India's Second-Oldest Mutual Fund Wary on Debt From Financiers
- Canara Robeco has grown concerned about fallout from IL&FS
- Fund head says need to be vigilant about NBFC market rumors
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India’s second-oldest mutual fund has grown wary on non-banking financial companies after landmark defaults by IL&FS group fueled a cash crunch in the sector.
Canara Robeco Asset Management is exercising caution on investments in short-term debt issued by NBFCs, as the fallout from Infrastructure Leasing & Financial Services Ltd. adds to strains caused by asset-liability mismatches. The company is a joint venture between Canara Bank and Netherlands-based asset manager Robeco.