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No AMC has over 10% exposure to debt funds, says Crisil


No AMC has over 10% exposure to debt funds, says Crisil
3d render of computer keyboard with MUTUAL FUNDS button
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. Updated: 14 Mar 2021, 04:35 PM IST PTI
Amidst the ongoing Franklin Templeton fiasco, Sebi had on March 10, asked mutual funds to restrict their exposure to additional tier I & 2 (AT1 & AT2) bonds to under 10% to reduce their risks in debt fund portfolios, in its bid to mitigate risks of retail investors
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MUMBAI :
Describing the Sebi move to cap the exposure of mutual funds to tier 1 & 2 bonds to 10% to mitigate the risks for retail investors as a positive step, a Crisil analysis has found that none of the AMCs is exposed to the risk though 36 schemes, mostly led by banking and PSU funds, do breach the new threshold. ....

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Examine India's bond market to read its economic tea leaves


Examine India’s bond market to read its economic tea leaves
Stock buoyancy doesn’t reflect the real state of India’s economy
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Andy Mukherjee
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Consumers are feeling cheated at the gas station. Investors are returning empty-handed from government bond auctions. The Indian state is struggling to make its fiscal math work without short-changing the first group or disappointing the second. Each of these discontents could curtail a still-unfinished recovery from the massive covid disruption. But you wouldn’t see any of those concerns reflected in the stock market, which is floating on $85 billion of liquidity pumped into the banking system in less than two years. At the height of the optimism around the 2014 election that brought Narendra Modi to power, the Nifty 50 index peaked at a price-to-earnings ratio of 23. The multiple is currently at 36 and rising. ....

Istandy Mukherjee , Examine India , India Bond Market , Government Bond Auctions , Covid Disruption , Banking System , India Gdp , Stock Markets , ஆராயுங்கள் இந்தியா , இந்தியா பத்திரம் சந்தை , அரசு பத்திரம் ஏலம் , வங்கி அமைப்பு , இந்தியா ஜீடீபீ , ஸ்டாக் சந்தைகள் ,

RBI governor asks stock markets for trust, as bonds suffer post-budget sell-off


RBI governor asks stock markets for trust, as bonds suffer post-budget sell-off
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RBI governor asks stock markets for trust, as bonds suffer post-budget sell-off
Reuters / Feb 24, 2021, 14:34 IST
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RBI governor Shaktikanta Das said the RBI was seeking an orderly evolution of the yield curve . (File photo)
MUMBAI: Reserve Bank of India (RBI) governor told investors on Wednesday to trust the bank to manage the government s massive borrowing programme, after the bond market suffered a sustained sell-off following the 2021-22 budget announcement earlier this month.
The RBI s assurances that it will ensure ample liquidity have failed to calm investors nerves over the larger than expected Rs 12.06 lakh crore borrowing requirement, and the central bank has rebuffed their calls for a open market operations calendar. ....

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Bond yields rise in absence of OMO announcement


Bond yields rise in absence of OMO announcement
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Bond yields rise in absence of OMO announcement
Reuters / Jan 15, 2021, 14:43 IST
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MUMBAI: India’s benchmark bond yield rose on Friday to a three-week high as a lack of an open market operation announcement disappointed investors ahead of a debt sale and variable rate reverse repo auction later in the day.
The Reserve Bank of India (RBI) last week said it would conduct a variable rate reverse repo auction for Rs 2 lakh crore ($27 billion) on January 15 on review of the evolving liquidity and financial conditions.
“It has been decided to restore normal liquidity management operations in a phased manner,” the RBI said. ....

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