Corporate Bond Market

Municipal bonds are primarily issued to raise money for financing infrastructure projects like building parks, libraries, schools, police departments and community centres

Regulator sets up working group to spot lacunae in failed framework introduced over a decade ago

Corporate bond issuance is likely to remain muted witnessing 4-5 per cent growth this fiscal to touch Rs 41.42 lakh crore on rising coupon rates, despite the drawdown more than doubling in the second quarter, a report said. Bond sales more than doubled to Rs 2.1 lakh crore in the second quarter from the first quarter, when it was at a multi-year quarterly low of Rs 1 lakh crore, as banks issued bonds worth an all-time high of Rs 53,900 crore, and NBFCs, traditionally largest players in the market, issuing securities worth Rs 1.1 lakh crore in Q2, according to an analysis by Icra Ratings. Non-banking lenders have remained the largest issuers of bonds with a share of 47 per cent in the first half, followed by corporates and banks at 33 and 20 per cent, respectively, down from 50, 40 and 10 per cent, respectively from H1FY22, according to the report. Thanks to bumper sales in Q2, the overall bond issuances rose to Rs 3.3 lakh crore in the first half, and the agency expects Rs 3.7-4.2 .

Corporate bond issuance is looking impressive, but the market still has some distance to go before it can be considered deep

Even as regulators push to deepen corporate bond market by increasing liquidity in secondary market, efforts are getting nullified by the near-total dominance (98.5 per cent) of private placements, which can't be traded in secondary market, shows a report. Sustained market making efforts by the regulators have seen the outstanding bonds rising by almost four-fold to Rs 39.6 lakh crore in FY22 from Rs 10.5 lakh crore in FY12, according to an analysis by Bank of Baroda's economists. Between FY21 and FY22, outstanding corporate bonds increased by 11.2 per cent. As against this, the government bond outstanding is Rs 84.71 lakh crore and total volume, including the secondary market trading, was Rs 126.6 lakh crore in FY22. As much as 98 per cent of the new issuances of corporate bonds are carried out in the private placement route in FY22, with just 2 per cent of the Rs 6 lakh crore issuances being public issues in FY22. Public issuances of bonds inched further to 1.5 per cent so far thi

"While we can discuss the reasons for this trend, it is clear that the corporate bond market largely meets the needs of highly rated corporates," he said

Opening up India's corporate bond market is an important part of Prime Minister Narendra Modi's pledge to almost double the size of the economy to $5 trillion by 2025

Global issuances have crossed levels seen before the pandemic

Indiabulls Housing Finance's shares on Friday fell 1.76 per cent to close at Rs 225.70 apiece on the BSE.

In a bid to deepen the corporate bond market, the government is working on setting up a 'backstop facility' as announced in the Budget, a senior government official said on Friday.

The tranche 1 issue includes a base issue size of Rs 100 crore and a greenshoe option of Rs 900 crore aggregating up to Rs 1,000 crore.

The corporate bond market is still dominated by financial companies, but non-financial companies have marked their presence in the past one year

Under this, it has provided an updated list of data fields to be maintained in the database along with the manner of filing the same, Sebi said in a circular

Bonds of EasyJet Plc and U.K. property manager Hammerson Plc are among the best performers in Europe this year.

Business Standard's Samie Modak explains in detail why perpetual bonds are in news. Listen to the podcast

A sudden change in the metrics will be disruptive

Besides redemption pressure in debt market, it will make fund raising difficult for PSBs

In this podcast, we discussed the key announcements made by the finance minister about bank privatisation, asset reconstruction company and how bond market seeing the budget, why yields are rising

Issuance will fall by 17 per cent to about 7.55 trillion rupees ($103.5 billion) this year, according to the median estimate of six of the nation's top debt arrangers

The Exim Bank is in the international bond market with an over $1 billion dollar money issue, merchant bankers have said