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Nov 20, 2014
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Raghuram Rajan inflation focus spurs sales as yields drop
Reserve Bank of India (RBI) governor Raghuram Rajan’s success in curbing inflation is starting to deliver growth dividends as corporate borrowing costs drop at the fastest pace since 2009. Five-year AAA yields have fallen 55 basis points this quarter to 8.69%, the lowest level since June 2013, allowing Rural Electrification Corp. Ltd to sell notes with an 8.56% coupon last week versus 9.04% in October. PVR Ltd, which manages Bollywood movie theaters, sold bonds this year for the first time since 2010, helping lift 2014 rupee offerings to Rs.2.28 trillion, nearing a full-year forecast of a record Rs.3 trillion by Axis Bank Ltd, the nation’s top-ranked bond arranger since 2007.
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http://www.livemint.com
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