Latest news with #VishalGoenka
Time of India
4 days ago
- Business
- Time of India
Resurgence of India rate-cut wagers revives foreign investor interest in bonds
Foreign appetite for Indian government bonds is back, with inflows picking up steadily over the last month, as investors gauge fresh expectations of a rate cut by the Reserve Bank of India as early as August. The RBI cut rates by a larger-than-expected 50 basis points in June and changed the stance to "neutral", prompting investors to bet on a prolonged pause. Explore courses from Top Institutes in Please select course: Select a Course Category PGDM Data Science Public Policy Management Product Management Project Management CXO Digital Marketing Data Analytics Leadership Others healthcare Design Thinking Artificial Intelligence others Finance MBA Cybersecurity MCA Technology Degree Data Science Healthcare Skills you'll gain: Financial Analysis & Decision Making Quantitative & Analytical Skills Organizational Management & Leadership Innovation & Entrepreneurship Duration: 24 Months IMI Delhi Post Graduate Diploma in Management (Online) Starts on Sep 1, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gold Is Surging in 2025 — Smart Traders Are Already In IC Markets Learn More Undo But a sharp drop in June retail inflation has some investors reassessing the likelihood of another rate cut. Bonds Corner Powered By Resurgence of India rate-cut wagers revives foreign investor interest in bonds Foreign investors are showing renewed interest in Indian government bonds, driven by expectations of an upcoming rate cut by the Reserve Bank of India as early as August. Subdued inflation and persistent growth concerns are fueling these expectations. Over the past month, foreign investors have net purchased 129 billion rupees in Indian bonds. Three Indian infra investment trusts eye $500 million debt in coming weeks, sources say Grip Invest launches auto compounding investment product for bond investors Despite RBI's rate cuts, Indian G-Sec yields remain range-bound due to US yield pressures, says Rajkumar Subramanian US Treasury pullback from long-term bonds signals policy divergence, says Vishal Goenka Browse all Bonds News with The RBI could implement a modest 25 basis point cut in August if inflation remains subdued and growth concerns persist, said Singapore-based Manish Bhargava, CEO of Straits Investment Management, adding that bond yields are attractive at current levels. Over the last one month, foreign investors have net bought 129 billion rupees ($1.5 billion) of Indian bonds linked to global indexes after selling more than 330 billion rupees in the first two-and-a-half months of the financial year that started on April 1, clearing house data showed. Live Events Analysts said concerns on the growth front are also likely to prompt the central bank to lower rates further. With recent high-frequency data disappointing and indicating the possibility of a further slowdown in growth, "there is potential for more support from the RBI further down the line," said London-based Giulia Pellegrini, lead portfolio manager, emerging market debt at AllianzGI. India's overall economic fundamentals remain solid, keeping the country on investors' radar, she said. A wider gap between interest rates in India and the U.S. would add to the appeal of Indian debt, investors said. That's why a Federal Reserve rate cut could act as a positive catalyst for Indian bonds, as they have historically helped local currency debt markets, said Nigel Foo, Singapore-based head of Asian fixed income at First Sentier Investors. However, current Indian bond yields are lower than where they were in the past at similar policy rate levels, and so are relatively unattractive, he added. The 10-year U.S. yield was around 4.35%, with the Fed expected to cut rates by at least 50 bps in 2025. The Indian 10-year benchmark bond yield was at 6.30%. "India's local debt story remains very compelling on both FX and rates," said Jean‑Charles Sambor, head of emerging markets debt at TT International Asset Management in London, who expects bond yields to decline through this year and next, and finds the middle of the yield curve attractive. ($1 = 86.2470 Indian rupees)
Time of India
5 days ago
- Business
- Time of India
Three Indian infra investment trusts eye $500 million debt in coming weeks, sources say
Three Indian infrastructure investment trusts , including the National Highways Infrastructure Trust , are planning to raise up to 43 billion rupees ($499 million) through corporate bonds in the coming weeks, three sources familiar with the matter said. NHIT is in talks with merchant bankers and investors to raise around 15 billion rupees through three-year bonds, the sources, who did not want to be named because the discussions are private, said. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science MCA Operations Management CXO others Project Management Cybersecurity Degree Healthcare Data Analytics Public Policy Design Thinking Management Leadership Artificial Intelligence Data Science Technology Others MBA Digital Marketing PGDM healthcare Product Management Finance Skills you'll gain: Duration: 30 Weeks IIM Kozhikode SEPO - IIMK-AI for Senior Executives India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Postgraduate Cert in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIT Madras CERT-IITM Advanced Cert Prog in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Prof Cert in DS & BA with GenAI India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Could Be the Best Time to Trade Gold in 5 Years IC Markets Learn More Undo Cube Highways Trust is likely to tap the market for about 10 billion rupees in debt, with maturities ranging between three and five years. Bonds Corner Powered By Three Indian infra investment trusts eye $500 million debt in coming weeks, sources say Three Indian infrastructure investment trusts, including the National Highways Infrastructure Trust, are planning to raise up to 43 billion rupees ($499 million) through corporate bonds in the coming weeks, three sources familiar with the matter said. Grip Invest launches auto compounding investment product for bond investors US Treasury pullback from long-term bonds signals policy divergence, says Vishal Goenka Corporate bond curve in 3–6-year segment offers investment opportunity amid rate cut hopes: PGIM India MF Airport Firm GMR mulls rupee-bond sale of Rs 5,000 crore Browse all Bonds News with Meanwhile, IRB Infrastructure Trust is preparing for its debut bond issuance, targeting roughly 18 billion rupees through a dual-tranche offering with five and 10-year tenors. None of the infrastructure investment trusts , or InvITs, responded to Reuters emails seeking comment. InvITs typically raise capital through a combination of units and bonds. Live Events Bond issuances have gained traction in recent months amid falling yields. According to Prime Database, InvITs and real estate investment trusts (REITs) together raised more than 178 billion rupees in the January-June period. All three InvITs are in discussions with investors, including the International Finance Corporation, which has previously invested in debt issued by several InvITs, including Cube Highways, according to a termsheet from an earlier offering. NHIT last tapped the bond market in January, while Cube Highways raised funds through bonds in April. Insurance firms and pension funds participated in NHIT's previous bond offering, and the sources said they expect mutual funds to show interest this time, given that the tenor aligns with their investment horizon. ($1 = 86.3825 Indian rupees)
Economic Times
5 days ago
- Business
- Economic Times
US Treasury pullback from long-term bonds signals policy divergence, says Vishal Goenka
As global markets navigate a complex macroeconomic environment, a notable shift is unfolding in the US bond market. Vishal Goenka, Co-founder of highlights that the US Treasury's reduced issuance of long-term bonds reflects an emerging policy divergence — one that could have far-reaching implications for global interest rate expectations and capital flows. In an exclusive interaction, Goenka explains what this development means for India's bond market, how domestic issuance trends are evolving, and why structural reforms are key to unlocking deeper debt market participation. Edited Excerpts – ADVERTISEMENT Q) How would you describe the current size and depth of the corporate bond market in India? A) The current corporate bond market in India stands at INR 51.58 lac crores (US$ 602.4 billion) as of 31st December 2024 (Source SEBI). Although demonstrating growth in recent years, it is dwarfed by US corporate bond (ex-ABS and MBS) market which stood at US$47.4 trillion as of 30th June 2025 (Source: SIFMA). The Indian corporate bond market is merely ~12% of the size of equity market capitalisation (Wikipedia) whereas the US corporate bond market is ~85% of the size of its equity market (Source: SIFMA).This shows that a lot more accelerated growth is expected in India as it transforms from an underdeveloped to a rapidly developing economy. Depth still exists in the very high grade AA+ and AAA segments given the institutional given the rise of SEB-registered Online Bond Platforms (OBPs), a lot more activity can be seen in corporate bonds rated below A+. A report by BSE mentioned that number of trades on RFQ segment (mostly used by online platforms) grew by 327% in FY 24-25. ADVERTISEMENT Q) 2025 has seen record-breaking corporate bond issuances. What factors are driving this surge in new issuance? A) Indian corporates raised a record-breaking ₹6.6 trillion via rupee bond issuances in H1 2025, driven by a confluence of supportive factors: ADVERTISEMENT 1) RBI's Accommodative Stance and Ample Liquidity: Since December 2024, the RBI adopted a more dovish monetary policy, cutting the Cash Reserve Ratio (CRR) by 50 bps and the repo rate by 100 bps. It also infused over ₹9.2 lakh crore in durable liquidity. This led to a broad-based softening of yields, creating a favourable window for corporates to borrow at historically low costs.2) Strong Institutional Demand: Corporate bond mutual funds recorded net inflows of ₹11,983 crore—the highest in over three years. This was bolstered by steady demand from insurance firms and pension funds, creating a deep and stable buyer base for high-quality credit. ADVERTISEMENT 3) Muted transmission: The muted transmission of policy rates through MCLR and EBLR means that bank lending rates remain sticky. In contrast, the bond market has responded swiftly to the RBI's easing stance. Corporates are finding the bond route more cost-effective and flexible, especially for larger, rated issuances. Q) The US is currently grappling with a growing debt crisis. How do you see this impacting global bond markets? ADVERTISEMENT A) The US growing debt crisis has been in the works since the massive liquidity injection post Covid. Left on its own, US bond yields should go much higher in times to come impacting global bond markets for the trajectory is not entirely certain given the disconnect between the political and central bank regimes. Trump has been insisting on the Fed lowering interest rates and challenging the independence of the Central this plays out in the next year will determine future policy moves and direction of interest rates as Powell's term ends only in May 2026 Q) Issuance of ultra-long-term US Treasury bonds has slowed down. What's driving this trend? A) This is largely a decision by the US Treasury given the spike in long term interest rates in the US combined with curve steepening. It emanates from the divergence in views of the government from the US Fed on direction and level of interest rate in the US remain at low levels at 4.1% and with US equity markets hitting lifetime highs, case for lower rates remain weak, also given the potential inflationary shocks from global tariff implementation. Q) What regulatory or structural reforms could help deepen India's corporate bond market further? A) Although there has been a lot of progressive development to deepen the corporate bond market in India, some more structural reforms could help further:1) Distribution of bonds remains unstructured without any regulatory framework. Buying in equities can only be done by registered stockbrokers or APS. Investing in mutual funds can only be done direct or through ARN holders. For a large country like ours, distributors play a critical role is education and building awareness on investing in an asset class. Since for bonds there is no structure, leads to possibility of misinformation or non-transparency which hinders building depth in corporate bonds2) Financial infrastructure for selling bonds by non-institutions remain underdeveloped. In current times of technological ease, selling bonds is still a paper driven cumbersome process 3) The liquidity in corporate bond market is fragmented on 3 venues on exchanges – OTC, capital markets and RFQ. This leads to illiquidity and reform is needed to combine to a single platform on exchanges to deepen the market. Other products like equity and Government securities all have a single venue to trade which helps in liquidity. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
5 days ago
- Business
- Time of India
US Treasury pullback from long-term bonds signals policy divergence, says Vishal Goenka
As global markets navigate a complex macroeconomic environment, a notable shift is unfolding in the US bond market. Vishal Goenka , Co-founder of highlights that the US Treasury's reduced issuance of long-term bonds reflects an emerging policy divergence — one that could have far-reaching implications for global interest rate expectations and capital flows. In an exclusive interaction, Goenka explains what this development means for India's bond market, how domestic issuance trends are evolving, and why structural reforms are key to unlocking deeper debt market participation. Edited Excerpts – Q) How would you describe the current size and depth of the corporate bond market in India? Explore courses from Top Institutes in Please select course: Select a Course Category Operations Management Public Policy Technology Healthcare Finance Artificial Intelligence Data Science Cybersecurity MBA Others others CXO Product Management Degree MCA PGDM Leadership Design Thinking healthcare Management Project Management Data Science Data Analytics Digital Marketing Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details A) The current corporate bond market in India stands at INR 51.58 lac crores (US$ 602.4 billion) as of 31st December 2024 (Source SEBI). Although demonstrating growth in recent years, it is dwarfed by US corporate bond (ex-ABS and MBS) market which stood at US$47.4 trillion as of 30th June 2025 (Source: SIFMA). The Indian corporate bond market is merely ~12% of the size of equity market capitalisation (Wikipedia) whereas the US corporate bond market is ~85% of the size of its equity market (Source: SIFMA). This shows that a lot more accelerated growth is expected in India as it transforms from an underdeveloped to a rapidly developing economy. Depth still exists in the very high grade AA+ and AAA segments given the institutional participation. However, given the rise of SEB-registered Online Bond Platforms (OBPs), a lot more activity can be seen in corporate bonds rated below A+. A report by BSE mentioned that number of trades on RFQ segment (mostly used by online platforms) grew by 327% in FY 24-25. Q) 2025 has seen record-breaking corporate bond issuances . What factors are driving this surge in new issuance? A) Indian corporates raised a record-breaking ₹6.6 trillion via rupee bond issuances in H1 2025, driven by a confluence of supportive factors: 1) RBI's Accommodative Stance and Ample Liquidity: Since December 2024, the RBI adopted a more dovish monetary policy, cutting the Cash Reserve Ratio (CRR) by 50 bps and the repo rate by 100 bps. It also infused over ₹9.2 lakh crore in durable liquidity. This led to a broad-based softening of yields, creating a favourable window for corporates to borrow at historically low costs. 2) Strong Institutional Demand: Corporate bond mutual funds recorded net inflows of ₹11,983 crore—the highest in over three years. This was bolstered by steady demand from insurance firms and pension funds, creating a deep and stable buyer base for high-quality credit. 3) Muted transmission: The muted transmission of policy rates through MCLR and EBLR means that bank lending rates remain sticky. In contrast, the bond market has responded swiftly to the RBI's easing stance. Corporates are finding the bond route more cost-effective and flexible, especially for larger, rated issuances. Q) The US is currently grappling with a growing debt crisis. How do you see this impacting global bond markets? A) The US growing debt crisis has been in the works since the massive liquidity injection post Covid. Left on its own, US bond yields should go much higher in times to come impacting global bond markets for sure. However, the trajectory is not entirely certain given the disconnect between the political and central bank regimes. Trump has been insisting on the Fed lowering interest rates and challenging the independence of the Central Bank. How this plays out in the next year will determine future policy moves and direction of interest rates as Powell's term ends only in May 2026 Q) Issuance of ultra-long-term US Treasury bonds has slowed down. What's driving this trend? A) This is largely a decision by the US Treasury given the spike in long term interest rates in the US combined with curve steepening. It emanates from the divergence in views of the government from the US Fed on direction and level of interest rates. Unemployment rate in the US remain at low levels at 4.1% and with US equity markets hitting lifetime highs, case for lower rates remain weak, also given the potential inflationary shocks from global tariff implementation. Q) What regulatory or structural reforms could help deepen India's corporate bond market further? A) Although there has been a lot of progressive development to deepen the corporate bond market in India, some more structural reforms could help further: 1) Distribution of bonds remains unstructured without any regulatory framework. Buying in equities can only be done by registered stockbrokers or APS. Investing in mutual funds can only be done direct or through ARN holders. For a large country like ours, distributors play a critical role is education and building awareness on investing in an asset class. Since for bonds there is no structure, leads to possibility of misinformation or non-transparency which hinders building depth in corporate bonds 2) Financial infrastructure for selling bonds by non-institutions remain underdeveloped. In current times of technological ease, selling bonds is still a paper driven cumbersome process 3) The liquidity in corporate bond market is fragmented on 3 venues on exchanges – OTC, capital markets and RFQ. This leads to illiquidity and reform is needed to combine to a single platform on exchanges to deepen the market. Other products like equity and Government securities all have a single venue to trade which helps in liquidity.
Mint
12-07-2025
- Business
- Mint
Adani's public bond was sold in hours. But it's a rarity in Indian debt market
Mumbai: Adani Enterprises Ltd's ongoing public bond offer was fully subscribed within hours of opening, reflecting demand for such high-rated issues among retail buyers. Yet, it does not suggest an across-the-board surge in such issuances from Indian companies. Experts say non-bank lenders will continue to dominate this category. Companies with low credit risk, usually rated 'A' or higher, raise money via bonds in two ways. A private placement open to select institutional or wealthy investors, which is the dominant mode of raising debt for Indian corporates. The other way is an initial public offering for all debt investors, a less preferred funding option. Due to heavier funding requirements, non-banking financial companies (NBFCs) are more frequent issuers of public debt. To diversify their lending pools in accordance with regulatory guidance, NBFCs look at various avenues of funding, including bank loans, equity capital, overseas borrowing, privately placed non-convertible debentures, secured or unsecured debt, and subordinated debt. More so, as bank funding for NBFCs has slowed in the past two to three years owing to Reserve Bank of India's warnings of increasing interconnectedness between the two categories of lenders, subsequent increase in risk weights for bank lending to NBFCs–which were later reversed–and overall slowdown in bank lending amid the race for deposits. This has even prompted lower-rated NBFCs to opt for public bond issues in recent years. 'We have seen some [public] corporate issuances but not enough to make a considerable trend. The issues that have happened are largely because rate transmission in banking is slower than the bond market," said Vishal Goenka, co-founder of bond platform IndiaBonds. Uncertain equity markets and global macroeconomic conditions have also made investment in bonds an effective way for retail investors to diversify their portfolio and earn higher rates than traditional fixed deposits, he said. However, Goenka said, while he expects more public issuances for the rest of FY26, financial institutions should continue to dominate the space. India's corporate bond issuances are expected to surpass record levels for the third straight year, with ₹11 trillion worth of offers expected in FY26, Mint reported on 9 July. But the bulk of that is expected to be private placement. Total corporate bond issues in FY25 amounted to ₹9.95 trillion, of which public debt issues were worth ₹8,149 crore across 43 issuances. Key hurdles Public issues enable better price discovery, increase brand visibility, and open new avenues for fundraising," said Arjun Parthasarathy, founder and chief executive officer of online bond platform INRBonds. 'Companies, especially NBFCs (non-bank financial companies) and large corporates, are using public markets to diversify funding beyond banks and benefit from better pricing when market liquidity is strong." However, according to Parthasarathy, public issues still account for a smaller share compared to private placements due to higher compliance costs and longer timelines. Only four non-financial corporates—India Grid Trust, National Highways Infra Trust, SMC Global Securities and Adani Enterprises—raised funds via public debt issues in the last three financial years. In FY26 so far, there have been only two public debt issues, including the current Adani issue. Prior to this, SMC Global Securities had raised ₹120 crore in April 2025. The Securities and Exchange Board of India's (Sebi) compliance guidelines for public issues, whether equity or debt, are generally tighter given that these raise funds from a less knowledgeable category of investors, including the retail category. Such issues require higher disclosures, investor mobilisation, complex documentation and higher issuance costs, such as for advertising and marketing or investor roadshows. Private issues are generally preferred by borrowers over public issues, regardless of the size of the fundraise, as reflected in a similar trend seen in bond issues by municipal bodies, Mint reported on 19 June. While for municipal bonds the key hurdles are stricter regulatory requirements and compliance challenges, public issues by large corporates are also heavily dependent on their fund requirements which is currently muted given weak capex growth and steady working capital lines from banks. Better transparency, price discovery Public debt issues have no limit on the number of investors and are accessible to all categories, with specific reservations often allocated to retail investors. Listing on exchanges like BSE Ltd or National Stock Exchange ensures transparency and liquidity, while low minimum investment thresholds and flexible payout options make them attractive to individual investors. Such issues also offer higher rates compared with privately placed debt issues to make them more lucrative for retail investors, especially in a falling or low-interest rate environment like now. The Reserve Bank of India cut the key policy rate by 25 basis points each in February and April. This was followed by a 50-bps cut in June, leading to a 100-bps drop in rates within five months. Adani bond issue Adani Enterprises' public bond issue of up to ₹1,500 crore opened for subscription on 9 July and was fully subscribed within hours of opening. The offer, open for subscription till 22 July, received demand for 3.7 times the securities on offer as of 1300 IST on Friday. The company had last raised ₹800 crore via a public issue in September has also helped Adani's fundraising is that it is a large conglomerate and a known name, which attracted investor interest. 'This is a second issue from Adani Group. In the past when they did one, it was very well welcomed by the retail segment of the investor class," said Ajay Manglunia, managing director and head, Investment Grade Group, JM Financial. 'In the recent one also, you would see there are a large number of retail investors who have participated." 'And the thing is that (for the corporate) it's a continuous exercise where they want to refine the cost of funding," he said, adding that it allows the company to diversify the investor base to get the lowest possible coupons compared with a private issue where the company may only reach out to a 'handful of investors". However, the conglomerate remains one of the very few non-financial services companies to tap the market via public issues. And there is strong demand among retail investors for such investments. According to INRBond's Parthasarathy, that's reflected in the strong subscription or trading volumes being seen in the secondary market for public bonds. 'Bank FD rates have been coming down over the last 1-1.5 months, so there will be a class of investors who would be looking at making an extra spread or a yield, say about 100-150 basis point higher than what typically bank FDs offer and therefore, there should be more demand from retail in general," said Sachin Gupta, executive director and chief rating officer, Care Edge Ratings. Regulatory boost Industry experts are optimistic that recent regulatory measures taken to boost retail participation in bonds should encourage more corporates to look at public issues as a funding source, despite the constraints. 'Notwithstanding the public issues being operationally more intensive to handle or more compliance heavy, the motivation for a public issue could be to diversify the funding sources," said Jitin Makkar, senior vice president and group head, Icra Ltd. The Securities and Exchange Board of India in February launched 'Bond Central', a public repository of bond data, and reduced the minimum face value of listed bonds from ₹1 lakh to ₹10,000, making them more accessible for retail investors. 'There is a gradual increase in public issues by corporates, supported by regulatory changes that have lowered the minimum investment and improved transparency, making it easier for retail investors to participate," said Nikhil Aggarwal, founder and group chief executive, Grip Invest, adding that there is a 'noticeable uptick in interest" from private sector corporates. Sachdeva, too, expects more corporates in the 'A+', 'AA-' and 'AA' categories to be active in the public bond segment because of better yields to the investors compared with higher-rated bonds. 'Corporates which have large-sized issues will be able to spread that (higher) cost."
