Page 4 - Corporate Bonds

Fundraising through corporate bonds decline in October, shows data

According to data from the Prime database, companies and banks raised Rs 23,797 crore as of October 24, compared to Rs 72,941 crore in September

Fund raised via bonds on private placement up 73% to Rs 3.3 trn in Apr-Aug

Corporates garnered Rs 3.31 lakh crore through the issuance of bonds on a private placement basis in the first five months of the ongoing fiscal, a surge of 73 per cent from the year-ago period. The funds were mopped up to strengthen balance sheets, retire existing debt and support working capital requirements, market experts said. According to data available with markets regulator Sebi, Rs 3.31 lakh crore was mopped-up through the route during the April-August period of the current fiscal. In comparison, firms raised Rs 1.91 lakh crore in the first five months of 2022-23, data showed. Market experts attributed several factors to higher fund mobilisation through private placement of corporate bonds such as increase in credit demand, soaring bank loan rates, and expensive overseas borrowing. In terms of numbers, 520 issuances took place during the period under review as compared to 508 in the year-ago period. In private placements, firms issue securities or bonds to institutional

RBI decides to include corporate bond under Held to Maturity category

Move to deepen corp bond market

India Inc faces costlier borrowing as corporate-govt yield gap widens

The yield spread between the AAA-rated 5-year corporate bond and the 5-year government bond narrowed by 7 basis points in August

Will AI replace corporate boards?

The answer is both yes and no. Just like human board members, AI has potential and limitations but cannot be solely relied upon to make decisions

Sebi amends rule to boost liquidity in secondary market for corporate bonds

Capital markets regulator Sebi has amended stock brokers' rule concerning registration of entities for participation in the tri-party repo segment for corporate bonds, a move that will boost liquidity in the segment. "No separate registration shall be required for any person registered with the limited purpose clearing corporation as a participant for participating in the tri-party repo segment for undertaking proprietary trades in corporate bonds," the Securities and Exchange Board of India (Sebi) said in a notification issued on Monday. The move came after the board of Sebi last month approved the proposal to additionally facilitate participation by entities desiring direct participation (not through a clearing member) in repo transactions in corporate bonds of the Limited Purpose Clearing Corporation (LPCC). LPCC is an entity established to undertake the activity of clearing and settlement of repurchase agreement transactions. It is expected to facilitate active trading, especia

Debt fund taxation changes to impact corporate bond demand: Fund managers

Fund managers expect mutual funds to focus more on actively managed funds which can allow for higher returns and balance out the impact of higher taxes

What are municipal bonds, and why do investors prefer them over corp bonds?

Municipal bonds are primarily issued to raise money for financing infrastructure projects like building parks, libraries, schools, police departments and community centres

Removal of LTCG tax benefits on debt MFs pushes corporate bond yields

Following govt's latest move, tax would be computed on based the investor's tax bracket; levy could be as high as 30%; Centre's step puts the tax for MF units at parity with that for bank FD

India Inc's borrowing costs rise as corporate bond yields harden

Among the key triggers for the sharp selloff in the Indian debt markets were recent rounds of unfavourable cues on interest rates, which caught market participants off-guard

Biggest corporate bond deal: HDFC raises Rs 25,000 crore via NCDs

ICICI, Axis, HDFC Bank, ICICI Securities Primary Dealership arranged the deal

India's green bond issuances 3.8% of domestic corporate bond market: Report

The green bond market in the country, which is projected to require more than USD 10 trillion to meet its green goals, accounts for just 3.8 per cent of the overall outstanding corporate bonds worth more than USD 500 billion, says a report. In a report on Friday, Fitch Ratings said that as of January 2023, GSSS (Green, Social, Sustainability and Sustainability-linked Debt) bonds accounted for USD 20 billion or 3.8 per cent of the country's overall corporate bond market while the government bond market is more than double this size. One of the main reasons for the small size of the domestic green bond market is that issuers are heavily concentrated in the energy sector and especially renewable energy led by solar projects, it said. As per the report, another reason for the low green bonds base is that all of them are denominated in the rupee and held by domestic banks, insurers and the RBI while vast majority of issuers -- as much 90 per cent -- prefer issuing GSSS bonds in ...

Sebi allows exchanges to launch future contracts on corporate bond indices

In order to enhance liquidity in the bond market and to provide opportunity to the investors to hedge their positions, Sebi on Tuesday allowed stock exchanges to launch future contracts on corporate bond indices. The index should composed of corporate debt securities, constituents of the index should have adequate liquidity and diversification at issuer level and the constituents of the index should be periodically reviewed, Sebi said in a circular. Further, single issuer should not have more than 15 per cent weight in the index, there should be at least 8 issuers in the index, and the index should not have more than 25 per cent weight in a particular group of issuers (excluding securities issued by public sector undertakings, public financial institutions and public sector banks). "The value of the Cash Settled Corporate Bond Index Futures (CBIF) contracts shall not be less than Rs 2 lakh at the time of introduction," Sebi said. The stock exchanges may introduce contracts of up to

Bourses get Sebi's approval to launch derivatives on bond indices

Sebi's decision is aimed at enhancing liquidity in the bond market. It will also give an opportunity to investors to hedge their positions

Trust Mutual Fund adds corporate bond fund to its offerings

The new fund offering will close on January 18

High portfolio yields to make debt funds an attractive option in 2023

Investors could also get the benefit of capital gains this year

Rising interest rates to mute bond issuance this fiscal, says report

Corporate bond issuance is likely to remain muted witnessing 4-5 per cent growth this fiscal to touch Rs 41.42 lakh crore on rising coupon rates, despite the drawdown more than doubling in the second quarter, a report said. Bond sales more than doubled to Rs 2.1 lakh crore in the second quarter from the first quarter, when it was at a multi-year quarterly low of Rs 1 lakh crore, as banks issued bonds worth an all-time high of Rs 53,900 crore, and NBFCs, traditionally largest players in the market, issuing securities worth Rs 1.1 lakh crore in Q2, according to an analysis by Icra Ratings. Non-banking lenders have remained the largest issuers of bonds with a share of 47 per cent in the first half, followed by corporates and banks at 33 and 20 per cent, respectively, down from 50, 40 and 10 per cent, respectively from H1FY22, according to the report. Thanks to bumper sales in Q2, the overall bond issuances rose to Rs 3.3 lakh crore in the first half, and the agency expects Rs 3.7-4.2 .

Sebi allows stock brokers to place client bids on RFQ platform from Jan 1

The stock exchanges launched the platform in February 2020 to bring transparency in over the counter deals

Days of delivering sub-par returns may soon come to an end for debt funds

The YTM of most debt funds tops 6.5%, indicating that they can at least do better than FDs in the near future

Time to forge new bonds: Is corporate bond market at an inflection point?

Corporate bond issuance is looking impressive, but the market still has some distance to go before it can be considered deep