Corporate bonds get Rs 1-trn relief as coronavirus ignites large sell-offs

The RBI governor, in his video-streamed speech, said the central bank was taking this route as the COVID-19 pandemic has ignited large sell-offs in asset classes

The Reserve Bank of India’s (RBI) move to address India Inc’s liquidity issue brought some relief to the corporate bond market, as yields nosedived after the Rs 1-trillion liquidity line for banks to buy such papers.

The RBI on Friday said it will give banks Rs 1 trillion through targeted long-term repo operations (TLTROs), of up to three-year maturity, to deploy in “investment-grade corporate bonds, commercial paper, and non-convertible debentures over and above the outstanding level of their investments in these bonds as of March 27, 2020.”

The RBI governor, in his video-streamed speech, said the central bank was taking this route