Debt Inflows

Starting January, Bloomberg will include India's bonds in its indices which is expected to further boost inflows in debt.

The announcement of the change was made in September, setting the stage for billions of dollars to flow into the world's fifth-largest economy

Ukraine had been in formal talks with bondholders for nearly two weeks, seeking to restructure the debt in order to retain access to international markets

Foreign Portfolio Investors (FPIs) have injected over Rs 19,800 crore in the country's debt market in January, making it the highest monthly inflow in more than six years, on the back of inclusion of Indian government bonds in the JP Morgan Index. On the other hand, they pulled out Indian equities worth Rs 25,743 crore last month owing to surging bond yield in the US. According to the data with the depositories, FPIs made a net investment of Rs 19,836 crore in the debt markets in January. This was the highest inflow since June 2017, when they infused Rs 25,685 crore. Before this, FPIs injected Rs 18,302 crore in the debt market in December, Rs 14,860 crore in November, and Rs 6,381 crore in October. "Indian fixed income markets witnessed robust net inflows from FPIs to the tune of USD 2.39 billion in January on the back of inclusion of Indian government bonds in the JP Morgan Index," Himanshu Srivastava, Associate Director- Manager Research, Morningstar Investment Research India, .

The stock performance of restaurant aggregator and food delivery platform Zomato could improve following the removal of the share sale overhang

However, the status paper maintained that the risk profile of India's government debt stands out as safe and prudent

The rise of debt ventures is of significance when one looks at the venture capital segment

Mindspace Business Parks REIT has raised Rs 100 crore debt for working capital requirements. In a regulatory filing, Mindspace Business Parks REIT informed that it has completed an issuance of commercial papers of Rs 100 crore for a maturity of three months at an interest rate of 7.2 per annum. The funds will be utilised towards the working capital requirements of Mindspace REIT's asset SPVs (special purpose vehicle). Loan to value of Mindspace REIT stood at 16.8 per cent as on September 30, 2022. In September this year, capital markets regulator Sebi allowed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue commercial papers. The move would enable REITs an additional short term fundraising avenue through shorter tenor instruments at a potentially lower interest cost and swifter timelines. "After successfully exploring capital market fund raising through issuance of multiple debentures, we are glad to be the first Indian REIT to raise fund

A greater proportion of poorer-country debt is now owed to commercial lenders, which offer shorter maturities, and capital markets have largely closed to many governments

Household debt has sharply increased to 37.3 per cent of GDP in FY21 from 32.5 per cent of GDP in FY20

The govt needs to examine its options to join global central securities depositories without ceding tax sovereignty. This could considerably delay India becoming a part of global bond indices.

November outflow at record high even as overall AUM tops Rs 30 trn milestone on sharp run up in stock markets and positive flows into debt category

Bond and currency markets would increase policy difficulties

Debt categories continued to see redemptions. Credit risk funds saw a bulk of the outflows at Rs 19,238 crore, registering the worst month for the category in 13 months

Besides, they infused Rs 940 million in the stock markets during the period under review