Indian Investors Shift to Corporate Bonds as Issuers Pause Dollar Bond Plans Amid Yield Demands
Indian investors are increasingly turning to corporate bonds as fixed deposit rates decline, seeking better post-tax returns amid improved market access and regulatory reforms. Meanwhile, Indian issuers like SBI and Bank of Baroda have paused dollar bond plans due to investor demands for higher yields amid expectations of increased bond supply. This has led issuers to reconsider timing and explore alternative financing options while navigating widening spreads over US Treasuries in global markets.