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Credit Market

6 Dec 2020

FIIs are playing classical RBI inflation trade and this will hurt investors in low yielding, longer maturity corporate bonds- Weekly Credit

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FIIs have pumped in around USD 15 billion into India equities as of fiscal 2020-21 year to date but have sold debt worth around 5 billion. The FII trade signifies that government spending and ultra loose monetary policy will lead to high inflation that will drive up asset prices.

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Arjun Parthasarathy
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