Convertible Bond Returns Beat Sensex, Other Debt: India Credit
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Indian convertible bonds, Asia’s best performers, are beating local stocks and corporate and government securities this year on rising speculation borrowers will repay debt as the economy accelerates.
Convertibles in India gained 18.4 percent this year through Oct. 21, the highest returns among eight Asian markets tracked by UBS AG. That compares with 16 percent for the Bombay Stock Exchange’s Sensitive Index and 3.7 percent for government bonds. U.S. convertible debt has returned 9.8 percent, according to Bank of America Merrill Lynch indexes.