Page 4 - Bonds Market

Hedge funds bring in record profits betting on 'catastrophe' bonds

Behind those record returns were bold bets on catastrophe bonds and other insurance-linked securities

Fitch assigns 'BB(EXP)' rating to Shriram Finance's proposed US bonds issue

Global rating agency Fitch on Monday assigned the 'BB(EXP)' rating to Shriram Finance Limited's proposed US dollar-denominated senior secured bonds. 'BB(EXP)' rating reflects that an issuer has some risk of default but is still a safer investment compared to others. The final rating is subject to the receipt of final documentation conforming to information already received, Fitch Ratings said in a statement. Shriram Finance will issue the proposed bonds in the international market under the Reserve Bank of India's external commercial borrowing framework. The company will issue proposed bonds under the USD 3.5 billion global medium-term-note programme, which was updated on December 29, 2023. The proposed bonds will carry a fixed-rate coupon payable semi-annually and secured by a fixed charge over specified accounts receivable in line with the company's domestic secured bonds.

State-run banks look to equity fundraising as perpetual bonds lose sheen

"This move has literally ended mutual fund investments in such papers, making fundraising more difficult," a trader with a private bank said

Adani Ports to tap bond market for first time in more than two years

Both of Adani Ports's bonds have an issue size of 2.5 billion rupees. The company will offer a coupon of 8.70% on the bonds maturing in five years and an 8.80% coupon on the bonds maturing in 10 years

SBI likely to issue perpetual bonds to wrap up FY borrowing: Report

Merchant bankers said the lender may have to pay a higher coupon as they are looking to raise a larger quantum this time

Vedanta Resources prioritising private credit facility, says S&P Global

Analysts with S&P on the call noted that the liability management exercise is not as straightforward as seen in this region or globally

Bank of Baroda to raise up to Rs 2,500 cr via Basel III compliant bonds

Public sector lender Bank of Baroda on Friday said it plans to raise up to Rs 2,500 crore by issuing Basel III compliant bonds. The 'Capital Raising Committee' has approved a proposal to raise tranche I of Basel III compliant Tier II bonds with a base issue size of Rs 1,000 crore with a green-shoe option to retain oversubscription of up to Rs 1,500 crore, it said in a BSE filing. Under Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes. The bank's shares were trading at Rs 219.20 apiece on BSE, down 0.36 per cent over the previous close. The stock had touched a 52-week high of Rs 224.30 on Thursday.

Should investors opt for higher debt allocation in the next 12-18 months?

Historically, bond yields have traded in a band of 6-8% on an average given that inflation too has stayed in an range of 5-7% over the last decade.

'Managed investments to more than double to Rs 315 trillion by fiscal 2027'

Increase digitalisation, rising investor sophistication in terms of retirement planning, higher awareness and use of insurance, investment objectives aimed to beat inflation will contribute to this

BoB to raise upto Rs 5,000 cr via 1st tranche of infrastructure bond

The bank had said that it will use the amount to fund business growth

Yield spread between 10-year state bonds and G-secs widens further

Goa and Haryana secured lower cut-offs at 7.65 per cent, whereas Arunachal Pradesh experienced a higher cut-off

Bank of Baroda plans to raise up to Rs 15,000 crore through bonds

State-owned Bank of Baroda (BoB) on Saturday said it proposes to raise up to Rs 15,000 crore via bonds to fund business growth. The capital raising committee of the bank in its meeting held on Saturday has approved the issuance of Rs 2,000 crore Tier II/sub debt bond with the greenshoe option to raise another Rs 3,000 crore totalling Rs 5,000 crore (10 years with call option at the end of 5 years), BoB said in a regulatory filing. The bank has further decided to issue Infrastructure Bonds amounting to Rs 2,000 crore with a greenshoe option to raise an additional Rs 8,000 crore totaling the issue size of Rs 10,000 crore (tenure up to 7 years), it said.

Grip partners with wealth-tech platform to offer fixed-income products

Under the collaboration, Grip will introduce its products such as Securitised Debt Instruments (SDIs) and corporate bonds, to Centricity's platform

Floating rate savings bond: Is it worth it or should you stick to an FD?

he interest rate of a floating rate bond is linked to a benchmark rate decided at the time of bond issuance. This interest rate is revised quarterly, half-yearly or annually as announced at the time o

Govt cautious of unexpected spike in sovereign bond yields: Official

"If (government bond) yields go beyond tolerance level, we will take appropriate remedial actions," the official said, without giving details

India's inclusion in EM bond index can spark higher FX volatility: Bankers

The inclusion is expected to spur staggered inflows of $22-$30 billion, analysts estimate

Surety bonds must complement bank guarantee: Irdai's Debasish Panda

According to Irdai norms, a surety bond is a contract to perform the promise, or discharge the liability, of a third person in case of his default

New 10-year bond set to become benchmark after auctions: Dealers

Typically, a new bond becomes a benchmark after it becomes the most traded one in the secondary market

Bond auction: 7 states borrow Rs 10,400 crore; Tamil Nadu tops the list

The long-term investors opt for state bonds rather than government bonds due to higher returns, dealers said

Indian state-run banks to be cautious buyers of govt bonds as yields rise

Bond yields started rising after the Reserve Bank of India's June monetary policy decision pushed out hopes of a rate cut to February, with many participants expecting one only next financial year