Pain for India's $350 billion state bonds is good, say global fund managers

The new valuation method, though, could be another pressure point for borrowers at a time when the benchmark yield is near a 3 1/2-year high

Global fund managers are applauding a move by India to deregulate the prices of bonds sold by the country’s states, which could spur overseas interest in the $350 billion market even if there are short-term losses.
 
The liberalisation will allow for a greater differentiation among the states, which have widely varying levels of growth, debt and wealth, said overseas investors including Aberdeen Asset Management Asia.
 
Securities sold by the nation’s 29 states would be valued at market prices, the Reserve Bank of India said at its policy meeting last week, discarding a long-standing rule that mandated adding a