MUMBAI:Insurance companies want to invest in the Ujwal Discom Assurance Yojana (Uday) bonds that have been floated to rescue debt-laden state power distribution companies. AAA-rated bonds issued by state-run companies trade at a spread of 40-50 basis points over government securities. "We are interested in longer-tenor bonds issued by these companies. The bonds were issued mostly to banks directly and very few investors got an opportunity to buy them. "With low credit risk, attractive spreads and guarantee from the state government, investment in Uday bonds is a good investment option," said Sandeep Ghosh , CEO of Bharti AXA Life Insurance They are similar to state loans but don't have statutory liquidity ratio (SLR) status.

Source: Economic Times July 04, 2016 00:18 UTC