Fund manager who predicted India credit crunch says pockets of risks remain
5 years, 6 months ago

Fund manager who predicted India credit crunch says pockets of risks remain

Live Mint  

A fund manager who predicted India’s credit crunch months before it got serious last year said that “pockets of risk” remain that could reignite investor concern. While the worst of the country’s liquidity shortage and soaring funding costs appears to have subsided for now, a string of corporate defaults suggests that those woes could come back, according to Suyash Choudhary, 40, head of fixed income at IDFC Asset Management Co. “There is still a chance that two or three such risks can interact with one another and therefore cause something bigger,” Choudhary said in an interview. Two of IDFC Asset’s funds have given the best returns among the top debt funds in India over the past year, according to Value Research data. More bad news out of India’s credit market in recent weeks suggests that investors may not have seen the last of turmoil sparked by shadow bank IL&FS Group’s debt default last year.

Credit Risk Fund Choudhary Predicted India  crunch  pockets  manager  fund  default  remain  risk  market  according  suggests  soaring  funds  risks  credit  predicted  india  choudhary  debt

History of this topic

How regulations have failed our fixed-income securities market
3 years, 3 months ago

How regulations have failed our fixed-income securities market

Live Mint  

The March 2020 redemption debacle will always be remembered as a moment of reckoning for India’s fixed- income mutual fund industry. Amid the denigration inflicted upon the industry, perhaps the greatest error of judgement pertained to the convenient omission of the fact that India lacks a credible secondary market for corporate debt securities. This means that the risk of holding …

Debt funds less exposed to risky issuers after IL&FS fiasco: Morgan Stanley
4 years, 8 months ago

Debt funds less exposed to risky issuers after IL&FS fiasco: Morgan Stanley

The Hindu  

The recent events at Franklin Templeton Mutual Fund may have increased the risk of redemptions in debt funds, but a gradual reduction in exposure towards riskier issuers in the last year and a half could limit any further downside risks. According to Morgan Stanley, mutual funds have gradually moved towards better assets after the IL&FS crisis came to the fore …

Coronavirus: Equity mutual funds give 25 pc negative returns to investors
4 years, 9 months ago

Coronavirus: Equity mutual funds give 25 pc negative returns to investors

Deccan Chronicle  

New Delhi: Equity-oriented mutual fund schemes delivered a negative return of about 25 per cent to investors over the last one month as the broader market witnessed significant downtrend amid coronavirus-triggered recession fears. The 44-player mutual fund industry is not immune to the economic blowback of covid-19, and going ahead, small and mid-cap equity schemes will continue to remain under …

IIFL bets on India’s beleaguered financial sector
5 years ago

IIFL bets on India’s beleaguered financial sector

Live Mint  

IIFL Asset Management Ltd., which oversees $3.3 billion in assets, is set to expand on a strategy of investing in the most stressed area of India’s economy: the financial services industry. The firm aims to eventually attract $1 billion from funds globally to invest in the nation’s privately owned banks, shadow lenders, insurance companies, asset management firms, stock exchanges and …

Credit crisis is easing for India’s safest corporate borrowers
5 years ago

Credit crisis is easing for India’s safest corporate borrowers

Live Mint  

India’s credit crisis appears to be winding down for the safest borrowers, but it’s hardly time to celebrate as weaker firms still struggle. Policy makers have been fighting to prevent debt markets from seizing up since the shock collapse of shadow bank IL&FS Group last year. They can take some cheer in this: spreads on top-rated corporate bonds have dropped …

Discover Related