What I think the author is trying to convey is that the Chinese leadership will engineer an attack on India, to distract its internal dissidents.
An attack for such puposes is typically a low intensity, localised military action cloaked as rebel strikes, work of sabatouers ..etc. It may also be created by an intentional airspace violation by military aircraft. The intruding aircraft does not respond to Indian airspace controllers and quickly gets back to the border before it is intercepted.
The objective is to allow the Indian government to know that the Chinese are behind it and that it is intentional. An government here will publicise the issue and seek an international mandate. This would happen over a few weeks, during which China's internal problems would be in the backburner and a surge of Chinese nationalism will keep the top circle in China in power. The junior and mid level leadership may infact not be supportive of the top at present, but an event like this will polarize the population there.
The "strike" will only last for a few days and may involve heavy collateral damage in the area. This is to ensure that everyone here takes note and the government at home is pulled up to act.
Other countries, relying on business with both countries will make some noises and the matter will die down after that.
I don't think that the author implies that China will launch a full scale war or a nuclear first strike.
On LBO or IPO, i understand the question is why go for LBO when you can go for IPO? two things:
1. IPO is a very lengthy process and often takes months to complete...by this time the merger may have fallen through.
2. Secondly, LBO makes more sense to the acquirer as he himself does not need to pledge anything of his own. In a sense, he uses the target to finance the acquisition. Also, the Debt Equity ratio of the Acquirer may be low, in which case it can afford to take on some loan in its balance sheet.
Would like to add in here a point or two
1. LBO uses debt financing, which is comparitatively cheaper than equity financing
2. LBO takes the assets of the acquired company to be used by the acquiree, to raise loans for takeover/buyouts.. Its like "Bheeshma" telling Arjun the way to defeat him.
Disagree over one point in here.
In LBO's, you have a huge debt. if at that time, the profits dip, and that happens consistently, the company cannot pull out of debt and goes bankrupt. Happened for a series of Buyouts in the 1980's and 1990's coz of which LO's became infamous!
So its not a SAFE way to take over a company. High risks, high gains proposition.
PS: Ppl can read over KKR in Wikipedia. He was the pioneer for LBO's!
Arbitrage can and sometimes does exist in forex markets, though only for a couple of seconds. As mentioned by Vivek, dealers quickly close the gap. This is done b computer trading systems that have been programmed to do so. So an arbitrage opportunity closes in a couple of seconds as computers across the globe seek to profit from it.
But longer term arbitrage strategies are possible. Infact they are trading strategies based on breakdowns or discontinuities in the market. Although interest rate parity holds, an astute trader can go long on a currency with a borrowing (in a futures contract), expecting a fall in interest rates. If this happens, he can refinance his borrowing at the lower rate, while his returns are locked in the contract.
Not sure about this. Could be wrong. Just thought of sharing.
Whatttt!!!! this is news to me :
I'm sure a lot of thought must have gone in to making such a decision by Neel!!
Nevertheless, aprreciated :
Hope he does well there!!
Congos to u bro!!!
I got an admit for PGDM(Regular).I am basically a biotech graduate but interested in finance.Moreover I graduated in 2008 and have a year gap in resume..No work experience..
I have two questions to ask
1.Will it a problem for me to secure placements in banks or financial companies.?
2.Will my year long gap in resume play spoilsport when i sit for placements?
Not an expert, but have come across news pertaining to work done by IFMR research centers, trust and trust associations. The DSF course is new because micro credit and micro financing is yet to take off in a big way in India. Conventional lending models employed by banks (even thos claiming to work in the micro sector) has not allowed micro credit to grow.
Securitization of recievables from micro loans though discussed, has not been implemented in India on a large scale. This is an established practice (securitization) in the US (also, given some blame for the subprime crisis). DSF will involve raising capital for micro credit via outside the established financial markets and conventional credit. If this takes off, job prospects will be great and you may lead a new revenue segment in the banking & FS industry.
IFMR trust has been doing some work in this area (quietly) for the past several years.
IFMR Capital, Equitas in deal for micro lending - Corporate News - livemint.com
Pls note that this is my understanding only and may not wholly represent prospects at IFMR.
Selected for IFMR PGDM
I love buffet when he says forget Macro Economics and this is what i did while trying to evaluate IFMR as an option to invest.I took in to account what are probable risk and downside protection to same from view point that of investor, which MOU with ICICI verily provides(Though i have not seen or read it ).
Secondly i doubt whether signing MOU is a norm with institutions in India.And on lighter note it is now HDFC which is largets PVT bank in india.
But yes it is interdependent world and ICICI is doing this for its own reasons and hope that it contine doing so without any restriction.And i think this also explain why the risk return relationship is not working that perfectly here(hope ICICI don't get in to trouble).
I think ICICI thing do help as IFMR is not that established brand and it also provide protection to downward risk .
And as like any investment ,people love to invest in undervalued scrips and here this ICICI thing also provide risk management which makes it more lucrative:clap: .
So dono hatho main laddu dikhte hai (atleast till now) .
And hope here Risk and Return funda is bit less working .
Well ur the real deal then! Am not the right person to suggest options, since I have never investigated them! Wish you the best for future efforts.
On a different note, it is quite introspective to read the other posts in this thread post the subprime crisis. Written 2 yrs ago, so much has changed now!
Attention: Dear puys, the selection list is out on the IFMR website.
13 waitlists for FE, 15 for DSF and 120 for PGDM