In 2024, 33 bonds defaulted- 28 were corporate bonds, 4 public-private bonds, and only 1 was a government bond
Experts cite better risk-reward for investors with 3-year horizon
According to the Securities and Exchange Board of India (Sebi), corporate bond funds must allocate at least 80 per cent to corporate bonds rated AA-plus or higher
Issuers hold back, eyeing lower borrowing costs after Fed cut
Dimple Bhandia highlighted that the credit derivatives market has been another area that has struggled to take off
Niti Aayog is working on proposals to deepen the corporate bond markets to achieve an alternative to bank finance for borrowers, the government think tank said in its Annual Report 2023-24. The corporate bond market, seen as an alternative to bank finance for borrowers, helps companies to raise long-term funds at competitive costs. "The vertical is in the process of developing a holistic research buttressed with key policy recommendations to deepen the corporate bond markets to achieve an alternative to bank finance for borrowers," it said. The report said corporate bond markets are an efficient cost-minimisation process for long-term funding and contribute significantly to financial stability. "It is a mechanism for supporting the bank for long-term lending against relatively shorter-tenor liabilities and helping the insurance companies and pension fund holders to diversify their portfolios while spreading or distributing the risks and managing the liquidity gap," it added. The .
Fort Knox of finance: Where returns meet ironclad safety
By decreasing the ticket size to Rs 10,000, Sebi is making corporate bonds attainable for a broader spectrum of investors
The incremental credit flow was also supported by the all-time high corporate bond issuances of Rs 10.2 trillion during the previous financial year
Sebi to reduce the face value of corporate bonds from Rs 1 lakh to Rs 10,000 is expected to make bond investments more appealing
Fund mobilisation through corporate bonds on private placement basis reached an all-time high of Rs 9.98 lakh crore in 2023-24, marking a surge of 17 per cent from the preceding fiscal, according to a release by primedatabase.com on Thursday. Prime Database Group Managing Director Pranav Haldea attributed the upswing to a surge in credit demand fuelled by strong economic growth. This came despite changes in taxation relating to debt mutual funds and expectations of lower borrowing costs. The highest fund mobilisation in 2023-24 (FY24) came from the All-India Financial Institutions/Banks category at Rs 4.68 lakh crore. This was in comparison to Rs 4.33 lakh crore raised in 2022-23, representing an increase of 8 per cent. The private sector (excluding banks or financial institutions) witnessed a 44 per cent jump, mobilising Rs 4.96 lakh crore compared to Rs 3.44 lakh crore in 2022-23. Government entities played a key role, collectively mobilising 39 per cent of the total amount, ...
Indian companies garnered Rs 9.41 lakh crore through the issuance of bonds on a private placement basis in 2023-24, a surge of 10 per cent from the preceding fiscal amid surge in credit demand. The 2024-25 fiscal is expected to be very robust as companies will continue to raise capital for capex post-election results. "In an unprecedented era of economic development aided by pro-business reforms and macroeconomic stability, India is set to become the third largest economy globally by 2027 and will continue to see strong flows. "In this backdrop, we expect FY25 to also be a very strong year from a primary capital perspective as companies will continue to look to raise capital for capex post-election results," Neha Agarwal, Managing Director & Head of Equity Capital Markets at JM Financial Ltd, said. According to data compiled by Prime Database, the amount raised through debt private placement in 2023-24 stood at Rs 9.41 lakh crore, up 10 per cent from Rs 8.52 lakh crore in 2022-23.
In a report published Thursday, the Paris-based organization estimated that total government debt issued by its 38 member countries will rise by $2 trillion to a record of $56 trillion this year
Fee waiver, more participation and increased order size result in surge
Market participants expect that states' borrowing for both the current quarter and the entire financial year will be significantly lower than the calendar projections
Sentiment was also impacted by VRRR auctions by RBI last week to suck out liquidity
Fund managers' preference for sovereign bonds in the recent past has also impacted MFs' corporate bond investments
Lower fund raise amid widening yield spread, tight liquidity
As of November, Power Finance Corporation raised the highest amount -- Rs 2,824 crore
Market participants said the corporate bond market showcased resilience and promise in 2023