Credit Market
Shriram Finance Ltd Credit Analysis
During Q1FY24, NII increased by 11% while net profit rose by 25% on yearly basis. Net margin stood at 8.14%.
Dated 26 Sept 2023
By Subhasis Mishra
Navi Finserv Private Limited Credit Analysis
During Q1FY24, its interest income rose by 0.96% o yearly basis while net profit remained flat. During FY23, the company has made net profit as compared to net loss made during FY22. However, asset quality deteriorated during Q1FY24.
Dated 19 Sept 2023
By Subhasis Mishra
State Bank of India Credit Analysis
Net Profit for Q1FY24 grew by 178.25% YoY to Rs 168.84 billion from Rs 60.68 billion during Q1FY23. Operating Profit for Q1FY24 grew by 98.37% YoY to Rs 253 billion from Rs 127.53 billion during Q1FY23. On quarterly basis, asset quality remained flat.
Dated 5 Sept 2023
By Subhasis Mishra
Five Star Business Ltd Credit Analysis
During Q1FY24, net interest income rose by 41% while net profit increased by 32%.
Dated 11 Aug 2023
By Subhasis Mishra
Spandana Sphoorty Financial Limited Credit Analysis
During Q1F24, the company has improved its operating performance as well as asset quality.
Dated 25 Jul 2023
By Subhasis Mishra
Piramal Enterprises Limited's exit from Shriram Finance Ltd has a positive impact on its bonds
Piramal Enterprises Ltd has sold 8.34% stake in SFL on 21st June. However, bond yield f Shriram Finance has been stable as well its equity price. Post merger, asset quality of SFL has been improved.
Dated 27 Jun 2023
By Subhasis Mishra
Navi Finserv Ltd Credit Analysis
During FY23, Navi Finserv Ltd has made net profit of Rs 1.72 billion against loss during F22.
Dated 20 Jun 2023
By Subhasis Mishra
Real Estate Investment Trusts(ReIT) Analysis
A REIT is a company that owns and typically operates income-producing real estate or related assets.
Dated 23 May 2023
By Subhasis Mishra
Asirvad Microfinance Ltd Credit Analysis
During FY23, its interest income rose by 29% while net income soared to Rs 2.18 billion from Rs 0.15 billion. Operating margin stood at 18% and net profit margin came in at 15% during FY23. Asset quality also improved during FY23 as compared to previous fiscal year.
Dated 13 May 2023
By Subhasis Mishra
Cholamandalam Investment and Finance Company Limited Credit Analysis
CIFCL has been assigned AA+ to its long-term borrowing and AA to its perpetual papers by ICRA, CARE & India Rating. Its gross NPA stood at 5% as of 31st March 2023 as compared to 7% as of 31st March 2022.
Dated 9 May 2023
By Subhasis Mishra
Muthoot Finance Ltd Public Debt Issue Analysis
The forthcoming public debt issue of Muthoot Finance is offering yield between 8.25% to 8.60%.
Dated 11 Apr 2023
By Subhasis Mishra
Arka Fincap Ltd Credit Analysis
Arka Fincap Ltd is a part of draws its strength being the part of well established Kirloskar Ltd. This company operates in MSME lending, corporate lending and real estate funding. As of 30th Sep 2022, its AUM stood at Rs 28.51 billion.
Dated 3 Apr 2023
By Subhasis Mishra
Indore Municipal Corporation NCD Analysis
Indore municipal corporation is going to issue secured redeemable non-convertible debentures (NCDs) of face value of Rs1000. Each NCD would comprise four separate transferable and redeemable principal parts(STRIPS), with each having a face value of Rs 250.
Dated 6 Feb 2023
By Subhasis Mishra
Manappuram Finance Ltd & Asirvad Microfinance Ltd Credit Analysis
Manappuram Finance has been rated as AA by CRISIL, and AA- by ICRA. Asirvad Microfinance Ltd has been rate as AA- with stable outlook by CRISIL for its long-term borrowing plan while short term rating as A1+.
Dated 16 Jan 2023
By Subhasis Mishra
Muthoot Fincorp Limited Credit Analysis
As a standalone basis, MFL’s net worth stood stable at Rs 33 billion as of 31st March 2022 from Rs 32 billion as of 31st March 2021. Capital Adequacy stood at 19.42% as of 31st March 2022 as compared to 16.85% as of 31st March 2021.
Dated 26 Dec 2022
By Subhasis Mishra
TVS Credit Services Ltd Credit Analysis
The company has been able to increase its operational efficiency in the past few fiscal years. During FY22, its interest income rose by 20% while net profit increased by 22% on yearly basis. During H1FY23, interest income rose by 44% on yearly basis
Dated 20 Dec 2022
By Subhasis Mishra
DMI Finance Private Ltd Credit Analysis
DMI Finance Pvt Ltd is rated AA- by both ICRA and CARE rating agencies.
Dated 29 Nov 2022
By C S S Nikhil Bhargav
Shriram Group Merger Analysis
After merger of Shriram Group, Piramal, who holds 20% in SCL and 9.96% in SCUF, will hold 8.37% in Shriram Finance Limited. The merged entity is likely to have assets under management (AUM) of over Rs 1.78 trillion, more than 20 million consumers, and a distribution network of around 3,500.
Dated 21 Nov 2022
By Subhasis Mishra
L&T Finance Ltd Credit Analysis
L&T Finance 2022 & 2023 maturity bonds are the most traded bonds in last 1yr.
Dated 21 Sept 2022
By Subhasis Mishra
Svatantra Microfin Private Limited Credit Analysis
In June 2022, the rating agency CARE has upgraded its rating to AA-(stable) from A(stable). The company has received Rs 0.75 billion and Rs 2.55 billion as equity infusion in HFY22 and FY22 respectively from its promoters.
Dated 22 Aug 2022
By Subhasis Mishra
Cholamandalam Investment and Finance Company Limited Credit Analysis
The company’s capitalization profile remains robust as characterized by its capital adequacy stood at 19.15% as of 30th June 2022. Its net worth rose to Rs 123 billion as of 30th June 2022 from Rs 117 billion as of 31st March 2022.
Dated 16 Aug 2022
By Subhasis Mishra
Shriram Transport Finance Company Ltd Credit Analysis-Weekly Credit Analysis
STFCL’s asset quality has been at elevated level in recent years. As of 30th June 2022, its gross NPA stood at 7% as compared to 7.07% as of 31st March 2022 while net NPA came in at 3.52% as compared to 3.67% as of 31st March 2022.
Dated 10 Aug 2022
By Subhasis Mishra
Tata Cleantech Capital Limited Credit Analysis
TCCL’s portfolio primarily consists of large project finance investments in renewable energy sectors like wind and solar power generation. Therefore, the funds raised through green bonds can be appropriately utilised to confirm with the green bond principles.
Dated 26 Jul 2022
By Subhasis Mishra
Shriram Group merger-Weekly Credit Analysis
After merger of Shriram Group, Piramal, who holds 20% in SCL and 9.96% in SCUF, will hold 8.37% in Shriram Finance Limited. The merged entity is likely to have assets under management (AUM) of over Rs 1.6 trillion, more than 20 million consumers, and a distribution network of around 3,650.
Dated 19 Jul 2022
By Subhasis Mishra
Vedanta USD bonds trade at 28% yield
In the current economic scenario of global rate hikes, high inflation have caused INR to trade at lowest level at Rs 79.50. The fall in rupee value has raised currency risk of dollar bonds. Consequently, yield of USD bonds has moved up.
Dated 12 Jul 2022
By Subhasis Mishra
Asirvad Microfinance Ltd Credit Analysis
During Q4FY22, the company’s net interest income rose by 21% yearly while it came down by 6% quarterly. However, as per RBI guidelines, it has to make additional provision for expected credit loss during Q4FY21 which stood at Rs 157.4 million.
Dated 24 May 2022
By Subhasis Mishra
Credit spreads narrow as g-sec yields spike
Post RBI repo rate hike, short end g-sec curve has steepened as compared to longer end g-secs.
Dated 10 May 2022
By Subhasis Mishra
U GRO Capital Public Debt Offer analysis
U GRO Capital offers coupon rate of 10% to 10.4% with maturity 18 to 36 months in current public debt issue.
Dated 11 Apr 2022
By Subhasis Mishra
Vivriti Capital Private Limited
Vivriti Capital Private Limited on standalone basis reported Capital Adequacy Ratio (CAR) of 40.31% as on March 31, 2021, with Tier I CAR of 39.71%. The company’s overall gearing at consolidated level was moderate at 1.82 times as on March 31, 2021
Dated 14 Feb 2022
By Ketan Verma
Will government borrowings crowd out private sector?
In the current scenario of higher government borrowing, crowding out of private borrowing is likely to occur in coming days due to rising interest rates as opportunity cost of borrowing money rises. Therefore, it will lead to higher corporate bond yield in near future.
Dated 8 Feb 2022
By Subhasis Mishra
UPPCL Credit Analysis
UPPCL has been consistently receiving subsidy support from Govt of UP for the past 5 years. UP Govt provided a subsidy of Rs. 74.40 billion in FY16 to compensate losses. Further, during FY17 and FY18, UPPCL got a subsidy of Rs. 44.23 billion and Rs. 44.04 billion respectively.
Dated 25 Jan 2022
By Subhasis Mishra
Manappuram Finance Credit Analysis
MAFIL has a strong retail franchise, especially in South India, supported by its long-standing presence in the gold loan business. The promoter has an established track record of operating in the gold loan segment and is actively engaged in the company’s operations.
Dated 29 Nov 2021
By Subhasis Mishra
Shriram City Union Finance Credit Analysis
During Q2FY22, the Shriram City Union Finance has witnessed a net interest income growth of 5% quarterly basis while 18% on annual basis. During the same quarter, net profit rose by 35% quarterly while 9.73% growth annually.
Dated 9 Nov 2021
By Subhasis Mishra
Public Debt Issues bonds in last 3 years-Weekly Credit Analysis
Among the issuers of debt public issues in last three fiscal years, Srei Infrastructure Finance has defaulted while credit rating of India Bull Commercial Credit Ltd, ECL Finance, Aadhar Housing Finance has been downgraded.
Dated 12 Oct 2021
By Subhasis Mishra
IIFL Finance Public Debt Issue – The Risk and Return
IIFL Finance public debt issue offers a reasonable rate of interest but comes with low liquidity, business risk, and economic risk. Investors should weigh whether the risk is commensurate with the returns for investment considerations.
Dated 28 Sept 2021
By Subhasis Mishra
High yield bond analysis I-Weekly Credit Analysis
The rise in NPA level, weak profitability lead to a spike in the yield level of bonds.
Dated 7 Sept 2021
By Subhasis Mishra
Uttar Pradesh Power Corporation Ltd (UPPCL) Credit Analysis
UPPCL received a loan of Rs 49 billion from Power Finance Corporation and REC. The amount raised was used to partially clear the dues of generating companies. As on July 31, 2021, UPPCL’s pending dues to generating companies stood at Rs 244.61 billion.
Dated 31 Aug 2021
By Subhasis Mishra
Tax free bonds, are they still attractive? -Weekly Credit Analysis
Tax-free bonds have been stuck in 3.6% to 4.5% range across maturities and issuers from 1 year to 12 years. Even the longer maturity tax free bonds have hardly reacted to rise in gsec yields that have seen the 10 years and above gsec yields rise 40bps to 60 bps across maturities on inflation fears.
Dated 27 Jul 2021
By Arjun Parthasarathy
Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL) Credit Analysis
RRVPNL is 100% owned by the GoR and gets timely support from the state government to compensate its capital expenditure and funding requirements. It can be noted that GoR has infused Rs.2.50 billion of equity in this company as of FY20.
Dated 21 Jun 2021
By Subhasis Mishra
Muthoot Fincorp MLD Covered Bond Issue Structure-Weekly Credit Analysis
Muthoot Fincorp Ltd MLD covered bond is Principal protected in case of call exercised by issuer. It will fetch XIRR of 8.75% if the price of 5.79% G-Sec 2030 >25% of Initial Level else principal repayment.
Dated 15 Jun 2021
By Subhasis Mishra
Bharat Bond ETF yields may not stay down for long
Bharat bond ETF yield is down from peaks seen this calendar year on RBI holding the 10 year gsec yield at 6% levels. Going forward, inflation and heavy bond supply will keep pressuring the Bharat bond ETF yields to move up.
Dated 8 Jun 2021
By Subhasis Mishra
Piramal Capital & Housing Finance Ltd-Weekly Credit Analysis
Piramal Capital & Housing Finance Ltd (PCHFL) is a housing finance company formed in February 2017. The company is a wholly owned subsidiary of Piramal Finance Limited and is the flagship entity of the Piramal group’s financial services business.
Dated 24 May 2021
By Subhasis Mishra
Tata Steel, Vedanta Bonds and other commodity related firms bonds could benefit from commodity rally
Metal companies are benefitting due to a surge in commodity prices in the last 1 year. Strong earnings with a better than business environment have resulted in a fall in credit risk for commodity firms.
Dated 18 May 2021
By C S S Nikhil Bhargav
PSU Bond Spreads have risen on RBI G-SAP
During FY22, PSU bond spreads have experienced an uptrend. Owing to RBI’s government bond-buying through G-SAP program and Operation Twist, g-sec yields have fallen by around 20bps to 30bps while corporate bond yields have not fallen as much.
Dated 11 May 2021
By Subhasis Mishra
Perpetual bond yields rise sharply
In the latest circular issued by SEBI on perpetual bonds with respect to its exposure in mutual funds, perpetual bond yields have risen sharply by 45bps to 120bps since 12th March 2021. The uncertainty on valuation has hit liquidity in the bonds leading to rising yields.
Dated 5 Apr 2021
By Subhasis Mishra
Real Estate Investment Trust (REITs)-Weekly Credit Market Analysis
REIT is an investment trust that owns, manages, and operates income-producing real estate assets. It allows individual investors to make investments in this platform and earn income in the form of rental yields and appreciation in capital values of the property.
Dated 29 Mar 2021
By Subhasis Mishra
Bonds trading in the 7% to 8% range- Weekly Credit Market Analysis
Bonds of various maturities are trading in the 7% to 8% yield range. Higher credit quality bonds have longer maturities while lower credit quality bonds have shorter maturities. Reading time 3 min
Dated 15 Mar 2021
By Arjun Parthasarathy
Perps – SEBI calls out the risk, Finmin says no risk and this is the biggest risk
SEBI circular on perps has created a tremor in bond markets. Investors are at the receiving end on the fact that Finmin issued a directive to SEBI. Check out INRBonds risk rating on perpetual bonds.
Dated 12 Mar 2021
By Arjun Parthasarathy
Why 2 year Corporate Bonds are best for Investors?
RBI will keep interest rates unchanged in its policy review this week, the repo rate at 4% is at record lows and with banks having huge surplus liquidity, deposits rates are below 4% for many banks. Investors in bank deposits are getting hardly any returns post-tax.
Dated 29 Nov 2020
By Arjun Parthasarathy
End of Credit Crisis Now here in Sight Despite Election Results
Frozen credit markets will get a respite from one big risk off the table, political risk.
Dated 25 Nov 2020
By Arjun Parthasarathy
Dysfunctional Credit Market is a Systemic Threat
Credit markets are virtually frozen for all except a few top of the line borrowers.
Dated 25 Nov 2020
By Arjun Parthasarathy
DHFL Bonds, Risk-Reward Factors
DHFL bonds with maturities ranging from 6 months to 2 years are trading at levels of over 14%.
Dated 25 Nov 2020
By Arjun Parthasarathy
When a Default is Not a Default!
Essel Group Companies have started to default on their debt obligations, as they do not have the funds to repay their borrrowings.
Dated 25 Nov 2020
By Arjun Parthasarathy
SFY is Going Behind a Pay wall
Its been almost one year since we launched Search for Yields (SFY), India’s only High Yield Credit Market Newsletter.
Dated 25 Nov 2020
By Arjun Parthasarathy
Credit Stress to Rise Further, INRBONDS Credit Stress Score
The credit spread outlook for AAA-PSU bonds is positive as compared to AAA-NBFC & AAA-HFC bonds that are still showing negative outlook. Lower rated credits are in severe stress, which could increase further.
Dated 25 Nov 2020
By Arjun Parthasarathy
High Yields or Equity, Which is the Better Bet ?
Take for example a company where its bonds are trading at levels of 18% and the stock price has crashed.
Dated 25 Nov 2020
By Arjun Parthasarathy
Rs 6.81 trillion Debt With 4 Large Groups
High debt levels of four big groups carries implications for the credit markets, in a slowing economy.
Dated 25 Nov 2020
By Arjun Parthasarathy
Spreads Could Rise for Indian Steel Manufacturers
Credit spreads of Indian Steel Sector Issuers could rise if the current downcycle in the sector continues.
Dated 25 Nov 2020
By Arjun Parthasarathy
Shapoorji Pallonji Follows Essel Group
The failure to pay back loans to Sterling & Wilson (after offloading stake through OFS with the promise to repay the debt from the OFS), casts a huge shadow on the sustainability of the high debt levels of the Shapoorji Pallonji group.
Dated 25 Nov 2020
By Arjun Parthasarathy
Major Issuers of Green Bonds in India
Inox Wind is India’s leading wind energy solutions provider. Inox Wind is a fully integrated player in the wind energy market with three state-of-the-art manufacturing plants in Gujarat, Himachal Pradesh, and Madhya Pradesh.
Dated 25 Nov 2020
By Arjun Parthasarathy
Lack of Market Intelligence is Where Rating Agencies Messed Upon IL & FS
AAA to default in just a matter of months, can a company mess up in a few months or has the mess accumulated over ages? In the case of IL&FS, the mess has definitely accumulated over ages as per the latest revelations of the probe by the government.
Dated 25 Nov 2020
By Arjun Parthasarathy
Credit Markets to Drive NBFC Sector Consolidation
The IL&FS default and market panic on DHFL are causing a deep stress on credit markets.
Dated 25 Nov 2020
By Arjun Parthasarathy
How Many More IL & FS are Lurking in MF Portfolios?
IL&FS that was rated AAA a few months ago was downgraded to junk recently, hitting MFs that hold the securities.
Dated 25 Nov 2020
By Arjun Parthasarathy
Major Issuers of Green Bonds in India
In 2015, the green bond market in India started with the issuance size of $100 million to $200 million.
Dated 25 Nov 2020
By Arjun Parthasarathy
NBFC’s are as Important as Banks to the Economy Today
NBFCs have emerged as an important alternate source of credit in the Indian economy.
Dated 25 Nov 2020
By Arjun Parthasarathy
INR Fall Can Hurt High Yield Bonds - SEARCH FOR YIELDS
The INR fell to all time lows on the back of Turkish Lira collapse.
Dated 25 Nov 2020
By Arjun Parthasarathy
Credit Risk Funds Alpha, is it Enough for the Higher Risk?
Credits are tricky, one wrong investment means a capital loss that cannot be recovered.
Dated 25 Nov 2020
By Arjun Parthasarathy
Are MFs Getting too Aggressive on Credit Risk?
The falling INR has impacted credit markets the most.
Dated 25 Nov 2020
By Arjun Parthasarathy
Diversified NBFCs are Showing the Fastest Growth
We have analysed the performance of NBFCs over the last one year; dividlng them into various categories such as Diversified Business, Auto Loans, Housing Finance, Gold Loan, Infrastructure Finance and Microfinance.
Dated 25 Nov 2020
By Arjun Parthasarathy
NBFCs, Fast and Furious Growth
The financial performance of NBFC’s have far outpaced banks in terms of growth, NIMs and NPAs over the last few years.
Dated 25 Nov 2020
By Arjun Parthasarathy
2019 Outlook is Negative for High Yield Credits
The factors that drive the high yield credit market are turning negative.
Dated 25 Nov 2020
By Arjun Parthasarathy
Credit Markets Thawing Slowly
The extreme nervousness is seen going out of credit markets with marginal falls in credit yields at the short end of the curve.
Dated 25 Nov 2020
By Arjun Parthasarathy
NBFC CPs Stressed on Near - Term Liquidity
NBFC credits are still seeing high spreads persist in the market as uncertainty on their future liquidity persists.
Dated 25 Nov 2020
By Arjun Parthasarathy
Rate Hike Cycle is Credit Positive
RBI hiked rates for the first time in over 4 years, hiking the repo rate by 25bps in its policy review on the 6th of June 2018.
Dated 25 Nov 2020
By Arjun Parthasarathy
PSU Bond Yields Fall Sharply
Expectations of Rate Cuts and RBI removing floor on overnight rates drove down yields on PSU bonds.
Dated 24 Nov 2020
By Arjun Parthasarathy
PSU Credit Spreads at the Short End Move Down Post Policy
For the week ended 6th December, credit spreads were down. Short end PSU-G-sec spreads moved down by 6-40 bps and 10 years maturity spreads moved down by 4 bps, the spreads were at 35-84 bps across maturities.
Dated 23 Nov 2020
By Arjun Parthasarathy
RBI October 2020 Policy is Highly Corporate Bond Positive
In the October 2020 RBI Policy, the central bank maintained status quo on rates and announced liquidity measures such as on tap TLTRO with tenors of up to three years for a total amount of up to Rs 1 trillion at a floating rate linked to the repo rate
Dated 11 Oct 2020
By Paresh Nemade
Indian Companies Bond Issuances Surge in H1FY21
During the week, BPCL 5-year bond was trading at 6.08%, at spreads of 71 bps. Adani Ports and SEZ Ltd 6-year bond was trading at 7.50%, at spreads of 190 bps, Oriental Insurance Company Ltd 9 year bond was trading at 7.90%, at spreads of 160 bps
Dated 3 Oct 2020
By Paresh Nemade
Lenders will need to Shore Up capital for Spreads to Stay Stable
As per Financial Stability Report pulished in July 2020 by RBI, the gross and net non-performing asset (GNPA and NNPA) ratios of all SCBs which was at 9.3% and 3.7% at the end of H1FY20 have come down to 8.5% and 3.0% in March 2020.
Dated 27 Jul 2020
By Paresh Nemade
AAA Credit Spreads Continue to Fall
Union Finance Minister announced the first part of the 20 trillion stimulus package where the government has come to the rescue of credit markets by buying bonds of investment-grade NBFCs, HFIs, and MFIs in both primary and secondary markets.
Dated 18 May 2020
By Paresh Nemade
Except AAA PSU All Other Bonds Spreads Rise
Post Franklin Templeton issue, and failure of NBFC TLTRO, RBI has decided to provide Rs 500 billion Special Liquidity Facility for Mutual Funds (SL-MF). RBI will conduct repo operations ( from 27th April-11th May) of 90 days tenor at the fixed repo rate of 4.40%.
Dated 3 May 2020
By Paresh Nemade
FT Saga – RBI Supports MFs With Special Liquidity Facility, MF Investors Need Not Worry on more Shut Downs
The market reaction to Franklin Templeton shutting down funds for a total of Rs 280 billion in AUM was a sell-off in financial stocks led by the largest NBFC in India, Bajaj Finance that fell 10%.
Dated 27 Apr 2020
By Arjun Parthasarathy
RBI measures calm CP, CD markets
Lockdown in India to fight COVID-19 is hurting the Indian economy and financial markets badly.
Dated 6 Apr 2020
By Paresh Nemade
Green Bonds In India
NTPC was incorporated in 1975 as a thermal generation company and is at present India’s largest power generating entity.
Dated 29 Mar 2020
By Arjun Parthasarathy
Green Bonds In India
Tata Power Renewable Energy Limited (TPREL) is a wholly-owned subsidiary of The Tata Power Company Limited (Tata Power).
Dated 1 Mar 2020
By Arjun Parthasarathy
AAA Credit Spreads Rise on FII Debt Sales
The impact of coronavirus is felt globally across markets leading to rising risk aversion.
Dated 1 Mar 2020
By Paresh Nemade
Green Bonds In India – INRBONDS High Yield Bonds Weekly Newsletter- Search For Yields
Yes Bank issued its first green infrastructure bond in February 2015 for Rs 5 billion. The tenure of bonds was 10 years. The date of allotment was 24th Feb 2015. Bonds were listed on BSE.
Dated 23 Feb 2020
By Arjun Parthasarathy
Credit Market to benefit from RBI liquidity
In the February 2020 monetary Policy, RBI introduced Long Term Repo Operations (LTRO) where banks can bid for LTRO, which is an ECB concept where ECB lent trillions of Euros to banks to improve credit flows, for 1 year and 3 year auctions at repo rates.
Dated 9 Feb 2020
By Paresh Nemade
RBI Twist Leads to Rise in Credit Spreads
Credit Spreads rose after RBI’s statement on conducting Operation Twist for the second consecutive week. The purchase of 10-year benchmark bond is keeping yields on the bond artificially low and this is leading to spreads rising, as yields on other bonds are almost flat
Dated 28 Dec 2019
By Arjun Parthasarathy
PSU Credit Spreads at the Short End Move Down Post Policy
For the week ended 6th December, credit spreads were down. Short end PSU-G-sec spreads moved down by 6-40 bps and 10 years maturity spreads moved down by 4 bps, the spreads were at 35-84 bps across maturities.
Dated 9 Dec 2019
By Arjun Parthasarathy
Our Credit Risk Monitor Suggests Deep Credit Stress
INRBONDS proprietary Credit Spread Score System shows that credit stress can rise further and this could result in more downgrades and even defaults. The score is negative 0.33 in October 2019 against negative 0.12 in September 2019.
Dated 14 Oct 2019
By Arjun Parthasarathy
Short end AAA Spreads to Fall on Tax Rate Cuts
Big bang tax rate cut by the government on the 20th of September can lead to fall in short end of the credit spread curve.
Dated 22 Sept 2019
By Arjun Parthasarathy
Short End Credit Spreads Fall Sharply
For the week ended 13th September, credit spreads were mixed.
Dated 16 Sept 2019
By Arjun Parthasarathy
PSU Bond Yields Fall Sharply
Expectations of Rate Cuts and RBI removing floor on overnight rates drove down yields on PSU bonds.
Dated 9 Sept 2019
By Arjun Parthasarathy
NBFC Spreads Fall
NBFC spreads fell on announcement of economy driving measures by the FM. Read our report on the FM measures.
Dated 2 Sept 2019
By Arjun Parthasarathy
Credit Spreads Will Take Time to Come Off Despite Government Measures
The measures by the government to provide capital and liquidity to banks and improve the flow of liquidity to HFCs and NBFCs will help credit spreads to stabilize and even come off for the top quality issuers.
Dated 25 Aug 2019
By Arjun Parthasarathy
Credit Worries Keep Spreads High for Non-PSU Bonds
Yes Bank bond spreads are trading at levels of 450 bps to over 500 bps on the back of deterioration in the bank’s balance sheet that led to rating downgrades. Read our note on Yes Bank Perpetuals. The credit market is risk averse with spreads between the PSU Bonds and all other bonds at higher levels.
Dated 5 Aug 2019
By Arjun Parthasarathy
Yes Bank Bond Spreads at Elevated Levels
Yes Bank bond spreads are trading at levels of 450bps to over 500bps on the back of deterioration in the bank’s balance sheet that led to rating downgrades. Read our note on Yes Bank Perpetuals. The credit market is risk averse with spreads between the PSU Bonds and all other bonds at higher levels.
Dated 29 Jul 2019
By Arjun Parthasarathy
CP, CD Yields Fall Sharply on Rate Cut Expectations
One year CP and CD yields fell by 15bps and 30bps respectively on the back of rate cut expectations.
Dated 21 Jul 2019
By Arjun Parthasarathy
3 year, Low Credit Risk Bonds, are Most Attractive in the Market
3 year bonds are trading at spreads of 100 bps for PSU issuers (Non REC-PFC) while top quality low credut risk NBFCs bonds are trading at 145bps spreads Such sreads look extremely attractive on the yield curve, given low interest rates and liquidity infusing measures by the RBI.
Dated 17 Jun 2019
By Arjun Parthasarathy
Weekly Credit Market Analysis 20th May
Bond markets are wary of the uncertainties and this week election results will move bond yields.
Dated 17 May 2019
By Arjun Parthasarathy
FIIs Encouraged to Buy Short Maturity INRBONDS
In the last week of April 2018, RBI further relaxed investment conditions for FIIs to invest in INRBONDS.
Dated 1 May 2018
By Arjun Parthasarathy
FIIs Sold over USD 1 billion INR BONDS in a Week, Stay Defensive on Positions
Falling INR and rising UST yields have led to FIIs selling INR Bonds.
Dated 23 Apr 2018
By Arjun Parthasarathy
MF’s exposure to G-secs Drop to 3 Year Lows
MF’s exposure to G-secs was at Rs 1.01 trillion as on February 2018, which is a 3 year Low.
Dated 27 Mar 2018
By Arjun Parthasarathy
Corporate Bonds Market is a Budget 2018 Gainer
In the Union budget 2018-19, the government showed its intentions to consider mandating, beginning with large Corporates, to meet about one-fourth of their financing needs from the bond market and A grade rating corporate bonds as eligible for investments.
Dated 5 Feb 2018
By Arjun Parthasarathy
10 Year SDL Spreads or 10 Year AAA Credit Spreads, Where to Invest?
10 Year SDLs and 10 Year AAA Corporate Bonds are trading at almost similar spreads of 55-60 bps against the benchmark 10 year g-sec. SDLs are perceived as risk free given States access to the central government and RBI for funds to meet debt obligations, if required.
Dated 15 Jan 2018
By Arjun Parthasarathy
12 Months Maturity Manufacturing CP Spreads at 123 bps looks a No Brainer
Manufacturing sector Commercial Papers (CP) 3 months, 6 months and 12 months maturity yields are at levels of 6.68%, 7.30% and 7.70% respectively. NBFC Commercial Papers (CP) 3 months, 6 months and 12 months maturity yields are at levels of 7.27%, 7.55% and 7.90% respectively.
Dated 9 Jan 2018
By Arjun Parthasarathy
10-year AAA Credit Spreads at 16 months Low
10 years AAA Credit Spreads fell below 50 bps on a weekly basis as Corporate Bond yields turned sticky. at higher levels even as 10 years G-sec yields rose sharply to over one year highs on the back of various factors.
Dated 26 Dec 2017
By Arjun Parthasarathy
3 Year Credit Spreads Rise Post RBI December Policy Review
3 year credit spreads rose while 5 & 10 year credit spreads were largely flat post RBI policy last week.
Dated 11 Dec 2017
By Arjun Parthasarathy
Corporate Debt Down grades Jump more than 3 times in this Fiscal Year
In the first six months of FY 2017-18, amount of total corporate debt rated by credit rating agencies rose 15.62% to Rs 66,289 billion against Rs 57,331 billion seen in April-September 2016.
Dated 27 Nov 2017
By Arjun Parthasarathy
Three Fold Rise in FIIs Exposure to SDLs
FII’s have been buying SDLs (State Development Loans) over the last 4 months (since July 2017).
Dated 13 Nov 2017
By Arjun Parthasarathy
AAA Credit Spreads Have Tightened, 10 Years Spreads Look Attractive
Credit spreads have tightened over the last 3 months.
Dated 6 Nov 2017
By Arjun Parthasarathy
CP Out standing at an All Time High
Commercial Papers (CP) outstanding were at Rs 4796 billion as on October 2017.
Dated 31 Oct 2017
By Arjun Parthasarathy
Credit Spreads Turn Sticky Post Policy
Corporate bond yields rose while credit spreads were largely flat post RBI policy last week.
Dated 10 Oct 2017
By Arjun Parthasarathy
RBI has Revised FII limits in G-sec Investments
RBI has revised rules for FPI (Foreign Portfolio Investor) investment in Government securities.
Dated 3 Oct 2017
By Arjun Parthasarathy
FIIs Allowed to Buy Rs 270 billion more of Corporate Bonds in Q3FY18
RBI, from 3rd October, will categorise Rupee Denominated Bonds known as Masala Bonds as ECBs (External Commercial Borrowings) and allow FIIs to buy into Rs 440 billion of Corporate Bonds over the next two quarters.
Dated 25 Sept 2017
By Arjun Parthasarathy
Range Bound Credit Spreads
Credit spreads have been ranged bound over the last 3 months with AAA credit moving in a 15bps to 20bps range.
Dated 18 Sept 2017
By Arjun Parthasarathy
FIIs Exhaust Corporate Bonds Investment Limit
As on 8th September, FII debt utilisation status stood at 89.60% of total limits, 42 bps higher against the previous week.
Dated 11 Sept 2017
By Arjun Parthasarathy
Will Longer end AAA PSU Credit spreads fall further?
Corporate bond yields closed flat last week.
Dated 21 Aug 2017
By Arjun Parthasarathy
NBFC Bonds Credit Spreads Look Attractive
RBI lowering the Repo Rate and maintaining neutral stance is highly positive for credit spreads.