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Bhavik Nair

Articles By Bhavik Nair

425 Articles

RBI keeps repo rate unchanged at 4%, scope for a rate cut later

Governor Das said the cumulative 250 bps cut in the policy rate since 2019had seen loan rates trending down, particularly since the pandemic.

FPIs remain net sellers of Indian debt for fifth straight month

With the onslaught of the Covid-19 crisis, March has been the worst month this year as far as FPI outflows from debt is concerned with foreign investors pulling out over $8 billion from the bond market.

Despite the selling by FPIs, bond yields have come down since the highs seen in March due to a barrage of liquidity measures and policy rate reduction by the central bank.

New 10-year benchmark bonds to be auctioned on Friday

The new benchmark bonds auction comes just two-and-a-half months after the current benchmark bonds were introduced in May.

Bond market, local currency bonds, investment

Surplus liquidity, pushes risk averse banks towards government bonds; investment soars 19% this year

Scheduled commercial banks’ investment in central and state government securities have increased by over 19% as on July 3 compared to last year, led by weak credit growth and surplus liquidity.

Experts believe that with systemic liquidity being high and no pick up in credit, such investments will continue in the near future.

Spreads on long-tenor State Development Loans fall by 18 basis points

Rajasthan borrowed 30-year and 35-year funds at 6.55%, which is where the 10-year SDLs were auctioned last week.

Last week, the 10-year benchmark yield was trading close to 5.79% while on Tuesday, the benchmark yield closed at 5.83%.

FPIs continue to remain net sellers of Indian debt

Except February, all other months in the first half of calendar year 2020 have witnessed net FPI outflows from the debt market.

Despite the continuous FPI selling, a barrage of measures from the RBI has helped keep the yields down with the benchmark 10-year yield remaining below the 6%-mark.

Private placement of corporate bonds continues to see traction in June

As a result, bond issuances during the first quarter of FY2021 stood at Rs 2.09 lakh crore, having risen over 28% compared to the same period last year.

IRFC, BPCL cumulatively raise Rs 5,000 crore via corporate bonds

IRFC raised Rs 3,000 crore via 15-year bonds at 6.73% on Thursday.

More RBI measures needed to sustain yields at current levels: MS Gopikrishnan, ex-head of financial markets, Standard Chartered Bank

India’s headline reserves have increased by about $48 billion since January; adjusting for the rise in gold value, the reserve increase is about $43 billion.

RBI, PNB, COVID-19, coronavirus, loan restructuring, lockdown, Nirmala Sitharaman

Corp bond issuance steady due to RBI’s liquidity operations

Experts say that the month of March generally witnesses huge volumes in issuances but the trend changed this time due to the Covid-19 crisis.

A Credit Suisse report dated May 2020 says rising risk aversion and accelerating rating downgrades are expected to add to Indian banks’ asset quality stress.

Bond Business: Yields on NBFC, HFC papers fall, but spreads at high levels

According to information provided by dealers, HDFC recently raised Rs 4,000 crore via 10-year paper at 7.25%.

Spreads on foreign currency bonds slim to pre-Covid levels

Dollar bonds of SBI that were trading at a spread of 390 bps over corresponding benchmark in mid-April were recently trading at a spread of 260 bps.

rbi, reserve bank of india, sovereign bond, central government, india bond,

UPL Corp raises $500 million via bond issue, bankers indicate

Indian firms and banks raised a whopping $7-billion-plus from the foreign currency (FCY) bond market this year, according to market sources.

First time bond issuers gained from govt stimulus: Anshu Kapoor, head, Edelweiss Private Wealth Management

Borrowers who have not been able to tap the bond market via normal issuances, have been resorting to different mechanisms like down-selling of assets and securitising loan pools, says Anshu Kapoor, head of Edelweiss Private W

Anshu Kapoor, Edelweiss Private Wealth Management, corporate bond,loan pools, Covid-19, FPI, TLTRO, RBI, fiscal package, special purpose vehicle, 

Bond yields decline by 2 bps despite Moody’s downgrade of India’s ratings

Over the last few weeks, market participants have been anticipating the central bank to announce measures to absorb the additional supply of government bonds.

covid bond, sbi ecowrap report, indian economy

FPIs sell over $2.6 billion of Indian bonds in May

India witnessed the highest FPI outflow from bonds among Asian peers this year followed by Indonesia that saw an outflow of $7.9 billion.

FPIs have sold over $14 billion worth of Indian bonds on a net basis since the beginning of 2020.

Bond market shrugs-off 40 repo rate cut by RBI

The yield on the old benchmark bonds—notes maturing in 2029—closed 7 basis points down at 5.96%.

FPIs get more time to invest under voluntary retention route

The RBI had earlier said that successful allottees will have to invest at least 75% of their CPS within three months from the date of allotment.

Covid fallout: RBI sees GDP contract, cuts repo rate by 40 basis points to 4%

Reserve Bank of India (RBI) governor Shaktikanta Das on Friday said the economy would likely contract in the first half of 2020-21 and moved to cut the repo and reverse repo rates by 40 basis points each to 4% and 3.35% respe

Repo rate cuts have outlived their utility.

Bond markets cheer G-sec auction post additional borrowing announcement

The first central government securities auction after the announcement of the additional borrowing by the government saw decent response from the bond market on Friday with the government managing to borrow Rs 4,000 crore mor

Market participants say that anticipation of announcements from the Reserve Bank of India (RBI) in regard to the absorption of additional government borrowing is keeping the bond market optimistic.

Bond yields spike on extra govt mop-up

Bonds sold off on Monday with the benchmark yield spiking a sharp 20 basis points to 6.17% after the government on Friday said it would tap the markets for an additional Rs 4.2 lakh crore this fiscal.

Dealers are nervous in the absence of any measures by the Reserve Bank of India (RBI) to help mop up the supply and are bracing for a further rise in yields.

Coupon on new benchmark bonds settles at 5.79%

Market participants have been anticipating the coupon on the new 10-year bonds to settle at levels close to 5.85%, around 15-18 basis points lower than the yield on the current benchmark bonds.

Dealers are nervous in the absence of any measures by the Reserve Bank of India (RBI) to help mop up the supply and are bracing for a further rise in yields.

New benchmark bonds likely to see coupon below 6%, say experts

A Barclays report estimates that the central government’s revenue benefit from the additional hikes in fuel taxes could be as much as Rs 1.4 lakh crore on an annual basis.

REC evaluating US dollar bond market post Covid-19 led halt

Market experts indicated that in current times, raising funds within the Reserve Bank of India’s (RBI) prescribed all-in-cost cap of Libor plus 450 basis points for external commercial borrowing could be a challenge as fore

Covid-19 crisis: REC evaluating dollar bond market for fundraising

Indian firms and banks raised a whopping $7-billion-plus from the foreign currency (FCY) bond market this year, according to market sources.

Market participants say that anticipation of announcements from the Reserve Bank of India (RBI) in regard to the absorption of additional government borrowing is keeping the bond market optimistic.

TLTRO 2.0 needs to be open-ended and on-tap with change in structure

“Keeping it open-ended and on-tap would be a better idea than conducting the operation on a pre-decided date. Banks should get enough leeway in deciding how much they want to borrow and when to borrow,” said an expert.

Moreover, a potential tweak in the asset size range could encourage banks that do not have enough appetite to lend a significant quantum of funds to smaller NBFCs.

Risk-averse banks stay shy of TLTRO 2.0

NBFCs have been asking for a bail-out in the form of a government credit guarantee or a TARP –like structure.

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