Franklin Templeton, one of the first global financial firms to launch asset management operations in India more than two decades ago, was heavily invested in lower-rated corporate bonds that were among the most affected by the downturn.
MUMBAI: Franklin Templeton will wind up $4.1 billion of Indian debt funds after a liquidity crisis compelled the firm to freeze investor withdrawals, underscoring persistent stress in credit markets as the coronavirus pandemic wreaks havoc on the global economy.
The firm’s surprise announcement late Thursday marked the biggest-ever forced closure of Indian funds and fueled worries of a renewed wave of withdrawals from similar products. Indian corporate bonds slumped on the news, while banks and fund managers paced declines in the country’s stock market.
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