When do fiis make money in the indian debt markets?

when do fiis make money in the indian debt markets?

Level - INTERMEDIATE

FIIs sold off their holding in debt when the rupee began to depreciate. This is because a falling rupee hurts their total return. Watch this investor education video by Moneykraft

AUTHOR(S): Deepa Vasudevan

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When do FIIs make money in the Indian Debt Markets?

 FIIs sold off their holding in debt when the rupee began to depreciate. This is because a falling rupee hurts their total return.

1 2 3

    1.Suppose an FII borrows at 2% and invests in debt in India at 7.5%. What will be his net return after one year if the exchange rate remains unchanged?



  • 7.50%
  • 9.50%
  • 5.50%
  • 2.When FIIs invest in Indian debt, the two key variables that they consider are



  • Yield differential and current account deficit
  • Yield differential and currency depreciation
  • Currency depreciation and benchmark g-sec rate
  • 3.If yield differential between Indian and US debt is 4%, then an FII will earn the highest return by investing in debt in India when



  • Rupee depreciates by 6%
  • Rupee depreciates by 2%
  • Rupee stays constant
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