Risky Bond Sales Jump to 15-Month High in India on Stimulus
- Borrowing costs on A rated corporate notes close to 2004-low
- Banks begin buying bonds of lower-rated companies: Manglunia
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Signs are emerging that India’s $277 billion stimulus is helping reopen the bond market to smaller borrowers and easing the nation’s credit crunch.
Issuance of local-currency corporate notes graded A+ and lower rose to a 15-month high of 51.7 billion rupees ($690.5 million) in June. Such offerings had plunged in April and May as the coronavirus pandemic and the world’s largest lockdown to contain it battered investor demand for risky assets in India.