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Unfazed by Covid-19, fund raising for public issues jumped by 115% in FY21
April 14, 2021
Right issues saw an increase of 15%
Pandemic does not seem to have affected fund mobilisation through capital market as Financial Year 2020-21 (FY 21) saw resources raising through public issue more than doubled. Mutual fund and corporate bond market also registered good growth; a Finance Ministry statement released on Wednesday.
“Despite the uncertainty prevailing in FY 2020-21 owing to Covid-19 pandemic, fund raising in FY 2020-21 was better than that in FY 2019-20 for both Public Issues and Rights Issues,” the statement said.
According to data compiled by the Ministry, fund raising through public issue jumped 115 per cent during FY 21 while growth was 15 per cent for rights issues. Similarly, number of unique investors across different kind of mutual fund grew by 10 per cent, while number of issues in Corporate Bond Market increased by 10 per cent in FY 2020-21.
Rising yields turn the tide for India’s corporate bond market
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Indian banks have been willing investors in corporate bonds this year. The push has come from their corporate borrowers because benign bond yields have had an advantage over loan rates. So much so that the largest lender, State Bank of India (SBI), saw its advances growth get a 1.43 percentage point boost, thanks to corporate bond investments in the December quarter.
This tide may be turning now. Data from the Reserve Bank of India (RBI) shows banks have reduced their investments in corporate bonds and debentures in the past two months. Total investment in corporate bonds by banks was down to ₹5.64 trillion by February-end, a 3.5% fall in two months. That dragged down the non-SLR (statutory liquidity ratio) investment which includes commercial paper and shares by 2.2% for the same period.
Businesses borrow VND400 trillion at high interest rates, raising concerns about solvency Chia sẻ | FaceBookTwitter Email Copy Link Copy link bài viết thành công
13/03/2021 10:47 GMT+7
The financial health of many enterprises that issued bonds in 2020 is getting worse, with profits not high enough to pay bond interest.
According to Fiin Ratings, the total value of bonds issued by Vietnam’s enterprises in 2020 reached a record high at VND429.5 trillion, an increase of 28.3 percent over 2019. The figure was equal to 4.7 percent of the outstanding loans of the entire banking system for the year.
The Vietnamese corporate bond market is relatively large, equal to 15.1 percent of GDP and 10.3 percent of the outstanding loans of the banking system at the end of 2020.