Pacific Investment Management Co. said in a report this month that as commodities stabilize and investors hunt returns, it is favouring emerging-market currencies that offer high yields. Indian companies raised Rs92,693 crore selling rupee bonds in the three months ended 30 June, the highest second-quarter sales since at least 2005, according to data compiled by Bloomberg. Power Grid Corp. of India plans to sell up to Rs4,000 crore of notes next month, while ICICI Lombard General Insurance Co. last month became the first insurance firm to sell rupee bonds. India is still viewed positively among foreign investors and company debt is an attractive alternative to sovereign bonds, he added. “The hunt for higher yields will likely result in foreign institutional investor debt limits in corporate bonds being utilized, albeit gradually.” Bloomberg

Source: Mint August 26, 2016 09:22 UTC