The burden of laundering cash will shift to the donors from the political parties, allowing the latter to claim clean funding through electoral bonds
One major risk is default risk. A recent report from Mckinsey Global Institute says that around 18 per cent of outstanding corporate bonds in India, or nearly one in five, were at the risk of defaulting in 2016. The paper also warns that the share of risky bonds could rise from 18 per cent to 27 per cent if rates on corporate bonds were to rise by 200 basis points (or 2 percentage points).
What are the implications for investors?
In recent times, a number of players have come out with non-convertible debentures (NCDs) offering interest rates of 9 per cent or
First Published: Jun 28 2018 | 3:35 AM IST