The most dramatic feature of the 1997 macro experience was clearly the combination of faster-than-expected growth and lower-than-expected inflation. This “odd couple” has spawned a search for explanations. I have led a few expeditions myself and will try to extend my analysis further this afternoon.
Both mortgage-backed and asset-backed securities are in vogue, but in the light of differing market practices and concerns relating to accounting, valuation and capital adequacy treatment of such products, the RBI issued guidelines on securitisation of standard assets in February 2006.