Firms chasing money overseas
The primary market for corporate bonds and commercial paper has been drying up even though interest rates have hit rock bottom. Dealers said this was an unusual development.
There has been virtually no new issue in May except for a few securitised papers (below Rs 50 crore) and some structured obligations. Moreover, no proposals are lined up for a fresh debt issue till the middle of June.
The market had its last major issue of 10-year tenor from Exim Bank
