According to CARE Ratings, upgrades in rated debt can be attributed to higher demand with the economy opening up after lockdowns, releasing pent-up demand, and lower cost of capital
But these funds can underperform if the fund manager's calls go wrong
Rising interest rates, too, do not augur well for corporate India as they will make raising money via debt expensive
Global investment-grade debt has returned almost 1% in May, the first monthly gain since July, while US Treasuries are heading for their best month since November
Performing Credits are the structural opportunity, which are undiscovered and yield a high risk-adjusted return amid rising interest rates
Despite the multiple COVID waves, the earnings for FY22 have not seen any significant downgrades and are on-course to deliver about 25 per cent growth
Debt maturities to stay elevated in Fy23; Fy24
CredAvenue raised $90 mn in its Series A fundraise last year at a valuation of $410 million
Goswami says case for normalisation of monetary conditions is starting to pick up pace, and next step will be to narrow the policy rate corridor closer to pre-pandemic level
A senior policymaker on Wednesday said India needs strong support from debt capital like bank loans for long-term economic growth.
The benchmark 10-year yield will climb to 6.40% by December, while the five-year yield will increase to 5.90%
Rising inflation is constraining the central bank from easing further even as the economy remains vulnerable following a deadly wave of coronavirus infections.
Keep bulk of your portfolio in low-risk funds; chase returns in residual portion if you have the capacity
Manglunia tells Puneet Wadhwa that based on risk appetite, there is a lot of value in select names in 'AA' category and below, which offer excellent carry even in the face of threat of rising rates
Such funds alternate between debt and equity depending on market conditions
Authorises SBI Funds Management to take next steps on monetisation
Dinesh Kumar Khara says this is needed to ensure money flows into infrastructure, as is the case across the globe
The announcement comes as Gulf issuers show no sign of slowing this year's blitz on international debt markets as they seek to plug finances hit by weaker oil prices and the coronavirus crisis
Also, the total assets under management (AUM) of the ETF (equity and debt) have reached Rs 2 trillion, the NSE said in a statement
The corporate fundamentals have been improving over the quarter and making many bluechip companies attractive for FPI investors