Page 3 - Corporate Bond Market

Wanted: A vibrant corporate bond market

It would be prudent to bring more transparency before they grow so big that migration to exchanges becomes difficult

Sebi's cap on fresh issuance of corporate bonds to deepen market

According to the new directive, a maximum of 12 fresh debt securities would be issued in a year

Corporate bond market: Liquidity in secondary trade rises

2016-17 saw 26% growth in number of trades and 44% growth in volumes

Letters: Vibrant bond market

With reference to "Changing lending landscape" (August 29), the Reserve Bank of India's (RBI) move to develop a robust corporate bond market is in line with the international banking trends. A strong and deep bond market will hasten the process of disintermediation (read corporates ignoring lenders). That would be tantamount to an indirect admission by lenders that they do not have the skill set to vet corporate loan proposals. It has taken more than 40 years for the RBI and Indian lenders to realise that they lack appraisal and follow-up skills in corporate lending and that the time has come to develop a vibrant bond market. Over time, lenders have been experimenting with their credit portfolio. Some banks had 30-70 per cent exposure to corporate/retail sectors. Some others experimented with the reverse exposure. That amply proves that lenders have not been able to realise their strengths and adopted a trial-and-error method. That has cost them in terms of a huge pile-up of bad assets

Panel suggests forcing large firms to bond market

RBI in May suggested banks should cut lending to highly leveraged companies and force them to tap the bond market route instead