the way Rahul is 50 year old yuva 😂
Why ur watching video. Don't make fun. It's easier to raise finger. Shame on u
@@vinayagarwal6509 just sarcasm bro , I love his videos btw
People are really fantastic. Just through this video trying to pull people by clicking the referral link so as to earn money. Wow.
Sir, This covered Bond can we pledge for trade in zerodha ??
No
@@PRSundar64 Thanks for you prompt reply sir
Sir, Great info on how to do savings with good returns........and it is not at all looking like sponsored by you or Company......... thank you so much sir 👍
Nobody has disliked so far. Have trollers given up? 😂 I am planning to dislike. Kahin najar na lag jaaye 😎
If it is backed by physical gold, to some extend we can believe that we won't lose money. If it is backed by housing loan it may be dangerous as it is similar to a Mortgage backed securities, which created 2008 economic crisis (see Lehman Brothers fall).
I'm first PR
Congratulations
Oscar award winner
@@amuubisht801 Less is More......!
Sir,It's a great product but only problem is that, they are paying monthly interest,so no compounding of the interest money plus there is tax,in the long run if ppf stays at least 7 percent, it will beat this 10 percent return .
Sir please your view on this
Feedback survey given to wintwealth as ur refference on wintwealth... Thanks big bro...
Bank of Baroda, Karnataka High Court, allows appeal for attaching all assets of BR SHETTY for recovery of RS. 2000 CRORE.
Bank of Baroda- transfers bad loans to ARC of Rs. 1,200/- Crores.
Short term Target Rs. 75/-.
2021 Target Rs. 112/-
looks like similar to non convertible debentures requires 10l capital, but here 10K. cover against vehicles is risky
Sir, you have given an excellent investment Avenue. Can this be utilised for collateral for margin benefit in options trading?
Hello Natarajan!
These cannot be pledged.
Sir. With due respect. Recheck the example you gave. I have money which I lent against GOLD. Now same GOLD I further use as collateral to Borrow money. Is It not double Hatting. GOLD which i hold is my Liability. How can I further mortgage it. And if I will the underlying value of collateral will be much lesser to cover it's liabilities.
Just remember there is no FREE LUNCH. Please focus only on Equities that you are good at. ❤️❤️
After a long period I today i learned something new....thank u sir.
Great Sir, I was looking for this type of platform, were small investors can use to get a reasonable return..
Sundar ji, I am occasionally following your channel.
We want information like this.
Thanking you
Great Video. I hearing for the first time about Covered bonds. I will explore further. Thank you so much.
Hats off to your knowledge and research...thanks a lot for teaching something new things..🙏🏻
All ur video have in dept information. I really like it. So I feel that I invested time in right video
Very nice info .......... really useful for retail investors
Thank you sir.
Eventually, the companies which are raising funds from Wint in this manner are using leverage : which is OK in a low interest environment. But the dangers of leverage cannot be wished away, that's precisely the reason you are getting elevated returns.
What a covered bond, vehicle loans itself as a collateral, making it is as risky as bond mutual funds. Reminding me of 2007-08 crisis.
This investment instrument is similar to MBS, which played a key role in USA sub-prime crisis (2008 recession).
Hello Rahul!
This is essentially a bond with the added benefit that the underlying pool of loans is bankruptcy remote. In this structure you have full recourse to NBFC i.e. whether pools are performing or not, NBFC is liable to pay. In the hypothetical scenario, the NBFC goes bankrupt, then the pool will be used to repay the investors. In the US market CDOs, the recourse was only on the pool and there was no skin in the game of financial institution.
It would have been one of the best bond if it was backed by gold or real estate and can be pledged with broker for option selling margin
Excellently explained sir, we wish to get many more videos from you
It is a good information for the general public.