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A growing list of global asset managers are setting up credit funds in India as they look to fill the funding gap, which was created after a shadow banking crisis spooked India's financial sector
Sitharaman urges financial regulators to maintain a balance between light-touch regulation and full-fledged supervision
Nabard, Tata Capital, Mahindra Finance to tap into market
State Bank of India (SBI) will set up a trustee company, which will be its wholly-owned subsidiary, for managing the Corporate Debt Market Development Fund (CDMDF). SBI Funds Management Ltd has been identified as the investment manager cum sponsor of the fund. In a regulatory filing on Tuesday, SBI said it has approved setting up the trustee company as a wholly-owned subsidiary of the bank for managing the fund. The proposal is also subject to regulatory approvals, the filing said. SBI has a 62.53 per cent stake in SBI Funds Management Ltd. The setting up of the CDMDF was announced by markets regulator Sebi earlier this year. The fund will act as a backstop facility for purchase of investment grade corporate debt securities to instil confidence amongst the participants in the corporate bond market during times of stress. It will also help enhance secondary market liquidity by creating a permanent institutional framework for activation in times of market stress. In times of marke
Navi Finserv, the NBFC arm of Navi Technologies, on Monday hit the debt market with a plan to raise up to Rs 500 crore through a public issue of non-convertible debentures. The issue will close on July 21, the Bengaluru-based company said in a statement. The issue offers five series of investment options with tenures of 18, 27 and 36 months with yields ranging from 10.18 per cent to 11.01 per cent. There is an option of coupon payments monthly or annually, barring the third and fifth series for which payments will be made every year. Sachin Bansal, cofounder of the Navi Group, said this was the company's second public debt issue meant to further diversify the borrowings profile.
Offering slated for coming week; bank to decide on actual issuance based on yield level in the market, which hardened in the last two weeks
Investors snap up popular medium- to longer-duration debt funds to lock in higher returns
The govt's step could push investors to choose riskier equity, or to fall back on bank deposits, thereby negatively impacting the debt market which actually needs to grow, writes T N Ninan
It may also compress the spread for debt instruments floated by HFCs over 10-year govt bonds, subject to demand and supply conditions
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The government will provide 90% of the money for the fund, and other asset managers would contribute the rest, deputy managing director D.P. Singh said
New 10-year coupon at 7.26%; easing inflation offset by large bond supply
In November, nearly half the dynamic bond fund (DBF) schemes raised the allocation to medium-to-longer-duration papers
Lenders return to debt market as yields soften and credit demand booms
Constitution of underlying indexes doesn't matter since all the three categories of bonds they invest in are safe
The market capitalisation of the equity market is almost Rs 290 trillion, but the corporate outstanding is at Rs 40 trillion, indicating more traction is needed on the debt side
The decision to go slow on these fund-raising plans - despite the booming credit growth - came at a time when bond market conditions turned turbulent
A portfolio of richly valued RoE stocks is expected to outperform the broader market over the longer term.
Elon Musk pledged to close the acquisition of Twitter Inc. by Friday in a video conference call with bankers helping fund the deal