The massive gyrations in the global bond markets and the ongoing credit crisis in India are forcing money managers to seek liquidity in government bonds even as they eye top-rated corporate paper trading at high spreads to the sovereigns.
Tata Asset Management Ltd., Canara Robeco Asset Management Co. and Edelweiss Asset Management Ltd. are preferring top-rated paper issued by state-run firms as the spreads over similar-tenor sovereign remain attractive. The view on what sovereign bonds to buy remains more diverse with Canara Robeco favoring the short-end, while Edelweiss likes the 10-year plus segment.
