Riskiest India Firms Struggle to Sell Debt After Fund Shut
- More sales of notes rated A+ and below unlikely soon: Trust
- Franklin debacle weakens demand for lower-rated company bonds
This article is for subscribers only.
Just when India’s weaker companies need money the most amid the coronavirus pandemic, demand for their bonds is drying up.
Issuance of local-currency notes graded A+ and below fell to a nine-year low of 1.9 billion rupees ($25 million) in April. The spread on A rated three-year corporate bonds has jumped to a more than four-month high of 295 basis points.