PineBridge Turns to India Company Bonds as Sovereign Cap Reached
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Global funds are turning to Indian corporate bonds after exhausting their sovereign debt quotas, helping cut funding costs for top-rated companies to an eight-month low.
The extra yield on 10-year AAA company notes over similar sovereign paper fell to 53 basis points on March 13, the least since July, data compiled by Bloomberg show. The gap, now 65 basis points, was as high as 104 last March. Overseas investors have used about 75 percent of their overall $51 billion cap for corporate debt, up from 59 percent at the end of 2014, official data show.