Draft project finance norms which were rolled out in May this year is seen quite detrimental for lenders in terms of pricing large ticket loan. But these norms will not be applicable on exposures tapped through the bond market. Are the tight norms RBI’s third attempt to push demand towards the corporate debt market?
The decision will move strengthen the rupee, as passive inflows are expected to be around $10-15 billion, independent market analyst Ambareesh Baliga has said
Just weeks ago, traders were expecting almost every developed-market central bank to cut benchmark rates within a year, the swaps market showed.
Policymakers need to control inflation without harming economy and financial markets, said SBI in its report.
Prices of U.S. 30-year Treasuries have gained over 10% in the past month, while UK-based fixed income funds saw inflows of 1.09 billion pounds ($1.33 billion) in November, the highest in two years, according to fund network Calastone.
US yield curve is at its most inverted since 1981 in sign investors see recession on horizon
We will keep Arjuna's eye on inflation and we will be ready to act. Our actions will be nimble
As bond yields soften, SBI will recover most of the mark-to-market losses made in Q1, Dinesh Kumar Khara said
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This is to ensure ease of operations for investors betting across asset classes as well as for the back-end staff at intermediaries.
The breather in stocks followed three to four straight days of gains that more than erased losses sustained when Russia invaded Ukraine five weeks ago, and came as bond investors wondered whether the U.S. Federal Reserve's policy tightening could harm the world's biggest economy over the longer term.
Investment-grade credit spreads are at highest since mid-2020. The US Fed is poised to lift interest rates for first time since 2018
Investors will struggle to post significant gains in bonds as we are around the turning point of the current low-interest-rate cycle.
“The protracted trade wars which are right now happening is suggesting that the global environment is much more positive for bonds," Prasanna said.
While the dovish tilt is a blessing, the Flash PMIs re-ignite concerns over the slowdown
Investors are worried that the government is granting farm loan waivers at a time when income tax collection and asset sales are falling short of estimates
"Sebi will soon come out with norms on corporate bonds to encourage companies to tap this route for raising funds. The government proposal to mandate listed firms to raise 25 per cent funds via corporate bonds is a good step and Sebi will come out with detailed rules by September in this regard," Tyagi told reporters here after its board meeting.
We do not expect to see much movement on bond yields before the policy is out, says Bhaskar Panda of HDFC Bank.
These changes must be watched carefully to understand the impact on the portfolio.
Yields have fallen 13 basis points over the past two days as shortsellers scramble for cover.
Tyagi, 58, will also inherit from outgoing SEBI Chairman U.K. Sinha critical regulatory decisions, including whether to penalise India's largest exchange, National Stock Exchange, over potential trading violations and whether to adopt tougher rules against high-frequency traders.
"Benefiting from finer pricing in the bond markets, we expect the year-on-year growth of corporate bonds to remain substantial at 20-22 percent in FY18.
Equity and long bond markets are currently trading at par around 15 times earnings, says Ridham Desai Head of India Equity Research & India Equity Strategist at Morgan Stanley. "If one were bullish on bonds and bearish on equities now is the time to make the swtich," he says in an interview to CNBC-TV18.
Emphasising the need for better coordination among financial regulators globally, Sebi Chairman UK Sinha today said markets have gone beyond the control of policymakers post 2008 credit crisis.