On 30th December 2019, CARE Ratings downgraded Yes Bank debt across various categories by one notch. This included Infrastructure Bonds, Lower Tier II Bonds, Tier II Bonds, Additional Tier 1 Bonds, Upper Tier II Bonds and Perpetual Bonds. According to data from Rupeevest as of November 30th, Mutual Funds have an exposure of ₹2,932 crore to Yes Bank. “Mutual Funds are likely to side pocket the exposure to Yes Bank if it falls below BBB. Side pocketing is a procedure under which a mutual fund can separate out a portion of its portfolio in lieu of bad debt.

Source: Mint December 31, 2019 17:26 UTC