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Bond Markets on a High
Dec 19, 2017


The stock markets reached dizzying heights in 2017 thanks to strong foreign inflows. But it is the bond market that has witnessed a strong revival. Foreign debt raised by Indian companies surged ten-folds to US$ 41 billion in 2017. This is the highest ever infusion of foreign funds in the domestic debt markets in the last 15 years. At US$ 23 billion, foreign investments in government securities and corporate paper took the cake. This was followed by dollar denominated bonds that attracted around US$ 16 billion of foreign investments whereas funds of US$ 2 billion were mopped up by masala bonds. Masala Bonds are rupee-denominated borrowings by Indian entities in the overseas markets.

Interesting to note that the Indian debt market was in the spotlight even before Moody's sovereign rating upgrade in November this year. The upgrade has further pushed down the borrowing costs for Indian companies resulting in narrowing down of the credit spreads. Recently, Power Finance Corporation raised US$ 400 billion of debt through 10-year dollar bonds priced at just 157.5 basis points above the US treasury. Factors such as economic stability, abundant global liquidity and diversification needs of investors have stoked demand for Indian bonds in the overseas markets.

Data Source: Financial Express

This Chart Of The Day was published in The 5 Minute WrapUp - The Year of Disappearing Keyboard Money

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1 Responses to "Bond Markets on a High"

Samson nag

Dec 22, 2017

Dear sir, aged about 35yrs doing a pvt job determined to be a successful invester in life. To chage the financial condition of my family. Dare to do something for my only son aged 20months. I ve some mutual funds. Interested in investing long term for child education. Interested in intraday trading too to earn more for family. So l need the ??% guidence.

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