Boosting liquidity: A screen displays an image of the Reserve Bank of India (RBI) governor Shakitanka Das inside the Bombay Stock Exchange in Mumbai recently. The RBI cut interest rates and announced steps to boost liquidity in a stimulus worth 3.2% of gross domestic product to counter the economic impact of the coronavirus outbreak. — Bloomberg
MUMBAI: Indian money managers are dumping corporate bonds as they struggle to meet redemptions after the biggest-ever forced closure of funds in the country last month.
Even higher-rated debt is under pressure. Notes issued by government-backed lenders Punjab National Bank, Andhra Bank and Canara Bank were traded in the past few days at the highest yields in over a year of at least 12.5%, data published on National Stock Exchange website show. Mutual funds struggling with redemptions were among the sellers, sources said.
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