Aavas Financiers Ltd on Friday said its board of directors has approved raising Rs 100 crore by issuing bonds
Indian policy makers have put a priority on deepening the nation's corporate bond market given the high level of bad loans at local banks
Higher inflation tolerance will increase risks
At Rs 8.27 trillion, borrowing at record high this year
The smartphone maker raised a record amount of money to add to its war chest.
The proceeds from the equity placement will be used for business expansion.
Gilt funds came back under investors' radar in October after witnessing net outflow for two consecutive months
Government and corporate bond schemes of NPS are unlikely to beat equity schemes over the long term
To boost repo trading in corporate bonds, the board also approved the proposal to facilitate setting up of a limited purpose repo clearing corporation.
Even as FCI is raising Rs 75,000 cr for three months at 4.69%, companies are regularly tapping bond market for the same tenure at as low as 3.2%, way lower than RBI's repo rate of 4%
The yields of some prominent companies are still at very high levels and high net-worth individuals and family offices, who are lapping up these bonds at very attractive rates, are reaping the benefit
Move aimed at improving transparency and price discovery
Yields have dropped and the spreads have compressed despite foreign portfolio investment outflows of around $3 billion from corporate bonds in 2020, says article
Sitharaman announced a special liquidity scheme of Rs 30,000 crore for NBFCs, housing finance companies (HFCs) and MFIs, which are finding it difficult to raise money from the debt markets.
The dip was also due to low demand for investment, as capacity utilisation remained stagnant in the Indian economy
According to him, interest rates will go down further, but banks must pass them on to companies.
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The 10-year bond yields closed at 6.38 per cent
The fund has added two new names - Adani Ports & Special Economic Zone and Britannia Industries - show the fund's latest disclosures
The spread between the 10-year AAA-rated corporate and equivalent maturity government bonds have fallen to 108 bps