India’s offshore presence in the capital markets has come from nowhere over the last two or three years, with the rise in volumes reflecting the rapid improvement in the country’s economic fortunes.
To purchase printed copies or a PDF of this report, please email leonie.welss@lseg.com and shahid.hamid@lseg.com
More than 40 years ago, the OECD asked the world to “Consider Japan”. Huw McKay, senior international economist at Westpac Economic Research, poses a similar challenge here with respect to the future place in the world of the Indian sub-continent.
A rising interest-rate outlook and the availability of other cost-effective funding options may prompt Indian borrowers to issue less in rupee-denominated bonds. So after a solid start to the year, bankers expect rupee bond issuance volumes to taper off in coming months. As a result, issuance is unlikely to surpass the US$10.5bn tally seen in 2004, reports Shankar Ramakrishnan.
These are exciting times for Indian securitisation. Issuance volume is growing, new structures are appearing and a wider range of investors is becoming comfortable with such paper. The soon-to-be-finalised securitisation regulations will provide yet another boost to what is becoming one of Asia’s most interesting ABS markets, writes Matthew Davies.
In the 2005 budget speech India’s Finance Minister P Chidambaram mentioned the crucial role that over-the counter (OTC) derivatives play in mitigating the risks of corporates and financial entities. A strong signal of support from the government for the OTC market was welcomed by the industry, and it was hoped that this would provide development impetus to a sector lacking in legal and regularity clarity. But this may take some time, reports Nick Herbert.
Pricing on Indian loans has dropped precipitously over the past couple of years as a result of the rising liquidity provided by a rapidly expanding universe of lenders. With India’s economy powering ahead the number of offshore banks rushing to lend can only get bigger and the all-in yields ever lower. The country’s banks have benefited the most. Prakash Chakravarti reports.
India’s convertible market arrived from nowhere to become Asia’s most important source of new deals, and is thriving. However, as deal-making is increasingly weighted towards small, untested companies that issue at aggressive levels, participants are bracing themselves for the Indian market’s first big blow-up. Jasper Moiseiwitsch reports.
The Indian domestic bond market is brimming with confidence and is seeing a wave of structured bond issues that allow investors to bet on the shape of the government yield curve in the next five years. The deals are a further demonstration of the vibrancy of India’s domestic bond market. Shankar Ramakrishnan reports.
For the casual observer, loan market activity from India this year could seem like its all about one borrower – Reliance Group. Such has been the regularity and prolificacy of the group’s borrowing that it has not only dominated the loan markets but has managed to raise funds successfully amid a family dispute that raged on for more than half a year. Prakash Chakravarti reports.