A $90 Billion Fund Says Indian Bonds Underpricing Index Move
- ICICI Prudential AMC sees ‘better’ pricing as US rates drop
- Firm has raised modified duration in its government bond fund
This article is for subscribers only.
Markets have yet to appropriately price India’s inclusion into global bond indexes, according to ICICI Prudential Asset Management Co.
India will be included in JPMorgan Chase & Co.’s key emerging market bond index as of next month, and foreigners have sent a net $8.2 billion into the eligible bonds since the announcement in September. Still, yields on the benchmark 10-year bond are down only about eight basis points since then, failing to breach the 7% yield level.