The spread on the ICE BofA US High Yield Index, a commonly used benchmark for the junk bond market, spiked from 318 basis points on Friday to 344 basis points as of the last update late Monday
While India has a highly under-penetrated formal credit market, it has a very large informal credit market.
Credit to Mid, small units also see higher growth
Credit growth to agriculture and allied activities accelerated 11.3%, compared with 4.7% the previous year
Lenders depending on personal loans rather than industrial credit
Allianz's total private credit investments in the country is worth about $650 million and it is looking to increase it to $1 billion in 2021
Private debt means debt given to privately held companies or buying those loans in the secondary market
If it continues, wary of borrowers' opportunism and distorted credit discipline, banks may not come forward to lend even if we shout ourselves hoarse over their risk averseness
Spreads on five- and 10-yr rupee corporate bonds diverging
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Debt schemes take significant exposure in not-so-highly rated companies and had lost their appeal after April 2019
In the first part of the series, we are looking at the core investment-linked sectors.
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
The KV Kamath committee to finalise financial parameters for restructuring of companies hit by the pandemic had identified 26 sectors.
India's central-bank move to pump more cash in the credit market has improved the health of shadow lenders, helping to assuage concerns about their revival prospects
Say stimulus measures will spur economic activity, especially in construction and infra sector
Banks, financial and non-banking financial institutions have been asked to take "necessary actions" to credit into the accounts of eligible borrowers by November 5, RBI has told the Supreme Court.
The Union Cabinet is expected to take up soon a proposal for setting up Credit Guarantee Enhancement Corporation to widen sources of capital for infrastructure financing, sources said.
Concerted efforts are required from the central bank and the government
Over the past few weeks, Covid-19 hit, stimulus buoyed markets world over have risen close to a 'bull phase', typically defined as a rise of 20 per cent or more from the recent lows