High yields sovereign papers may hit corporate bonds

High yields sovereign papers may hit corporate bonds

However, the central bank accepted Rs 26,853 crore in other three sets of long -term papers in excess of the planned auction size. Synopsis An unexplained skew in the yield curve has meant that lower-tenure sovereign bonds are generating nearly as much as the 10-year benchmark. In such a rate environment, project-financing corporate bonds — … Read more

How short-term rates impacted corporate borrowings

How short-term rates impacted corporate borrowings

In the past two days, sealed bond deals have indicated that investors now expect higher rates than the existing secondary market rates. Synopsis Bank of Baroda, Rural Electrification Corporation, and Indian Bank are now paying about 25-45 basis points higher for three-to-five-year money compared to their own secondary market rates. MUMBAI: Interest rates are generally … Read more