NEW YORK: Lockstep declines in bonds and stocks are sending investors into defensive products such as credit swaps, convertibles and even cash as they seek refuge from the market’s recent gyrations. BlackRock Inc’s iShares iBoxx $ Investment Grade Corporate Bond ETF has fallen by nearly 7% year-to-date to its lowest level since April 2020, as … Read more
India is inching toward a major milestone: opening its $1 trillion government bond market to more international investors, one of the most ambitious attempts to attract foreign inflows since the country liberalized its economy three decades ago. Policy makers have spent months preparing to join global indexes, key benchmarks that increasingly determine how large asset … Read more
NEW DELHI – Much has been said about the inclusion of Indian sovereign debt in global bond indices, with most analysts predicting overseas fund flows to the order of $35-45 billion, hitting the domestic market once the event was to materialise. UTI MF, however, believes that even this may not be enough to balance out … Read more
NEW DELHI: Central banks around the world sure have their work cut out. Just when monetary authorities were preparing the ground for a reversal of ultra-loose policies adopted in response to the coronavirus crisis, the virus, it seems, has taken new and potentially more dangerous avatars. From bracing for interest rates in major economies to … Read more
Foreign funds are steadily increasing exposure to Indian debt amid growing expectations that inclusion of the nation’s bonds into global indexes is imminent. Bond purchases by overseas investors under the uncapped Fully Accessible Route, climbed to 35 billion rupees ($476 million) in August, the highest this year. They’ve bought 29.4 billion rupees of bonds so … Read more
MUMBAI: Vector Green Energy, a PE backed firm, is raising about Rs 1,200 crore via green bonds in the domestic market as it plans to retire high-cost debt and add capacity. If the proposed sum is raised in one tranche, it could well be India’s largest local green bond sale by a triple-A rated entity. … Read more
Traders are seen buying the benchmark papers in anticipation that those will be accepted in RBI’s bond purchase programmes at a slightly lower yield. Synopsis Last week, the benchmark bond yield dropped below the crucial 6 percent mark to 5.96 percent after the central bank announced a Government Securities Acquisition Programme (GSAP) for Rs 35,000 … Read more
MUMBAI: In a remarkable instance of candidness, Prof Jayanth Verma admitted at the April rate-setting meeting of RBI’s Monetary Policy Committee that the time-based forward guidance given by the MPC in October failed to flatten the government bond yield curve in the country. “From my perspective, the principal motivation for the forward guidance was to … Read more
MUMBAI: Spreads on corporate bonds over government securities of similar tenure has declined to pre-Covid levels by the end of September, according to ratings firm Icra. This means these bonds have become less risky and are at the same level of risk before the onset of the pandemic COVID-19, leading to a virtual standstill of … Read more
State governments are paying more than sovereign-backed companies to raise money from the bond market. The virus-induced economic crisis cuts into their routine inflows including GST, VAT fanning investor concerns. Select state bonds like Tamil Nadu, West Bengal, Uttar Pradesh are yielding 7-15 basis points higher than corporate bonds of PGC, NTPC, IRFC, dealers said. … Read more