Diversify and ladder the bonds in your portfolio to further mitigate risks
RBI's Financial Stability Report says corporate bond issuances rose to ₹9.9 trillion in FY25, but secondary market turnover and bond spreads signal subdued activity
Expect stable accrual-based returns rather than significant capital gains
Before the introduction of GST in 2017, corporate guarantees between related parties were not considered taxable under the service tax regime, unless there was a direct consideration involved
Primary corporate bond issuances during the year rose by 16.1 per cent to ₹9.9 trillion, up from ₹8.6 trillion in 2023-24
Corporate bond yields declined in FY25 but lagged G-sec yields, widening spreads; private placements led issuances and FPI limit usage dipped slightly, shows the RBI report
RBI's move to scrap short-term and concentration limits opens doors for FPIs to explore high-yield, lower-rated corporate bonds amid attractive returns and easing inflation
The Reserve Bank of India (RBI) maintained the existing caps of 6 per cent for government securities, 2 per cent for state government securities and 15 per cent for corporate bonds
Ireda said that this additional fundraising will be done via corporate bonds of various categories banks, foreign investors, and international agencies
Indian states will raise over Rs 40,100 crore through a debt sale on Tuesday, followed by Rs 54,000 crore of issuances next week, as per schedule
Despite rising yields, firms rush to raise funds, pushing FY25 issuances to a new record
Markets regulator Sebi has launched a centralised database portal for corporate bonds in a bid to create a single, authentic source of information on such securities. The portal -- Bond Central-- has been developed by Online Bond Platform Providers Association (OBPP Association) in collaboration with Market Infrastructure Institutions (MIIs) comprising stock exchanges and depositories. "The Bond Central aims to create a single, authentic source of information on corporate bonds issued in India and is intended as an information repository for the public at large and is accessible free of cost," Sebi said in a statement. This database is expected to enhance transparency and facilitate informed decision making amongst investors and other market participants and will be operated by the OBPP Association, which is a not-for-profit entity with support from MIIs. Listing out the key features of the portal, Sebi said it is a unified view of corporate bonds across exchanges and issuers ensur
SBI, PNB, BoI expected to tap market for fund raise
The government has acknowledged the need for this product and made the Budget announcements. Concurrently, we have been working on developing the product, said NaBFID MD
Insurance and pension regulatory norms require that investment papers must have at least an "AA" rating to be eligible for investment from pension and insurance funds
Syndicate bankers expect to see companies raising nearly $65 billion this week, and perhaps as much as $200 billion this month, in a bond issuance spree that is showing no sign of slowing
In 2024, 33 bonds defaulted- 28 were corporate bonds, 4 public-private bonds, and only 1 was a government bond
Experts cite better risk-reward for investors with 3-year horizon
According to the Securities and Exchange Board of India (Sebi), corporate bond funds must allocate at least 80 per cent to corporate bonds rated AA-plus or higher
Issuers hold back, eyeing lower borrowing costs after Fed cut