Cash crunch, trade war, RBI hike risks send India funds to shorter debt

Hurt by bond rout that's lasted almost a year in India, investors are seeking to get next big call right as trade jitters and an unexpected rate hike by the central bank threaten to extend the slump

Asset managers in India are buying shorter-maturity debt and triple-A rated corporate paper, as uncertainty about the pace of rate hikes by the central bank and a global trade war add to fear of an impending cash crunch.

Kotak Mahindra Asset Management Co and Mirae Asset Management Co are among investors interviewed by Bloomberg that say they’re seeking refuge in debt maturing in less than five years. A liquidity crunch is looming, which would hurt companies seeking to refinance, according to IDFC Asset Management Ltd.

Hurt by a bond rout that’s lasted almost a year in India, investors are seeking to get