Nippon India MF bets big on riskier company bonds as economy recovers

Many companies have used the pandemic stimulus to clean up their balance sheets. "This is giving us the comfort to invest in quality non-AAA papers," said Amit Tripathi of Nippon India MF

One of India’s top fund managers is turning bullish on bonds of riskier companies, as an accelerating economic recovery is giving a particular boost to the financial health of such businesses.
 

“Lower-rated companies that have not only survived but also improved their operational and financial metrics in the downturn make for an attractive investment proposition now,” said Amit Tripathi, who oversees about $15 billion of debt assets at Nippon India Mutual Fund. Such firms will gain most from an upturn in Asia’s third-largest economy, he said.  

“Many companies have used the pandemic stimulus to clean up their