India Inc. Borrowing Costs Surge Most Since 2013 Menacing Growth
Mar 03 2021, 9:35 AM
March 02 2021, 11:34 AM
March 03 2021, 9:35 AM
(Bloomberg) Borrowing costs for Indian companies spiked by the most in more than seven years last month, in a blow to firms struggling to recover from the pandemic.
(Bloomberg) Borrowing costs for Indian companies spiked by the most in more than seven years last month, in a blow to firms struggling to recover from the pandemic.
The average yield on top-rated three-year, five-year and 10-year corporate rupee bonds all climbed by their most since 2013 in February. A confluence of factors including higher global bond yields, and concerns that companies may be crowded out of local debt markets by the governmentâs near-record borrowings plans have pushed up borrowing costs up for Indian companies.
Will liquid mutual funds stage a comeback?
High government borrowing outlined by Budget 2021 may push interest rates up sometime this year. This helps liquid funds whose returns have hit rock-bottom levels. February 09, 2021 / 10:53 AM IST
Budget 2021 s indication on high government borrowing has already pushed up yields on debt securities up. Interest rates and bond prices move in opposite direction. Experts say that it’s only a matter of time before interest rates increase.
Liquid funds are typically marketed as a means to park sums for the short term to earn a bit more than savings bank accounts. However, currently, leaving money in saving bank accounts is more beneficial. If you invest regularly in liquid funds, or have money lying in there, then here is what you should do.