Banker Says India Credit Market Worst She’s Seen in Two Decades

The video discusses the current state of the Indian bond market, highlighting the abundance of liquidity in AAA bonds and the challenges faced by non-AAA markets. It addresses the issue of non-performing loans and the steps taken by the government, including the establishment of a bad bank. The video also provides advice to clients on whether to borrow via bonds or loans, depending on their credit rating. Finally, it explores opportunities for Indian corporates in the overseas market, particularly in raising funds through dollar bonds.

What is the current state of the Indian bond market for AAA-rated bonds?

• There is a stable market with moderate yields.

• There is a lack of liquidity with high yields.

• There is a flood of liquidity with low yields.

• There is a crisis with high yields.

Which market is identified as needing growth alongside the AAA bond market?

• The real estate market

• The AA and below bond market

• The equity market

• The foreign exchange market

What steps has the Indian government taken to address non-performing loans?

• Increased interest rates

• Established a bad bank

• Reduced taxes on loans

• Implemented stricter lending policies

What is the advice given to AAA and AA+ companies regarding borrowing?

• Borrow from international markets

• Avoid borrowing altogether

• Access the bond market

• Access the loan market

What is the potential benefit for Indian companies raising funds in the overseas market?

• Limited market understanding

• Short-term funding

• Long-term funding

• High interest rates