 "DSP’s gamble to go long on bonds pays off after RBI’s Operation Twist")
An asset manager’s decision to load up on long India sovereign bonds at a time when the government’s record debt sales were scaring others, is turning prescient.
DSP Investment Managers, which manages about Rs 77,600 crore ($10.8 billion), had been betting since August that longer yields would decline.
The strategy paid off when the Reserve Bank of India surprised investors by embracing a US Fed-style Operation Twist, buying long-end debt and selling short-end bonds.
“Recent measures by the RBI largely complement our view of demand-supply being addressed to bring down the yields,” Saurabh Bhatia, head (fixed income)
DSP Investment Managers, which manages about Rs 77,600 crore ($10.8 billion), had been betting since August that longer yields would decline.
The strategy paid off when the Reserve Bank of India surprised investors by embracing a US Fed-style Operation Twist, buying long-end debt and selling short-end bonds.
“Recent measures by the RBI largely complement our view of demand-supply being addressed to bring down the yields,” Saurabh Bhatia, head (fixed income)
