You can only get a toehold at the investors’ table for your corporate bond. The malaise towards corporate bond issuers that was triggered by a defaulting AAA-rated Infrastructure Leasing & Financial Services Ltd (IL&FS) and AAA-rated housing finance company has only deepened now. “Primary refinancing risk centres on ₹2 lakh crore of redemption in FY20," the report said. This does not price in further rating downgrades, which is what bond investors are jittery about. Trust is in huge deficit and a corporate bond market already starved of investors is now looking at losing some of them permanently.

Source: Mint July 03, 2019 06:22 UTC