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Troubles faced by the telecom sector can rub-off onto mutual funds

Yields on debt instruments of Vodafone Idea rise following SC ruling

Mutual funds
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Jash Kriplani Mumbai
The troubles faced by the telecom sector can rub-off onto mutual funds (MFs), with more than Rs 5,700 crore of MFs' debt investments riding on Vodafone Idea and Bharti Airtel. After accounting for MFs' exposure to Bharti Telecom - the promoter entity in Bharti Airtel - the aggregate debt exposure held by MFs rises to over Rs 9,000 crore.

"The yield on some debt instruments of Vodafone Idea has seen a spike of 350 basis points, with the company's debt facilities receiving a downgrade on Wednesday," said a fund manager, requesting anonymity.

"Spike in yields would lead to mark-to-market losses

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First Published: Oct 31 2019 | 7:23 PM IST

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