Up until early 2020, debt funds, even other than credit risk funds, were used to investing in lower-rated securities to get a kicker in returns. But after frequent defaults and the Franklin Templeton crisis in April 2020, debt fund managers have become more careful
The net absorption in office segment is expected to rise to 28msf in CY2022 from 19-20 msf in CY2020-CY2021, backed by resumption of back to office plans and growth in hiring by corporates
Despite brighter macroeconomic prospects, a string of policy reforms, and a fast recovering financial sector emerging from a rubble of bad loans, India’s credit rating still remains tantalisingly close to the ‘junk status’
"The decision to change the outlook to stable reflects Moody's view that the downside risks from negative feedback between the real economy and financial system are receding," Moody's said in a report on October 5.
Credit rating of bonds has become the cornerstone of investing in debt funds. Here is an explainer by Sumaira Abidi on how to understand credit ratings and their implications.
The Economic Survey 2020-21, authored by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian, states that India's sovereign credit rating does not reflect its fundamentals.
If the ‘borrower pays’ business model persists, the stated ratings will tend to be better than the real financial health of the rated company
The acquisition will also allow RIL to step up its retail footprint in states and territories where it currently does not have a significant presence.
SBI is a proxy for the Indian economy. Given the expected deep economic contraction due to the COVID-19 pandemic, it would be a surprise if SBI maintains asset quality and profitability in the coming 12-18 months
The rating agency has, however, affirmed SBI's long term and foreign currency deposit ratings at Baa3
The repayment capacities of issuers of debt instruments could be strained due to a weak economy
Experts advise investing only in select names, given the elevated risks relating to the deteriorating credit environment and tight liquidity scenario being faced by NBFCs.
There is a clear conflict of interest in the rating business as it involves quid pro quo. Blowing the whistle is easier said than done.
It will be dicey if there is a loss and it is to be passed on to the scheme.
In 2016, Franklin Templeton India AMC had bought the troubled Jindal Steel and Power Ltd's debt securities from its debt schemes after these papers were downgraded twice earlier that year.
China's 'social credit' system will add and deduct points for good and bad behaviour respectively.
Kotak AMC did not specify how it will pay off its unitholders the money it would realise around its maturity (8 April; as per Value Research) and how it would segregate- and at what net asset value- the troubled debt securities.
Although Sebi has reduced the mark-to-market requirement from 60 days to 30 days, it won’t impact many liquid funds.
Different fund houses used to mark down their securities depending on their internal guidelines, however, after IL&FS crisis, things have changed
If you want returns from debt funds, make sure you’re ready to take on the accompanying risk
Ahuja said the basic variables such as CASA ratio, liquidity, cost of funds which recite that (downgrade) have all improved and hence there is no reasons to fear
Paytm Score will take into account its users' transaction and buying behaviour through the plethora of services the app offers, like e-wallet, e-commerce, booking platforms etc.
This year debt instruments of 116 companies were downgraded and 55 firms were upgraded by the credit rating agencies.