Individual investors in India are rushing to buy corporate bonds from weaker borrowers, taking bigger risks to boost returns in a debt market dominated by institutional investors. Company note sales to retail investors have more than doubled from a year earlier to 67.2 billion rupees ($898 million) so far in 2021. A further 31 billion … Read more
Rising acceptance of schemes with roll down maturity, which offer a higher return visibility, has helped in improving fund flow in the debt schemes. Synopsis The composition of corporate bonds in the mutual fund schemes is changing in favour of less riskier papers. ET Intelligence Group: Debt investors have shown high preference for corporate bond … Read more
By Divya Patil State Bank of India priced one of the riskiest bank capital securities at a record-low coupon, in the latest sign that investors are confident policy makers’ stimulus steps will help large issuers weather the pandemic. India’s biggest bank will sell 40 billion rupees ($545 million) of the so-called Additional Tier 1 bonds … Read more