 "Lower issuances of debt and equity by non-financial entities and lower investments by LIC in corporate debt, infrastructure and the social sector have also resulted in lower credit flow")
Poor industrial growth and the downward pressure on bond yields and interest rates have begun to take a toll on the investment portfolio of Life Insurance Corporation of India, probably the country's single-largest investor in fixed income securities and the equity market.
The yield on LIC’s investment portfolio declined to an eight-year low of 7.59 per cent during 2018-19, down 12 basis points (bps) on a year-on-year (y-o-y) basis, according to its annual report for FY19. As a result, the spread of LIC’s yield over the 10-year government of India bonds shrank to a five-year low of 24 bps
The yield on LIC’s investment portfolio declined to an eight-year low of 7.59 per cent during 2018-19, down 12 basis points (bps) on a year-on-year (y-o-y) basis, according to its annual report for FY19. As a result, the spread of LIC’s yield over the 10-year government of India bonds shrank to a five-year low of 24 bps
