English Vocab

Face The Inevitable: The Spike in Bond Yields
The sharp rise in bond yields has hit banks with losses on treasury operations dominated by sovereign bond holdings. Rating agency ICRA believes the fall in bond prices on expectation of the Central government breaching its fiscal deficit target has led to banks suffering a loss on paper of over Rs.15,500 crore in the quarter that ended in December. The yield on Indian 10-year benchmark government bonds has risen steeply, from about 6.5% at the end of August to 7.56% on January 16. Even the yield on newly issued 10-year bonds that would mature in 2028 has inched up 27 basis
points since January 5. Bankers have pleaded that the Reserve Bank of India allow them tostagger the reporting of these losses over several quarters. In seeking leeway, they have pointed to the huge burden imposed on their balance sheets by non-performing assetsclogging the banking system. After all, India’s banks, flush with cash since demonetisation, are the largest (and captive) holders of government bonds, thanks to a regime that requires them to maintain a high proportion of assets in them. That deposits have grown while credit offtake has not, makes matters worse. But seeking regulatoryforbearance is not the solution. This argument may not find much traction with the banking regulator, going by Deputy Governor Viral Acharya’s remarks on Monday.
Any kind of accounting chicanery that makes the books look rosy will come at the cost of the accuracy with which banks reflect their financial health. Banks, which are supposed to be good at assessing not just creditors’ credibility but also the broader trends in the economy and the financial markets, cannot feign surprise at a rise and fall in bond yields. As Mr. Acharya has pointed out, banks understand the impact of interest rate movements and the risks of bond investments, and they perhaps choose to ignore this thanks to a “heads I win, tails the regulator dispenses” mindset. Just as banks need to be held accountable for their lending decisions and their advances, treasury operations and bond investments also need accountability and risk management systems. After all, there are trained professionals handling their large bond market operations who know of the principles of asset allocation and the hedging of risks. Banks should simply step up their game and address the reasons for their investment losses instead of resorting to measures aimed at hiding their problems. Any temporary measure, such as the request to stagger the recognition of bond losses, will only worsen it. Moreover, irrespective of the accounting standards banks are asked to follow, the markets can easily call this bluff and bid down their share prices.
Courtesy-The Hindu (National)
1. Breaching (verb): (To break or act contrary to (a law, promise, etc.) (उल्लंघन)
Synonyms: Contravention, Infraction, Infringement, Transgression, Trespass, Violation
Antonyms: Noninfringement, Nonviolation, Observance, Mending
Example: The company was prosecuted for breaching the Health and Safety Act.
Verb forms: Breach; Breached; Breached;
Related words: Breach, noun, (an act of breaking or failing to observe a law, agreement, or code of conduct.)
Unbreached, (adjective)
2. Pleaded (verb): (Present and argue for (a position), especially in court or in another public context.) (निवेदन करना, तर्क के रूप में प्रस्तुत करना)
Synonyms: Assert, Contend, Appealed, Argue, Implored, Beseeched
Antonyms: Acquiesce, Protest, Bicker, Discord
Example: He pleaded guilty to the murders of three boys and waived his right to appeal.
Verb forms: Plead, Pleaded, Pleaded  
Related words: Pleadable adjective, pleader noun, pleadingly adverb
3. Stagger (verb): (Move unsteadily, as if about to fall.) (लड़खड़ाना)
Synonyms: Careen, Dodder, Lurch, Reel, Teeter, Totter, Waddle, Stumble
Antonyms: Comfort, Enlighten, Unflustered, Unruffled
Example: When Bill was offered a higher salary, he started to stagger on his decision to leave the firm.
Verb forms: Stagger, Staggered, Staggered
Related words: Stagger, (noun), Staggeringly (adverb) (लड़खड़ाते हुए)
4. Leeway (noun): (An allowable margin of freedom or variation) (स्वतंत्रता)
Synonyms: Latitude, Slack, Space, Wiggle Room, Flexibility, Cushion.
Antonyms: Constraint, Restriction, Bigotry, Servitude
Example: The judge has a lot of leeway in deciding matters in court.
Related words: Make up (the) Leeway (phrase)
5. Clogging (verb): (To halt or retard the progress, operation, or growth of) (अवरुद्ध करना)
Synonyms: Balk, Bar, Block, Chain, Encumbrance, Cramp, Crimp, Congest,
Antonyms: Excavate, Scoop Out, Permissive, Commencement
Example: Hundreds of angry voters began to clog the government phone lines with complaints.
Verb forms: Clog; Clogged; Clogged;
Related words: Clogger (noun), Cloggily, (adverb), Cloggy, (adjective)
6. Forbearance (noun): (Self-control; patience) (सहनशीलता, धैर्य)
Synonyms: Abstinence, Toler            ance, Toleration, Sufferance; Indulgence.
Antonyms: Impatience, Defiance, Insubordination, Intractability, Recalcitrance, Resistance,
Example: The police officer showed forbearance when he let the young thief off with a warning.
7. Traction (noun): (Attracting power or influence; attraction.) (संकर्षण, खींचना)
Synonyms: Drag, Pull, Adhesion, Affinity
Antonyms: Repulsion, Slickness, Shove, Plunk
Example: We didn't get traction on this idea until the board took interest.
Related words: Tractional (adjective)
8. Chicanery (noun): (The use of deception or subterfuge to achieve one's purpose.) (हेरा-फेरी, कुटिलता)
Synonyms: Artifice, Trickery, Jugglery, Legerdemain, Subterfuge, Wile
Antonyms: Artlessness, Forthrightness, Guilelessness, Ingenuousness, Sincerity;
Example: Our city council is full of chicanery, telling citizens a tax increase is now necessary though this wasn't the case three weeks ago.
9. Feign (verb): (To give a false appearance of or to make believe; pretend:) (अनुमान करना, ढोंग करना)
Synonyms: Affect, Assume, Bluff, Counterfeit, Fake, Pretend,
Antonyms: Actual, Evacuate, Revealing, Unpretentious
Example: The little boy would feign his stomach pain just to receive special attention from his parents.
Verb forms: Feign; Feigned; Feigned;
Related words: Feigner, (noun) Feigningly, (adverb) Unfeigning, (adjective)
10. Hedging (verb): (To protect oneself from losing or failing by a counterbalancing action) (रोकना, घेरा, बचाव-व्यवस्था)
Synonyms: Barricade, Fence, Barrier, Wall
Antonyms: Entrance, Exposing, Confronting
Example: He hedged his earlier comments about the need for new management.
Verb forms: Hedge, Hedged, Hedged
Related words: Hedger (noun) Hedgingly (adverb) Hedge (adjective)
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