Three banks snapped up almost 90 percent of bonds sold by Indian states to foreigners, and turned them into derivatives, raising the prospect of more volatility in one of Asia's best performing debt markets.
Several market participants involved in the sale said offshore units of Nomura, Standard Chartered and Bank of America Merrill Lynch bought about 30 billion rupees (USD 451 million) of the 35 billion rupees on offer in October, the first window for foreigners to buy in.
Much of that debt was then sold for a hefty fee as derivatives known as total return swaps to offshore clients keen for the bonds' higher yields, compared with India's already popular sovereign debt, and with similar guarantees.
CDR plan: Lenders to infrastructure company Gammon Infra, are planning to invoke Strategic Debt Restructuring (SDR) to recover Rs 10,000 crore worth dues. Speaking to CNBC-TV18, Rakesh Sharma, managing director and chief executive officer, Canara Bank says the bank is examining various options to recover dues from the company and will await the Board's nod on the same. The bank has lent close to Rs 2000 crore to the infra company.
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Several market participants involved in the sale said offshore units of Nomura, Standard Chartered and Bank of America Merrill Lynch bought about 30 billion rupees (USD 451 million) of the 35 billion rupees on offer in October, the first window for foreigners to buy in.
Much of that debt was then sold for a hefty fee as derivatives known as total return swaps to offshore clients keen for the bonds' higher yields, compared with India's already popular sovereign debt, and with similar guarantees.
CDR plan: Lenders to infrastructure company Gammon Infra, are planning to invoke Strategic Debt Restructuring (SDR) to recover Rs 10,000 crore worth dues. Speaking to CNBC-TV18, Rakesh Sharma, managing director and chief executive officer, Canara Bank says the bank is examining various options to recover dues from the company and will await the Board's nod on the same. The bank has lent close to Rs 2000 crore to the infra company.
If you have any queries regarding the Nifty level and other market tips like Equity tips, stock cash tips, MCX trading tips, stock future tips call @ 8109999233 or fill form http://equityresearchlab.com/Freetrial.php
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